Granite City Town Meeting to discuss the state of District #9 's finances.

1. Granite City Town Hall Meeting
March 25, 2014
Presented by Steve Knogl

2. 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?

3. Revenue- From the District’s Proposal

4. GSA- From the District’s Proposal

5. 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

6. EAV-From the District’s Proposal

7. • Without a multiplier, these numbers are
almost meaningless.
• In the Board presentation this was said to be
an “Initial Estimate”
Initial Estimate= A GUESS

8. Ed Fund-From the District’s Proposal

9. 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

10. Ed Fund Revenue-From the District’s Proposal

11. 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

12. Ed Fund-From the District’s Proposal

13. 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

14. TEACHER SALARY
(TRS contribution included)
2012-2013
$26,766,151
$25,280,787
2013-2014
$24,451,000
(Projected with Step)
DECREASING!
2014-2015

15. Teacher Health Care
$4,153,680 $4,266,000 $4,253,400
Steady for nearly 400 people
2011-2012 2012-2013 2013-1014

16. Inflated Teacher Salaries
• Publications show inflation of
teacher salaries

17. • Beginning GCSD9 teacher salary
• Base $35,887 Cost $39,610
• Beginning GCSD9 Superintendent salary
• Base $ 161,547 Cost $187, 807

18. • 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?

19. 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?

20. • 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

21. • The only way to truly ever understand the
Granite City School District’s finances is….
•Forensic Audit
•Line Item Budget

22. 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.

23. 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.

24. 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.

25. 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.

26. 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

27. 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.

28. 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.

29. 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

30. Further Questions? Contact Us!
www.gcsd9.wordpress.com
E-mail us at
Local743@outlook.com