It may be of interest for the Durango community to know that the Durango School District 9-R’s financial position is reviewed monthly by a Finance Advisory Committee, or FAC.
The FAC is an independent, external oversight body comprised of seven community members with diverse financial backgrounds. The FAC was established in June 1999 by the District’s Board of Education policy BC-04 based on recommendations made in past district financial audit management letters.
The district supports the FAC’s’ work without mandates or requirements to do so. By being independent of the district, the FAC reports directly to the Board of Education. Having an external, independent body like the FAC is not required by Colorado law, but it provides our community with a higher level of transparency of our district’s financial position.
The board has made our meetings open to the public, and directs the scope of our work by issuing charges to the FAC that must be reported publicly during the board’s January and June monthly meetings. This school year’s charges can be found by visiting the Finance section of the website at durangoschools.org.
Four of the FAC’s standing charges are to:
review the district’s budget for long-term viability and ensure that it is a balanced budget;review public input into district finances and continue to improve communication, transparency, effectiveness and buy-in;review the findings from the annual audit and the district’s response to these findings;monitor mill-levy funds to ensure that these funds are used on promised ballot expenditures; and additionally, this year, the board has requested that the FAC review the district’s finance policies. Public school finance is continually changing based on the state’s approved funding level (the state’s portion of the per pupil revenue) and local tax and mill levy revenues (our portion of the per pupil revenue).
Over the past year, our district has undergone significant changes to our revenues and expenses, including:
The successful November 2016 mill levy override ballot initiative has provided additional funds that have improved and stabilized the district’s financial position, enabling it to invest (and in some cases, reinvest) in critical programs;The district, Durango Education Association and Durango Education Support Professionals Association leadership personnel and association members have successfully negotiated creative and innovative compensation schedules that link longevity, service and performance to compensation, and that continue to undergo collaborative adjustments;Revamping the health insurance program provided to its employees; andInstituting annual increases in the district’s contribution to the Colorado Public Employee Retirement Association to cover its increasing liabilities, as required by the State of Colorado.During its bi-annual report to the board on January 23, the FAC reported having no major concerns regarding the 2017-2018 budget, as amended and approved by the board. During its report, the FAC also stated that the Durango School District 9-R’s finances are in the best shape since before the 2008 recession, and reported a high-level of confidence in several areas. These included the recent Finance Department’s personnel changes, the annual audit findings and the district’s response to these findings, the district’s efforts to continually improve transparency in its accounting and financial records and community trust, and the district’s spending priorities.
The FAC also identified two areas of concern. The first is the change in the district’s health insurance benefit plan, which may present a challenge to sustain over time. The second is that the state required annual increase in the district’s contribution to PERA, the state employee retirement plan, reduces the district’s ability to fund other program and capital needs.
Community members can learn more about the scope of the FAC’s work by contacting co-chairs Art Chase at achase@banksanjuans.com or Steve Ruddell at sruddell9999@gmail.com. Community members are also welcome to come to the FAC’s monthly meetings held on the second Friday of each month during the school year at 7:30 a.m. in the district’s administration building.
Communication and transparency require a public process of continual improvement that we are all committed to ensuring.
Durango School District 9-R’s Finance Advisory Committee includes co-chairs Art Chase and Steve Ruddell, and members John Gillam, John Reiter, Stan Johnson, Cheryl Wiescamp and Tim Zink.
