Granite City Town Hall Meeting

March 25, 2014

Presented by Steve Knogl

Why has the District stated that the increasing cost of the

teacher’s salaries and benefits along with the reductions in

revenue are what is putting the District in deficit?

Revenue- From the District’s Proposal

GSA- From the District’s Proposal

General State Aid

2011-2012

$19,427,479

2012-2013

$19,575,581

2013-2014

$19,789,189

This is an increase of $364,710

EAV-From the District’s Proposal

• Without a multiplier, these numbers are almost meaningless.

• In the Board presentation this was said to be an “Initial Estimate”

Initial Estimate= A GUESS

Ed Fund-From the District’s Proposal

Ed Fund

2011-2012

$5,293,033

2012-2013

$5,602,113

2013-2014

$6,344,018

This is an increase of $1,050,985

Ed Fund Revenue-From the District’s Proposal

Ed Fund Revenue

2011-2012

$33,353,325

2012-2013

$35,325,124

2013-2014

$35,411,508

This is an increase of $2,058,183

Ed Fund-From the District’s Proposal

Ed Fund Overview

2011-2012 2012-2013 2013-1014$48,000,000 $49,000,000 $49,000,000

$53,000,000 $55,000,000 $52,000,000

Expenditures- Constant or reduced?

2011-2012 2012-2013 2013-1014

Revenue

Expenditures

TEACHER SALARY(TRS contribution included)

2012-2013

$26,766,151$25,280,787

2013-2014

$24,451,000(Projected with Step)

DECREASING!

2014-2015

Teacher Health Care

$4,153,680 $4,266,000 $4,253,400

Steady for nearly 400 people

2011-2012 2012-2013 2013-1014

Inflated Teacher Salaries

• Publications show inflation of teacher salaries

• Beginning GCSD9 teacher salary

• Base $35,887 Cost $39,610

• Beginning GCSD9 Superintendent salary

• Base $ 161,547 Cost $187, 807

• Currently, our top 8 Administrators cost the District over $1.2 million, including retirement, healthcare, & fringe benefits

• The District Cut Package had no cuts in administration?

Unnecessary Spending

• The District employs 3 attorneys to represent them at negotiations.

• This costs $750-$1,000 an hour

• The Local’s negotiation team includes 6 teachers, who do this voluntarily

• Who is looking out for the Districts spending?

• Let’s look at Scholarships

• Let’s look at Grants

• Let’s look at Title

• Let’s look at the money not mentioned to the community

• The only way to truly ever understand the Granite City School District’s finances is….

•Forensic Audit

•Line Item Budget

Regarding General State Aid (from ISBE)

Finding #1-The school district’s summary for attendance computation was incorrect. The district commingled attendance data for various categories resulting in duplicative errors especially in the elementary category. These errors decreased the original best three month ADA by 893.5 days or 13.33 pupils.

Finding #3-The LEA (Local Education Agency) claimed attendance of half day Early Childhood Special Education pupils as full day instead of half day. This error decreased the original best three month Average Daily Attendance (ADA) by 2,829 days, or 42.22 pupils.

Regarding Transportation(from ISBE)

Finding #3-

The LEA understated revenues as reconciled with the Annual Financial Report. The District did not properly account for all revenues to be recognized and had treated some as direct offset to the expense account. However, the District failed to recognize deductible special education revenues including those of the special education orphanage pupils totaling $62,222. The non-deductible field trip revenues totaled $25,381.

Regarding Title - Low Income(from ISBE)

• Finding #3-The grant recipient did not maintain separate expenditure accounts or subsidiary ledger accounts for grant expenditures. The review noted that the District’s general ledger accounts did not adequately delineate expenditures between two fiscal years. Also, expenditures were obligated before the project begin date and have been included in the District’s June 30, 2013 expenditure report.

• Finding #4-Salaries paid from grant funds were not approved and/or accurate. The District expended grant funds in Salaries and Benefits before the October 15, 2012 project begin date. The net effect was an overstatement of salaries and benefits totaling $302,407.

Title II- Teacher Quality(from ISBE)

• Finding #2

The grant recipient did not submit timely periodic expenditure reports. All quarterly expenditure reports were not submitted within the 20 days required at the end of the quarter or period.

GCSD9 Auditor’s Report

• 2012- “As in year prior, we noted some journal entries that were not reviewed and approved prior to entry into the general ledger”

• “Without proper controls in place, management has the ability to override controls.”

• Pg 43

GCSD9 Auditor’s Report

• 2012- Bank balances should be reconciled to the general ledger and differences should be investigated and resolved.

• The District obligated funds prior to submitting an application for approval for the Title 1 grant money.

GCSD9 Auditor’s Report

• 2012- The District was required to file 4 expenditures reports for the 2012 project year. The District failed to submit ALL 4 expenditure reports within the correct time frame.

• Of the 17 cells, on the June 30, 2012 report, 6 cells were understated and 1 was overstated.

GCSD9 Auditor’s Report

• During the test of 40 expenditures for the Title 1 program, we noted 13 expenditures that were not included in the District’s program budget and 4 expenditures that were not properly supported with an invoice or did not have a stated purpose

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