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Bath schools end with $300,000+ surplus
Board wants to know where the money went
BY CYNTHIA B. COLEMAN • STAFF WRITER
WARM SPRINGS - During Tuesday's Bath County School Board meeting, members voiced repeated questions concerning the fiscal year close-out report where they learned of a $323,140 budget surplus and how the surplus was spent.
Justin Rider, school administration business manager, went through various line items on both the budget surplus and the use of savings or expenses for the fiscal year 2006- 07.
The total amount of the budget surplus came to $318,09; the remaining $5,042 was spent on miscellaneous items like filters for the buses.
In the category of instruction, $170,535 was spent, with the largest amounts paying for the SPED reading program, desktop computers, elementary music textbooks, classroom projectors, and MES/VES distance learning video equipment, totaling $133,930. These items were purchased, Rider explained, due to "declining test scores."
Regarding administration, the surplus was used for a speech bill, PDAs, a color laser printer, postage and office equipment for a total of $25,436.
Allocated to transportation was $63,777, which paid for items from a truck to a portable platform/catwalk to motor oil and toolsets. Spent on maintenance was $28,293, from heating oil to worker's compensation. And for prepaying food and a new refrigerator/warming cabinet, food service received $30,054.
Board members expressed concern about the large amount of surplus. Rider gave two reasons for the amount - a savings in hospitalization insurance expenses due to it being an enrollment year, and through a savings with a lower insurance premium. Rider told the board that next year, "We will not have the luxury of savings."
Board member Jake Cleek asked if the surplus was known in time to give teachers a 1.25 percent raise.
Rider said such a raise "would not pass an auditor's smell test."
In other words, during a fiscal year when a raise was not budgeted, the raise would be considered a bonus, thereby violating Virginia Retirement System provisions. The raise would also show up on the financial report as an asset rather than as an expenditure, he said.
Board member Kay Hicklin asked how some school systems are able to give merit bonuses.
Rider said such bonuses would be run through payroll and therefore taxed at a higher rate, adding he had never viewed financial reports of a school system with merit raises.
Board chair Kaye May, suggested a policy be developed for merit bonuses, though no action was taken.
Several members felt the board should have been apprised of certain purchases. Cleek said anything over $500 should be approved by the board.
Hicklin wondered about the dates of some of the purchases and was told some items were purchased earlier in the school year, with invoices just now arriving in June.
Superintendent Dave Smith said it was a "difficult year,"
with Delta Dental Insurance, for example, creating 26 errors in billing.
Cleek insisted "there ought to be a cap" on these expenses, suggesting some items be put out to bid.
Smith stated only three bids have been received.
Concern was expressed over the $42,000 reading program. School administrators told the board SPED Reading is a "high needs reading program" taught both by teachers and through computers. This program ranges in instructional grade levels from 1-12. Two days of staff development is included in the expense, and also trains aides in the program's techniques.
Board member Barbara Waldeck expressed concern whether school riding mowers were equipped with roll bars. She also asked whether the carpentry class and its teacher Mr. Jenkins could each receive a planer and table saw. Further, she wondered how important the piano is at Valley Elementary School.
Smith asked what could be removed from the surplus money expenses for planers and saws; board members declined to have items removed.
Rider asked to make a recommendation. "In worker's comp," he explained, "we have a dividend I hold for a rainy day of $5,000."
Smith asked to speak privately with Rider, and after stepping outside the board room for several minutes, returned suggesting the board move to use this dividend to purchase a radial arm saw "not to exceed $5,000."
Waldeck made the motion, which passed unanimously.
After Rider's explanation of how the surplus was spent, the board approved the close-out 3-2, with Cleek and Hicklin dissenting.
Subcommittee requested
During the superintendent's report, Waldeck told the board she was approached by an individual concerning the schools and wondered how to proceed. This person, who had a list of names that Waldeck declined to view, asked that a motion be made to create a school board subcommittee to hear closed interviews from the community, and then report to the board during a closed session, in order to "actively work to prevent issues in the coming school year" dealing with violence and sexual misconduct.
Waldeck asked the board what she should do.
May asked Waldeck to better define what her statement meant, and Waldeck asked if she needed permission to talk with this group, as they "only want to talk to a board member."
May told Waldeck she did not need the board's permission.
Smith agreed, though he ex- pressed some concern if the issue was related to student or adult behavior.
Rider was concerned about the community's perception of the board. "If this is how people see the board, we need to change something ... people need to feel free to discuss with all of us here."
He also voiced concern over accusations being made when the accuser could remain nameless.
Smith said parents talk to board members, though "anonymity may hinder results of an investigation - the more details, the better," and cautioned Waldeck about "putting herself in jeopardy."
The board made no motion on Waldeck's report and there was no further discussion on the subject.
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