November 12, 2007
RICH TOWNSHIP HIGH SCHOOL DISTRICT 227
BUDGET/PROPERTY COMMITTEE MEETING
NOVEMBER 12, 2007
The joint Budget/Property Committees of the Board of Education met on Monday, November 12, 2007, in the Board Room at the District Administrative Center, Olympia Fields, Illinois.
Mrs. Norwood called the meeting to order at 6:03 p.m.
Present: Norwood (Chair, Property), Brookins (Member, Property), Moten (Member, Property and Chair, Budget), Upshaw (Member, Budget), Imoukhuede (Member, Budget)
Also Present: Mrs. Owens, Mr. Hunigan, Mr. Hampton, Mrs. Treichel, Mr. Dutkiewicz (Midwest), Mr. Reid (Midwest), Mr. Mace (Midwest), Mr. Williams, Mr. Cedric Hampton, Mr. Veazey, Mr. Dwyer, Mr. Hopman, Mr. Licatesi, Ms. Nelson, Dr. Kirkwood, Ms. Birts, Ms. Aaron
Mrs. Norwood turned the meeting over to Mr. Hampton, who recognized Mr. Mace. Mr. Mace discussed the “Audit Report of Cash Receipts.” He noted that there was a turnover in cashiers in the District, and controls were missing because no one passed them down. Policies and procedures regarding cash receipts need to be documented. There are new auditing standards which need to be in place. Mr. Mace noted that the individuals he talked to wanted to do a good job but consistency is needed. Basically, the District does a good job of collecting money and recording money. There seems to be a disconnect in the process of noting how much money has been collected and how much is deposited.
Mr. Mace noted there are good forms in place but inconsistent use. The forms need to be signed by the person overseeing the cashier. That person should check the amount listed on the form and reconcile it. Every time cash trades hands, there should be evidence.
Regarding bank reconciliations, there is a segregation of duties problem. The District needs to make sure the Associate Principal reviews the bank reconciliations each month.
Fund statements need to go out to the club sponsors each month. Those accounts that do not have specifically assigned club sponsors, the statements need to go to the Associate Principal.
In regards to vending machines, Mr. Mace recommended contracting with one of the vendors and they will cut a check each month to the District.
Gate receipts. The employees do a good job of collecting the cash. When they collect cash and tally up for the night, two individuals should count and agree, put the money in an envelope, seal the envelope and sign their names over the seal. The cashier can compare the amount of cash with the amount listed by the two individuals. Another process that can be used is that the cashier could have a log of tickets. Tickets can be compared to the cash collected. The person taking the tickets should tear them so they are effectively canceled. Mr. Mace is recommending the ticket-taking system for gate receipts and will conduct the training.
Boosters should handle their own cash receipts.
The District needs to contact the local banks to see if there are any unauthorized accounts set up.
Check signing should be limited to administrators.
When new procedures are in place, training needs to take place.
Mrs. Moten asked how long the process took from collection to deposit. Mr. Mace responded that he didn’t test the process per se. His sense was that it was pretty timely. Money got to the cashier in a reasonable fashion.
Mrs. Moten asked if the Board could find out for sure. Mr. Hampton responded that he will find out how long it takes from the gate to the cashier and from the cashier to the bank.
Mrs. Moten asked if the vending machine procedures were going to change. Mr. Hampton noted that he would make a recommendation to the Athletic Directors that Pepsi stock the District’s vending machines. This procedure takes away so many hands from being involved in the process. He said he will find out the amount of commission the schools will receive.
Mr. Hampton noted that he would be working with Ms. Judy Regan, the District’s cashier who has been here the longest. The District doesn’t have a procedural manual. He is working with Ms. Regan in the preparation of a procedural manual. The manual will give guidelines of what the processes should be. Ms. Regan has agreed to helping with the manual. Mr. Mace has agreed to review the manual. All the controls and processes will be in the manual.
Mrs. Brookins asked how quickly we will get our procedures in place.
Mr. Hampton responded he plans on starting training immediately.
Mr. Hampton noted that he will be adding a courier to the process. A Security Officer will be conducting deposits for the District.
Mrs. Brookins asked about the signing of checks. Mr. Hampton responded that the administrators will sign the checks and also review the reconciliations.
Mrs. Upshaw asked about technology in the process. Mr. Hampton responded that the cashiers work with Quick Books.
Mrs. Upshaw asked about an audit. Mr. Hampton responded that the District had an audit earlier in the year. He will make sure she receives a copy of the audit.
Mrs. Upshaw asked how the District will know if the processes are really working. Mr. Hampton responded that he will stay on top of the administrators.
Mrs. Owens asked if Mr. Hampton had determined the banks used. Mr. Hampton said the banks used are U.S. Bank, Charter One, and Harris Bank.
Mrs. Owens asked for approved banks. Mr. Hampton said he didn’t have the list but would get it for the Board.
Mr. Hunigan added that the Administration will bring this topic back to the Board in early spring to inform them of the progress that has been made. The intent is that before the year is over, the processes will be implemented.
Mr. Hampton brought up the tax levy. He noted that the tentative levy needs to be approved at the meeting on Wednesday night. Since the tentative levy is less than 5%, the District does not need to publish. The levy will be on the agenda for approval at the December 11, 2007, Board meeting. Mr. Hampton said that the District will levy for as much as it can.
Mr. Imoukhuede asked what happens if the projection for new property is less than stated. Mr. Hampton responded that the District will get every dollar it is entitled to.
Mr. Hampton noted that the District had received quotes for major medical and dental insurance from Blue Cross/Blue Shield. Blue Cross had quoted a 17.5% increase in premiums. The District asked Blue Cross to look at the data again. They came back with a 15% increase. The District had negotiated the language out of the contract regarding having to use Blue Cross/Blue Shield for its insurance. The District bid the plan but felt it was best to stay with Blue Cross/Blue Shield after they lowered their increase to 10%. The District presented AETNA insurance to the insurance committee, and it was well received. There will be value added items – vision, wellness. A motion will be on the
agenda for Wednesday night for approval of AETNA for the District’s dental insurance carrier.
Mr. Veazey was recognized. He noted that the District bid out life insurance. There will be no increase in the rates.
Mr. Imoukhuede asked what the difference in cost was between Blue Cross and AETNA for medical insurance.
Mr. Hampton responded that it would have been a long process to make a change. The carrier needs to match the benefit structure or enhance it.
Mr. Reid gave a synopsis of the new equipment planned for the weight rooms at all three schools. An initial visit was made to the schools. The company talked to the athletic directors, met with faculty, staff and community. One facility is in poor condition, two in average condition. The overall objective is to make the weight rooms safe. The proposal is for all three locations. Central does not need any flooring. Rich South’s proposal for equipment is less as their weight room is smaller. The equipment planned for the weight rooms is top commercial equipment. Mr. Reid noted that Midwest was asked to put together a proposal. Currently, there is no cardiovascular equipment at any of the locations.
Mr. Hampton noted he made calls to other companies. Midwest is right in line with durable, quality equipment.
Mr. Reid noted that Midwest will give the best deal.
Mr. Hampton noted that Midwest will be able to install the equipment by second semester.
Mrs. Norwood asked about the $2,850 extra on the proposal.
Mr. Hampton responded that that amount was for extended warranties. These will be purchased out of the operating budget each year.
Mr. Reid noted that the equipment will come with the standard warranty.
Mrs. Norwood asked about mirrors. Mr. Reid noted there was an allowance for mirrors.
Mrs. Norwood asked about security and training. Mr. Hampton responded that the issue of community use will have to be discussed at another time. The District needs to be very careful about the use of its equipment by others.
Mr. Reid noted that at the time the equipment is delivered and installed, members of the company will meet with key staff members of the District. For the most part, staff already know how to use the equipment.
Mrs. Moten asked about lighting and air-conditioning.
Mr. Hampton responded that the District is working with Gilbane.
Mrs. Norwood asked why the District would choose Midwest (MSI).
Mr. Reid responded that the company has been in existence since 1989. It has 29 employees. They have had an opportunity to visit a lot of high schools. They sell the best equipment. If the District shopped, MSI would be below the average. The company is very excited about this proposal because they are a small company and this is a big job for them.
Mr. Imoukhuede noted that we tend to select people with whom we are comfortable and exclude women and minorities in selecting vendors. The doors should be open for everyone.
Mrs. Moten noted that before this presentation, the District sought out companies that provided this service.
Mr. Hampton noted that the Committee wanted the District to be on the fast track with timing and wanted quality equipment. He did a comparative analysis. MSI was definitely competitive.
Mrs. Owens stated that the District’s doors are always open to minorities and women. The Board has given the District direction to seek minority businesses.
Mr. Hampton brought up the Rich East locker room. He stated the number of lockers will be increased as well as the painting and lighting. A window will be extended so individuals can see down the rows of lockers. This should be completed by the holiday break.
Mr. Hampton noted the District would like to hold off on any more projects and see where the budget is in the spring.
Mrs. Brookins asked how much comparison was done regarding fingerprinting companies.
Mr. Hampton noted the District currently uses the Olympia Fields police. Responses are received after 3 – 4 months. The District is looking for a 72 hour turn around. Dr. McDonald and Ms. Wolf checked out different companies. Trace Identity Services will have the fingerprinting done in 72 hours. When they fingerprint, it goes to livescan. The cost is $55 each.
Mr. Hunigan asked about signage at the construction sites. Mr. Hampton noted it will be completed this week.
Mrs. Moten asked about the auto dialer. Mr. Hampton noted that, if approved, ConnectEd will interface with our PowerSchool. A test was conducted. A call was received within 1 ½ minutes. The service can be used for surveys. It is in the technology budget.
Mrs. Upshaw asked about band uniforms at East.
Mr. Hampton stated he will check on them.
At 7:50 p.m. the meeting adjourned.