Agenda Item
Meeting Date: 11/11/2021 - 6:30 PM
Category: SCHOOL DIVISION BUSINESS
Type: Info/Action
Subject: First Quarter FY 2021/22 Financial Report (9:15 to 9:20)
ACPS Division Objective :
Objective 5
We will optimize resources.
Policy: DI - Financial Accounting and Reporting
Enclosure: 1st Quarter Financial Report
File Attachment:
FY21-22_Board_Report-Q1 Combined.pdf
Summary: The first quarter financial reports representing July, August, and September 2021 are presented for the Board's consideration.
This report 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 13,288. This is 56 students more than budgeted. Although enrollment has increased slightly from what was anticipated, state revenues are recently projected to be the same due to hold harmless provisions. Sales tax revenues and lottery proceeds are anticipated to be stronger than originally projected, however an estimate of the impact is not available at this time. Overall state revenues collected by ACPS are displayed to remain constant at this time. It is possible that additional state revenues may become available during the legislative session. Local school revenues are anticipated to be less than budgeted due to the continued effects of the pandemic. Federal revenues are estimated to meet budget. Local transfer will at least meet budgeted amounts, as local revenues are stronger than originally anticipated. A more detailed presentation of revenues received to date is presented on page 2 of the report.

Expenses: Compensation and benefits expenses have not been estimated for this report. The second quarter financial report will include estimates of year-end compensation. 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. Page 7 of the report provide summary information regarding variances in operational expenses. Due to issues associated with deployment of an upgraded purchasing system, items purchased may be shown as being incurred in an incorrect month. Overall expenses and encumbrances are correctly displayed in total, however the month in which they were actually paid may not be correct. This issue has been reported to local government’s finance department and they are reviewing options to correct this reporting error.

Balance of Revenues over Expenses: Reported September 30 expenses exceed revenues by more than $2.3M. Reported state revenues collected totaled slightly more than $10.7M.

Special Revenue Funds: Special revenue funds are presented on pages 9-10.

School Fund Balance: Fund balance use in FY21-22 is budgeted to be ~$5.2M. Available balances exceed the 2% threshold established by the Board of Supervisors policy on school fund balance. This information will be presented on page 11.
Funding: As presented.
Recommendation: Receive the report as provided.
Approvals:
Recommended By:
Signed By:
Jackson Zimmermann - School Finance Officer
Signed By:
Rosalyn Schmitt - Chief Operating Officer
Signed By:
Dr. Matthew Haas - Superintendent