ERCSD Finance Committee Meeting Minutes

March 8, 2006 – 5:00 PM

SAU Office

 

 

MEMBERS PRESENT:       Greg Kann, Robin Scott

 

ADMINISTRATION PRESENT:    Skip Hanson, Walter Pierce, Nathan Lunney

 

Chair Kann opened the meeting at 5:07 PM.  The following agenda items were discussed.

 

1.      Approval of Minutes:  Robin Scott made the motion to accept the minutes as presented of the January 3, 2006 and February 9, 2006 meetings.  The motion was seconded by Greg Kann and with a unanimous vote the motion was passed.

 

2.      Trust Funds Balances Update:  Nathan reported that a month end summary for February is not yet available.  Following the February 9^th meeting, Nathan did instruct the Trustees of Trust Funds that substantial funds could be invested in 12 month vehicles to maximize returns.  There has not yet been a response from the trustees, but Nathan will update the committee when more information is available.

 

3.      February Financial Statement:  The committee reviewed the February ending financial statement.  Nathan shared that this statement is a current operating document and does not include all of the insight that was included in the preliminary fund balance analysis presented in December.  Nathan explained that he works fund balance analysis in Excel, but monthly reporting is directly from the accounting system.  The encumbrance figures in the monthly financial statement are accurate for actual encumbrances to date.  They do not reflect, for instance, supplies or equipment purchases that are anticipated before June 30^th but have yet to be initiated.  Nathan wanted to emphasize that the current balance remaining should not be considered a projected fund balance.

 

4.      Update on Electricity Contract:  Nathan reported that the SAU did successfully contract for electricity for the G1 and G2 rate class accounts throughout the Cooperative and four of the six elementary districts.  The subsidized rates of the regulated utility expired as a part of the transition to de-regulation for the larger G1 rates back on November 1, 2005.  The subsidized G2 rates are set to expire on April 30, 2006.  Currently the default rate for the energy supply in the G1 class is nearly $0.14 per kWh.  We contracted for three years at $0.0929 per kWh guaranteed at any consumption level.  The current G2 rate is about $0.055 per kWh, but that rate is expected to climb beyond $0.10 per kWh in May, so the contract will save those accounts as well.

 

5.      Update on EHS Project:  Walter alerted the committee that there would be a new change order introduced at the next Facilities Committee meeting.  C/O #7 will include 8 sub-items and total about $30,000.  He briefly reviewed the items addressed in this order.  Work on furniture continues; student desks and chairs have been ordered.  Walter is working specifically on furniture for the music and library areas.  Project budget balances continue to be as expected and recently reported.  Walter shared an excerpt from a recent edition of the Boston Globe that described regional school building projects and the massive cost overruns that are being realized.  Of special note was Everett, Massachusetts High School where the approved $54 million budget will not be able to cover the $68 million costs now estimated to complete the original scope.  We have been very lucky to keep costs contained in this economic climate.

 

6.      Next Meeting Date:  The next meeting will be Tuesday, April 4, 2006 at 5:00pm at the SAU office.

 

The committee chair asked that the school district auditor be invited to attend the April meeting to offer report on the annual audit.  Nathan will make the arrangements.

 

There was a motion to adjourn which was seconded and with a unanimous vote the meeting was adjourned at 6:02 PM.

 

Respectfully submitted,

Nathan Lunney