Agenda Item
Meeting Date: 3/12/2020 - 6:30 PM
Category: SCHOOL DIVISION BUSINESS
Type: Info/Action
Subject: 2nd Quarter 2019/2020 Financial Report (9:05 to 9:25)
ACPS Division Objective :
Objective 5
We will optimize resources.
Policy: DI - Financial Accounting and Reporting
Enclosure: 2nd Quarter Financial Report
File Attachment:
FY19-20_Board_Report-Q2-Combined.pdf
Summary: The second quarter financial reports representing October, November, and December 2019 are presented for the Board's consideration.
This report is the new format which was first presented during the December 5, 2019 Board meeting. The report provides more detailed information regarding quarterly expenses and revenues. It also provides information on the budgeting and expenditure of funds by state category, and the changes that both the Board and staff have made during the year that affect these categories. All lines are numbered to assist in clearly guiding readers of the report when specific information is discussed.

Revenues: March 31 Average Daily Membership (ADM), upon which state revenues are estimated, is projected to be 13,912. This is ~179 students more than budgeted. State revenues are anticipated to increase based upon this revised ADM. State revenues have been re-projected for the current General Assembly and reflect revised, robust sales tax collections along with adjustments as part of the governor’s proposal and potential actions by the General Assembly. These changes in state revenues are projected to yield ~$1.6M beyond initially budgeted. Local and Federal revenues are estimated to meet budget. A more detailed presentation of revenues received to date is presented on page 2 of the report.

Expenses: Compensation and benefits expenses are estimated for this report and include known information through January 2020 payroll for projection purposes. Monthly compensation and operational expenses by state category are presented on page 3. Detailed operational expenses by department and school are shown on pages 4-6 of the attached report. Page 7 of the report provides information regarding changes made during the year that affect each state category.
Balance of Revenues over Expenses: Reported December 31 revenues exceed expenses by nearly $9.7M. Reported state revenues collected totaled slightly more than $22M.
Special Revenue Funds: Special revenue funds are presented on pages 8-10.

School Fund Balance: Beginning fund balance is ~$4.5M. Fund balance use in FY19-20 is budgeted to be ~$1.2M. Due to a combination of estimated lapse savings and increased state revenues, the projected available fund balance at the end of FY19-20 is ~$6.1M. Staff is preparing proposals to utilize a substantial portion of fund balance for one-time purchases as part of the FY20/21 budget. Should the Board adopt the recommended the one-time proposals as part of the FY20/21 budget, available fund balance beginning FY20/21 would be ~1% of the anticipated adopted budget. This information is presented on page 11.
Funding: As presented.
Recommendation: Receive the 2nd quarter financial report and provide staff with feedback.
Approvals:
Recommended By:
Signed By:
Jackson Zimmermann - School Finance Officer
Signed By:
Rosalyn Schmitt - Chief Operating Officer
Signed By:
Dr. Matthew Haas - Superintendent