Finance committee approves referral of OE‑5 fund‑balance change to full board

The Beaufort County Board of Education Finance Committee voted to approve and refer a proposed revision to OE‑5 (the district's financial‑planning policy) to the full board for further consideration. Miss Hayes moved the motion and Miss Gordon seconded; the committee responded with affirmative votes and the motion passed at the committee level.

CFO Miss Crosby presented the recommended change, saying the proposal would replace the current percentage range with a minimum of "60 days of next year's operations," aligning the district with Government Finance Officers Association best practices and supporting the district's credit rating. Crosby told the committee the district has maintained about a 20% unassigned fund balance in recent years and that a stronger reserve helps avoid short‑term borrowing: "Our district's AA1 credit rating depends in part on maintaining the reserves..." she said. Crosby also noted the district is preparing for a bond issuance and that rating agencies want clarity on whether fund balance will be used for ongoing operations.

Committee discussion focused on how the operating fund balance differs from the debt‑service fund. Staff clarified the debt‑service fund uses a dollar low point (approximately $4–5 million) because of the timing of principal and interest payments, while the proposed OE‑5 language would standardize an operating reserve measured in days of coverage. Miss Hayes moved that the finance committee approve the proposed changes "to OE‑5 financial planning and refer to the full board for further consideration," and Miss Gordon seconded the motion; the Chair called for the ayes and the motion passed at the committee level. The committee did not record a roll‑call tally in the transcript; the motion will be considered by the full board in a subsequent meeting.