KC School Board hears about recent audit, finances, possible construction change orders
By Christopher Miller
BALD EAGLE TOWNSHIP – Keystone Central School Board Members were involved in a lengthy work session Thursday night involving great discussion of finances.
Financial consulting firm Baker Tilly was on hand to provide a thorough overview of the school district audit for the fiscal year ending June 30, 2023.
“There was a fairly chaotic turnover in 2022 in the district business office which had an impact on the June 30, 2022 audit and some lingering effects into the June 30, 2023 audit,” a representative of Baker Tilly explained.
The cause of this was due to the district experiencing a fair-sized staff turnover during the beginning of the year that led to “certain accounting activities” not being completed on a timely basis and certain adjustments being overlooked, “while incoming personnel were becoming acclimated” to the business office climate.
The general summary of the audit revealed that there were positive budget results, and a general fund balance increase of approximately $2 million.
“The general fund balance is healthy, having a balance of about $17 million in 2022, and $19 million in June 2023,” Baker Tilly said. “General fund revenues are mostly from real estate and earned income taxes which provided for $35 million, and state funding adding an additional $42 million and around $6 million in federal funding.”
Capital assets within the district are nearly $52 million, and capital additions at $2.4 million which include things such as the middle school track, parking lots, Liberty-Curtin Elementary, Bucktail HVAC, gym, floor, roof, and carpet.
The April 11 School Board Meeting will see a review of the proposed General Fund Budget which will then be posted for public inspection, with formal adoption of the final budget on June 13.
Also falling under the domain of finance was the repository sale of properties along 14th Street in Renovo Borough.
The three properties in the row building suffered significantly from a fire there a few years ago. “The people were evicted when the building was condemned and considered uninhabitable,” said Board President Butch Knauff. “Renovo Borough will be buying the buildings and using FEMA funds to tear them down at a cost of $600 per unit, $1,800 total, which I was compelled to agree with.”
Facilities representative Jeff Johnston provided updates on Liberty-Curtin Elementary School.
“There is ongoing asbestos removal in the floor tiles which is going to cost $75,000, the retention pond is almost 95% complete, and the stripping of asphalt and footers can begin to be formed as soon as possibly Monday,” he said.
Johnston also mentioned that some things were found underground that were most likely overlooked and buried in the 70s prior to more modern environmental protection laws.
“A tank with old stone and motor oil residue was found, probably dumped and buried at the site in the 70s, so they were able to dig it up and put it in a contained and lined area for soil testing, we should have those results soon,” he said.
Portions of an old septic system on the site to process wastewater was also found underground which Chris Scaff described as “highly unusual to find underground” at the site. “It was under the assumption that this was remediated 40 or so years ago,” Butch Knauff explained. “They most likely just took junk, threw it in the hole and then filled it in back then,” Butch said.
“No one here was notified about this additional $22,000 expenditure,” Scaff mentioned. Board Member Tom Cannon posed the question, “why were tanks excavated from this location if they aren’t building anything there.”
As well with facilities, the Bucktail gym walls “may need to have some things addressed,” Johnston mentioned, and that the “drawings for the new canopy over the main entrance of the middle school look very nice.”
Another point of major conversation was the change order procedure for construction at Liberty-Curtin Elementary.
“It is typical in construction to authorize a change order procedure to keep projects moving,” Johnston said, “which the builder has the authority to approve anything up to $15,000 if a change needs to occur, anything between $15,000 and $30,000 would need to come to a Facilities Committee vote, and then anything in excess of $30,000 would go to the school board to vote on…it’s pretty standard stuff.”
“Some things could be a month’s delay or more, depending on waiting until the next school board meeting to vote on items, so are you saying we need to have a special board meeting to discuss every time something unexpected happens,” Johnston asked. “Being able for someone to do this without the board having a say of what is being done or spent, why does it not say anything in the change order procedure about oversight,” Scaff asked.
“Not granting free reign to anyone,” Superintendent Redmon said, “if a project goes over time, we must make changes in a timely fashion to keep up with the schedule and for moving the students into the new school.”
“I just want to do things fiscally responsible and to make sure we are doing it right and not violating the law,” Scaff said. Knauff recommended reaching out to the school district attorney to look over the change order procedure to provide more insight into the proper way to handle construction emergencies and to keep the construction running on schedule.
The school board also heard from Michelle Whitney during the visitor public comment portion of the work session, bringing up an alleged violation of the Sunshine Law. “At the facilities committee meeting which I had attended, there was no room for public comment which is in direct violation of the Sunshine Law.” The school board did not offer a comment on the alleged violation.
A special voting meeting was held after the Thursday evening work session where the school board approved a few items, one of which was the renewal of of the $7 million CD rate for three months at 5.25% which would yield $91,875 in interest, and approving the renewal of the Food Service $200,000 CD rate for three months at 5.25%, yielding $2,726 in interest.
Additionally, the board approved resolution #145 and 146 authorizing the Superintendent to electronically sign any and all CTE contracts, agreements, grants and/or licenses with the Pennsylvania Department of Education, and authorizing the Superintendent to electronically sign any and all KCSD contracts, agreements, grants and/or licenses with the Pennsylvania Department of Education.
The school district voting session will take place next Thursday evening, March 14, at 6:30 PM at the Administrative Building.
