The Webster City community school district board of directors met yesterday with school on the horizon.
During the summer, the school does not receive any funds from the state. Secretary Cathi Hildebrand said this often creates a monetary shortfall and the school has trouble meeting payroll in Aug. and Sept. To rectify this, the school is taking out an interfund loan of $700,000 from the capital projects fund to the general fund. She said the loan is generous for the payroll they have to meet, but that extra money would get the school through any surprises until they would pay back the loan in Oct. when the school receives tax money. Iowa School Joint Investment Trusts currently has an interest rate for that loan at 0.005 percent
The board approved bank depositories and limits for the year, which remained the same from the 2011-2012 school year. Iowa School Joint Investment Trusts holds the school's excess funds, and was capped at $17 million. First State Bank has the lunch, general fund and schoolhouse fund accounts as well as several CDs for scholarships and was limited at $8 million. First American Bank, with the school's activity fund and CDs, and Webster City Federal with several CDs, were also capped at $8 million.
Work between Webster City High School and Iowa Central Community College will continue this year. The annual 28E agreement between the institutions allows the college to provide shared vocational, technical and transfer college credit courses to WCHS students in early-bird and shared programs.
The program, which Superintendent Mike Sherwood said has gone on for several years between the two schools, offers about 40 dual-credit courses for high school students. He said the program often allows WCHS students to earn half to a whole year of college credit before they graduate.
Hildebrand was reappointed as the secretary for the board. Jim Hanks and the Ahlers Law Firm were voted to be retained as the school's legal counsel for the school year. Sherwood said Hanks and the firm have served as counsel for eight years prior and have done so very well.
Nolte, Cornman and Johnson PC handled the audit of the school this year. The audit included several recommendations and notes, including segregating duties between their two office workers to keep financial records clear and accurate. Hildebrand said the school tries to keep as many checks and balances with their financial records as possible with their limited staff.
Stocks the school has held onto since the 1970s pay for scholarships every year using those stock dividends. Hildebrand said the school has always been told they cannot purchase additional stocks, but these auditors said their policy does not address stocks and thinks the school should sell them. Hildebrand's calculations put the worth of those stocks at $622,655.63 as of June 30. The estimated annual income of those stocks is $20,165.28. Putting that money in CDs would offer the school significantly less money. The school would like to keep the stocks, but Auditors also the general activity fund needed further documentation.