August 21, 2015 at 4:00 PM - Superintendent's Weekly Update to the Board of Education

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Please see attached pics of a thank you card from Rozanne Sobania.

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I'd like to thank Michelle Hauber for putting together an add for Who's Who in the MCR.  I had her make a correction in the enrollment.  We actually have over 1,000 students in preschool through grade 12.  In fact, we're already up 38 students in kindergarten through grade 12.  We ended last year with 914 students and today's count is 952 students. 

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As mentioned above, we have 952 students enrolled in kindergarten through grade 12.  The additional 38 students is ahead of our projection and budgeted revenue by 14 students (see attachment "Enrollment History 2015-16").

So what does having an additional 14 students over our projected numbers mean for the budget?  We will have an additional $90,000+ in our budget to work with each year.  We can use it to off set the new Student Activities-Community Education Coordinator position, 9% total package for REM (we budgeted 8%), etc.  

SEE provided to us comparative data on revenue between Minnesota school districts.  We remain near the very bottom at 300 out of 332.  Also, the state average in total revenue per pupil is $11,916.  Royalton School District's average in total revenue per pupil is $9,839.  We operate with approximately $2,000 less per student than the state average.

BUT...our school district is doing very well financially because of most recent years legislation (i.e., $300/pupil, $424/pupil, and 2/3 future facilities needs paid by state). 

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CAUTION:  The attached documents are RAW and in the process of completion and interpretation.  Please do not share the information for two reasons:  1) the data is in the process of verification and updating 2) there is an investigation in the hands of our school attorney office.

The first attachment is a list of persons I recommended Kelly Burns interview in the coming weeks.  Please review the list and let me know if there are others that should be added to the list.

The second attachment is a list of wrestling coaches and volunteers I sent to Kelly Burns.

The third document can also be found on the school district web site under "Volunteers" and then "Wrestling Club Donations."  I need to ask Michelle Hauber to reorganize this pathway.  I used to have it linked better for the users ... I think?

The fourth document is various notes/data from Brent.  I asked him to review the board approved wrestling club donations and then add any additional dollars our student activities have received that were NOT board approved.  For example, the football program received money from the club for selling raffle tickets.  These dollars did not need to be board approved because they were deposited into the football student activities fund.  The goal is to answer the club's point that they provide/donate money to lots of various school activities.  So, we need a complete picture of everything.  How much in total???

The next documents are Royalton Wrestling Club's tax filing history with the IRS.  The club members will need to explain a lot to the our public and IRS.

Sample questions:

1.  990-EZ Form (2013).  Go to page 6.  In years 2009 - 2013, the Royalton Wrestling Club brought in $308,567 in total public support.  During those same five years, the school district received approximately $57,000 in board approved donations from the club + approximately $21,921 earned by various student activities for selling raffle tickets.  This equals approximately $79,000 the school district and it's activities programs received from the club in some way.  Where is the approximately $230,000 other dollars??? 

2.  990-EZ Form (2012).  Go to page 2, Part III.  The Royalton Wrestling Club reports to the IRS that they spent $32,514 supporting the wrestling program (e.g., coaches, equipment, etc.).  The school district records show $5,130.93.  Why the difference/discrepancy of approximately $27,000???

I am not an accountant and do not pretend to know the ins and outs of tax forms any more than the average person.  I am gathering information I believe will be important to the investigation and for the school district and public.  I'll ask for the assistance of Kelly Burns and others to help compare and interpret this data.

Again, please do not share the data or my comments at this time.  I may be way off in how I'm understanding the 990-EZ forms.  Also, there is an active investigation that has only started and has a long way to go.

Also, please know I took a very small look at only a five year time period.  The attorney or someone will have to review the data in much further depth and ask lots more questions for all of the years.

Having a policy on accepting gifts was a good idea by someone.  It's helping us now with comparing what the district has actually received with what the club is reporting to the IRS and giving the impression to the public.  Brian Conrad said at the board meeting Monday evening the club donates hundreds of thousands of dollars ($100,000s) to the school district.  It's true they take $100,000s out of our community, but it's not going to the school district and students as they portray it is.

Again, where is the money...and LOTS of it???  There will be some explanation, such as the club gives raffle ticket money to the River Dogs and Splash Park.  And the club will have expenses that need to be subtracted from the revenue (e.g., paying the Sartell golf club for green fees, printing of the raffle tickets, etc.).  Having a full and complete disclosure of the clubs bank records and all other financially related documents will help them clear up these concerns.

Lastly, our concern wasn't to question the club on their financial record keeping and spending.  It is because of their continued disregard for the school district's request to not pay for volunteer coaches (Title IX compliance) and wrestling camps (MSHSL rules) that we are here now.     

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Please see attached the weekly bills for your approval.