Serving the High Plains
The San Jon school board during a special meeting hired an Albuquerque-based firm to act as the district’s business manager after the current one departs this month.
The board during a special meeting March 1 approved a $115,455-a-year contract with K12 Accounting LLC of Albuquerque, despite at least two board members expressing misgivings of hiring a non-local entity.
The contract partially is prorated through the end of the current fiscal year that ends in June, and the pact expires on June 30, 2023.
Superintendent Janet Gladu said none who applied for the school district’s business manager position was qualified after advertising the opening in early February.
She stated in a follow-up email to the Quay County Sun the position requires a School Business Official license. Gladu stated she has one “but am not able to do both positions.”
She also noted the district faces deadlines in submitting its budget for fiscal year 2023 before midyear.
The district’s current business manager, Julie Lafferty, submitted a resignation letter on Feb. 11, effective March 10. Gladu stated in her email that Lafferty did not state the reason she is leaving.
The board spoke with K12 Accounting’s owner, Bryan Runyan, by videoconference during the meeting. Runyan said his firm has 22 employees across New Mexico. He said he and his wife are certified public accountants and perform business manager roles for the Alamogordo and Lordsburg school districts, plus several charter schools.
Runyan acknowledged his yearly fee is “a bit steep,” but he can partly mitigate that by finding more local revenue and file more requests for reimbursements.
He said K12’s contract contains a 60-day severance notice clause if the district eventually finds another qualified business manager.
Runyan initially recommended a three-year contract with the district because that’s what most of his clients prefer.
Board member Cynthia Lee balked at that long of a deal. Board President Frank Gibson also expressed reservations.
“It doesn’t look good for a board to be outsourcing,” he said.
Runyan said San Jon is in better position than many of his other clients. He said he often is hired by districts with their finances “in a mess,” often with 20 findings in their most recent audits.
He said San Jon’s most recent audit was clean, and “you want to maintain that high level.”
Runyan said he would bring two people to the district, including himself, to the board’s next regular meeting. He said he likes to have someone from his firm to attend meetings and audit conferences in person.
The board also voted to remove Lafferty from all district financial accounts after her departure and add K12 personnel to them.