Illinois State Board of Education Finance and Audit Committee met Aug. 9.
Here are the minutes provided by the committee:
I. Roll Call
Chairperson Chris Benson brought the meeting to order at 9:30 a.m. Roll call was taken, and a quorum was present with four members. She verified that each member could hear one another and follow the discussion, and that they were able to testify.
Members Present
Chairperson Chris Benson
Roger Eddy (virtual)
Dr. David Lett
Dr. Nike Vieille (virtual)
Other Board Members Present
Dr. Donna Leak
Staff
Dr. Carmen I. Ayala, State Superintendent
Kirsten Parr, Board Services Coordinator
Kim Clarke, Executive Assistant to the State Superintendent
Dr. Brenda Dixon, Research and Evaluation Officer
Cara Wiley, Director of Wellness
Amanda Elliott, Executive Director of Legislative Affairs
Annie Brooks-Pearl, Executive Director of Regulatory Services
Dr. Jennifer Kirmes, Executive Director of Teaching and Learning
Dr. Ernesto Matias, Education Officer
Dr. Erica Thieman, Director of Standards and Instruction
Krish Mohip, Deputy Operational Education Officer
Dr. Melissa DiGangi, Director of Research
Tassi Maton, Internal Audit Officer
Robert Wolfe, Financial Officer
Scott Harry, Director of Budget
Dr. Sean Clayton, Director of Assessment
Barbara Moore, Director of Special Education
Kim Barnes-Cummins, Supervisor of Student Care
Irma Snopek, Policy and Communications Officer
Oriana Wilson, Executive Director of Programs
II. Public Participation
There was no public participation.
III. Approval of Minutes: June 2, 2022
Dr. Lett made the motion for the Finance and Audit Committee to approve the June 2, 2022, meeting minutes. Mr. Eddy seconded the motion, and it passed by roll call vote.
IV. Closed Session (as needed)
Dr. Lett moved that the State Board of Education go into closed session for the following exception items:
A. Litigation, when an action against, affecting or on behalf of the particular public body has been filed and is pending before a court or administrative tribunal, or when the public body finds that an action is probable or imminent, in which case the basis for the finding shall be recorded and entered into the minutes of the closed meeting. 5 ILCS 120/2(c)(11)
B. 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)
They further moved that Board members may invite anyone they wish to be included in this closed session. Dr. Vieille seconded the motion, and it passed with a unanimous roll call vote.
The open meeting recessed at 9:36 a.m. The open meeting reconvened at 11:01 a.m.
V. Review of Contracts and Grants Over $1 Million – for August Approval
A. Contracts & Grants Over $1 Million – Approval to Release and Award a Request for Sealed Proposals for the Administration of the Illinois Science Assessment
Dr. Clayton presented on this item.
There were no questions from Board members.
B. Contracts & Grants Over $1 Million – Approval of Request to Enter into an Intergovernmental Agreement with University of Illinois Springfield for the Reduction of Exclusionary Discipline
Ms. Barnes-Cummins presented on this item.
Dr. Vieille asked if participants were obliged to remain in the program for three years. Ms. Barnes-Cummins confirmed that they are not. Mr. Eddy asked about reasons for participants not continuing. Ms. Barnes Cummins noted that time commitments were a strong factor and that the return to in-person learning required more time from participants than they could give to the program. One out of the four districts that started last year did not continue with the program.
VI. Review of Approval Items for August
A. Approval of Evidence-Based Funding Repayment Agreement with CPS in the amount of $87,512,939.34 There were no questions on this item.
VII. Review of Contracts and Grants Over $1 Million – for September Approval
A. Contracts & Grants Over $1 Million - Approval to Award a Sole Source Grant to the Simon Wiesenthal Center for Operation of the Mobile Museum of Tolerance
Dr. Thieman presented on this item. She noted this was a continuation of funding that ISBE has previously provided for the center, and that it would be utilized to hire new staff and expand virtual options for programming.
Dr. Lett asked what the Wiesenthal Center was able to accomplish during the height of the pandemic. Dr. Thieman noted that during early periods it was focused on construction, but the mobile museum was able to be on the road for in-person presentations as restrictions loosened starting in February 2021.
B. Contracts & Grants Over $1 Million - Approval to Award a Sole Source Grant to the Peoria Public School District 150 for Fine Arts and Other Programs
Dr. Thieman presented on this item.
Mr. Eddy asked to confirm ISBE’s role in item. Dr. Thieman noted ISBE helps coordinate between the General Assembly and the district, ensuring that funds are utilized as specified in the grant. She confirms that agency involvement is standard procedure.
C. Contracts & Grants Over $1 Million - Approval to Release and Award an Invitation for Bids for ISBE to Enter into a Competitive Bid for Illinois Standards-aligned Assessment Content to Administer the Illinois Assessment of Readiness in Grades 3 through 8
Dr. Clayton presented on this item.
Dr. Lett asked for clarification of the five-year renewal process for the two-year contract. Dr. Clayton confirmed that ISBE would not be obliged to maintain that renewal for five years but could extend it for that duration. He noted that the two-year duration is meant to align with other assessment related contracts. Dr. Ayala clarified that the assessment platform contract comes from a separate vendor, and the bid for content would align with this vendor.
Dr. Lett asked if renewal could be annual or in multiple year portions. Dr. Clayton confirmed it could be annual.
Dr. Lett asked if the alignment was between the assessments covered in this bid with high school assessments. Dr. Ayala clarified that this was aligning platform and reporting with content for the Illinois Assessment of Readiness.
D. Contracts & Grants Over $1 Million - Approval of Sole Source Grant to After School Matters Ms. Wiley presented on this item.
Mr. Eddy asked if this increased grant was for expanding the program. Ms. Wiley confirmed that it was for increasing the number of students in the program at the same schools currently in the program.
E. Contracts & Grants Over $1 Million - Approval of Intergovernmental Agreement with Eastern Illinois Area Special Education (EIASE) to Execute the Specific Learning Disability Support Project
Ms. Moore presented on this item.
Dr. Lett asked to confirm that lack of interest in a previous grant opportunity led to ISBE pursuing an intergovernmental agreement. Ms. Moore confirmed that. Dr. Lett asked the reasoning behind partnering with EIASE in particular. Ms. Moore noted EIASE serves many partners across a large, rural area and that its partnership with the Special Education Program at Eastern Illinois University would make its work more effective.
VIII. Internal Audit Updates
A. External Audit Reports
i. Acceptance Item – Fiscal Year 2021 Financial Audit Report
Ms. Maton noted this audit had two findings.
ii. Acceptance Item – State of Illinois Single Audit Report for Year Ended June 30, 2021
Ms. Maton noted this audit had no findings related to ISBE as an agency.
B. Current Audits
i. FY22 Financial and Compliance Audit
Ms. Maton noted that KEB is performing these audits, and that the audits are underway.
ii. FY22 Statewide Single Audit
Ms. Maton noted KPMG is performing this audit, and that it has just started fieldwork.
Mr. Lett asked for research on how long the agency has gone without internal findings in the single audit.
IX. Discussion Items
A. FY24 Budget Discussion
Mr. Wolfe presented on this item. He noted that staff wanted the committee to provide feedback on current plans for FY2024 budget hearings and their format before beginning the process.
Dr. Lett noted that the previous format of one in-person and two virtual sessions seemed to work well, despite lower participation.
Chair Benson supported the opportunity for access provided by virtual sessions.
Mr. Eddy noted that streamlining the written forms for participation, making them easier to complete, could improve participation. He affirmed the positives of the virtual session.
B. FY23 Evidence-Based Funding Results
Mr. Wolfe presented on this item. He noted statewide changes in data and that a decrease in enrollment and low-income counts lowered statewide costs for education. He said there was an increase in revenue from the Personal Property Replacement Tax (PPRT). These factors moved education resources closer to adequacy targets statewide.
Dr. Lett asked to confirm the source of increase in the Tier I target ratio. Mr. Wolfe affirmed that CPS moving from Tier I to Tier II had the greatest impact. Mr. Lett asked what impact this has on CPS. Mr. Wolfe noted that ISBE is providing $27 million more in FY 2023 than in FY 2022. Mr. Wolfe explained that CPS resources grew 11%, but its adequacy target only increased by 1.21%, which increased the district’s adequacy by 6.7%, shifting it from Tier I to Tier II.
Mr. Wolfe noted that FY 2023 would have an increased number of schools in Tier I because of a change in the Tier I Target Ratio, but that overall schools were closer to adequacy. He noted that schools moving from Tier I to Tier II had a higher PPRT than the overall median, whereas districts moving from Tier II to Tier I had PPRT lower than the median. He mentioned some uncertainty pertaining to whether PPRT levels would be maintained. He highlighted a tool on the ISBE website that would enable users to see changes to district funding and concluded that all districts saw an increase in Evidence-Based Funding (EBF) from FY 2022 to FY 2023.
Chair Benson asked how enrollment levels might progress in the future, and if they seem to be stabilizing after a return to in-person learning. Mr. Wolfe confirmed that there had been a decline last year, but said that enrollment data in October will provide more information.
Dr. Lett asked for clarity on schools shifting from Tier II to Tier I. Mr. Wolfe affirmed that adequacy has seen a general increase on the district level and that EBF has helped with this.
Mr. Eddy asked what effect uncertainty in PPRT revenue could have on distribution of funding in the future. Mr. Wolfe affirmed the uncertainty but noted that increases in the PPRT that were seen in the first half of calendar year 2021 seem to have persisted in the first half of 2022.
X. New Business: Items for the Next Agenda
No new business items were shared.
XI. Next Meeting: September 8, 2022
XII. Adjourn
Dr. Lett moved to adjourn.
https://www.isbe.net/Documents_Board_Meetings/20220809-FA-Minutes.pdf
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