LOCAL EMERGENCY FINANCIAL ASSISTANCE LOAN BOARD …...Department of Treasury Recommendation The Department has been working closely with the deficit District since January 1, 2016

LOCAL EMERGENCY FINANCIAL ASSISTANCE LOAN BOARD MEETING

December 15, 2016

10:10 AM

Richard H. Austin Building

State Treasurers' Board Room, 1 st Floor

430 W. Allegan Street Lansing, Ml 48922

AGENDA (AGENDA-01)

ALTERNATE DESIGNATIONS (AD-01 THRU 02)

MINUTES-PRIOR MEETING (MIN-01 THRU 02)

SUMMARY MEMO FOR VANDERBILT AREA SCHOOLS

(VAS_SUM-01)

PRELIMINARY REVIEW FOR VANDERBlL TS AREA SCHOOLS

(VAS_PRELIM-01 THRU 24)

VANDERBILT AREA SCHOOLS ORDER 2016 -19

(VAS_PROB_ STRESS- 01 THRU 03) (VAS_NO_PROB_STRESS-01 THRU 03)

DESIGNATION TO GIVE NOTICE ORDER 2016-20

(ORDER 01 - THRU 03)

Local Emergency Financial Assistance Loan Board Thursday, December 15, 2016

10:10 AM

Richard H. Austin Building State Treasurers' Board Room 1st Floor ,

I. CALL TO ORDER

430 W. Allegan Street Lansing, Michigan 48922

II. APPROVAL OF MINUTES

A. Approval of Local Emergency Financial Assistance Loan Board (ELB) minutes

1. July 19, 2016 Meeting Minutes

III. PUBLIC COMMENT

IV. NEW BUSINESS A. Determination if Probable Financial Stress exists for Vanderbilt Area Schools

District

1. Final Preliminary Review

2. ELB Order 2016-19 a) Probable Financial St:ess b) No Probable Financial Stress

3. ELBOrder2016-20 a) Designation for Certain Persons to Give Notice of Meetings

V. ADJOURNMENT

AGENDA-OJ

72 (Rev. 04-15)

RIC~SNYDER GOVERNOR

STATE OF MICHIGAN

DEPARTMENT OF TREASURY LANSING

ALTERNATE DESIGNATION

FOR MEETINGS OF THE

, . LOCAL EMERGENCY FINANCIAL AsSISTANCE LOAN BOARD

NICK A. KHOURI STATE TREASURER

Members of the Board:

I am hereby designating the person named below as my representative at any meeting of the Local Emergency Financial Assistance Loan Board, and to sign on my behalf any Order of this Board.

Date

Name: Eric Scorsone

Title: Deputy Treasurer for Finance

Office Name: Department of Treasury State and Local Finance

430 WEST ALLEGAN STREET • LANSING, MICHIGAN 48922 www.mlc:hlgan.gov/treasury • 517-373-3200

"'2 (Rev. 04-15)

RlCKSNYDER GOVERNOR

STATE OF MICHIGAN


ALTERNATE DESIGNATION

FOR MEETINGS OF THE

LOCAL EMERGENCY FINANCIAL ASSISTANCE LoAN BOARD

Membe1;s of the Board:


I am hereby designating the person named below as my representative at any meeting of the Local Emergency Financial Assistance Loan Board, and to sign on my behalf any Order of this Board. ·

Name: Mike Moody

Title:

Office Name:

Director, Office of Financial Management

State Budget Office

/tl-/$-/'7 Date Signature

430 WEST ALLEGAN STREET• LANSING, MICHIGAN 4B922 www.michigan.gov/treasury • 517-373-3200

( · ·- · 4425 {Rev. 11-13)

RICK SNYDER GOVERNOR

STATE OF MICHIGAN



LOCAL EMERGENCY FINANCIAL ASSISTANCE LOAN BOARD MINUTES

Members Present:

July 19, 2016 - 8:00 A.M.

Michigan Library and Historical Center Forum, 1st Floor

702 West Kalamazoo Street Lansing, Michigan 48915

Larry Steckelberg, Interim Deputy Treasurer, Department of Treasury John Roberts, State Budget Director, Department of Technology, Management and Budget Shelly Edgerton, Director, Department of Licensing and Regulatory Affairs

I. Call to Order

Larry Steckelberg called the meeting to order at 8:00 A.M.

II. Approval of Minutes

A motion was made by John Roberts to approve the minutes from the meeting of July 18, 2016, as presented. The motion was supported by Shelly Edgerton. The minutes were unanimously approved as presented. M/S/P

III. Public Comment

None.

IV. Order 2016-18 Detroit Public Schools Order of Approval of Emergency Loan

Paul Connors from the Department of Treasury gave a summary of the Emergency Loan. The loan is for $150,000,000, and is for the purpose of paying transitional operating costs consistent with Public Act 192 of 2016 and Public Act 197 of 2016. The loan is for 10 years with a fixed interest rate of 1.31 %, and has interest only payments for the first six years. Within 120 days of receiving the loan, the School shall provide a report indicating how they spent the proceeds.

P.O. BOX 30728 • LANSING, MICHIGAN 48909-8228 www.michigan.gov/treasury • (517) 373-3227

(

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Page 2

Larry Steckelberg called for a motion regarding the proposal. A motion was made by Shelly Edgerton to approve the Order of Approval as presented. The motion was supported by John Roberts. The motion was unanimously approved by the Board. M/S/P

The meeting was adjourned by Larry Steckelberg at 8:02 A.M.

Ellen Kent, Secreta1y Local Emergency Financial Assistance Loan Board

Eric Scorsone, Deputy Treasurer for Finance As Designee for Nick A. Khouri, State Treasurer Local Emergency Financial Assistance Loan-Board

/J--1 S- 1 u Date Approved: _______________ _

72 (Rev, 04-15)


STATE OF MICHIGAN


DATE: December 15, 2016

TO: Local Emergency Financial Assistance Loan Board (ELB)

FROM: Paul G. Connors, Director of the Office of School Review and Fiscal Accountability

SUBJECT: Vanderbilt Area Schools - Treasury Summary Memo

Background


In a letter dated November 22, 2016, the Department of Treasury (the "Department") advised Vanderbilt Area Schools (the "District") that pursuant to 2015 PA 110, section 4(2)(b) (MCL 141.1544), the District is statutorily mandated j:o undergo a preliminary review of its finances to determine if probable stress exist. In part, this section provides that the Department, as the State Financial Authority, shall conduct a preliminary review of any school district subject to a Deficit Elimination Plan (DEP) which provides for the elimination of its deficit over a period exceeding 5 years.

An Interim Report of the Preliminary Review was sent to the District on December 5, 2016. The District was given five days to respond. The District did respond, but provided no additional comments.

Department of Treasury Recommendation The Department has been working closely with the deficit District since January 1, 2016. The District is projecting to be out of deficit by the end of the fiscal 2016-17 year. Therefore, the District finances are manageable and the recommendation to the Emergency Loan Board is to not find probable financial stress in Vanderbilt Area Schools.

430 WEST ALLEGAN STREET• LANSING, MICHIGAN 48922 www.michigan.gov/treasuiy • 517-373-3200

72 (Rev. 04-15)


STATE OF MICHIGAN


December 15, 2016

Ellen Kent, Secretary Local Emergency Financial Assistance Loan Board Office of School Review & Fiscal Accountability Michigan Department of Treasury Lansing, MI 48922

Dear Mrs. Kent:


On November 22, 2016, a preliminary review of the Vanderbilt Area Schools (the "District") began pursuant to Public Act 110 of 2015.

An Interim Report of the Preliminary Review was sent to the District on December 5, 2016. The District was then given five days to respond. In response to the Interim Report, the District did not provide additional comments. Copies of both the Interim Report and the District's response are included as attachments to the Final Report.

As required by Section 4(3) of the Act, the Final Report of the Preliminary Review of the District is being transmitted to the Local Emergency Financial Assistance Loan Board (ELB) for its review. The ELB will determine whether or not probable financial stress exists in the District. A copy of the Interim Report is included as an attachment to the Final Report.

Sincerely,

Paul G. Connors Director of the Office of School Review and Fiscal Accountability

cc. Jim Stamas, State Senator, Michigan Senate Tristan Cole, State Representative, Michigan House of Representatives Rick Heitmeyer, Superintendent, Vanderbilt Area Schools Bernie Matelski, Board President, Vanderbilt Area Schools Neil Brasseur, Board Vice President, Vanderbilt Area Schools Kim Snyder, Board Secretary, Vanderbilt Area Schools Gayle Embree, Board Treasurer, Vanderbilt Area Schools Amber Musall, Board Trustee, Vanderbilt Area Schools Tom O'Rourke, Board Trustee, Vanderbilt Area Schools

430 WEST ALLEGAN STREET• LANSING, MICHIGAN 48922 www.michigan.gov/treasuiy • 517-373-3200

Page 2

ldaMary Smith, Board Trustee, Vanderbilt Area Schools Mary Vratanina, Superintendent, Cheboygan-Otsego-Presque Isle ESD Brian J Whiston, State Superintendent, MDE Kyle Guerrant, Deputy Superintendent, Administrative Services, MDE Dan Hanrahan, Director, State Aid and School Finances, MDE Ellen Kent, Secretary, Local Emergency Financial Assistance Loan Board

1500 (Rev. 04-15)

RICK SNYDER

•~ ~"' .

.

. .

STATE OF MICHIGAN

DEPARTMENT OF TREASURY NICK A. KHOURI GOVERNOR STATE TREASURER


TO: Local Emergency Financial Assistance Loan Board


SUBJECT: Final Preliminary Review Report- Vanderbilt Area Schools

I. Background

Pursuant to 2015 PA 110, section 4(2)(6) (MCL 141.1544), the District is statutorily mandated to undergo a preliminary review of its finances to determine the existence of probable financial stress. In part, this section provides that the Department, as the State Financial Authority, shall conduct a preliminary review of any school District that is subject to a Deficit Elimination Plan (DEP) that provides for the elimination of deficit over a period exceeding 5 years.

On November 22, 2016, the Department of Treasury (the "Department") initiated a Preliminary Review of the finances of Vanderbilt Area Schools (the "District") to determine whether or not the District has probable financial stress.

II. Interim Review Findings

The following are facts or circumstances determined by the Department that are indicative of probable financial stress pursuant to 2015 PA 110, section 4(1)(s):

I) The last approved DEP exceeds seven or more consecutive years (including the current year);

Finding:

The District's current EDEP (attachment A) extends I year through the 2016~ 2017 fiscal year.

The District does not meet the criteria.

2) The District's existing deficit is greater than 15% of general fund revenues; and/or

Finding:

The District's approved budget (attachment B) reflects total general fund revenues of $1,457,923 for the.2015-2016 fiscal year. The District's ending fund balance for 2015-16 is ($55,429) indicating its deficit is 3.8% of its total general fund revenues.


www.michiga11.gov/treasuJY.

Page 2

3) A fiscal review by one of the Department's program offices or an external auditor has revealed one or more material internal control weaknesses as evidenced by notes/findings in the financial audit related to:

a) Lack of written policies and procedures or failure to follow the written policies and procedures

b) Immediate concerns with cash shortfalls in current fiscal year which may lead to additional fmancings or emergency loan

c) Excessive variances on Final Expenditure Reports (FER) for grants with federal funds

d) History of spending outside the appropriations established by the local school board in violation of Uniform Budgeting and Accounting Act (UBAA)

e) Significant audit findings and/or material weaknesses identified in the single audit.

Finding:

a) District does not have any written business operating procedures.

b) District is not projecting a cash flow shortfall for FY 17.

c) There are excessive variances on FER for grants with federal funds (attachment C).

d) District has been in violation of the UBAA since 2010 when it began spending outside the appropriations established by its board adopted budget.

e) The District received 4 audit findings for 2015-2016 year (attachment D):

• One (1) - Finding for Deficit Budget • One (1) - Finding for no written procedures • One (1) - Finding of reconciling taxable value adjustments • One (1) - Finding for segregation of duties

The District does meet the criteria.

4) The District has shown unsatisfactory progress in eliminating its deficit. This is determined by identifying one or more of the following conditions:

a) A deficit increase is projected in a subsequent fiscal year

b) Lack of cooperation from the District in submitting deficit information (i.e., late submission of the DEP, delinquent return of phone calls or correspondence relating to the DEP, and chronic late submission of Monthly Budgetary Control Reports)

Page 3

c) History of supplying the Department with DEP information that is inaccurate or inconsistent with actual revenues and expenditures at year end; and/or

Finding:

a) The District's deficit is decreasing from ($55,429) in the 2015-2016 fiscal year to a projected positive fund balance of $34,967 in the fiscal 2016-2017 year.

b) No deficiency noted.

c) No deficiency noted


cc. Jim Stamas, State Senator, Michigan Senate Tristan Cole, State Representative, Michigan House of Representatives Rick Heitmeyer, Superintendent, Vanderbilt Area Schools Bernie Matelski, Board President, Vanderbilt Area Schools Neil Brasseur, Board Vice President, Vanderbilt Area Schools Kim Snyder, Board Secretary, Vanderbilt Area Schools Gayle Embree, Board Treasurer, Vanderbilt Area Schools Amber Musall, Board Trustee, Vanderbilt Area Schools Tom O'Rourke, Board Trustee, Vanderbilt Area Schools IdaMary Smith, Board Trustee, Vanderbilt Area Schools · Mary Vratanina, Superintendent, Cheboygan-Otsego-Presque Isle ESD Brian J Whiston, State Superintendent, :rvmE Kyle Guerrant, Deputy Superintendent, Administrative Services, MDE Dan Hanrahan, Director, State Aid and School Finances, MDE

Attachment·•·'""·

EDEP Report V;mderbilt Area School

REVENUE

Local :Mecelved Thro'l.lgh Another Publlc School Other Polltlcal Sub./NonTEduc:atlonal Entity Stolte Revenue Fecler,t Revenue Tmnsfe-rs In & Other financing Sources

TllTAL REVEl'!UE &.OJHER SOUitCES .•;-_,_

EXPENDITURES INSTRUCTlON

Ba-slc Programs

Adult and Contin.u.ing Educat!on TOlAL"IN/iTRUCTlON :;

SUPPORT SERVICes P-upllSIJppOrt lnstructlon;a_l Staff Support General Admfl"llstr.iiticn Suppa.rt Sc:h00-I Admlnlst~Oo~ S1.1ppo-rt 8:i.1$lnc:i5 SYppcirt OperallDns &. Miiinten.inc.-e Pupll Trar,.spartallo~ Se:rvke:s Central Support 0th-tr Supp-ort

TDTALSUPPORTSERVICES: ·

Ad:ual Function Code 2014-15

llx,12'1C $ 1,0lS,171.00 $ 5lx $, 38,718.00 5 2X< $ s 3x, $ 192,710.00 5 4X< 5 132,423,00 $,

S2:it-fiXlC $ s ·,.:::.:-:';.,,:::.: .. 5.: 1,379,()22,00 $:._.,·.·

I 11• I$ 642,283.oo I $ I 12" IS .07,633,oo I s I Bx s I$

S:: ·.·:.:·:8491!JIJS.go f $. :.

2lx $ $ ux s 19,012.00 $ 23x $ .llZ,OlZ,00 $ l4• $ .B9,51JO.OO s 2Sx $ 2,69l.OO $ l6x $ 142,000.00 $ 27x $ 78,802.00 $ 28< $ $ 29• $ 8,063.00 $

$: · · 452,101.00 $

1,;41.00 S

,•,',.'.'. , .. ,. U03,3SB.OO I $_,

Final Bud1eted E.Jtlmat~d PrlorVa:iir

2015--16 ZD16--1'7 Difference

1.038.185,00 $ 1,01!1, 700.00 · -· .·. •1.7B% $ 29,552.00 $ 30,000,00 ··.: .. l.5,% 5

$ $ 1351'124.00 $ 96t000.0D ., .. :-!S,31¾ $

· .. 162,418.00 s l-56,000,00 ·.::•·: .. ,3,95% $ s $

:lAl.$;879.0D $ : :.: .·: __ 1.,.301;100.00 ,-:cM6Y. $ ;.

. 700,462.00 I $ 627,502.00 1.- .-10.42,.I $ 252,84 s.oo I s 156,000.001 ·· .:.:is.30%1 $

IS I. .. ·. _ _---: .. I$

,!IS3,3lll.DO 1.$. :."7B3J5D2.00 ! ,, .. ,17.81%1 $ .. ·

$ $ ·s,467,00 $ li,978.00 ·.:.-:.53;2B% $

103,398.00 $ 107.SBS.OO .····MS¾$ 80,187.00 s 6",575.00 '16.98% $

6,079.00 $ 4,900.00 :_.;_1a-,l!!il% $ 148.867.00 $ 149,200.00 --0.22% $ · 57,697.00 $ SB,650.00 . us .. $

$ $ 9.Sl-7.00 $ 10,s.so.oo ... . · 10.85% $

· -414~211.00 $. -410,4.38.0D · ·,0.,1,: $ .

1,600.00

.·.--'·.1,3o7,Sll.OO i $ · ... ·.·.·.•.•:·:.l,195;540.00J. ·.·, ',12.58%! $

105,00

7,391,DD

11.00

Esttm:ated Prior Vear 2017-18 tllfferimce

1,020,000.D0 ·0,03iK 30,000,00 .. o,oo,:

9S,000,00 •l.04% 155,000,00 ·.·,. •0,64%

.. ,.; .·-: .·

· ·-· 1,300,000.00 .. :. -:,0.13¼ $,

sao,000.00 I ... :•.· 0.40,.1 1ss,ooo.oo I ... :-0.04%1

' I :·1 .. 78S,00D,D0 I.· ,·. 0,1.9%1 $

13,000.00 ·, .. ,.:.0,17%

108,000.00 ". -.,:_--: 0,39% 66,000.00 --0 . .es:,:6

5,000.00 2,04% . 150,000,00 :o.S4%

60,000.00 .2.30% .

10,000.00 · .•5.ll¾ 412,000.00 0.3S°" $

16,000.00 900.00%

.. ,-:.1.2n.ooo.oo I 1.46%1$

,11.05%1.$.

121,967,00 ·.;.248,81" .$.

110.DO O.DO~

11.00 ,,·.-.,,,.:,-:0.00%

Estimated 2018-19

: ..

'

Prior Ya::iir Dlfferencil!"

-100.00%

.·l00,00%

·. :,l00,00% ·~100.00% "":·.

I .-100.CO¾I I . -100.00,:1

I · .. 0100.00,.;1 $

.... .-.100.00% -,100.00% -ioo.oo,. -100,00Y. -100.00%

.--~100.00%

~100.00% ·,100,00% $

Estimated

l019·20

·.

.Prior Vear

Difference

... •·

I I :. I .· I

·.·

..

·: .

Attachment B

General Appropriation Resolution For Adoption by the Board Of Education Of

Vanderbilt Area School District 2016-2017

RESOLVED, that this resolution shall be the general appropriations of Vanderbilt Area School District for the fiscal year 2016~2017: A resolution to make appropriations; to provide for the expenditure of the appropriations; and to provide for the disposition of all income received by

.- Vanderbilt Area School District.

BE IT FURTHER RESOVED, that the total revenues and unappropriated fund balance estimated to be available for appropriations in the general fund of the Vanderbilt Area School Distrfot for fiscal year 2016-2017 is as follows:

Revenue: Local Other Political Subdivision State Federal Incoming Transfers and Other Total Revenue

Fund Balance, July 1, 2016 (71,193)

To!al Available to Appropriate

$ 1,019,700 30,000 96,000

156,000 0

1,301,700

$1,230,507

BE IT FURTHER RESOLVED, that $1,230,507 of the total available to appropriate in the general fund is hereby appropriated Jn the amounts and for the purposes set forth below;

Expenditures Instruction;

Basic Programs Added Needs

Support Services: Pupil . Instruction Staff School Administration General Admimstration Business Operations/Maintenance

Transportation Athletics Outgoing Transfers &Other

Total Appropriated

Fund Balance

$627,502 156,000

0 12,978

107,585 66,575

4,900 149;200 58;650 10,550

1~00

$1,195,540

$34,967

BE IT FURTHER RESOLVED, that no board of Education member or employee of the school district shall expend any funds or obligate the expenditure of any funds except pursuant to appropriations made by the Board of Education. Changes in the amount appropriated by the Board shall require approval by the Board.

BE IT FUTRHER RESOLVED, that the Superintendent is hereby charged with general supervision of the execution of the budget adopted by the Board and shall hold other administrators responsible for performance of their responsibilities within the amounts appropriated by the Board of Education and in keeping \vi.th the budgetary policy statement hitherto adopted by the Board.

The appropriation resolution is to take effect on July 1, 2016.

~Z~//&' Da _ -

Reporting Final Expenditures Attachment C

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Reporting Final Expenditures

• Enter or change Final Expenditure data, and click SAVE. • When data Is. correct and complete, click POST • After POST a person with "Recipient Certify" authority can use the Main Menu "Certifying Final Expenditures" option to Certify. • lf needed, RESTART will clear your entries so that the report can be started again. • The maximum allowable indirect cost amount ts based upon the Subtotal, minus outgoing Transfers and Capital Outlay, times the

Indirect Cost Maximum Percent.

REPORTING FINAL EXPENDITURES • Warning: Items in RED deviate by+/- lO"fo ofthe Approved B11dget

Grant Number 141530

Grant Name Title I Part A

CFDA 84.010 Project N1Jmber 13

Revenue Code 125

Project Start Date 7 /1/

Project End Date 9/30

Approved Amount $97,823.00

Paid $0.00

Balance $97,823.00

Business Office Contact §i Kneyo~ J Project contact ~lich"l '-" i;u,n --·-I Business Office Phone l!<t~\i-983-41::'.1 7 Ex.t.fioi] Project Phone §-\i83-2%l _! E>rt.~~_:J

Reason for Reopening- Report Reopen for FER to be, completed. Date of request is 12/2/:W14 by Judy Thelen, OFS.

Function Code] Approved I Salaries I ll-enefUs I P~!~~C:d I 5r-'::~~f:1: I ~':;~;'; I E:~;.'es I . ·1 Budget :LOOO 2DOO .3000, 4000 5000 6000 7000, 8000

Total It Under)/Ov.,,j Expend, ) Budget )

119 ,r19,S65.00'l \l.;;1:i1 7Jiiill u,,,1ri ___ o_._lJ_l,')·j~--o-.-(1~)! ,, .. ic,) Basic Program ·-----··.".'..'..I · ~ · · ·

-~0.00 ($19,565.00)

• summer School

11/a Var-

-100.00 %

, 125 $70,43Z.OO I or;n. 0'2_li "w~j I Added Needs

$.u,o\ $75,799.00 $5,367.00 7.62%

Compensatory Education 221 lmprovement of lnstrucUon

Subtotal $97,823.00 $46,457.00

Budget Indirect Cost (max 0.3%) $0.00

$"34,145.00 $"1,520.00

92•.M!L ___ ,,.,,r,]l__ c~ $7,351.00 ($47S.Oo) -6.06 % I $926.00 $0.00 $92.00 $B3,l50,00 ($"14,673.00) -15.0• % i E_xpend. lndirect Cost (2014: 0.3%; 2015: o.12%Jl. "o.oc)

[ Budget Totill $97,823.00 Expend. Tot.al $83,150.00

Add Function Code{s)

I 1111: B.,s;;.:, Programs ·· Elementary ----------·-·-----·-··-:112: Basic Progr.ams - Middle/J1mior High "" !113: ~aaic P~ograms - Righ School ltiB: Basic Pr.ogr~ms - Pre-School

V

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"··· ..i_ - ..+,..~,., .,.,.,; 11.,/,.....Mq/rpnnrtimrfinalexoenditures.aspx 12/17/2014

- Reporting Final Expenditures

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Systein Security Level: Recipient Certify Recipient: Vanderbilt Area Schools (69040 00000)

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• Enter or change Final Expenditure data, and click SAVE, • When data is correct and complete, dick POST • After POST a person With "Recipient Certify" authority can use the Main Menu "Certifying Final Expenditures" option to Certify. • If needed, REST ART wlil clear your entries so that the report can be started again. • The maximum allowable Indirect cost amount Is based upon the Subtotal, minus Outgoing Transfers and Capital Outlay, times the

Indirect Cost Maximum Percent.

REPORTING FINAL EXPENDITURES Grant Number 130520 Approved Amount $26,666.00

Grant Name TITLE II PART A Paid $26,666.00 CFDA 84.367 Balance $0,00

Project Number 1213 Revenue Code 118

Project Start Date 7/1/2012 Project End Date 9/30/2013

Business Office Contact\Faui Kenyon I Project Contact!Hichelle Ki:in i Business Office Phone 19e.'.>-9[<3-412.i--l Ext.j104 I Project Phone j'.,[<9-9(13-2561 !Ext.[iiD

Function I Approved I Salades I Benefits I Purchased I Supplies &. I Capital l Ex~~::es I Total l(Under)/Over\ Services Materials Outlay 0/o Var Code ll'udget 1000 woo 3DDO, 4000 501)0 6000 7000, 8D00 Expend, lludge.t

1:1.8 $26,666.00 1 1669s.@L~C§I o. oo\! o.oo\L o.ool i o. oo I $26,666.oo $0.00 o.oo % Bask Programs - Pre-School

Subtotal $26,666.00 $16,695.00 $9,971.00 $0.00" $0.00 $0.00 $0,00 $26,666.00 $0.00 0.00%

Budget Indirect Cost Expend, Indirect Cost (2013: 0.14%; 2014: 0.3%)L!lO,ooj (max 0.14%) $0.00 Budget Total $26,666.00 Expend. Total $26,666.00

Add function Code(s} 111: Basic Programs - Elementary 112: Ila.sic Programs - Middle/Junior Hi.gh

,...,_

113: Basic Programs - High School V 119: Basic Program - Summer School

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REPORTil\fG FINAL EXPilNDITURES • Warning: Items in RED deviate by + /- 10% of the Approved Budget

• Warning: Cumulative Expenditures are less than the Project Paid Amount; an overpayment has occurred Grant Number 151530 Appr<>ved Amount.$131,p64.00

Grant Name Title I Part A Paid $105,177.54 Cl'DA B4.010 Balance $26,486.46

Project Number 1415 Revenae Cade

Projec.t Start Date 7/1/2014 Project End Date 9/30/2015

Business Office Cont,u:t l~P-a-tt_i_K-en_y_o_n ___ ..,I

Business Offlc" Phone I 989-983-4121 I Ext.!lOi I

Status Entered

Project Contact ltti ohel le Kih<1 I Project Phone !989-983-2561 I Ext,D

Function Cade I Approved I Salarles I lleneflts I l'Urch•sod I supplies &. l. Capita! I Other I Budgat 1000 2000 Servic:es Hatertals Outlay l!xpenses

30D0, 40D0 5000 6000 70D01 B00_0

$2,280.00 I o.ool-f -- · o.ooljj o.oo!l ·· -- o.o~j:Lj ___ o._oo..,1:1 o.ool

Total l( Undar) /Ovor! Expend. Budget I

119 Basic Program -summer School .

.__ ___ _, 1 -

- ··- - ~ ·- .. 125 ;$104,348,DO I ons2.JGl-,..l -3-4~-s-e.-3--,1l:I Added Needs -Compensat:ary fducatlon

2.21 ;;s,J2s.oo 1 Improvement ~f ~---~

,sso.0011 _!.!l~~ructloMn ;

252 $13,166.ao ._I ___ _,

Fiscal Services 0.0011

271 Pupil Transportation Sorvlce•

$3,469:001 ... ---0.0011

184u9f1 .. ·-·

0.0011 0.001:i

m1.01j:I o.oot,I

10~12.001:1 o.ooljl - ·-

o,ool'I 0.001'1

283 Staff/Personnel services

~.ool'I .. $7S,oo1 '-_--_-__ o._o_,ofL1 ___ 0._o~oli~I __ o_._oo..,I LI ---

Subtotal'$l31,6M,OO $53,8J2,36 $36,799.76 $13,273.04 $205.70

$0.00 {$2,2.80.00):

o.ool I ___ o_._oo..,I $8,892,•3: $566,43;

..

0.001 I ___ o._o_,ol $10,112.00: ($2,394.00)

0.001:1 0.001 $0,00 ($3,469.00)

;

0.001;1 o.ool $0,o0: ($75,00)'

$0.00; $1,0ISu,58 $105,177.44 ($26,486.SGf

o/a Var

-100.00 %

-18,05 %

6,BO %

-18.18 %

-100.00 %

-100.00 %

·20.12 %

Budget Indirect Cost {max 0.12%) $0.00

Budget Total $131,664.00

Expend, Indirect Cost {2015: 0.12%; 2016: 0.11%)1 $0.ool

111: 112, 113: 11a,

Ba.sic Program• - Ele111entary Basic Program& - Middle/Junior High Basic Programs - High School .!>~S..!.':'. ?ro11_r!"ffl~ .. ;- l're:-~':hool

·-1ij\@~J

Expend, Total $105,177.44

I\

V

1;;~1f:1tJi:iill !\,e,~~t~il l'i~~,$ .. f;;\'$.l.\•;;;.I r;;i:tsit1 W•i¥~!1li/J'.Ql,l_'~W$;1 l~~t.~I I REPORT 1 •---•-•· """ 11/30/2015 4:06:25 AM Mod!Hed: oatH konvon on 11130/2015 4:27:37 PM

https://mdoe.state.mi.us/CMS/reportingfinalexpenditures.aspx 11/30/2015

Reporting Final Expenditures Page 1 of 1

~~~~.v.-~~~~~~~ilk"t!t~~:...: .. -~ - -,,jchip-:m.qav Hom, ~ I Con.tact C:MS t Co-ntact M.Df

MDE: Cash Management System (CMS)

MENU

Logout User: pattl kenvon

System security Level: Recipient Certify Recipient: Vanderbllt Area Schools (69040 00000)

Recipient security L.eveh Recipient Certify

Reporting Final /;){penditures

• Enter or change Final Expenditure data, and click SAVE, • When data Is correct and complete, click POST • Alter POST a person with "Recipient Certify" authority can use the Main Menu "Certifying Final Expenditures" option 10 Certify. • If needed, RESTART wlll clear your entries so that the report can be started again. • Any FER submitted where the Paid amount is less than the Expend, Total a system generated Payment Request will be created, • The maximum allowable indirect cost amount Is based upon the Subtotal, minus Outgoing Transfers and Capital Outlay, times the Indirect Cost

Maximum Percent, • •

REPORTING FINAL EXPl:NDITURES . warning: Items In RED deviate by+/· 10% of theApprovad Budget

Grant Number 150520 Approved Amount $27,921.00

Grant Name TITLE II PART A Paid $25,288.93 CFDA84,367 Balance $2,632.07

Project Number 1415 Revenua Code Status Entered

Project Start Date 7/1/2014

Project End Date 9/30/2015

Business Office Contact I Pat ti Kenyon I Project Contact !Micb.elLo Kihn I BusJness Office Phone I {989) 9E3-U2l I Ext,lillJ Project Phone I ( ~69) 963-H21 jExt.~

! Approved _I_ s1daf]e:!1 r n~ntifits Purdlased Suppli .. • I C21pif:al j ON>or I l'atal f {Undor)/Ovorj -i:1..-nttlon C-o,de Budgal

_1.~00 I 2000 S-ervke~ Mat.e:rle(s- Outlay .EXp1?~11!!$ J Exp...,d, I Budget _

%V:i!lt lBDD1 4~0_0_ .. ·-· ~?~0. - 6D00 _ r ~:6!~, BDOO __ _

221 $4,718.00\f 2su.oof I . ·;;;; :·l~ if . o.oo ,I o.oof,I o·.ooj I o.ooj $:Z,956.17: [$l,761.83) ·37,34 % lmpmvement llf :

lnstruc:tton .... -o.~o-jf zmu,qil 225 $22,rna.00·1 o.ooj! 0.0011 0.001-1 o.ooj $22,332.76 $229.76'. 1.03%

Compl,lte-·Asslsted Instruction .. ... 0,0;1( . -226 $1,mi:•oy 0,001! o.ool ! 0,001·1 0:00111 0.001 $1).00 ('l'i,100,00) i ·100.00% Supervlsbn and Direction or lnstnJctlollill Staff

Subtotal, $27,92L.O0 $2,621.00 $335,17 $0,00 $2i,332. 76' $0,00' $0,00 $25,288.93 ($2,632,07)- -9,43 %

Budget Indirect Cost Ex:pend. Indirect cost (2015: D.12%; 2016; 0,11%)1 so.ool (max 0.12%) $0.00 lludget Total $27,921.00 Expend. Total $25,288.93

Add Function code(s) 111 Basic Programs - EleJll<!nt'.ary 112 Basic ~rograms - Middle/Junior High "' 113 Basic Progxams - High School V 118 Baai? P~ograms - Pre-3ohooi

tiii:i:~j lf$~Y,!Val V11.1f$.;t;l;j hi!si!i:st11~.rff,jl l',~li$:t-!1 la;,;:f~iWstJ;!;~!>-',i•il !~liJ;x/rr:~ I REPORT I

Cr•ated: potti konyon on U/ll/l01512:l2:14 PM M.odlfil!d.! pijttl k1myon on UJJ0/2015 400,~w PM

Michfo;an.ao.v Home J MOF 1-iama t ct-ts Homa. I MEGS+ tlome I SJte tilap J ,stabi: Web Slte5 Privacy Polley I Link Poltcy I Ag:o«l~lli\-( Polley I So<u~ty Policy I Ml<:hlyan ff•""' I Sunll!Y

Copy,lghl o 2fl01-2005 Slolo of Mlohlgon

hrtps://mdoe.state.mi.us/CMS/reportingfmalexpenditures.aspx 11/30/2015

Attachment D

The best approach is to print the MDE taxable value data each month and then agree any changes in these rep01ts to page two of yo.ur monthly status report.

Tax Revenue Distribution

All tax revenue is deposited directly to the general fund bank account including debt retirement and sinking fund taxes. While the entry recording the taxes properly credits a due to account in the general fund, the col'l'esponding entry is not rncorded into either the debt retirement fund or the sinking fund. In addition, the cash is not timely transferred. The cash transfers should occur each tlme taxes are received and due to/due from accounts should be MOM at year end.

Written Procedures

As a precondition to receive federal funds recipients must have effective administrative and financial internal controls. School districts are required to have written procedures to document these administrative and financial controls. The School District has not yet complied with this requirement.

Segregation of Duties

There is not adequate segregation of duties in the accounting area. One individual posts all journals, the general ledger and also prepares checks and reconciles the bank accounts. The same individual also initiates and posts all journal entries. The lack of segregation of duties is inherent because of staff limitations. The Board must recognize that alt internal controls must be evaluated for cost effectiveness. The controls that could be added would have to be compared with the costs required to obtain those controls.

Restriction on Use

This information is intended solely for the use of the Board of Education and management of the School District and is not intended to be, and should not be, used by anyone other than these specified parties.

Ve1·y truly youl's,

~Qo-~

Gabridge & Company, PLC Grand Rapids, MI

-4-

)!)40 l'lNINSULAlt 01\ S[, SUIH 13D J GR/I.ND 11.i\PIOS, Ml I 49546•1441 / r Dlli $38 7Jit0 / f 616 538 1441 / W\l'W,llABI\ID<ltCO.CO/,\

Independent Auditor's Report on Internal Contl'ol Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Staiements Performed in

Accordance With Government Auditing Stalldards

To the Board of Education Vanderbilt Area School Vanderbilt, Michigan

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Vanderbilt Area School (the "School District"), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School Distdct's basic financial statements, and have issued out· report thereon dated October 27, 2016.

Intemal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the School District's intemal contl'ol ovel' financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correctJ misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficienciesJ in intemal contl'ol, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be preve11tedJ or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those chat'ged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, dul'ing our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed·tests of its compliance with certain prnvisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the detennination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do noiexpress such an opinion. The results ofour tests disclosed no instances ofnoncompliance or othei- matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This l'eport is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Gabridge & Company, PLC Grand Rapids, MI October 27, 2016

-2~

Attachment E

500 (Rev. 04-15)

RICK SNYDER

STATE OF MICHIGAN

DEPARTMENT OFTREASURY NICK A. KHOURI GOVERNOR STATE TREASURER


TO: Rick Heitmeyer, Superintendent Bernie Matelski, Board President


SUBJECT: Interim Report- Vanderbilt Area Schools

I. Background

Pursuant to 2015 PA 110, section 4 (2) (b) (MCL 141.1544), the District is statutorily mandated to undergo a preliminary review of its finances to dete1mine the existence of probable financial stress. In part, this section provides that the Department, as the State Financial Authority, shall conduct a preliminary review of any school district that is subject to a Deficit Elimination Plan (DEP) that provides for the elimination of deficit over a period exceeding 5 years.

Under 2015 PA 110, section 4 (3), the Department shall provide an interim report of its findings to the District within 20 days following the commencement of the preliminary review. The school district may provide comments within 5 days after the interim report is provided to the District. Thereafter, the Department shall prepare and provide a final report detailing its preliminary review to the Emergency Loan Board within 30 days following commencement of the preliminary review.

On November 22, 2016, the Department of Treasury (the "Department") initiated a preliminary review of the finances of Vanderbilt Area Schools (the "District") to determine whether or not the school district has probable financial stress.

II. Interim Review Findings

The following are facts or circumstances determined by the Department that are indicative of probable financial stress pursuant to 2015 PA 110, section 4(1)(s):

1) The last approved DEP exceeds seven or more consecutive years (including the current year); and/or

Finding:

The District's current EDEP (attachment A) extends I year through the 2016-201 7 fiscal year.


2) The District's existing deficit is greater than 15% of general fund revenues; and/or

www.michigan.gov/lreasury

Page2

Finding:

The District's approved budget (attachment B) reflects total general fund revenues of $1,457,923 for the 2015-2016 fiscal year. The District's audited ending fund balance for 2015-16 is ($55,429) indicating its deficit is 3.8% of its total general fund revenues.


-3) A fiscal review by one of the Department's program offices or an external auditor has revealed one or more material internal control weaknesses as evidenced by notes/findings in the financial audit related to:

a) Lack of written policies and procedures or failure to follow the written policies and procedures

b) Immediate concerns with cash shortfalls in current fiscal year which may lead to additional financings or emergency loan

c) Excessive variances on Final Expenditure Repoits (FER) for grants with federal funds

d) History of spending outside the appropriations established by the local school board in violation of _Uniform Budgeting and Accounting Act (UBAA)

e) Significant audit findings and/or material weaknesses identified in the single audit.

Finding:

a) District does not have any written business operating procedures.

b) District is not projecting a cash flow shortfall for FY 17.

c) There are excessive variances on FER for grants with federal funds (attachment C).

d) District has been in violation of the UBAA since 2010 when it began spending outside the appropriations established by its board adopted budget.

e) The District received 4 audit findings for 2015-2016 year (attachment D):

• One (1)-Finding for Deficit Budget • One (1)- Finding for no written procedures • One (1 )- Finding of reconciling taxable value adjustments • One (I)- Finding for segregation of duties.

The District does meet the criteria.

Page 3

4) The District has shown unsatisfactory progress in eliminating its deficit. This is determined ·by identifying one or more of the following conditions:

a) A deficit increase is projected in a subsequent fiscal year

b) Lack of cooperation from the District in submitting deficit information (i.e., late submission of the DEP, delinquent return of phone calls or correspondence relating to the DEP, and chronic late submission of Monthly Budgetary Control Reports)

c) History of supplying the Department with DEP information that is inaccurate or inconsistent ,vith actual revenues and expenditures at year end; and/or .

Finding:

a) The District's deficit is showing a decrease from ($55,429) in the 2015~ 2016 fiscal year to a projected positive fund balance of $34,967 in the fiscal 2016-2017 year.

b) No deficiency noted.

c) No deficiency noted


The District has five days to respond to these findings. Any comments the District would like to provide to the Department are due December 12, 2016. Please send documents and questions to Sam Irrer, at [email protected] or by phone (517)335-1009.

cc. Jim Stamas, State Senator, Michigan Senate Triston Cole, State Representative, Michigan House of Representatives Neil Brasseur, Board Vice President, Vanderbilt Area Schools Kim Snyder, Board Secretary, Vanderbilt Area Schools Gayle Embree, Board Treasurer, Vanderbilt Area Schools Amber Musall, Board Trustee, Vanderbilt Area Schools Tom O'Rourke, Board Trustee, Vanderbilt Area Schools IdaMary Smith, Board Trustee, Vanderbilt Area Schools Mary Vratanina, Superintendent, Cheboygan-Otsego-Presque Isle ESD Brian J Whiston, State Superintendent, MDE Kyle Guerrant, Deputy Superintendent, Administrative Services, MDE Dan Hanrahan, Director, State Aid and School Finances, MDE

19 (Rev. 04-15)


STATE OF MICHIGAN



LOCAL EMERGENCY FINANCIAL ASSISTANCE LOAN BOARD

ORDER 2016~19

DETERMINATION OF PROBABLE FINANCIAL STRESS

FOR VANDERBILT AREA SCHOOLS STATE OF MICffiGAN

WHEREAS, Subsection 4(2)(b) of 2012 Public Act (PA) 436, the Local Financial Stability

and Choice Act ("the Act"), mandates that the State Treasurer conduct a preliminaiy review to

determine the existence of probable financial stress in a school district if the school district is subject

to a deficit elimination plan under Section 1220 of 1976 PA 451, the Revised School Code, which

exceeds five (5) years; And

WHEREAS, on December 5, 2016, the State Treasurer commenced a preliminary review of

Vanderbilt Area Schools ("the District") based upon, among other things, a

determination that the District's deficit elimination plan exceeded a time period of five ( 5) years;

And

WHEREAS, in accord with Subsection 4(3) of the Act, an interim report was provided to

District officials on December 5, 2016, and District officials were afforded the five (5) days al

lowed under the Act to offer comment; And

WHEREAS, Subsection 4(3) of the Act requires a final preliminary review report to be

submitted to the Local Emergency Financial Assistance Loan Board within 30 days of being

commenced; And

430WEST ALLEGAN STREET• LANSING, MICHIGAN 48922 www.michiqan.gov/treasury • (517) 373-3200

Page2

WHEREAS, on December 14, 2016, 2016, the State Treasurer submitted to the Local Emer

gency Financial Assistance Loan Board the final report detailing the preliminary review of the

District; And

WHEREAS, Subsection 4(3) of the Act requires that, within 20 days of receiving the fmal

preliminary review repmi, the Local Emergency Financial Assistance Loan Board shall dete1mine

if probable financial stress exists in the District; And

WHEREAS, on December 15, 2016, at a duly noticed public meeting, the Local Emergency

Financial Assistance Loan Board reviewed and considered the final report of the State Treasurer

detailing the preliminary review of the District, which review and consideration included an

opportunity for representatives of the District to be heard concerning the matter; And

WHEREAS, Section 2 of 1980 PA 243, the Emergency Municipal Loan Act, established the

Local Emergency Financial Assistance Loan Board and enumerates its powers, among which is

the power "to act by an order issued in the name of the board and signed by the members of the

board."

NOW, THEREFORE, be it ordered by the Local Emergency Financial Assistance Loan Board as

follows:

1. That, having reviewed and considered the final report of the State Treasurer detailing the

preliminary review of the District and being fully advised in the premises, the Local

Emergency Financial Assistance Loan Board determines, pursuant to Subsection 4(3) of the

Act, that probable financial stress DOES EXIST in the District.

2. That the Michigan Department of Treasury transmit respectfully and forthwith to the Office

of the Governor a copy of this Order and a copy of the final report of the State Treasurer

detailing the preliminary review of the District.

3. This Order shall have immediate effect.

Page 3

IN WITNESS WHEREOF, the members of the Board, or their designees, have signed and

executed this Order of Approval.

Date: ---------Lansing, Michigan


By _______________ _

Eric Scorsone, Deputy Treasurer of Finance As Designee for Nick A. Khouri, State Treasurer

By ____________ _

Michael J. Moody, Director Office of Financial Management As Designee for David B. Behen, Director DTMB

By _______________ _

Shelly Edgerton, Director Department of Licensing and Regulatory Affairs

139 (Rev. 04-15)


STATE OF MICHIGAN




ORDER2016-19

DETERMINATION OF NO PROBABLE FINANCIAL STRESS

FOR VANDERBILT AREA SCHOOLS STATE OF MICHIGAN

WHEREAS, Subsection 4(2)(b) of 2012 Public Act (PA) 436, the Local Financial Stability

and Choice Act ("the Act"), mandates that the State Tteasurer conduct a preliminary review to

dete1mine the existence of probable financial stress in a school district if the school district is subject

to a deficit elimination plan under Section 1220 of 1976 PA 451, the Revised School Code, which

exceeds five (5) years; And

WHEREAS, on December 5, 2016, the State Treasurer commenced a preliminary review of

Vanderbilt Area Schools ("the District") based upon, among other things, a

determination that the District's deficit elimination plan exceeded a time period of five (5) years;

And

WHEREAS, in accord with Subsection 4(3) of the Act, an interim report was provided to

District officials on December 5, 2016, and District officials were afforded the five (5) days al

lowed under the Act to offer comment; And

WHEREAS, Subsection 4(3) of the Act requires a final preliminary review report to be

submitted to the Local Emergency Financial Assistance Loan Board within 30 days of being

commenced;And

430 WEST ALLEGAN STREET• LANSING, MICHIGAN 48922 www.michigan.gov/treasury • (517} 373-3200

( .. ·

Page2

WHEREAS, on December 14, 2016, 2016, the State Ti·easurer submitted to the Local Emer

gency Financial Assistance Loan Board the final report detailing the preliminary review of the

District; And

WHEREAS, Subsection 4(3) of the Act requires that, within 20 days ofreceiving the final.

preliminary review report, the Local Emergency Financial Assistance Loan Board shall determine

if probable financial stress exists in the District; And

WHEREAS, on December 15, 2016, at a duly noticed public meeting, the Local Emergency

Financial Assistance Loan Board reviewed and considered the final repo1i of the State Treasurer

detailing the preliminary review of the District, which review and consideration included an

opportunity for representatives of the District to be heard concerning the matter; And

WHEREAS, Section 2 of 1980 PA 243, the Emergency Municipal Loan Act, established the

Local Emergency Financial Assistance Loan Board and enumerates its powers, among which is

the power "to act by an order issued in the name of the board and signed by the members of the

board."

NOW, THEREFORE, be it ordered by the Local Emergency Financial Assistance Loan Board as

follows:

1. That, having reviewed and considered the final report of the State Treasurer detailing the

preliminary review of the District and being fully advised in the premises, the Local

Emergency Financial Assistance Loan Board determines, pursuant to Subsection 4(3) of the

Act, that probable financial stress DOES NOT EXIST in the District.

2. That the Michigan Department of Treasury transmit respectfully and forthwith to the Office

of the Governor a copy of this Order and a copy of the final report of the State Treasurer

detailing the preliminary review of the District.


(

(

(

Page 3

IN WITNESS WHEREOF, the members of the Board, or their designees, · have signed and


Date: Lansii-ig, I\1'lichigan


L,- •

Eric Scorsone, Deputy Treasurer of Finance As Designee for Nick A. Khouri, State Treasurer

By ~il Mich~~fficeoIT~ Management As Designee for David B. Behen, Director DTMB

By _ _____ ,__ _ _ ....,,,.._ ______ _

Shelly Edgerto Department of

4425 {Rev. 04-15)


STATE OF MlCI-llGAN



LOCAL EMERGENCY FINANCIAL ASSISTANCE"LOAN BOARD

ORDER 2016-20

DESIGNATION FOR CERTAIN PERSONS TO GIVE NOTICE OF MEETINGS OF THE


WHEREAS, Section 5(1) of Public Act 267 of 1976, the Open Meetings Act, provides that

''[a] meeting of a public body shall not be held unless public notice is given as provided in this

section by a person designated by the public body"; And

WHEREAS, the Local Emergency Financial Assistance Loan Board had heretofore

constmctively authorized the Michigan Depa1tment of Treasury to designate a person to give

notice of its meetings by reliance upon Section 2(1) of Public Act 243 of 1980, the Emergency

Municipal Loan Act, which provides, in part, that the board shall exercise its prescribed statutory

powers, duties, and functions independently of the department of treasury "[e]xcept for

budgeting, procurement, and related functions of the board that shall be performed under the

direction and supervision of the state treasurer"; And

WHEREAS, after consultation with the Michigan Department of Attorney General in

response to Davis v Local Emergency Financial Assistance Loan Board, case no. 13-

281-NZ, issued by the Ingham County Circuit Court on September 4, 2013, it is

advisable under the circumstances that the Local Emergency Financial Assistance Loan Board

formally designate one or more persons to give notice of its meetings; And

P.O. BOX 30728 • LANSING, MICHIGAN 48909-8228 www.michigan.gov/treasury • 517-373-3227

Page2

WHEREAS, although Section 2 of Public Act 243 of 1980, the Emergency Municipal Loan

Act, enumerates the powers of the Local Emergency Financial Assistance Loan Board, among

which is the power "to act by an order issued in the name of the board and signed by the

members of the board," the Attorney General concluded in Opinion No. 5183 (1977), that the

"requirement that a person be 'designated' to carry out the posting of public notice means that such

person be formally chosen by resolution noticed in the minutes of the public body."

NOW THEREFORE, be it resolved by the Local Emergency Financial Assistance Loan Board as

follows:

1. That the following persons employed by the Michigan Department of Treasury be, and the same

hereby are, designated collectively, individually, or in any combination thereof, to give notice of

meetings of the Local Emergency Financial Assistance Loan Board pursuant to Section 5(1) of

Public Act 267 of 1976, the Open Meetings Act:

a. Paul Connors

b. Sara Cousineau

c. Danelle Gittus

d. Harlan Goodrich

e. Ellen Kent

f. Wendy Lamphier

g. Carla Robert

h. Suzanne Schafer

2. That, to the fullest extent permitted by law, the giving of any notice of a meeting of the Local

Emergency Financial Assistance Loan Board by any of the foregoing persons, or by any other

person previously designated by the Michigan Department of Treasury, before the effective

Page 3

date of the Order approving this Resolution is valid to the same extent had the notice been

given after the effective date of the Order approving this Resolution.


( Page 4

IN WITNESS WHEREOF, the members of the Board, or their designees, have signed and


Date: ;P-, /15 4-tJl/2 Lansing, Michigah ·


By ~:_ ~-__,.-Eric Scorsone, Deputy Treasurer of Finance As Designee for Nick A. ouri, State Treasurer

Management As Designee for David B. Behen, Director DTMB

BY-~--------------Shel

Documents

LOCAL EMERGENCY FINANCIAL ASSISTANCE LOAN BOARD …...Department of Treasury Recommendation The Department has been working closely with the deficit District since January 1, 2016