I'm gonna go ahead and call the meeting to order.

I will note that all board members are present with the exception of Chuck Maryhue, who is excused.

I want to welcome our new superintendent.

Pam Odam to uh JSCB.

That's your first time here, but first time as superintendent, so happy to have you.

Um and Council President Hudson, nice to have you joining us as well.

Thank you.

Um we will start with the October 30th, 2025 minutes, and I'll entertain a motion to accept those minutes.

So moved.

Any discussion.

All in favor?

Aye.

Opposed.

Carried.

All right.

Next up we will turn to our secretary for this report.

Morning, Joe.

Yes, good morning, Mayor and fellow board members.

Um so just a a few items.

The milestones coming up.

We're still waiting for the Office of State Comptroller and the SED to sign off on the comprehensive plan.

So those would be major milestones when they occur.

Uh JSCB staff and Turner are progressing with the interviews for the applicants who uh responded to the architect RFPs.

Those interviews are scheduled in the next couple of weeks.

So that's that's on track.

Uh likewise JSCB staff and Turner will be meeting with our PLA consultant to dive into the feasibility study.

Uh as I mentioned at the last meeting, we just want to make sure it's tailored specifically to phase three, so that's it's not just a generic doc document.

Sure.

And then finally, uh for the next meeting, I'll be working on our 2026 board meeting schedule.

Our general practice has been to meet on the fourth Thursday of the month, except for h holidays like this month that throw that off.

Uh so that'll if general would be the fourth or some cases the third Thursday.

And uh we've we've gone to the ten o'clock time because the board of um Limb, our preservation board is typically in here before us.

Then in the spring, the um board of assessment review.

So we have to work around those other entities.

Do we have we have a December meeting on the schedule?

Okay, good.

Very good.

Any questions for Joe?

Okay, we'll move right along to our program manager report.

Um hi, I'm Scott Barry.

Uh on behalf of Turner.

Um yeah, I think Joe covered a lot of what's in the re uh report.

Uh but uh yeah, the uh comprehensive plan's been submitted.

Uh we've been communicating regularly with SED and expect uh hear back from them in the next week or so.

And uh obviously the state controller is uh still reviewing the report.

Um the RFP was issued for the uh the AEs, and uh we uh there are multiple interviews lined up.

Um the RFP was issued for the uh the AEs, and uh we uh there are multiple interviews lined up uh and uh we expect to have that uh process uh wrapped up in December for a first quarter uh approval uh uh the RFP for CM services is uh under review.

We're working on it right now.

We will have that uh published for uh everyone's review before the end of the year uh in anticipation of that process really happening after the first of the new year.

And uh our uh weekly meetings with SED, as I said, were an ongoing, and uh we're making uh some progress there with the various last-minute tasks.

And uh finally, yeah, the PLA study is uh underway in various uh forms of uh discussions, and we expect to have that uh probably wrapped up in the first quarter as well.

Um that's really the long and short of it.

Yeah.

Okay.

Any questions for Scott?

That's the question.

Um the schedule, so the schedule is predicated on the uh plan being approved in September, and hopefully it will be um you'll get the feedback next week.

If there are delays in um them getting the feedback back to us, I know that we were held up for almost a year based on delay um previously.

Is there a plan to kind of nudge them along so we can make sure the information that we get what we need to have the approval by the end of the summer?

Uh yeah, there's there's two things that we've we've done in this round.

I think differently, and one is we've we've started the procurement process earlier, so that uh everything will be in place um before the actual uh approval.

So we're really just the approval is uh the contract is contingent on approval, but the selections will already be made.

So that was a time saving.

And then as far as uh communication with the uh the office, it's it's my understanding that there's a couple of avenues that uh we've taken to uh uh keep an open line of communication with the comproller's office, but uh as of right now, I haven't heard that there's been any feedback.

Um, as far as a plan moving forward, we we do have some contingencies in place to try to shorten the design process if it does get delayed.

Um, but it's uh it's a very tight schedule for for the first round of buildings.

So uh we were at this point we're we're very hopeful we can meet the schedule as we've outlined it, um you know, without any sort of major delay.

But uh I think Tom Ferrar would like to chime in here.

Thank you, Scott.

So um we're working with the big five, and they they've asked we've already met with them and submitted the materials to them.

They're gonna meet, try to meet with OSC to try to move things along.

SED promised us the comments next week, so we should have it before Thanksgiving.

SED I'm not concerned about.

And then we also met with assemblyman Magnorelli, he's gonna try to help us to work with OSC.

So, yeah, we we're trying to be proactive on that.

Great news.

Thank you.

Great answer.

Thanks.

And I would just offer if any of us can be of any assistance in um in reaching out to the state, please let us know.

Uh any other questions for Scott.

Okay.

Thank you.

All right.

So next up we have um Bonadeo who's gonna give us a report on the audited financial statements for 2025.

All right, good morning, everyone.

Um, I'm Keely Heinz.

I'm a partner with Bonadio Group out of our Syracuse office.

Um so in front of you you have a colored presentation followed by draft uh financial statements and required communication.

Just to just for the for the record, we're talking about the through the end of the fiscal year, June 30th, 2025.

Correct.

Thanks.

Um, so starting on page two of the presentation, um, you'll see page numbers at the top.

Those will allow for you to toggle between the presentation and the financial statements if you want to follow along.

Um with regards to our independent auditors report, um, we have outlined an unmodified opinion on both opinion units.

So your government-wide financial statements as well as your JSCB fund.

That's the highest level of assurance that we can provide on a financial statement following the performance of our audit.

Um management is ultimately responsible for the uh numbers and the fair presentation of those financial statements in accordance with generally accepted accounting principles, and management is also responsible for the implementation of appropriate internal controls over those financial um matters.

Our responsibility as your independent auditor is to perform the audit in accordance with the audit standards, perform a risk assessment, identify where our focused testing should be, and then of course provide an ultimate opinion on the presentation of the financial statements.

Flipping over to page three for our annual summary.

So this was a pretty quiet year as you all are probably aware.

So expenditures were very low.

Annual depreciation expense on those pre-existing depreciable assets was 24.3 million compared to 10.6 million last year.

So previously, the uh estimated useful lives on the depreciable assets was being calculated on 39 years.

That has been changed to 20 years, thus that increase in depreciation expense.

Management determined that that was a more appropriate assessment and expectation for the useful life of those assets.

So we evaluated, followed behind, um, recalculated their adjustment to that estimate, and thus, like I said, the increase in current year depreciation when compared to prior year.

A change in estimate does not require retrospective adjustments.

So meaning we don't need to go back and adjust, you simply change that estimate for going forward based upon those new circumstances and new estimates.

Can I just ask about that?

That's it's obviously a big difference in years, and glad to hear that we're not looking retrospectively, but just curious if you or anyone else that can provide any additional insight in that change.

So management simply really felt that 39 years with no additional work improvements, whatever it may be, would just be um an uh not practical.

Yeah.

Um, so that you know, in taking a look at over the life of JSCB thus far, they felt that based upon um the improvements that have made to date, that it was more reasonable to say, okay, as we go forward, we're going to estimate 20 years versus 39.

Um, you know, GAAP allows for those those judgment calls partly because even just environmental circumstances, right?

You know, buildings here versus you know, down south, you know, for in terms of weather, that those types of things could differ.

So 20 years is definitely still a reasonable number, and what we did was assessed that and recalculated that to make sure that we felt we were picking up in the same place that they are rolling forward with that estimated 20 years.

Thank you.

Um, no new issuances of long-term debt in the current year.

Um, there was a ban issued, so a bond anticipation note uh for $2 million.

So those are current borrowings versus your long-term serial bonds.

Um, there was just under 20 million in principal payments made on those pre-existing long-term borrowings.

Um, that's in accordance with what the future maturity schedules dictated for payments.

And then there's just over 21 million that'll be due in 2026 on those long-term borrowings.

Um, in regards to your 2011 B series borrowing that matures in 2027, there's an annual requirement for payments to be made to a sinking fund in anticipation of that maturity in 27.

Uh, the district, or excuse me, JSCB is adhering to that with uh to date an accumulated 7.9 million in that sinking fund, and the contribution for the current 2025 fiscal year was 3.5.

So again, those contributions being made in accordance with what is required.

With regards to subsequent events, so meaning anything of significance that's happened since June 30 through what will be our audit report date of today.

Um, there was an approval for a renewal of a $2 million ban, and then um the uh approval for an additional $4 million uh borrowing.

Okay, moving on to financial highlights.

So again, anybody new uh to JSCB or looking at a government financial statement, so you have two sets of financial statements that's required by the government accounting standards board.

Um, so page 13 and 15 is your JSCB fund.

So that is presented on a modified accrual basis.

So there are no long-term assets and no long-term uh debt.

So what that means is your capital assets and your serial bonds will not show up in that financial statement when you purchase or make those improvements on your long-term assets on a modified basis.

And on the flip side, any proceeds from a long-term borrowing will be recorded as an inflow or a revenue.

So with a recap on revenues and expenses on the modified accrual fund financials, there was an increase in fund balance of just over three million.

So your revenues exceeded your expenses.

Again, much driven by the fact that expenditures were very, very low.

Um, the expectation will be as that uh phase three ramps up that that fund balance will decrease and dip into a negative number.

So as you continue to incur those short-term borrowings and spend that cash, that fund balance will slowly work its way down to a negative number.

Uh moving on to page uh five of the presentation, referencing you to page 11 and 12 in the financial statements.

These are your government-wide, so these are recorded on a full accrual basis.

So think of this as recording all of the accounting as any other um company would.

All of your long-term assets are reflected in the capital asset line.

Your long-term liabilities are recorded as long-term debt uh due and payable for fiscal year 630 2025.

You had an increase in net position of just over $2.5 million.

Um, your capital assets uh did decrease again due to depreciation in excess of any of your CIP additions, because if you remember, I said there was only about $150,000 of those CIP additions, and then your long-term uh liabilities were reduced by those current uh principal amounts uh due and payable.

Moving on to presentation page six.

Um, so again, in performing our audit in accordance with the standards, we are required to report out the results on our audit performed in accordance with government auditing standards.

I'm happy to report that there were no material weaknesses, significant deficiencies, no known material noncompliance, and we did not have a need to present or issue a management letter.

So those would be um what we call housekeeping items, any sort of observations and recommendations that did not rise to the level of a significant deficiency, but nothing to report there.

Um to wrap up general required communications uh that are dictated by uh the professional standards for us to execute on.

So no transactions that JSCB uh incurred that were lacking authoritative guidance, all transactions were recognized.

Uh the financial statement estimates that are significant to the financial statements are the netbook value of capital assets.

We we just talked about that, right?

There's some assumptions and estimates that have to go into uh determining how long you think those capital assets will last, and we we evaluate those and no items of significance to note there.

No proposed audit adjustments or unadjusted differences.

So what that means is in performing our audit, we did not have to go back to management and say, in order for us to provide an unmodified opinion on the financials, you need to make the following corrections.

So that did not happen.

So the numbers that you're seeing throughout the year are reflection of what rolls up into this June 30, 25 financial.

No significant difficulties encountered, uh, no disagreements with management.

We're not aware of any sort of consultations with other accountants for the means of creative financial reporting, and our discussions with management are in the normal course of our relationship and not a condition of our retention as your independent auditor.

Um again, you've got that financial statement in the required communication in draft form, and then um upon receipt of assigned rep letter from the mayor and um Mr.

Panchinko, we will release these in final form.

Any questions?

Questions for Kaylee?

Yes, actually um on page five of the uh audited financial statements.

The reference in the phase two, it says phase two is nearing completion with construction in progress.

So I think that statement needs to be Yeah, we can get that updated.

That's in the MDNA, which is the unaudited section of the financials, which seems peculiar, but yeah, we can get that language updated, no problem.

But it it was likely missed because it's in the unaudited portion.

Oh sure.

So just um we do have I didn't know if it was because on that particular building, we do have an outstanding construction claim.

So the district may not have technically closed it out, but there's nothing in CIP for it.

So it but I can acknowledge that if you if if that's believed to be significant, or we can simply say that that's at completion, everything's been taken out of CIP.

Correct.

No no need to mention the claim.

It was in my legal letter to you, but thank you.

Thank you.

So just to be clear going forward, so um it will this come back to the board uh or or only in final form.

So this is your opportunity to accept and then um upon receipt of that signed rep letter from uh you and Mr.

Pinchenko, then we can actually issue in final form.

I don't see a resolution to accept the audit.

Is that a motion that we should make well we we um it's we've been doing it through item number six, the um although okay that's been the how we've done it in the past.

Understood.

Okay.

I I would say I don't know um previous years.

I thought we had received a a draft copy ahead of time to distribute to the board, but this year we just received it this morning.

Oh, I apologize.

I know um school district management had a copy last week, so I I apologize.

We'll work on making sure that this group gets it going forward.

Thank you.

Yep.

Thank you, Joe.

Thank you.

Um if you folks think you need more time, you can decide to approve at a later point too, as long as it's ahead of the district's financial statements because this will have to roll up and so on and so forth.

Okay.

So entirely up to you.

Any other questions for Kaylee?

Thank you.

Thank you.

Happy holidays at the end.

Uh okay.

All right, so we will move on to our resolutions.

We have two, and Joe, you can introduce them.

Yes, thank you, Mayor.

We have resolution number 13, which would be our monthly um authorization to pay outstanding invoices.

Okay, we have a motion.

Okay.

Any discussion?

All in favor.

Aye.

Opposed, carried.

Next, thank you.

And uh, we have resolution number 14, which would uh authorize the the chair to sign the uh audit representation letter, and that's usually been our vehicle to accept the results of the audit as well.

Okay.

So I I feel like I um had an opportunity to take a look as we were going through the presentation.

I I don't have any um questions or concerns, but just want to be respectful of the board to see if you all do before we we authorize this resolution.

We're authorizing it with the um knowledge that the paragraph file.

Yes, that was my takeaway from our discussion that the final draft will include that amended language.

Do we get to look at the final draft and if we have an issue with that?

Is there a vote on that?

Or is that well I think that's a good question.

Um because we just received it this morning.

Maybe it would if the board is more comfortable, we can receive that final draft and vote on it at our December meeting.

If that present any issues for SCSD.

Don't have it on it's third.

About a month from now, the third Thursday, yeah, 18th.

It's okay.

Better safe than sorry.

Yes, okay.

That would be good practice.

Good.

Uh okay.

All right, so we're gonna hold on that one.

Um this I think what we'll do is if you don't mind, sure.

This would authorize you to sign the management letter, which is a separate document.

Okay, that's the the letter engaging Bonadio for purpose.

Yeah, that's an important one.

And then we'll uh we'll have a separate resolution at the December meeting to approve the audit in its final corrected version.

Everybody comfortable with that?

Great.

All right, so I'll entertain a motion to authorize uh JSCB chair to execute the audit representation letter in conjunction with the SCSD CFO.

Okay.

Any discussion?

All in favor?

Aye.

Opposed, carried.

Any other business to come before the board?

I do not believe so.

Unless somebody else.

Everybody good?

Motion to adjourn.

Second.

All in favor?

Aye.

Opposed.

Meetings adjourned.

Thanks, everybody.

Happy Thanksgiving.

Same view.