Iowa State Board of Education MBAEA Update.pdf · 9/12/2019 · Bureau of School Improvement ....

Iowa State Board of Education Executive Summary

September 12, 2019 Agenda Item: Mississippi Bend Area Education Agency Accreditation Update State Board Priority: All State Board Role/Authority: Iowa Code chapter 273 Presenter(s): Amy J. Williamson, Chief Bureau of School Improvement Attachment(s): Nine Recommendation: The Department recommends that the State Board

review the updates on Mississippi Bend Area Education Agency’s progress on the actions required in the area education agency’s conditional accreditation plan and, if necessary, take any action the board deems necessary to ensure all corrective actions are completed in a timely manner.

Background: At the March 2019 State Board meeting, the State Board

voted to conditionally accredit Mississippi Bend Area Education Agency. Updates on the area education agency’s progress toward meeting all conditions of their accreditation will be provided at every State Board meeting until their corrective action plan is complete or the area education agency is unaccredited.

MBAEA Corrective Actions Report September 12, 2019

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# Item & Legal Citation Corrective Action Due Date for Completion

Priority September Status

September Notes

1 State Board Directed

Iowa Code Ch. 273.10

The AEA Board Chair works with the Expert Mentor for the AEA Board to create board agendas and organize, structure, and facilitate Board meetings. This includes making sure the Board has optimal data to discuss issues before the board, make decisions, approve activities appropriately overseen by the Board, and engage in follow-up.

Ongoing with monthly updates for the duration of conditional accreditation

Immediate Working Tom Downs' focus in August was planning, preparing, and facilitating the August 14th MBAEA Board of Directors annual retreat. The treat was co-facilitated by Tom Downs and Harry Heiligenthal, Associate Executive Director, Iowa Association of School Boards (IASB). The topic for the retreat was engaging board members in a self-assessment of eight characteristics of highly effective boards that research shows positively impacts student learning. The characteristics were originally identified from research titled Eight Traits of Effective School Boards published by National School Boards Association (NSBA) Center for Public Education. With the assistance of Chief Administrator Decker, the mentor and IASB revised the NSBA research article and adapted the terminology for use by AEA boards - The "AEA Version" of Eight Traits of Effective School Boards (ATTACHED).



The AEA Board and Expert Mentor for the AEA Board work together to support AEA Board members to:a. Understand relevant Iowa Code, specifically Iowa Code sections related to the duties and powers conferred to AEA boards;b. Understand AEA operations and finances;c. Understand the role of the AEA system; andd. Enact their role as members of an AEA board.


Immediate Working The compiled results of the MBAEA board member self-assessments, along with a whole board discussion, resulted in the members reflecting on the critical nature of their work and identifying strengths, areas needing improvement, and potential danger signs to avoid. The products of the retreat are contained in five documents: (1) follow-up cover letter to MBAEA Board President Rex Masterson, cc'd to Chief Administrator Decker; (2) main themes for future focus; (3) traits to be "proud of"; (4) traits to "consider for attention"; and (5) retreat evaulation. (ATTACHED).



The MBAEA Board must hold monthly face-to-face meetings reviewing progress toward meeting AEA financial corrective actions as determined by the State Board.

Monthly Immediate Working David King reviewed the August Board treasurers report for the month ended July 2019. It reflected MBAEA drew down $4 million in anticipatory warrants and ended July with $1.4 million in the bank.



The Chief Administrator of MBAEA must work with an expert mentor in finance until such time as MBAEA has a positive ending balance that supports a functional operation is able to sustain a positive balance for at least one year.

Ongoing with monthly updates until a positive balance has been sustained for one year

Immediate Working David King has corresponded with MBAEA Chief Administrator, Bill Decker several times and spent August 29, 2019 at Bill's office working with him and the MBAEA business manager, Jennifer Coombes. David continues to work with Lisa Oakley and Gary Sinclair on the Forecast 5 data. When the FY 19 CAR data is available it will be loaded and the FY 15 to 19 data will be verified. Then the FY 20 budget will be loaded. This will provide a basis to project future years financial outcomes and sustainability.



The Chief Administrator and expert mentor will work together to provide the State Board with the following, all of which must be agreed upon by the Chief administrator and expert mentor prior to submission:

See below Immediate Working Collaborative work continues between Chief Administrator Bill Decker and David King. David spent August 29, 2019 at the MBAEA office working with Bill and business manager, Jennifer Coombes working on timelines and corrective actions. Bill and staff continue to make themselves available and responsive to David's requests.

5a State Board Directed


Itemized budget cuts that will result in a positive general fund balance no later than SFY 2020. The itemized budget must be provided no later than the August 2019 meeting of the State Board.

1. August 2019 Immediate Working Materials presented to the State Board at their August 1, 2019 board meeting may be reviewed again at the September 12th State Board meeting. In addition MBAEA's staffing levels are provided as an attachment.

5b State Board Directed


A plan for the use of anticipatory warrants that includes how and when anticipatory warrants will be sought, what the money will be used for, and how the warrant will be paid off prior to approval.

September 12 Immediate Working Due to the lack of a positive fund balance to provide working capital (i.e. cash) to fund expenditures, anticipatory warrants are utilized for current cash flow purposes. State payments and Federal funds payments aren't fully funded until the end of the fiscal year. This is because State Aid and local property taxes are distributed in 10 monthly payments beginning in September and typically Federal funds are not advanced. Since MBAEA begins spending funds in July they have to "front" approximately 21% of their budget before they get any funding. The MBAEA plan is to have the business manager project the maximum amount of money needed to pay all bills and payrolls on time. This projection would reflect needs and excess cash by month. The maximum amount of funds is shared with and approved by the MBAEA Board prior to the beginning of the fiscal year. Funds are only accessed as needed and repaid as State payments and cash flow allow.The amount of outstanding warrants has been decreasing each fiscal year as MBAEA's fund balance has been increasing. Outstanding warrants at the end of; FY 17 was $5.2 million, FY 18 $3 million, FY19 $ 1 million. It is anticipated, barring any extraordinary event, that all anticipatory warrants will be repaid by end of FY 20.


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September Notes

5c State Board Directed


A process by which any land or building purchases will be agreed upon by the Chief Administrator and expert mentor prior to being taken to the AEA board for approval.

October 31 Next in line Not started

5d State Board Directed


A process by which expenditures for building improvements and maintenance over $10,000 will be agreed upon by the Chief Administrator and expert mentor prior to being taken to the AEA board for approval.

October 31 Next in line Not started

5e State Board Directed


A listing of all building and land with market values possessed by the AEA. September 12 Immediate Working MBAEA owns property in three (3) locations; a central office in Bettendorf, and satelite offices in Clinton and Muscatine. Market values would require hiring either an appraiser or real estate agent to develop. Therefore book value per MBAEA's accounting system is reflected in the detailed listing. The listing of each location and values is an attachment.

5f State Board Directed


A plan agreed upon by the Chief Administrator and expert mentor for how MBAEA will address increasing amounts of outstanding long-term debt, particularly the net pension liability.

September 12 Immediate Working MBAEA has no ability to affect the net pension liability value nor the Other Post Employment Benefits (OPEB). These long term liabilities are required to be reported in the government-wide financial statements in the governmental activities column in the statement of net position. This required reporting is due to Governmental Accounting Standards Board ( GASB) Statements # 45 and 68, in order to more closely resemble private business financial statements. Neither liability impacts the General Fund Operating fund balance. The net pension liability is controlled by IPERS and it's unfunded pension liability. The OPEB for retirees is funded on a pay as you go basis over time. An explanation of all outstanding long term debt accounts, plan to address and year end amounts is an attachment.

5g State Board Directed


A plan agreed upon by the Chief Administrator and expert mentor regarding the viability of MBAEA’s self-insurance program. This plan shall include two sets of analyses:(1) Analysis of the current self-insurance program with five-years of financial projections and(2) Analysis of the cost to terminate the self-insurance program.

February 2020 Immediate Working MBAEA has been contacted to provide the last five years of claims history, expected claims for each year, the suggested rates to cover expected claims and the actual rates utilzed for each year. In addition the independent insurance consultants for MBAEA have been contacted to provide a five year financial projection of the current program and an analysis of the future cost to provide a fully insured program. To complete this the expert coach needs the assistance of the insurance company.

5h State Board Directed


The expenses and revenue for all additional services the AEA provides to districts with evidence of the 60% request needed to provide these services.

January 2020 Later due date On Hold Mentors in discussion with Iowa Department of Education staff agreed to merge the review of revenue and expenditures for additional services with required audit of services in finance action #3 and item #6 listed here. Also it was agreed the evidence of 60% request for additional services would be recommended to the State Board to be stricken from this corrective action.

5i State Board Directed


Monthly updates to State Board regarding the progress of the MBAEA toward achieving financial solvency.

Monthly for the duration of conditional accreditation

Immediate Working Expert mentors will be available to State Board Members to provide information and answer questions.



MBAEA administrators and the expert mentors assigned to MBAEA will work with the Department to conduct an audit of the services they are providing and evaluate the alignment of those services with the requirements of Iowa Code, including alignment with evidence-based practice. It may be possible for the AEA to reduce or eliminate services that are not required by Iowa Code and/or are not using evidence-based practices.

January 2020 Next in line Working The audit of services provided by MBAEA was discussed with Bill Decker on August 5th. How those services align with the Iowa Code will be included with the audit, along with evidence-based practices. A listing of services and programs from the Educational Services department will be conducted over the next two months. Media Services programs will also be listed.


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September Notes



The Expert Mentor for Leadership will work with the Chief Administrators and MBAEA administrators to engage in work around the AEA Assessment of Infrastructure for MTSS Implementation6 (AAIMI) by:a. Facilitating—or supporting the facilitation of—the AAIMI, including Specially Designed Instruction conversations (agenda development, data analysis, communication, follow-up);b. Supporting the development and implementation of an action plan based on the AAIMI; andc. Supporting the communication of progress internally at MBAEA and to the State Board.


Immediate Working Tim Grieves met the AAIMI Team on August 26th. The AAIMI team reviewed the MBAEA scores from the past year and started their work for the 2019-20 school year. The team focused on L-2 Leadership for the meeting: The AEA Leadership Team members have consensus, leadership skills, and dedicated time to collaboratively lead implementation of MTSS. They defined the characteristics of high functioning Leadership Teams, the Purpose and Responsibilities of the MBAEA Team, and identified how each team member can contribute for this school year. The next AAIMI Team meeting is September 16th.

Tim met with Bill Decker on August 5th and on August 14th, before the Board Retreat.

Tim attended the MBAEA Board Retreat on August 14th and plans on attending the September 11th Board meeting.

The first MBAEA Administrative Cabinet Meeting was held on August 20th. Tim reviewed the minutes from the meeting. He plans on attending the September 3rd meeting.

The first MBAEA Superintendent’s Meeting will be on September 5th. Tim plans to attend.



All expert mentors must coordinate their services among one another and with the Department.


Immediate Working The expert mentors meet with one another and with Department staff regularly. Between the August and September board meetings all expert mentors met with Department staff in person at least once and via conference call at least once.

Iowa Association of School Boards

6000 Grand Ave., Ste. A Des Moines, IA 50312 direct: (515) 288-1991

fax: (515) 243-4992

Vision & Voice for Public Education www.ia-sb.org

August 26, 2019 Rex Masterson, Board President Mississippi Bend Area Education Agency 729 21st St Bettendorf, IA 52722-5096 Dear President Masterson: On Wednesday, August 14th, 2019, members of the Mississippi Bend Area Education Agency board, the chief administrator and members of the leadership team met in a board work session to review the results of the AEA version of Eight Traits of Effective School Boards self-assessment tool and discuss how this information can help them improve on their work, as a board team. This letter and attachments summarize that board work session. A copy of this letter is being sent to your chief administrator and board secretary with the request for your board secretary, Cheryl Beck, to kindly provide copies to the whole board.

During the work session, the board reviewed the composite results of the self-assessment, which each member had earlier submitted. Members rated how they felt the board was currently doing on each trait. In addition, members were asked to provide evidence as rationale for their rating. As a part of the survey, members reflected on the “danger signs” from the Eight Traits article and provided an explanation for why this might be a “roadblock” for board effectiveness.

One of the primary activities of the self-assessment asked each board member to individually analyze the data and identify: (1) traits or comments that reflect positively on the board and (2) traits or comments worthy of consideration for future attention and potential improvement. Next, small groups discussed their insights from the self-assessment. In the concluding activity, the whole board and administrative team debriefed the big themes or areas to consider for future focus of the board.

• Attachment A: summarizes the big themes and areas to consider for future board attention (consensus of the large group). The board agreed these are essential areas for the board to identify improvement actions.

• Attachment B: traits or comments that reflect positively on the board (summary of small group conversations).

• Attachment C: traits or comments worthy of consideration for future attention (summary of small group conversations).

We observed the board members to be reflective and thoughtful during the work session. The end-of-session feedback forms, Attachment D, indicates members found the session to be productive and several expressed a desire to spend additional time discussing improvement goals. This work has great potential to positively impact the board and leadership of the AEA.

Vision & Voice for Public Education www.ia-sb.org

What Do We Do Next? Everyone felt it valuable to continue the conversation that began at this initial session and focus on “next steps” at the October 9 scheduled board meeting. You agreed to have Tom, your board mentor, facilitate the October session.

The focus of the October session will be for members to consider each theme and engage in a board-wide conversation about specific strategies to address these areas. Naturally, we will want individuals to clarify what is meant with each theme. For example, what topic(s) would the board be most interested in learning more about? What kinds of data are most important for the board to regularly examine and analyze? We will ask for specific examples where additional clarification around mission/vision/goals is desired. What kind of planning is the highest priority at the present time? Finance? Board Engagement? Communication?

At the October session, board members will also be asked to identify 2 – 3 goal/improvement statements and indicators of progress/action steps to accomplish the goals. This will allow the board to determine how well it is meeting these goals.

Finally, we believe it is critically important for the three board members who were not in attendance at the August 14 work session be provided the meeting materials and an overview of the themes and insights in the attachments to this letter.

As your team moves forward, please know we remain committed to providing support as needed. This support can be done virtually, via speaker phone or face-to-face. Please contact us regarding questions about this summary or other ways we can support your work. Sincerely,

Thomas J. Downs Board Development Facilitator (515) 238.2685 [email protected]

Harry Heiligenthal Associate Executive Director, Board Development, IASB (515) 247-7062 [email protected] cc: William Decker, Chief Administrator Cheryl Beck, Board Secretary

Please read before moving on to the assessment.

An IASB School Board Self-Assessment Adapted for AEA Boards

Eight Traits of Effective School Boards

PurposeThis IASB board self-assessment is based on the research brief, Eight Traits of Effective School Boards, published by NSBA’s Centerfor Public Education. The brief describes the characteristics of highly effective boards that research shows positively impacts studentlearning. Together the research brief and self-assessment, along with a subsequent whole-board discussion, will help you reflect on theeight traits and your board team’s perceptions about the critical nature of this work. The assessment also provides an opportunity forthe board to identify strengths and potential “danger signs” to avoid.

Thoughts to Keep in MindBoard members’ perceptions about key roles may differ, and coming to consensus about where the board is now will help you arrive ata clearer understanding of where you want to be in the future and where you want to focus improvement. The assessment asks youprovide ratings and more importantly, rationale for those ratings. Your honesty and openness will make this board effectivenessprocess more meaningful and useful to you and your board.

Instructions-Prior to filling out the assessment form, read NSBA’s research brief, Eight Traits of Effective School Boards, and the AEAVersion of Eight Traits of Effective School Boards .-Consider how your board is doing for each trait listed.-Rate the current performance of your board on the scale from 1–4 and explain your rating for each trait. List evidence thatindicates where your board team is on the trait at this time.-Complete the form by considering the eight traits and danger signs and answering the open-ended reflection questions.-When finished, submit your assessment.

Important Considerations-This completed self-assessment will be beneficial to the board once it has been shared with and discussed by the whole board.-Any information submitted as part of the self-assessment process may constitute a public record and therefore may be subject todisclosure in compliance with Iowa Code Chapter 22. Please note that the final self-assessment report constitutes a public record andis subject to disclosure in compliance with Iowa Code Chapter 22.-When completing the assessment, it is vital to use discretion in making narrative comments. It is productive to identify positivebehaviors to help enhance the effectiveness of the board. It is also helpful to clarify behaviors that need to change, but is not beneficialto name specific individuals or to blame fellow board members.

Productive sample comment:The board needs to display respectful behaviors to each other, especially on complex topics.

Unproductive sample comment:Jim (or “the board president”) needs to stop yelling at others during board meetings.

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An IASB School Board Self-Assessment Adapted for AEA Boards

Eight Traits of Effective School Boards

Eight Traits of Effective School Boards - Rate Your BoardThink about how your board is doing for each trait and provide a rating. Then, giveevidence and reason for your rating.

1 - Just starting 2 - Some progress 3 - Good progress 4 - Well on our way

List evidence that indicates where your board team is on this trait at this time and why you chose this rating.

1. High expectations, clear goals*



2. Belief that all children can learn*



3. Focused on achievement*

2



4. Collaboration and communication*



5. Data savvy*



6. Goals and resources aligned*



7. Team leadership*



8. Team training*

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Describe why you chose these three traits.

9. Choose three traits you believe are the most important.*

1. High expectations, clear goals

2. Belief that all children can learn

3. Focused on achievement

4. Collaboration and communication

5. Data savvy

6. Goals and resources aligned

7. Team leadership

8. Team training

Describe why you chose these two traits.

10. Think about the next 12 months. Pick two traits that would be the most valuable for your boardto focus on next.

*

1. High expectations, clear goals

2. Belief that all children can learn

3. Focused on achievement

4. Collaboration and communication

5. Data savvy

6. Goals and resources aligned

7. Team leadership

8. Team training

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Why or how might these two danger signs be roadblocks for your board?

11. Danger SignsReview the list of danger signs in the last section of the AEA version of NSBA's research brief, Eight Traitsof Effect School Boards. Choose two of the danger signs you feel may be road blocks for your boardteam. For each choice, state why that danger sign might be a roadblock.Pick two.

*

A - Are only vaguely aware of school improvement initiatives and are seldom able to describe actions being taken to improvestudent learning.

B - Focus on external pressures as the main reasons for lack of student success, such as poverty, lack of parent support, societalfactors, or lack of motivation.

C - Offer negative comments about AEA and LEA staff, LEA programming and students.

D - Micromanage day-to-day operations.

E - Disregard the agenda process and the chain of command.

F - Are left out of the information flow, with little communication between the board and chief administrator.

G - Describe a lack of parent interest in education or barriers to community outreach.

H - Look at data from a “blaming” perspective, describing teachers, students and families as major causes for low performance.

I - Have little understanding or coordination on staff development for teachers.

J - Are slow to define a vision.

K - Do not hire a chief administrator who agrees with their vision.

L - Receive little professional development together as a board.

Please answer the following questions.

12. What do you believe are the greatest strengths of your board team?

13. What do you believe are the greatest challenges facing your board team?

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14. What should your board be doing to address these challenges?

15. What are two focus areas for improvement of board work that could help your board team betterserve the needs of the district, schools and students in your AEA?

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MBAEA Retreat – August 14, 2019 Attachment A

Main Themes (Areas of Future Focus)

Board development/training

Finances

Impact of services

Mission/Vision/Goals/Beliefs/Behaviors

Finances

Resource alignment

Communications

Including finances

Both internal and external

With LEA’s

Information flow

Board member expectations/engagement/meeting attendance

MBAEA Retreat – August 14, 2019 Attachment B

Self-Assessment Traits – PROUD OF’s… (Identify two or three overall areas/traits you are proud of and your rationale for each)

Board group 1 responses

Leadership team

Employees/teachers/professional and support staff

That we have mutual respect of each other

That we can and DO make a difference!

That we have demonstrated our financial stability

MBAEA programs and facilities

Our assistance to Davenport in 2018


Q2. It’s hard to know for sure what each MBAEA director and administrator thinks on this question, but I see no evidence that our leaders do not firmly believe that all children have the ability to learn.

Q3. The greater portion of our board discussions center around student achievement, followed by discussions on finances.

Q4. If questions, suggestions are brought up, we usually get responses in a timely manner. Board members can ask questions about relationships with the districts.

Q5. Chief administrator/AEA staff present financial reports in a clear manner.

Q7. Chief administrator provides information and reminds us our students are well-served.

Administrator responses

The board feels well-informed:

• Financial data • Services to schools • Achievement data • By field staff and administrators

Trust:

• Among board members • With administrators

MBAEA Retreat – August 14, 2019 Attachment C

Self-Assessment Traits – CONSIDER FOR ATTENTION

(Identify two or three overall areas/traits worth considering for attention and a rationale for each)


Tools to better understand the data

Better training for board members…for new and existing board members

More board member communication (and maybe collaboration) with our respective LEA’s

Resource “manual” for board members with descriptions of programs, etc.

Develop an aligned understanding of what it takes to be a good/great board member.

Convey board member role and expectations of them to LEA boards and candidates.

Translate the mission, goals, beliefs and “five behaviors” into specific measurements on which board decisions can be based.

A weekly/semi-monthly written (?) report by the chief administrator online on developments, events, activities, successes, achievements, etc.


Q1. Build understanding and shared ownership on the mission statement, vision statement, agency goals, agency beliefs, and agency behaviors.

Q5. Board members do not share some communications that maybe all board members should be privy to.

Q8. Board training

Administrator responses

Show/clarify the connection(s) between agency goals/beliefs/mission and the services we provide.

Reach a consensus about learning together and team development.

Attachment D

©Iowa Association of School Boards

Mississippi Bend AEA Board Workshop Wednesday, August 14, 2019

Event Feedback

Role What is your current position?

_1_ Board President

_1_ Board Vice President

_3_ Board Member

_1_ Chief Administrator

_2_ Administrator

_2_ School Business Official/Board Secretary

Other _______________________

Workshop Rating Overall, I would rate this workshop:

(Excellent) (Poor)

5 4 3 2 1

(8) (2) Number of ratings; Avg. 4.8

Please tell us why you gave this rating (optional):

5 ratings:

Aligns with my expectation for this meeting. Leading/facilitating toward 3 areas of focus will be helpful going forward

Well organized; We were actively engaged; Good participation Allowed us as board members to discuss concern as a group—suggest next steps with

honest criticism

Helped us focus on what needs to be tweaked Information back to board was helpful Great information, great conversation; looking forward to next steps Generated consensus about what priorities we need to focus on in order to provide the

agency direction

No response (1)

4 ratings:

Excellent content—would suggest ensuring all board members voice their thoughts when prioritizing work

No response (1)

Attachment D

©Iowa Association of School Boards

Takeaways What are two key takeaways you gained from this workshop?

• Points to be proud of; Points to consider • 1) Board members are aligned and want to improve (although we may differ on details);

2) Three areas of focus o 1) Board development/training, 2) Mission/vision/goals, 3) Communications

• 1) Helped to give us direction for improvement; 2) Helped us to better understand survey results

• Board direction; Next steps • Board is serious/committed to work; Nice that people other than AEA board members

know what are actually doing • A lot of to be proud of; A commitment to continued improvement were both obvious • We have a lot to be proud of and awareness of areas that need improvement • Better understanding of board member views/concerns/needs • Strengths, areas to stretch us; working toward common board focus • 1) We need a lot of discussion to surface where people are; 2) We will need to be

explicit about actions

Activities Which activities do you wish we had spent more time on during the workshop?

• Today’s activities were important to decide how to proceed with board development. • Flushing out the elements under each of the 3 areas • More discussion about mission, vision, beliefs, behaviors • All equally represented • None, it was well timed • I thought all activities had appropriate time • We addressed several key issues. Very good start towards a plan to move forward • Just ready to get to action planning • No response (2)

Going Forward What essential activities must be done by the board to do its best for the district?

• Board training • Participate and engage • Focus narrowed in • Education/sharing of information • Stay together through this process • Attend meetings; continue board development even when your work is done as expert

mentor • Remain involved and engaged • Continued planning—commitment by all board members • Board consensus about next steps • No response (1)

Comparison FY14 to FY20 Numbers Percentage

Comparison FY12 to FY20 Numbers Percentage

FY12 Category % of Staff



General, Special Education, and Media Resources and Does NOT include Cost Recovery Employees

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

Administrators 21 21.25 21.25 21.25 23.5 22 18 15.2 16.6 16.6 -4.65 -19.79% -4.65 -21.88% 7.61% 7.09% 6.79%

Admin Support 11.35 10.75 10.3 12 11.2 9.4 10.4 10.4 12.4 12.4 0.4 3.57% 1.65 15.35% 3.85% 4.00% 5.07%

Certified Staff 196.52 189.37 202.78 205.67 205.09 208.1 199.8 197.46 179.3 179.8 -25.87 -12.61% -9.57 -5.05% 67.78% 68.61% 73.54%

Classified Staff 57.7 58 59.3 60.83 56.49 57.08 50.27 41.54 39.2 35.7 -25.13 -44.49% -22.3 -38.45% 20.76% 20.29% 14.60%

Total FTE's 286.57 279.37 293.63 299.75 296.28 296.58 278.47 264.6 247.5 244.5 -55.25 -18.43% -34.87 -12.48% 100.00% 100.00% 100.00%

FY19 and FY20 Certified Staff Numbers do not include contracted staff members, many times retirees, hired to fill specific roles

State Board Meeting September 12, 2019

MBAEA Accreditation Corrective Action #s 5e & 5f

5 e. A listing of all building and land with market values (book value) possessed by the AEA. Book value includes acquisition cost plus improvements and subsequent remodeling costs.

• Bettendorf Building acquired 1983. Book value $ 6,548,015 • Land added in 1985 for $ 38,600 • Land added in 2018 for $ 214,900

• Muscatine Building acquired 2004. Book value $ 1,165,947 • Clinton Building acquired 2014. Book value $ 815,000

Total Value $ 8,782,462

5 f. A plan agreed upon by the Chief Administrator and expert mentor for how MBAEA will address increasing amounts of outstanding long-term debt, particularly the net pension liability.

Long-term debt reported in the Government-wide financial statements in the statement of Net Position consists of the following components as required by Governmental Accounts Standards Board (GASB).

• Certificates of Participation; This is one of two legal methods for AEA’s to borrow funds to purchase land or buildings. In October of 2014 when the Clinton facility was purchased, the Agency refinanced a Certificate of Participation originally issued in 2005, at interest rates ranging from 3.60% to 4.45%, with a new Certificate of Participation. The new Certificate of Participation issued was for $3,855,000 at an interest rate of 2.90%. Refinancing resulted in an interest savings of $232,133 over the remaining life of the note. Annual debt service on the new Certificate of Participation is a little over $416,000 and will be paid off in 2025. Plan to address; The Agency has incorporated the annual payments of $416,000 in its budget and will be out of debt in six (6) years.

• Capital Leases; The Agency enters into agreements to lease equipment for periods of four to

five years. Current leases expire in July 2022. Annual payments range from $27,747 in FY 19 to $19,135 in FY22. Plan to address; The Agency is able to stay current with equipment by leasing vs purchasing and is able to maintain a reasonably constant low annual budget expenditure instead of periodically incurring large one time purchases.

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• Compensated Absences; Agency employees accumulate a limited amount of earned but unused vacation and paid time off for subsequent use or for payment upon termination, death, or retirement. Agency policy limits yearly payouts to the total accumulated in the severance fund in any one year. A liability representing the noncurrent portion of compensated absences is recorded since it is probable these payments will be made in the future. The liability is computed based on rates of pay in effect at June 30 each year. Plan to address; On an annual basis typically the cost of this payout is not significant and is easily covered in the budget. Only if there was a mass exodus or winding down of the Agency would this liability need to be funded in total.

• Early Retirement; During fiscal years 2016 and 2017 the Agency offered early retirement

incentives in order to voluntarily reduce staff. Eligible staff must have at least four years of continuous service, be enrolled in the health and dental plans and be 58 or older. The incentive was a reduction in premium payments to retain coverage until Medicare eligible. In addition, in FY 2016, a severance bonus was offered for staff 60 and over. This offer was 10% of current salary if taken in cash or 15% of current salary if used to fund future insurance premiums. In FY 2018 the Agency had obligations to 21 participants and the annual cost was $84,483. Plan to address; The annual savings to the Agency attributable to the reduction in staff salaries far exceeds the annual cost of the program. In addition each year the cost of this will decrease as participants age out.

• *Net Pension; Agency employees are required to participate in IPERS. Governmental

Accounting Standards Board (GASB) Statement # 68 requires all participating governmental units (including MBAEA) to reflect their share of the IPERS actuarially computed unfunded pension liability. MBAEA is provided the net pension amounts annually by IPERS. Plan to address; MBAEA has no ability to affect this liability in any way. It is controlled by the IPERS Board. This liability does not impact the general operating fund nor does it need to be funded by fund balance.

• *Net OPEB; Net Other Post Employment Benefits (OPEB) is required by GASB Statement #45.

The Agency, as of 6/30/18, had 38 retired participants in the health insurance plan. Since retirees are charged the same premium rates as younger employees GASB #45 requires an actuarial valuation of this “subsidy” as it assumes older retirees should pay higher premiums. Plan to address; MBAEA has no ability to affect this liability in any way as it is discriminatory to charge age based premiums on a group plan. Retirees are charged the same premiums as employees on a pay as you go basis. Therefore this liability will never need to be funded. This liability does not impact the general operating fund.

o *Net pension and Net OPEB liability recognition is required of all governmental entities. This includes all Federal, State and local governments, including local schools and area education agencies.

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The following data is from MBAEA’s Audit Reports

Long Term Debt 2014 2015 2016 2017 2018 Certificates of Participation $3,360,000 $3,570,000 $3,257,000 $2,935,000 $2,604,000 Capital Leases 55,113 61,066 44,127 25,904 89,966 Compensated Abscences 2,688,248 2,699,043 2,895,682 2,850,056 2,803,176 Early Retirement -0- -0- 142,140 471,191 375,016 Net Pension 18,724,002 13,419,154 16,919,567 21,056,132 20,764,503 Net OPEB 436,000 559,000 1,889,095 2,438,683 2,293,026 Totals $25,263,363 $20,308,263 $25,147,611 $29,776,966 $28,929,687

Iowa State Board of Education MBAEA Update.pdf · 9/12/2019 · Bureau of School Improvement ....

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Transcript of Iowa State Board of Education MBAEA Update.pdf · 9/12/2019 · Bureau of School Improvement ....