As we begin tonight, I’d like to take a few moments to clarify the timeline of events and address some recent important questions about the district. Our timeline: Dr. Wyllie announced his retirement in the winter of 2012, and his retirement began in June 2013. At that point, I was formally named Superintendent for the 2013-14 year. To clarify some of the statements made in public comment two weeks ago:  I did not have access to the full financial records of the district at the time of my hiring.  There were no “secret meetings” where Dr. Wyllie instructed me in the ways of Lincoln-Way finance.  I was hired by the Board of Education, not by Dr. Wyllie. When I began as Supt in July 2013, the financial and business operations of the district were not in question. My background was the operation of school districts. I was hired to build upon the tradition of academic success of our schools. Within a short time of my hiring, I began to see inconsistencies in the accounting and reporting practices of the district. Deficits of a few million dollars had been publicly reported over the previous years. The initial plan was to reduce expenditures to reduce the deficits. In Dec 2013, the board authorized TAWs of 11 million. It has been suggested in public comment and in the press that I intentially withheld information from the board or the public about the financial condition of the district. That is simply not true: First. On January 9, 2014, I sent a memo to the board outlining revenues and expenditures during my first four months as superintendent. I expressed concern regarding the potential of declining revenue and increasing need for TAWs. I saw the need to have an outside perspective on our financial situation. The memo stated, “While I am comfortable with my projections, I believe it is beneficial to obtain an independent analysis.” On January 13, 2014, I followed up with another memo that outlined some of the projected deficits and my personal concerns for the district. The memos of January 9 and January 13, were referenced in the subsequent minutes of board meetings that were publicly posted, show that the discussion of the content of those memos took place at those board meetings. Those memos from January 9 and January 13, 2014 are on Board Docs in their entirety. To be clear, I was the one who asked for the help of PMA, to get an ‘outside eye’ on the district finances. I felt that PMA was a well-respected firm that could either confirm my own concerns or at least provide a more accurate view of our situation. The PMA report provided us with a projection. The board was provided a copy of the analysis and projections. The PMA information was contrary to what they had been led to believe in the past. There were individuals who were not confident in the PMA numbers provided. It was then decided that the document would not be presented at a public meeting, and this was not my recommendation. Instead, it was then used as a planning document in negotiations with the teachers and to determine staffing for the upcoming years. The use of the document allowed for the exemption under FOIA. This past week, the attorney general advised of the release of the document as it is no longer being used for the purpose of negotiations. And the district has released the document. Then, it was my hope – and I believe the hope of the board at that time – that we could work our way out of the financial crisis by making some substantial reductions in personnel and in programs without significantly impacting the academic programs for our students. In the January planning session, potential reductions were presented to the board. And during the next several months, the district and the Board faced opposition to eliminating or reducing JROTC, several elective teaching positions, public access to swimming pools, and other supervisory and staff position reductions. In the end, the board decided not to eliminate the JROTC program, and we found that none of our reductions would prove to be enough to keep us from falling even further into debt and deficit spending. We could not cut – or fundraise – our way out of the many years of deficit spending we had inherited. The finances of the district were discussed regularly at open meetings. It was stated that many bills had gone unpaid the previous year. The holding of bills led to increased expenses for FY 2014. It was determined that we would no longer continue the practice of paying our vendors late. Due to these corrections, the district closed FY 2014 with a deficit of nearly 8 million. This was published publicly. Shortly after, the district did pass a balanced budget. The 14-15 budget (the first created in my superintendency) was constructed in the same manner as it had been over the previous decade. That was a mistake. We now know that the district’s business operations were not up to standard. Presenting a balanced budget in June 2014 was a result of my own inexperience and in working with the Business Manager at that time. I own that decision, and in the next year and all subsequent years, I have reworked the way budgets were designed and presented. The budgets for the past 3 years have been more detailed and accurate. During the fall of 2015, the Board approved the hiring of an interim business manager. This was the first time to my recollection that the district began to utilize a budget as a true financial tool that compared actual expenditures and revenues to budget. In the summer of 2015, a director of finance was hired to improve upon accounting processes and internal controls. This year, we have two experienced individuals leading the financial operations of the district. It has been a difficult time for the entire Lincoln-Way community, but what we have accomplished in the face of these hardships has been amazing. Our academic and athletic success are at their highest levels, and our students graduate (97%) and move into the top colleges in the country – and a large percentage of our students leave with college credit already earned through our AP programs and other Lincoln-Way opportunities. Much credit goes to our faculty, who continue to do incredible work, with a very limited budget for supplies, technology, and instructional materials. The district finances are also on the road to recovery, even faster than we had hoped or predicted. Last year, we closed our 2016-17 year with an operating surplus of 3.3 million dollars – the first operating surplus in the past 12 years. Because of our dependency on borrowing (Tax Anticipation Warrants), we have much work to do – but our direction is clear, and we see a positive outcome in a few years. As you will see tonight, the district’s financial forecast looks solid moving forward. We have a new auditor, an experienced Director of Finance, and an Assistant Superintendent / CSBO who continue to make adjustments to our reporting practices and to guide us toward a healthier financial future.