Madison County School Board reviews independent audit

Nov. 15—Blake Vickers

During the Nov. 10 meeting, the Madison County School Board received its independent audit report from Patrick and Associates, LLC.

The report was presented by Tammy Patrick.

"We've got a clean, unmodified, opinion. We didn't have any issues related to internal control or financial statement findings. We didn't have any issue with your internal control or compliance over your federal programs and the spending of those monies you received. We had no issues with your school activity funds," Patrick said. "You all ended the year in a good financial position... Your net position increased by about $19 million — that's mainly contributed to your investment and your capital assets."

Patrick noted that pension expenses also went down for the school system, likely due to investments and the condition of the market.

"I don't know where that will end next year, because pension expense this year we saw the liabilities all decreased in the majority of our districts that we are auditing. Based on market conditions next year, that may flip-flop... I can't predict that at this time," Patrick said.

Outstanding bonds at the end of the year were also found to have decreased by roughly $2 million in the audit. The audit found fund balances had decreased by roughly $9.6 million, mostly due to construction projects in the district.

Regarding governmental activities, the audit found that revenues in the school system increased by around $7.7 million for a total of $155 million.

"The majority of that revenue is derived from local taxes and state and federal grants," Patrick said. "Your expenditures for governmental activities increased by about $5 million for a total of $135 million for the fiscal year. Again, instruction and support services accounted for a about 71% of those expenditures."

According to the audit, food services had $9.7 million in revenue and expenses of roughly $10 million. Of that revenue $325,000 were for services and the rest from state or federal grants.

As part of their monthly showcase, Silver Creek Elementary School's choir performed "This Land" in celebration of Veteran's Day.

Foley Middle School also took part in the student showcase during the meeting. Several students took part in a fire hydrant painting contest organized by the Berea Fire Department. The contest raised money for the fire department's annual Christmas toy drive. Foley Middle students Abigail and Eliza Isaacs tied for first place in the contest. Their hydrants were both fire fighter themed.

"I'm a firefighter," Board Chair Brandon Rutherford said. "Seeing these, they're both just so good. It's amazing what you all did with these fire hydrants, they look awesome."

The Stillwell Meritorious Service Awards were then presented by Superintendent David Gilliam to technology leaders in the school system for their work through the pandemic. The awards are from the Kentucky Department of Education.

"The Stillwell Award is named after the late William E. Stillwell, a long time faculty member of the University of Kentucky's College of Education, who worked diligently throughout his career to improve Kentucky's K-12 educator's access to modern technology," Gilliam said.

Madison County School's Technology Director Ben Burnette, Deputy Superintendent Randy Neeley, Superintendent Gilliam and 70 other technology employees received the award.

Regarding the school system's monthly reports, district math coaches Tiffany Brock and Peggy Blankenship presented the board with a report on the 2022-2023 Math Design Collaborative.

Tony Thomas of Clotfelter-Samokar gave his monthly update on ongoing construction projects in the district.

Except for a concessions locker room, renovations at Clark Moores Middle School are nearly complete, with students using all of the building, according to Thomas. The gymnasium at Ignite Academy North has been given an occupancy certificate by codes officials, so students can now use it. Over at Ignite South, the gym is the only part of the school that has yet to be given an occupancy certificate. Open houses are scheduled on Nov. 21 and 22 at the Ignite Academies.

As winter is nearly here, work replacing the cooling tower at Madison Kindergarten Academy is underway. The old tower has been taken down and the school is on track to have more dependable air conditioning in place with the new cooling tower by next spring.

School System Chief Financial Officer Mark Woods then gave his monthly report to the board. As of Oct. 31, the school system had a reconciled bank balance of $55,752,005.47.

"You can see that's considerably down compared to last year. We had all our money from our bond sales and we were just starting getting heavy into all our projects with the area technology centers and Clark Moores Middle School renovations. That accounts for that big difference there in the balance," Woods said.

Of that reconciled balance, the district has $2,240,990.65 in investments, with rates on both of those investments at 2%.

Following the audit presentation, the board moved to authorize the use of ESSER funds to give a $30 payment stipend to teachers for additional services they provide covering other classes during their planning time in lieu of using substitute teachers for those class periods.

Two emergency certifications were passed for the positions of a geometry teacher at Madison Southern High School and a K-5 teacher at Kingston Elementary.

Multiple purchase orders were accepted by the school board. The first was for a purchase of a fork lift from Black Equipment for $40,374 to be used at Ignite Academy North.

Two purchase orders were taken out for the Ignite South Campus. Tools for the diesel program were purchased from Advance Auto for $118,239.38. Mac Tools were also purchased at the school for its diesel program for $51,307.98.

Board Member Lori Cobb noted the diesel program at Ignite South was a new program, which is why the new equipment was purchased.

"Most of them have a materials list. You have to have a certain list of equipment in order to get certification," Gilliam said.

Several out-of-state field trips were also approved by the board.

Madison Southern High School's baseball team will be going to Clinton, TN, from March 31 to April 4, 2023. Madison Southern's dance team will be going to Orlando, FL, from Feb. 2 through Feb. 7, 2023. Madison Central High School's cheer team will be going to Sevierville, TN, on Dec. 3, and the Madison Southern Junior ROTC will be going to New Orleans, LA, on March 31 through April 3, 2023.