Les Cheneaux Community Schools students will pay an additional 10¢ per day for lunches, following Board of Education action to raise prices Monday night, September 19. The increase was proposed to help fill a $3,000 gap in the food service budget and is expected to generate an additional $2,500 in revenue each year. Lunch will now cost $1.60 for elementary students and $1.85 for middle and high school students, or $120 per semester.

Superintendent Rod Goehmann said the food service budget last year suffered a $3,000 deficit, owing to rising costs and lack of student participation. Some students bring their own lunches and some high school students eat off campus.

More than 35 percent of the students do not buy lunch at school, according to administrators. The school had an enrollment of 412 students last year, but served an average of only 263 lunches and 80 breakfasts each day to students and staff.

Trustees debated whether food quality or flavor could be blamed, but took no action on a suggestion to survey the students. Vice-president David Murray said the cafeteria could offer more nutritious choices than "doughnuts for breakfast and hot dogs for lunch," to which Treasurer Marianne Coyne responded, "I know if my daughter was given the choice of beef stroganoff or a hot dog, she'll pick the hot dog."

Cafeteria staff have previously told The St. Ignace News that they have tried to offer more nutritious choices like steamed vegetables and grilled chicken breast, but students prefer fried chicken patties and chips. Public school cafeterias must meet state and federal nutrition guidelines and the state provides recipes. A typical lunch at Cedarville, corn dog, macaroni salad, vegetables, and peanut butter bars, falls within the United States Department of Agriculture nutritional guidelines, which require at least one serving each of meat, grains (bread, cereal, rice, pasta), and vegetables.

Secretary David Sudol suggested the flavor probably isn't the problem, since students going off campus for lunch typically load up on the junk food they can't get on campus.

Audit Report/ Recommendations

James Camiller of Keskine, Cook, Miller and Alexander accounting in Gaylord declared the district's books in "great shape," particularly the district's fund equity, which stands at more than $630,000, of which only $391,355 is available. The balance is held in the Debt Service Fund to pay off the bonds used to fund school renovations that started in 1998. Bond payments are made twice a year with the tax money accumulated from a special millage that district residents pay each summer. The bonds are expected to be paid off in 2017.

This means that if the district suddenly lost funding, "you could continue to pay bills for 55 days," he said. Fund equity is sometimes called the "rainy day fund," and includes money accumulated when revenues exceed expenditures.

"Compared to a lot of districts, you're looking pretty good," Mr. Camiller said.

The firm made several recommendations for separations in duties to ensure in most cases that more than one person counts money or records money received by various accounts. Mr. Goehmann said the procedures Mr. Camiller suggested have already been implemented since the firm mentioned them.

Mr. Camiller reviewed the recommendations, including one that someone other than the Business Manager receive and record money sent to the school, suggesting that the Central Office secretary take on this duty. He further suggested the Central Office secretary receive and record contributions to the Student Activities Fund, which has been used for major band trips, and that the district password protect the account.

During athletic events, Mr. Camiller noted that one person typically is in charge of all the gate receipts, and he suggested that two people should handle this responsibility and count the cash. He said the Athletic Fund budget should be provided monthly to the business manager. He also recommended that someone review the district's vendor list from time to time to monitor possible fraudulent vendors. He cited cases of vendor fraud in which the name of a regular vendor is misspelled by one letter, fooling a customer into paying the bogus vendor instead.

He also suggested the district move the Leach Scholarship Fund and Trefry Library Fund under the umbrella of the Les Cheneaux Community Foundation, rather than retaining responsibility for the funds. The funds were established by the school district before the community had a foundation for such things, he said, and now the Community Foundation may be a more appropriate place for the funds.

The Trefry fund was initially established as an interest-bearing fund with a donation of $1,000 for library needs. The district accidentally overspent about $500 from that account, he said, and recommended the district reinstate the money to its original $1,000.

Mileage Reimbursement Increase

Trustees increased mileage reimbursement 5¢, to 30¢ a mile, despite mixed opinions. Superintendent Goehmann said the move was influenced by rising gas prices, driver inquiries, and a recent federal increase in the mileage reimbursement rate.

Staff and administrators are reimbursed for driving to and from school-related conferences, educational events, and school functions. People who drive students to and from school functions, athletic events, and activities are also reimbursed, when using busses is not practical.

The Internal Revenue Service has temporarily increased its rate from 40.5¢ a mile to 48.5¢, at least through December, to reflect rising gasoline prices. The agency says its rate is used as a benchmark by other federal agencies and businesses to reimburse their employees for mileage. It is also used to compute the deductible costs of operating an automobile for business use. The rate may drop if gas prices go down as expected.

Mr. Murray commented that some local businesses have just raised their rates to 25 cents a mile, and while "it's reasonable to raise rates, we're looking at losing more money next year."

"Do we hold someplace, ever?" he asked.

Trustee Tony Hakola asked whether people will stop volunteering to drive places for school events if the district doesn't raise reimbursement rates to the current federal rate. Superintendent Goehmann said that no one is ever mandated to drive, and "they usually attend something by choice."

"Most of the mileage reimbursed by the school is for non-administrative events," he said. "Considering they have been getting 25 cents a mile, I don't think it will be a deterrent” by not increasing the rate to 48.5¢.

Rental House

Trustees elected 6-1 to table a decision to offer the district's rental house to homeless survivors of Hurricane Katrina as temporary shelter through June 30, 2006. In a subsequent motion, they authorized Mr. Goehmann to rent the house to any interested parties for $550 per month. Vice President Murray voted no to each motion regarding the rental house.

The Pelkey family, longtime renters of a house owned by the district on Grove Street, recently moved out of the house. Mr. Goehmann said a number of people have suggested the district offer the house to homeless hurricane survivors, though the district has not been officially asked to provide housing. Since he made a recommendation to offer the house, Mr. Goehmann has received two inquiries from local families about renting the house. These prospective renters would pay to rent in the same arrangement the Pelkeys had with the district, providing the district with $6,600 in annual income.

"This is a very honorable thing for the school to do, but since this (agenda) was printed, we have had two inquiries on renting the place," Mr. Goehmann said, deferring the choice to the board.

Mr. Murray thought offering the house for a charitable cause would serve as an example for students and the community. He further suggested that Mr. Goehmann look into whether the district could receive federal compensation for renting the place to hurricane survivors, as well as state aid for any students that might come to the district with a relocated family. Mr. Goehmann said he was sure the district would receive state aid for any new students, but was not sure about federal reimbursement. Mr. Murray made a motion to table the decision to offer the house to both renters and hurricane survivors in lieu of more information. The motion included suspending rental for a month. The motion died for lack of support.

Treasurer Marianne Coyne disagreed with Mr. Murray's position, adding that "as a board member, I don't think I have the authority to say 'here's a good cause' and be a philanthropist" with school funds and prospective rental income. She compared the situation to a previous action the board took against giving Clark Township money the district received as a result of selling township property. Trustees in that case elected to keep the money in light of lean financial times and the welcome receipt of additional revenue.

Mrs. Coyne emphasized the Board's responsibility to the district to retain whatever sources of revenue it can to ensure the district can continue to function as it has.

Other trustees agreed with her, while acknowledging that offering the house to hurricane survivors is a good idea. Mr. Hakola said that if the Board wants to be an example to the students, why not hold a fundraiser for those affected by the hurricane. Mr. Sudol and Trustee Carl McIntire both said they wanted to see the house rented out, and President Dan Burrows suggested the district offer the house to local families who need housing.

Trustees will reconsider offering the house to those displaced by the hurricane next month, if the house has not yet been rented to someone else.