Keystone school board discusses audit for last school year

The audit of the $7 million budget for the 2022-23 school year prepared by Alan C. Young and Associates was discussed at length by the Keystone Academy Board of Directors at its regular meeting Nov. 9.
Kimberly Kowalski, board secretary, was asked by board president Vesta Losen to comment on the 45-page audit report, since Kowalski works in finances.
National Heritage Academy representative Andrew Roth said they had lost an employee from their finance team and they spent $50,154 more than had been estimated in expenditures. NHA manages Keystone Academy and prepares the budgets.
Kowalski, after reviewing the report, said the auditor is confident the numbers are correct. The audit is to determine if there is fraud or misappropriation of funds. This went over budget.
She said the report said Keystone exceeded the budget amount in expenses and total expenditures exceeded the final budgeted level by more than $50,000.
She said, other auditors do not determine this to be a “finding,” but Young did determine it was a finding. This is the first year of using Young as an auditor. The report noted: “Expenditures in excess of budgeted amounts are a violation of State law.”
Young’s report noted this was not a repeat finding from the immediate previous audit and recommended Keystone monitor variances between actual and budgeted figures for expenditures.
The audit reports Keystone agrees with this finding and although the Academy’s expenses exceeded the final budget, actual revenues also exceeded the budget. Keystone said it will closely monitor expenses in the future, the audit said.
The board unanimously accepted the audit.
In other business in the Nov. 9 meeting, the board:
• Approved the 2024-25 Prior Approval Checklist as required by granter of the charter, Bay Mills Community College;
• Approved the 2023-24 Amended Budget;
• Approved a match of up to $5,000 out of board funds to PTO funds to help pay for field trips for the Young 5s to 5th graders. The PTO said it had $4,700 set aside for this. The cost of buses is expected to be 50% more or double that of last year’s cost. If students have to pay part of the cost, it is expected that some won’t be able to go on the field trips. Destinations for different classes include the Detroit Zoo, Henry Ford Museum, Ann Arbor Hands On Museum, and Michigan Science Center;
• Heard board member Christine Mihaly report on the NHA seminar she attended along with board vice-president Steve Harsant on Oct. 24 and 25 in Grand Rapids. She said the tour of the NHA headquarters was great and the sessions were informative and helpful. She said she met board members from the NHA schools in Colorado;
• Heard Principal Jorvonna Drain report on the demographics of the students, noting free and reduced lunches continue to rise, with 50% last year and 52% this year. The local school district (Van Buren Public Schools) has 59%. She also reported the count number of students year to date is 697, up from 695 last year. She said absences are down 2% this year and she is very proud of this. Applications for the next school year, 2024-25, are up by 45 applications in comparison to last year (year to date);
• Was informed the PTO sponsored a Y5s-5th grade evening skating party without cost to the families and a Middle School skating party will be after school on Nov. 17 at Rollers Skating;
• Discussed the use of federal ESSER funds, with Roth stating the $100,000 in staff retention bonuses keep current teachers in the school and it’s been a big help. He said the ESSER funds have to be spent by Sept. 30, 2024. “We’ll see what happens later,” he said referring to when the ESSER funds run out;
• Voted to allocate up to $5,000 for Christmas marketing and a staff luncheon. The marketing consists of gifts to staff with a Keystone Academy logo on it. A list of possible gifts was presented by Principal Drain and the board committee will determine what it can afford with the money allocated; and
• Learned with more enrollment this year there is more money from the state. This year’s state aid per student is $9,635, up from $9,000 last year.