Agenda Item
Meeting Date: 6/11/2020 - 6:30 PM
Category: SCHOOL DIVISION BUSINESS
Type: Info/Action
Subject: 3rd Quarter 2019/2020 Financial Report (8:05 to 8:15)
ACPS Division Objective :
Objective 5
We will optimize resources.
Policy: DI - Financial Accounting and Reporting
Enclosure: 3rd Quarter Financial Report
File Attachment:
FY19-20_Board_Report-Q3 - Combined.pdf
Summary: The third quarter financial reports representing January, February, and March 2020 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: Local – Schools revenue collections are anticipated to decline, primarily due to building rental declines, donation declines, and a reduction due to the cancellation of Spring sports. March 31 Average Daily Membership (ADM), upon which state revenues are calculated is 13,913.71. This is ~181 students more than originally budgeted. State revenues are anticipated to decrease, even though we have more students, primarily due to potential reductions in sales tax and lottery proceeds. State revenues are projected to decline ~$1.7M below initially budgeted. These estimates are subject to substantial variation as the state has declined to provide localities with information regarding sales and lottery projections during the pandemic closures. Projections are difficult since collections lag by 2 months and there is a lack of statewide data availability. Sales tax and lottery proceeds are received for the current year through August, therefore 3 full months of collections remain with no state guidance regarding projections. Since the General Assembly declined to reflect lower sales tax collections into their April estimates, all reductions in sales and lottery collections are borne solely by each locality, and not offset by any state commitment to Basic Aid. Local transfer revenues are anticipated to decline by more than $2.6M. 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 May 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 March 31 revenues exceed expenses by more than $13.9M. Reported state revenues collected totaled slightly more than $36M. 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 the pandemic, with substantial anticipated declines in revenues, the financial picture is very uncertain. Projected available fund balance, while shown at the end of the report, may be highly variable (ie the variance may easily be 7 figures). Staff has directed departments and schools to minimize operational expenses in the current year to ensure availability of fund balance in next fiscal year.
Funding: As presented.
Recommendation: Receive the 3rd 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