Finance Committee Meeting
Date: 2/29/2016
MINUTES
Members Present: Frank O'Donnell (chair), Josephine Charnock, Edward Diasio
Members Absent: None
Others Present: Curt Dietrich, Kristen Landis, Carolyn Murphy, Brian Pawling, Steve Skrocki
Meeting called to order at: 7:13 p.m.
Prior meeting minutes: 2/1/2016
ITEMS RECOMMENDED
FOR WORKSESSION /
ACTION MEETING
Budget Transfers No discussion.
Tax Collector Audits
North Montco Technical
Career Center Roofing
Project
NEW BUSINESS
COMMENTS
Mr. Skrocki presented the tax collector audits for Upper Gwynedd and Towamencin
Townships. These were selected by the district's auditor, Maillie LLC, for this year's sampling
of two tax collectors to be audited. Maillie found no issues and all receipts were verified for
accuracy.
Mr. Skrocki discussed the background on the roofing project at the North Montco Technical
Career Center (NMTCC). Roof repairs were identified a year ago as a necessary upgrade
project. There are two parts of funding for project; $500,000 will come from NMTCC capital
reserve funds and the remainder will be paid by the member districts. There are two different
methodologies of calculating the proportionate share from each member district as detailed in
the resolution. Bids were received with 15 responses and the low bidder, Laurant
Construction Co. Inc., was identified as the apparent low bidder at a total cost of $978,390
with alternates included. The project's architect fees are being paid from North Montco
general fund operating budget. NMTCC will pay a clerk of the works from the general fund
budget which will most likely be their facilities supervisor. No bond proceeds will be used for
this project and large change orders would come back to member districts for approval. A
majority vote on approval of the resolution from the member districts is required. The survey
amounts on page one of resolution were meant as an estimate before bids were received.
Mr. O'Donnell requested feedback from Peter Medica, architect from Bonnett Associates, on
how he would evaluate a low bidder and compare that to NMTCC's process. Mr. Diasio and
Ms. Charnock voiced concerns with the specifications and the history of the low bid vendor
with comparable jobs and voted no to recommend this to the board worksession. The
committee will move this item forward to the worksession for discussion even with the no
votes from Mr. Diasio and Ms. Charnock.
COMMENTS
Mr. Skrocki discussed the digital technology initiative and the provided cost spreadsheet.
$1.3 million is already included in the 2016-2017 budget for a technology equipment lease
and that amount could be scaled back from original amount. Dr. Landis discussed the project
and the goal that the district students be at a 1 to 1 level with technology devices within 3
years. The network infrastructure needs to be in-place of upgraded wireless technology and
bandwidth capability to support the devices. The lease structure would be needed to support
the project and costs as detailed on the spreadsheet. Dr. Landis also recommended a usage
Digital Technology Initiative fee and lease to own fee to help offset costs. This initiative would allow the transition from
paper to digital textbooks. Device screen time would be balanced with regular instruction and
web filtering would be enabled for home use. Dr. Dietrich recommended creating a parent
focus group or a community forum to get feedback on the initiative and the fee
structure/lease to own amount from stakeholders. There has also been discussion with the
North Penn Educational Foundation to have a program in place to help students who cannot
afford the costs of having a device.
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2016-17 State Budget and
Preliminary Budget Update
Fiscal Comparisons
Petty Cash
Forecast5 Demonstration
Mr. Skrocki presented information on the state budget impasse and the effect on district
revenues. Mr. Skrocki presented that the business office would be reducing the current 201617 budget figures for state revenue based on current information. Mr. Skrocki reported that
he and Mr. Pawling had conducted budget meetings with every principal and department
head in February about reductions to their budgets. Other changes to the budget will include
an increase in healthcare costs as well as reduction in state subsidy revenue. Another
budget update will be provided at the March committee meeting.
Mr. Skrocki presented a report from Maillie, LLC with school district audited financial
information without identification of those districts. Highlights discussed were North Penn's
healthy cash and investment balance, reliance on property tax revenue across the board in
Montgomery County, and that North Penn has the second largest fund balance of the
sampled districts. The report also showed that 6 schools have 80% or higher local revenue
amounts to the total revenue budget. North Penn had the second largest food service
program income last year of the 24 sample districts.
Mr. Skrocki discussed the elimination of petty cash at the end of the 2015-16 school year at
each district building. The elimination was discussed with building and central office
administrators during the budget meetings and none of them indicated removing petty cash
would create a hardship.
Mr. Skrocki provided a brief description of the Forecast 5 software and data analytics which
provides annual comparative school district data statewide. Examples were given of
comparative transportation data and per pupil cost to other similar size districts from different
geographic areas.
INFORMATIONAL ITEMS
COMMENTS
Revenue and Expense
No discussion.
Projections
General Fund Financial
No discussion.
Reports
Salary Schedule No discussion.
EIT, Transfer and
Delinquent Property Tax
Community Education Fund
Statements
Extended Care Fund
Statements
Nutrition Services Fund
Statements
Investment Reports Monthly & YTD
Short Term Capital Projects
Cash Forecast
Hatfield Construction
Project Costs
No discussion.
No discussion.
No discussion.
No discussion.
No discussion.
No discussion.
No discussion.
Budgetary Reserve Report No discussion.
Special Education Report No discussion.
Items for Worksession/Action meeting
January Budget Transfers - 3/17/16 Action Meeting
Summary of Items Moved to
Worksession and/or Action Tax Collector Audits - 3/17/16 Action Meeting
Meeting
North Montco Roofing Resolution - 3/8/16 Worksession
Public Comments:
None
Meeting Adjourned at:
8:58 p.m.
The next meeting will be on Tuesday, March 29, 2016 at 6:30 p.m. at ESC
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