The Griffith Institute Employees Federal Credit Union has long occupied space within one of the District owned school buildings. Because the credit union is a separate organization from the Springville-Griffith Institute CSD, with a separate Board of Directors, our new auditors, Buffamante Whipple Buttafaro, P.C., recommended in this year’s audit that we develop a formal lease agreement that would outline the use of such space and other incidentals.
To my knowledge, there has not been a lease agreement previously nor has the Credit Union ever paid to occupy space or for other incidentals such as internet access, email, etc. within the District. Consider, if you will, that we have many other private organizations within our District who do not enjoy this same benefit.
This recommendation by our auditors led us to also consult with our school attorney, Hodgson Russ LLP, and to review the recommendations of an earlier safety audit.
We learned from our school attorney that we needed to consider a couple of points. First, they concur that a lease agreement identifying the use/cost of school district space and incidentals is necessary. Second, they identified that we must have the space available to house the Credit Union, without impairing the educational mission of the District. In other words, are we giving space to the Credit Union that could otherwise be used by students and teachers? The presence of the Credit Union office in District facilities necessarily reduces the District’s flexibility with respect to space utilization moving forward. Third, making space available in District facilities to the Credit Union could trigger “private business use concerns under the IRS”. There are restrictions on the amount of benefit that may be conferred on a private organization, such as the Credit Union, utilizing District facilities. Should we afford space within our District facilities to one private organization? Fourth, consider school safety. Credit union membership is open to all present and past district employees and their family members. Does it make sense to have Credit Union members entering our school buildings during the school day for credit union business? Given our increased safety measures to keep all students and staff safe, is it prudent to have this business conducted next to our classrooms? We should limit the people entering our school buildings for non-school related business to the extent possible.
Ultimately, the future location of the credit union is a matter within the discretion of the Board of Education. In light of the factors expressed above, on the advice of our auditors and our school attorney, the Board of Education has decided that the safest and most prudent course for the District is for the Credit Union to relocate off of District property.
If you are a member of the Griffith Institute Employees Credit Union, you may expect further information about a new location and hours of operation from your Credit Union Board of Directors. They are welcome to continue to occupy space within the old District Office building until April 1, 2019.