LTUSD board wants a handle on STHS’ club debt
By Kathryn Reed
When the Lake Tahoe Unified School District board of education meets later this month, the five electeds will be asked to decide how to deal with the debt incurred by South Tahoe High School’s Associated Student Body and what the future policy will be.
Consultant Terri Ryland gave a presentation last week about the audit she did regarding the continued deficit. This has been a multi-year problem. (Board member Sue Novasel was not at the May 28 meeting.) The total balance from the various clubs that make up the ASB account is negative $20,892. Plus, the yearbook has a loan from the district totaling $30,397.
“No one wanted to see the kids go without. I think that is what started the negative balances,” Ryland told the board.
LTUSD is studying the books for South Tahoe High’s clubs. Photo/LTN file
One of her recommendations is no club or individual class can spend money until it is in the account. Today it’s OK to fund raise after the fact or after the event has been planned and deposits made. This is partly what has led to the debt because the money raised has not always met the expenses.
The classes of 2010, 2011 and 2012 all graduated and left a negative balance in their respective accounts. There are no consequences for having done so.
An issue that was brought up by Roy Benavidez, who heads the ASB, is that ASB is responsible for paying the salaries of the adults who are tasked with doing the bookkeeping.
Ryland said she did a check and could not find a single instance where any other ASB was saddled with the entire bookkeeping expense. Most districts incur the cost, with some charging a percentage to the ASB.
Twenty hours a week – just for the ASB books – have been allocated and is what the student group must pay. The position was supposed to be for 15 hours, but 20 is what it turned out to be.
“Prior to 2010, several positions at the high school performed various parts of the ASB bookkeeping function. Costs for approximately 11 hours per week were $27,000-$34,000,” Ryland wrote in her presentation.
STHS Principal Ivone Larson pointed out that if the district were to incur the expense of the salaries from the last two years for the bookkeeper, then that would essentially wipe out the debt that is on the books.
CFO Deb Yates told Lake Tahoe News after the meeting, “I’ll recommend we bring it in house to assess how many hours are really needed (for bookkeeping.)” (It will be on the board agenda June 25.)
It will be up to the board if the debt is paid off through general fund dollars or some other way and if policy as to how ASB is managed in the future is changed.
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On the June 11 agenda is the hiring of administrative intern Cindy Martinez as interim principal at Bijou Community School for 2013-14.
The meetings start at 6pm in the district office on Al Tahoe Boulevard.
Huge amounts of debt, no accountability, and minimal benefits created?!?! Ladies and gentlemen… Introducing the 2016 South Lake Tahoe City Council!!!
Paul:
What does the South Lake Tahoe City Council have to do with the Lake Tahoe Unified School District Board of Education’s need to deal with the debt incurred by the South Tahoe High School’s Associated Study Body?
Today it’s OK to fund raise after the fact or after the event has been planned and deposits made.
????
How about you fund raise then pay for what you want to do. In the real world you need money up front.
20 hours a week to do the book keeping for the ASB? A competent accountant should be able to do this work in 5 hours or less. It looks like the district has tried to preserve administrative staff positions by shifting the costs to the ASB and raiding their funds.
It would be informative to know what the transaction volume that the book keeper for the ASB is handling. My guess is it doesn’t justify anything close to 20 hours.
Maybe some enterprising students and a Math/Business teacher and advisor could form the “Accounting Club”. :)
The LTUSD saves money and the kids learn valuable skills. And I agree with Say What?, that 20 hrs. sounds like a rip-off for what should be pretty basic stuff.
Response: Great article for awareness and action
Mr. Benavide, who heads South Lake Tahoe High School’s Associated Student Body (ASB) activities, voiced his concern that a large part of the ASB budget is currently paying for school district employees to monitor student club accounting, which is currently some $50,000 in the red.
District consultant Terri Ryand stated, “No one wanted to see the kids go without. I think that is what started the negative balances.” There is an old saying: The road to hell is paved with good intentions. LTUSD just confirmed that.
What the consultant reported to the Board is disturbing in many ways, such as the questionable philosophy of it is okay to not follow rules that are clearly set in policy. You don’t spend more than you have in your account. It’s basic business math. However, good intentions got the district in its current situation, which the Board must address at the next meeting.
Suggestions:
1) The Board should review current policy and administrative regulations in regards to student activities.
2) Provide employees who are responsible for student fund income and expenditures a correct fiscal process to follow.
3) The negative balance incurred by the high school should be made up from the high school’s budget, not from the district’s general budget.
Good luck!
Mike Crowley
South Lake Tahoe