Board Report - December 8

Board Reports

Board Approves Contract To Allow ORU To Host Union Commencement on May 13

Board members approved a contract with Oral Roberts University for $46,067 to host the High School graduation on Wednesday, May 13, 2026, at the Mabee Center. The program will begin at 7 p.m., with additional details to follow at a later date. 

“When talking with former students and current stakeholders, they expressed the need to have one ceremony at a guaranteed time where all students can celebrate their milestone together,” said Jim Douthat, assistant principal of Student Life. “Weather will no longer be a factor, and families can plan their students’ graduation festivities with certainty, allowing us to celebrate as one Union family.” 

Union Receives Audit Report for 2024-2025

The Board accepted and approved the 2024-2025 annual audit report by RSM US, LLP. Auditors found that Union complied, in all material respects, with requirements affecting each of its programs for the year ending June 30, 2025. 

In sharing the auditor’s report, Chief Financial Officer Dr. Trish Williams said, “This is what we work for. This tells us that the district has received a clean audit opinion.” 

Highlights of the report: 

• Arbitrage liability: Williams said the auditors uncovered a weakness that’s been addressed and corrected: “It’s been many, many years since we have had any kind of arbitrage liability in our bond funds and our sinking fund because interest rates have been at historic lows; also, the yield on our bonds has also been low. This past year, that all changed when we saw interest rates climb, so the interest earnings on those bond dollars as we are spending them down exceeded the yield on the bonds.” 
  As a result, this liability must be booked on the district’s financial statements. Williams said, “When we did the booking this year, we booked this liability at what we call the ‘fund level’ financial statements. It turns out, it should have been booked on the ‘government-wide’ financial statements. That has been corrected. Going forward, it will be handled correctly.” 
• Compliance Report delayed: Previously, the district has also made available the compliance report which includes the single audit; this is a thorough examination of the district’s federal funds which is required under federal guidelines. “Unfortunately, we do not have that report because the compliance guidelines were delayed by the federal government shutdown,” said Williams. “Those guidelines were not posted until, I believe, the week of Thanksgiving. We expect that we will be able to bring that report back to the Board in January. It was an unforeseen complication of the federal government shutdown.”  
• Compensated absences: A new accounting standard that was implemented in our financial statements, GASB 101, addresses how the district reports compensated absences. “These are sick accruals or vacation time that would potentially be paid out at some level in the event an employee was to leave,” said Williams. “We have reported these in the past; however, the new guidelines require a more thorough and detailed calculation to estimate these potential liabilities.” 
  The district reported compensated absences of $1.8 million under “current liabilities,” which is the amount the district could expect to occur within a year. Non-current liabilities of $4.8 million is the amount the district could expect to incur beyond the one-year mark. 
• Change in net position: When looking at a full-GAAP analysis comparing the changes in net position between 2024 and 2025, Union experienced a positive change of about $4.9 million, with $229.5 million in total revenues and total operating expenses (excluding the medical insurance fund) of $224.6 million. Despite an expected decrease in federal revenues due to the completion of ESSER (COVID) funds, expenditures were offset by an increase in property taxes because the valuation from 2024 to 2025 increased by about 5.8%. 
  Williams said, “Due to the change in how we estimate liability, we had to do a restatement of the district’s beginning balance. We started the year with a net position of $132.6 million and ended the year at $137.48 million.”
• Ending Fund Balance: Union ended the year with a general fund balance of $20,310,000, an increase from the $18,725,000 at the beginning of the year. Williams attributed this to ESSER funds that trailed expenditures. The increase was also due to a number of state sources that came in like maternity leave and the Teacher Empowerment Fund. 

Board of Education Approves School Policy Revisions

In a second reading, the Board of Education approved several revisions to school policies on Monday, December 8. The Board first considered approval of the changes at its November meeting. View policy revisions.

Board Members Approve 2025-2026 Early Retirement Incentive Program

The Board of Education approved the 2025-2026 Early Retirement Incentive program for employees, which will help the district save more than $377,900. 

Whereas the ERI program is designed for savings over a two-year period, the cost to fund the 2025-2026 program for certified personnel is $582,260.

As of this writing, 20 teachers and three administrators have signed up for the incentive. Six support personnel have also requested early retirement.

In other action, the Board: 

• Approved revisions to the District’s Uniform Guidance Procurement Plan and Procedures. Revisions will keep Union in compliance with 2026 state laws.
• Approved the purchase of ManageEngine support and maintenance from Softchoice for $133,338, which will provide the Technology Department with tools to manage up to 15,000 computers, including student laptops, with such things as windows updates, security and USB management.

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