Agenda Item
Meeting Date: 2/11/2021 - 6:30 PM
Type: Action
Subject: Second Quarter FY 2020/21 Financial Report and Fund Balance Discussion (8:50 to 9:20)
ACPS Division Objective :
Objective 5
We will optimize resources.
Policy: DB - Annual Budget
Enclosure: 2nd Quarter Financial Report
File Attachment:
Summary: The second quarter financial reports representing October, November, and December 2020 are presented for the Board's consideration.
Revenues: March 31 Average Daily Membership (ADM), upon which state revenues are estimated, is projected to be 13,211. This is 950 students less than budgeted. Although enrollment has dropped considerably from what was anticipated, state revenues are projected to be strong. Following the release of the Governor’s amended budget in December 2020, state revenue estimates substantially improved from original projections. Enrollment hold harmless is proposed in the Governors amended current year proposal, this provides a significant increase in state revenues (~$3.8M) that offset pandemic enrollment losses. Additionally COVID relief and infrastructure support monies are included in this proposal. Local school revenues are anticipated to be less than budgeted due to the effects of the pandemic closure. Federal revenues are estimated to meet budget. Local transfer is anticipated to meet budget. A more detailed presentation of revenues received to date is presented on page 2 of the report. Overall revenues are expected to be ~$5M more than originally budgeted.
Expenses: Compensation and benefits estimates based upon second quarter data indicate savings by year end of just under $1M. Monthly compensation and operational expenses by state category is presented on page 3. Although fewer students enrolled in the current year, distanced learning and support has often required more staff and staff time, than is typical for in-person instruction. Detailed operational expenses by department and school are shown on pages 4-6 of the attached report. Substantial unknowns remain for operational expenses for the remaining fiscal year. A number of special revenue programs may need substantive financial assistance to maintain programs in the face of reduced revenue opportunities due to COVID closure.
Balance of Revenues over Expenses: Reported December 31 revenues exceed expenses by more than $21.1M. Reported state revenues collected totaled slightly less than $25.7M.
Special Revenue Funds: Special revenue funds are presented on pages 9-11.
School Fund Balance: Fund balance use in FY20-21 is budgeted to be ~$1.1M. Available balances exceed the 2% threshold established by the Board of Supervisors policy on school fund balance. This information is presented on page 12.
During the Joint Board meeting on January 28, 2021 a pay proposal received positive feedback regarding the use of fund balances to provide a one-time payment to staff in this current year. This proposal would encompass all regular staff members employed before 1/1/21 and receiving an April 2021 paycheck. This proposal would be for a payment of $1K to all regular staff, from 1FTE to 0.7FTE, and $750 for all regular staff that work less than 0.7FTE. It is intended that this payment would be made with the April paycheck. This proposal is estimated to cost $2,665,145, including FICA costs. The specific appropriation of funds by budget code will be brought forward to the Board for an appropriation request at the March 11, 2021 meeting.
As is typical, ~$1.1M is anticipated to be a regular part of the budget for FY 21-22. Additional substantive uses of fund balance will be part of proposed uses in the FY 21-22 budget cycle. It is anticipated that further additional uses of fund balance may be brought forward during the FY 21-22 budget discussion or as agenda items during business meetings in the coming months.
Funding: As presented.
Recommendation: Receive the Second Quarter Financial Report. Approve the one-time pay proposal in concept to move forward with appropriation and implementation.
Recommended By:
Signed By:
Jackson Zimmermann - School Finance Officer
Signed By:
Rosalyn Schmitt - Chief Operating Officer
Signed By:
Dr. Matthew Haas - Superintendent