CPA Ripp Provides Advice to New Lincoln-Way 210 Finance Committee

Frankfort CPA Robert Ripp has advice for the Lincoln-Way 210 Finance and Building Committee after attending it's first meeting.

On May 1, Ripp emailed Board members Christopher Lucchetti and Kathleen Casey providing his take on all aspects of the new committee, ranging from transparency to reporting of finances.

So far, there has not been a response to the email.

Ripp's email can be read on the Lincoln-Way Area Taxpayer Unite's website here:

http://www.lwatu.org/#!finance-committee/dxjue

Full text here:

"May 1, 2016

Ms. Kathy Casey

Mr. Christopher Lucchetti

Thank you for attending the inaugural District 210 Finance and Building Advisory Committee last Thursday. Since the committee has been in the works for the last six months, I expected a more detailed agenda and structure for the meeting.

"Some areas the advisory committee should consider are listed below.

Internal Financial Reporting Committee

Assistant (sic) administration in developing accurate annual budgets and amended budgets, when required, that are in compliance with the Illinois School Code

Analyze the pros and cons of switching from the modified cash basis of accounting to the accrual basis of accounting.

Determine effect on ISBEs financial profile score and effect on monthly internal financial reporting consistency

Assist administration in developing meaningful monthly Treasurers Reports in the Districts new Skyward software (current period vs prior year current period, current year to date vs prior year to date, current month vs current month budget, year to date actual vs year to date budget)

Review duties and responsibilities of the current D210 Treasurer position and make recommendations for changes to ensure the District is in compliance with the applicable sections of the Illinois SchoolCode

Assist administration in the development of an organizational chart for business department employees of D210

Review existing internal control structure (administration integrity, competent personnel, segregation of duties, maintenance of records, and safeguards (physical and intangible)

Assist administration in developing and implementing appropriate an effective internal control structure

Review monthly detailed Student Activity accounts to ensure District expenses are not transacted in these accounts

Review Board of Educations 5 year fiscal projections for all programs (Board Goal 3a)

Recommended reading: "Mechanics of a School District Budget -March 2015”(ISBE)23 Illinois Admin Code Part 100 -requirements for Accounting, Budgeting, Financial Reporting and Auditing Illinois Program Accounting Manual (IPAM) issued by ISBE

External Financial Reporting Committee

Ensure D210s Audit Committee begins to function (agendas, meetings, minutes, etc)

Assist administration in developing effective Audit Committee policies and procedures

Assist administration in the development of an appropriate Fraud Risk Assessment Program

Review D210s calculation of OEPP, PCTC, and Limitation on Administrative Costs

Assist administration in developing an appropriate journal entry procedure

Review all RFPs for financial related contracts (annual financial audits, AUP engagements, forensic audits, etc)

Review all engagement letters, management letters, management representation letters, draft and final audit and other attestation reports

Meet with external auditors (without administration present) to discuss results of annual audits

Review all audit findings

Evaluate administration's response to audit findings

Track the status of current year and prior year audit findings

Recommended reading –“Essentials of Illinois Finances” (IASB -$35)

Operations Committee

Review current transportation operations (verify that all D210 transportation costs are being captured and are being billed back to feeder districts in accordance with inter-governmental agreements

Investigate options for outsourcing transportation function in connection with existing and pending legislation

Review current food service operations and perform cost analysis of outsourcing food service operations in connection with existing and pending legislation

Drivers Education Program -perform a cost analysis on current drivers Ed program and develop recommendations for proposed changes, if any. Assist management in developing a policy to ensure future waiver deadlines are not missed

Special education -analyze existing special education program and alternative options available to the District

Physical Ed Waivers -investigate the cost benefits associated in applying for an ISBE physical education waiver

Daycare operations -develop RFP for vendors. Request current day care provider pay rent until administration is able to prepare a RFP

Obtain a listing of all of the Districts contracts Cost containment -review existing contractual agreements.

Obtain a listing from administration of the Districts ten largest non-payroll vendors and obtain competitive bids for these goods and services, whether or not these goods and services are exempt from mandatory competitive bid requirements

Assist administration in the development of competitive bidding policies that are respectful of the District’s taxpayers

Development Committee Analysis of D210's current fee structure and compare to other nearby school Districts

Prepare feasibility study of instituting student activity fees

Review procedures and D210’s compliance with ISBE Tuition and Fee waiver documentation requirements

Corporate fundraising -investigate opportunities and apply for federal, Illinois and private grants

Review financial transactions with foundation. Determine if the District should continue paying the salary and benefits of Foundation staff

Human Resources Committee

Review existing fringe benefits for certified and non-certified staff (health, dental, vision, life, etc)

CBA negotiations -take IASB training on CBA process Recruit individuals with prior CBA negotiation experience to be part of CBA process to ensure all interested parties (including taxpayers) interests are represented in fair and open negotiations

Workers comp analysis

Unemployment analysis

Overtime monitoring

Review existing expense reimbursement policies

Recommended reading –“Collective Bargaining and the Illinois Board Member -Third Edition”(IASB -$10)

Buildings and Grounds Committee

Through discussions with administration and Chapman and Cutler, obtain a clear understanding of the restrictions, if any, contained in the District's bond covenants as they relate to specific D210's properties

Develop a capital development budget for planned future improvements and a corresponding plan for funding those improvements

Develop a disposal strategy for D210’s three unused school sites and two residential lots in accordance with the Illinois School Code requirements

Monitor utility costs at all facilities

Investigate options for reducing utility costs

Develop an understanding of the existing Co Gen facilities at the Districts facilities and monitor compliance with this program

Develop a plan for eliminating deficit in the student activity funds -building trades program

Recommended reading–“Good School Maintenance -Fourth Edition” (IASB -$40)

Bond Committee

Recruit an individual that has the specialized experience in municipal bond financing to oversee the Districts bond counsel and investment advisors in managing the Districts bond portfolio

Through discussions with the District's bond counsel, obtain a clear understanding of the restrictions, if any, imposed by the District's bond covenants as they relate to the allowable uses of any of the District's properties

Review and monitor all annual disclosures requirements for the District's existing bond issues

Review all current operating and capital leases of the District for proper classification and possible opportunities for cost reductions

Cash management analysis including investigating alternatives to existing pooled funds account with Illinois Funds

Transparency Committee

Inform advisory board members they fall under the jurisdiction of the OMA

Designate an individual as the Public Access Counselor for the advisory board

Develop a plan for scheduling and monitoring individual advisory members compliance with required OMA training within 90 days of appointment

Develop policy of posting entire advisory board packet 2 days prior to each meeting

Develop a Conflict of Interest policy for members of the D210 board, advisory board and Foundation board. Consider a policy that covers both actual conflicts and appearances of conflicts

Review existing Whistleblower policy

Establish a document retention schedule that allows for retrospective review of all D210 transactionsReview all FOIA requests on a monthly basis

Institute a half hour segment after each advisory meeting to interact openly and transparently with taxpayers who have attended your meeting. Encourage administration to do the same.

All of the committees should be working committees.

Meetings should be held twice a month -not once a month.

Future board members should be appointed based on qualifications and ability to effectively carry out the goals of the advisory committee -not based solely where they live.

Respectfully,

Robert Ripp

District 210 Taxpayer and Parent"