Illinois State Board of Education Finance and Audit Committee met Nov. 5.
Here is the minutes provided by the committee:
I. Roll Call
Chairperson Jane Quinlan brought the meeting to order at 9:31 a.m. Roll call was taken, and a quorum was present with three members. Chairperson Quinlan made the declaration, “An in-person meeting is not practical or prudent because of a disaster. Physical presence for the meeting is unfeasible due to the disaster.” All attendees joined via phone. She verified that each member could hear one another and follow the discussion, and that they were able to testify.
Members Present
Chairperson Jane Quinlan
Dr. Chris Benson
Dr. David Lett
Other Board Members Present
Darren Reisberg
Staff
Dr. Carmen I. Ayala, State Superintendent
Kirsten Parr, Board Services Coordinator
Kim Clarke, Executive Assistant to the State Superintendent
Jeremy Mehochko, Director of Project Management
Dr. Ernesto Matias, Education Officer
Dr. Jason Helfer, Deputy Officer of Instructional Education
Robert Wolfe, Financial Officer
Tassi Maton, Internal Audit Officer
Melissa Oller, Operating Officer
Miguel Calderon, Director of Human Resources
Barbara Moore, Director of Special Education
Jason Hall, Director of State Funding and Forecasting
Marci Johnson, Director of CTE & Innovation
Trisha Olson, Legal Officer
Oriana Wilson, Executive Director of Programs
Scott Harry, Director of Budget and Financial Management
Dr. Sean Clayton, Director of Assessment
II. Public Participation
No public participation at this time.
III. Approval of Minutes: October 5, 2020
Dr. Benson made the motion for the Finance and Audit Committee to approve the October 5, 2020, meeting minutes. Dr. Lett seconded the motion, and it passed by roll call vote.
IV. Review of November Board Presentations
A. Implementation of PA 101-643: District Intervention Funding
Mr. Wolfe told the committee that the superintendents of North Chicago and East St. Louis will present at the Board meeting and that today he would be providing an overview of the enacted statute, which provides for a series of processes and the fulfillment of stipulations that allow for District Intervention Funding to be incorporated into Evidence-Based Funding (EBF) Base Funding Minimum.
Mr. Wolfe shared with the committee that both districts had been through a strategic planning process as well as a financial planning process; ISBE staff has been providing support for these processes. He said that both districts are demonstrating fiscal and academic solvency, and that they will be able to serve as examples for the resource allocation strategy in the ISBE Strategic Plan.
Dr. Benson asked if Mr. Wolfe anticipates other districts attempting to use this method and how affordable that would be for the state. He explained that there are some deterrents to engaging in the process, namely that ISBE gains a considerable amount of authority over the district. He added that as a result of EBF, there are not any districts in a financial condition that would motivate them to engage in these processes.
Chair Quinlan asked what the impact on other districts may be. Mr. Wolfe explained that in order for there to be no impact at all, the state would have to receive $362 million of additional EBF appropriations when comparing fiscal year 2022 to FY 2021. He also explained the course of action that would be needed if that does not end up being case.
V. Review of Contracts and Grants Over $1 Million – for November Approval
A. Approval of Illinois Assistive Technology Device Loan and Evaluation Grant (4630-LE) There were no questions for this item at this time.
B. Approval of Illinois Assistive Technology Exchange Network Grant (4630-EN) There were no questions for this item at this time.
C. There were no questions for this item at this time.
D. Approval of Illinois Service Resource Center Grant There were no questions for this item at this time.
E. Approval of the Three-Year Renewal with College Board to Administer the Scholastic Aptitude Test (SAT) per the Existing Contract
Dr. Lett asked for clarity on the wording of “per the Existing Contract.” Dr. Clayton explained that the option to renew was part of the base contract.
Dr. Lett asked if there has been any information collected on districts’ stances on the move toward the SAT over the ACT. Dr. Clayton said that this kind of survey has not been conducted, though there has been positive feedback from the small sample of stakeholders who participated in the development of certain guidance documents.
Dr. Lett asked about pricing and how much of an increase in profits College Board is receiving with the renewal. Dr. Clayton explained how the price was set and that payments to the company have been consistent. He said he would have to look into the details of the escalator Dr. Lett referenced.
Dr. Lett said that, given the price of the assessments and the pushback on administration of the assessments this spring, he wants to ensure that stakeholders, Local Education Agencies, and ISBE staff have been satisfied with what has been produced. Dr. Ayala noted that the SAT is aligned with Illinois’s learning standards, whereas the ACT is not. She also agreed that it would be a good idea to conduct an analysis on the field’s reception of the SAT.
Chair Quinlan asked if the base contract allows for one or two renewals. The answer was one.
VI. Review of November Action Items
A. Approval of the Strategic Plan
There were no questions for this item at this time.
VII. Review of Contracts and Grants Over $1 Million – for December Approval
A. Approval for one-year grant extension for Facilitating the Coordination of Agricultural Education Ms. Johnson provided information on the proposed grant.
Dr. Benson asked about what specific entities would be included in the expansion. Ms. Johnson listed for- profit organizations, nonprofits, school districts, and Regional Offices of Education (ROEs) as some examples.
Chair Quinlan asked if nonprofits are a fairly typical addition for eligible entities for career and technical education (CTE). Ms. Johnson said yes, except for the fact that this edit only falls under agricultural education, not CTE. A similar edit for CTE is in the works, though.
Chair Quinlan asked about the timeline for the Part 75 revision. Ms. Johnson said that the revision is in process and will be presented within the next two Board meetings.
B. Approval to release and award a request for sealed proposal for the Illinois CTE Improvement Project Ms. Jonson provided information on the proposed release.
Chair Quinlan asked about where the cost savings are coming from. Ms. Johnson explained that this consolidation will include the development of curriculum resources, which will allow ISBE to refrain from paying the Illinois Mathematics and Science Academy an additional $314,000 for curriculum resources in a separate contract.
C. Approval of Special Education Data Reporting and Training Contract with ROE 20 Ms. Moore provided information on the proposed contract.
Chair Quinlan asked if an Individualized Education Program (IEP) management system is provided in the contract. Ms. Moore explained that there was a system in place, but it has not been continued with this contract since so few districts were utilizing it. This reduces costs. Chair Quinlan asked if the saved money would be repurposed to support a statewide buy for management systems that are in place. Ms. Moore cited other sources of funding that are being utilized for that. Dr. Ayala added that Student Information Systems (SIS) have advanced in such a way that integrates IEP systems.
Chair Quinlan asked for clarification about certain data that would be available in SIS. Ms. Moore provided this clarification.
D. Approval of Elevating Special Educators Project – IDEA Part D: State Personnel Development Grant – IGA with ROE 9
Ms. Moore provided information on the proposed project.
Chair Quinlan praised the idea to have an ROE in each area and noted that there are three areas that are not covered at the moment. Dr. Ayala confirmed that she and staff would look into that.
Chair Quinlan asked what the distribution of the funding would be based on. Ms. Moore said that the distribution has yet to be determined; she explained who would be involved in that process in addition to some of the elements that would be taken into consideration.
VIII. Current Audits and Forthcoming Reports
A. FY20 Financial and Compliance Audit status
This item was discussed in closed session.
B. FY19 Single Audit Finding Progress Report
This item was discussed in closed session.
IX. Closed Session
A. Dr. Benson moved that the State Board of Education go into closed session for the following exception item:
Meetings between internal or external auditors and governmental audit committees, finance committees, and their equivalents, when the discussion involves internal control weaknesses, identification of potential fraud risk areas, known or suspected frauds, and fraud interviews conducted in accordance with generally accepted auditing standards of the United States of America. 5 ILCS 120/2(c)(29)
She further moved that Board members may invite anyone they wish to be included in this closed session.
Dr. Lett seconded the motion, and it passed by a unanimous roll call vote. The open meeting recessed at 10:42 a.m. and reconvened at 11:41 a.m. Dr. Lett left the meeting once closed session was complete.
X. Discussion Items
A. FY21 Budget Overview Presentation
Scott Harry presented the general funds budget for FY 2021, the estimated general funds revenues, the general funds financial walkdown for the State of Illinois, the pressures on revenue, and pending developments with significant fiscal consequences. Chair Quinlan asked for the presentation to be shared on BoardDocs.
Chair Quinlan asked if staff has approved all the FY 2021 budgets for projects and programs yet. Mr. Wolfe said that the vast majority of everything has been processed.
B. Summary of FY2022 Budget Hearings
Mr. Wolfe reported that there were almost 300 funding requests totaling more than $900 million. He provided some details of the makeup of the requests. He also provided a table that displayed this information and drew connections between budget requests and goals in the Strategic Plan. He and Dr. Ayala informed the committee that there will be information coming in the Board Weekly Updates regarding the recommendations that will be made in December.
XI. New Business: Items for the next agenda
XII. Next Meeting: December 1, 2020
XIII.Adjourn
Dr. Benson moved to adjourn. Chair Quinlan seconded, and it passed by roll call vote. Chairperson Quinlan adjourned the committee at 11:36 a.m.
https://www.isbe.net/Documents_Board_Meetings/Finance-Audit-Minutes-20201105.pdf
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