Schools

District 113A to Discuss ISBE Audit Adjustment, Interfund Loans

The school board will hear information regarding a 2008-2009 transportation claim, as well as a nearly $1.6 million loan to the education fund to pay off tax anticipation warrants issued to District 210.

The Board of Education will hear information Tuesday night on a transportation audit adjustment that will require the district to pay back the state for receiving "unallowable reimbursements," according to district documents.

District 113A Superintendent Tim Ricker and Business Manager Barbara Germany will present information during Tuesday's board meeting regarding a transportation audit by the Illinois State Board of Education.

According to the agenda, an adjustment was made to the district's 2008-2009 transportation claim after an ISBE auditor found a reimbursement "not allowable" by the state. The amount of the reimbursement was not immediately available.

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The ISBE Funding and Disbursement Services Department has provided District 113A with options for paying the negative audit adjustment over the next three fiscal years, according to the meeting agenda.

Also on the Agenda

Tax Anticipation Warrants

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Board members will consider a resolution authorizing the issuance of $1.8 million in tax anticipation warrants to cover the district's financial obligations through the second half of the 2011-2012 school year.

According to district documents, District 113A is looking to issue the TAWs by Jan. 27 with an interest rate of 2.04 percent. The warrants are tentatively scheduled to be paid off by June 28 using property tax revenue.

Information was not immediately available on whether the purchaser would be or an established financial institution.

In June, the District 210 Board of Education to purchase another $5 million in TAWs from District 113A, which again was unable to secure the loan through a bank, according to advisers from PMA Financial.

Under the agreement, the debt is scheduled to be retired by Jan. 31, 2012, with an interest rate of 2.23 percent.

When the district adopted the 2011-2012 budget in September, advisors at PMA Financial Network said the district would need to issue about $2.5 million in TAWs in February, as well as another $1.8 million in November.

At the time, advisors said District 113A would likely eliminate the need for short-term borrowing by January 2013. However, current information indicates that the fund balances are improving, and that the district could only need one more round of TAWs, Germany said.

Interfund Loans to Pay Current TAWs

District 113A will need to loan nearly $1.6 million from operational funds to the education fund in order to pay off its current round of TAWs by Jan. 31.

According to Tuesday's meeting agenda, board members will consider a $1.35 million loan from the operations and maintenance fund to the education fund, as well as a $230,000 loan from the transportation fund.

The loans will be used to pay back $5 million, plus interest, to District 210, which purchased TAWs from District 113A in June.

Per state statute, interfund loans must be repaid within three years. However, payment is expected to occur much earlier, according to district documents.

The meeting will be held at 7 p.m. Tuesday at Old Quarry Middle School, 16100 W. 127th St.

For the complete agenda, visit www.boarddocs.com/il/lbcsd/Board.nsf/Public.


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