The board approved the 2003-04 audit report, a revision to the student trip policy, clarification of language concerning the district's health insurance benefit and adoption of a neighborhood revitalization agreement with the City of Lehigh.

Scot Loyd of Swindoll, Janzen, Hawk & Loyd, LLC, presented the district's financial audit for the fiscal year ending June 30.

In his report, Loyd noted the status of several past recommendations made regarding strengthening internal controls and operating efficiency.

"Activity funds are often a concern in all school districts," Loyd said.

He said in the past, responsibility for monitoring those funds had been handled by office personnel in the district, but now building administrators provide direct oversight for student and district activity funds.

Recommendations in this year's audit included developing a formal recovery plan for "getting the district up and running in the shortest time possible" in case a disaster, such as a fire or tornado, would occur, Loyd said.

An important aspect of that plan, he added, would involve protecting the backups of computer data.

Another recommendation concerned maintaining a current inventory listing the district's assets "to ensure adequate safeguarding of the assets...as well as provide necessary documentation for insurance purposes," Loyd said.

Regarding the policy for student trips, the board unanimously approved a revision that requires activity trips in the state of Kansas or in the Kansas City, Mo., area be approved by the building principals. All other requests must be submitted to the board for approval.

The board also adopted a change in the defined benefit definition for classified employees regarding health insurance that will begin immediately.

The board-approved language clarifies that "All USD 410 classified employees contracted to work for 630 hours per year or more shall receive the health insurance defined benefit" with Kansas Public Employees Retirement System, or KPERS.

"This new language will not exclude anyone presently receiving the health insurance benefit," Superintendent Gordon Mohn.

In response to a request from the City of Lehigh, the board adopted the Neighborhood Revitalization Program interlocal agreement for Lehigh.

That agreement-based on the Neighborhood Revitalization Fund and Tax Rebate Program authorized by the Kansas Legislature-allows Lehigh to offer a rebate to taxpayers who make improvements on structures that are eligible, Mohn said.

In addition to the City of Lehigh and USD 410, other parties that are part of the agreement include Marion County, Lehigh Township and North Central Kansas Library District.

The rebate, renewed annually over a 10-year period, is based on a percentage of tax increases resulting from improvements to the structure, he said.

Taxpayers must apply and be approved to qualify for the rebate, he added.

The plan proposed by the City of Lehigh expires in 2014 and will be reviewed annually beginning in October 2005.

"State aid will make up the difference (for lost revenues) in the general fund," Mohn said, adding that the district doesn't realize the additional revenues from increased property taxes until after 2014.

In 1999, the district approved such a program for the City of Hillsboro, Mohn said.

The board took no action to appoint a delegate to represent USD 410 at the Kansas Association of School Board Delegate Assembly to be held Dec. 4 in Wichita. The assembly will consider policy revisions and resolutions recommended by the KASB Legislative Committee concerning such issues as school finance, school district reorganization and building-based budgets/expenditure reporting.

In his building report, Evan Yoder, Hillsboro Elementary School principal, said parent-teacher conferences were well-attended.

Yoder said he and his staff want to expedite those meetings as some parents had "long waits."

Some parents have requested being able to access student grades on-line.

"We're discussing how to make that happen (for the upper grades)," he said.

Corey Burton, Hillsboro Middle School principal, also reported a good turnout at parent-teacher conferences.

He said HMS will receive a certificate of merit award for its performance on state math assessment tests at a recognition dinner Nov. 10 at Goddard High School.

The award is part of the third Annual Challenge Awards based on accomplishments on state assessments.

Burton also reported that because of the travel time, basketball games scheduled in Hillsboro with Hoisington will include only those for seventh- and eighth-grade teams.

Athletic Director Max Heinrich said, "There won't be a 'C' game that night."

Boys will play in the high school gym and girls will play in the middle school gym, Heinrich added.

He also reported plans to highlight academic achievement by mounting the "Champions of the Classroom"-a display that recognizes those classes that have achieved the Standard of Excellence over the years.

Hillsboro High School principal Dale Honeck thanked Dale Klassen and the Marion County Dairy Herd Improvement Association for providing funding for the school's milk machine.

"We appreciate their support," Honeck said.

During a discussion about long-range planning, board member Doug Weinbrenner presented a "balanced scorecard" model of strategic planning and operations often used by businesses to monitor finances and operations and measure outcomes.

"If you can't measure it, you can't manage it," Weinbrenner said about the importance of the district aligning its vision and mission with its operation.

Weinbrenner said the initial planning process-lasting from 12 to 18 months-would involve the district "creating a vision about the end result" and "taking a hard look" at its strengths, resources and liabilities.

In the meantime, Mohn said he would develop themes regarding tasks identified in his state of the district report.

The board will gather Thursday morning for a special meeting to take action on bills and financial reports that business manager Jerry Hinerman said were not ready for Monday's meeting.

Before adjourning the meeting, the board met in executive for the purpose of discussing negotiations.

Board president Brett Barkman was absent from the meeting.