Special County Finance-Audit Committee Meeting Appears to Clear the Air on Public Schools Surplus Funds Movement

The Finance and Audit Committee of Warren County held a Special Meeting at 6 p.m., Monday, June 3, in the Warren County Government Center Conference Room. Chair Vicky Cook indicated the purpose of the meeting was to iron out County Public Schools budget transfers between Fiscal Year-2023, FY-2024, as well as anticipated ones needing approval into FY-2025. Cook expressed concern on how some surplus funds had been or would be transferred between public schools budget categories, primarily between Capital Improvement Projects (CIP) and Operations. Public Schools Finance Director Rob Ballentine was an invited attendee and responded to committee questions, explaining the budgetary dynamics as best he could.

WC Public Schools Finance Director Rob Ballentine, partially obscured upper right, responds to question from Committee Chair Cook at far end of table as appointed citizen rep Kathleen Johnson, foreground, studies a projected budget graphic. That initial graphic illustrating various public schools budget categories is pictured below. Royal Examiner Photos Roger Bianchini

At the meeting’s conclusion there seemed to be a consensus that a variety of factors at all funding levels, Federal, State, and Local, some related to money originally earmarked to the schools through FY-2023 as part of the newly established CARES Act funding related to the federal COVID response, and special conditions there or elsewhere were involved in the confusion. One factor cited at the federal level was that some appropriated money wouldn’t be available until it had been spent. Another impetus on the Public Schools Administrative side was that surplus funds were transferred into categories that needed additional funding to prevent the County Board of Supervisors from having to borrow or empty interest-bearing accounts to provide that funding that existing surpluses could accommodate as a cost-saving alternative.

While expressing her ongoing concern that what had and was going to be done wasn’t traditional bookeeping 101, acknowledging the variety of confusing variables, Chairman Cook said, “I’m just saying that money should have gone to Fund One (Operations) … But understanding that it’s a little different, we learn from this and we move on.”

“My understanding is just it’s still evolving in terms of what its program as CARES Act funding and how it tracks. I can see where it would be challenging initially to propose how you’re going to use it,” appointed citizen committee member Kathlene Johnson observed, adding, “And to shift it from a federal direction into ours and how it will fit into the State budget. CARES Act funding is probably going to be haunting everybody for a long time,” Johnson concluded drawing some appreciative laughter.

When Committee Chair Cook was preparing to close the meeting after over 50 minutes of discussion she commented, “I hope number one, this was not a waste of time in calling this meeting.” Vice-Chairman Butler appeared to speak for the committee, as no one contradicted him after he replied, “No, I think this was very fruitful because it helps us to understand that it was just a timing difference. And you had a learning curve with the federal funds. And when the bills came in, how do they say, ‘There’s too much money left at the end …’ And so we had to move some of those around with the understanding that we’re going to get those funds in at some point where you’re going to reimburse (categories).”

And the fact that the meeting ended with a fair amount of laughter around the WCGC Conference Room appeared to be a good sign that any lingering suspicions of wrong doing or unethical movement of funds by county public schools administrative officials had evaporated for those present.

Two more Public Schools budget graphics illustrating questions the Finance and Audit Committee Special Meeting was called to answer. Most, if not all committee members seemed relatively satisfied at what they heard as to why surplus transfers were done as they were over past two fiscal years, and going into FY-2025.

In addition to Cook and Butler from the county supervisors, county staff present for the Finance and Audit Committee Special Meeting included Finance Director Alisa Scott, Treasurer Janice Shanks, and Budget Analyst Megan Cheshire. Citizen appointees included the above-mentioned Kathleen Johnson, as well as James Bergida and Leslie Matthews. John Montoro was identified as special VML-VACO finance consultant. And as noted, public schools Finance Director Rob Ballentine was an invited and key attendee.