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Meeting Date:
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7/14/2022 - 6:30 PM
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Category:
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SCHOOL DIVISION BUSINESS
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Type:
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Info/Action
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Subject:
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3rd Quarter FY 2021/22 Financial Report (8:10 to 8:20)
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ACPS Division Objective :
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Enclosure:
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3rd Quarter Financial Report (fund balance sheet will be updated Monday)
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File Attachment:
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Summary:
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The third quarter financial reports representing January, February, and March 2022 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 based, was projected to be 13,288, the final amount was 13,313.81. State revenue projections are based upon updated numbers from the General Assembly in April adjusted to final ADM. Sales tax revenues and lottery proceeds are strong, however budget discussions in April resulted in slightly less favorable revenues than originally communicated in last quarter. State proceeds are anticipated to exceed budget by more than $842K. 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 meet budgeted amounts A more detailed presentation of revenues received to date is presented on page 2 of the report.
Expenses: Future total compensation and benefit expenses are estimated for this report. Estimates are based upon expenses incurred, payroll runs through June 24, and estimated payroll expenses from the new bi-weekly payroll process through fiscal year end. Teacher pay in this process will continue through August, therefore a significant amount of our overall compensation is incurred at the end of each fiscal year. Payroll posting and reporting has been problematic since January. Overall compensation and benefits are estimated to be greater than budgeted by ~$350,000. This is a change from the prior estimates from the 2nd quarter. 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. Operational savings are expected to be ~$400K as needs, inflation, and supply chain issues have impacted costs since the last quarter. Page 7 of the report provides summary information regarding changes during the year.
Balance of Revenues over Expenses: Reported March 31 revenues exceed expenses by slightly more than $24.3M. Reported state revenues collected totaled nearly $41.7M. Projected balances at year end are anticipated to be near $450K. Special Revenue Funds: Special revenue funds are presented on pages 8-10. School Fund Balance: Fund balance use in FY21-22 is budgeted to be ~$6.6M. This information, and year end scenarios are presented on page 11.
Additional notes: Due to posting and reporting issues owing to local government’s movement to external payroll processing, none of these months are closed and presentation has been delayed. Extensive work on payroll related posting to the core financials continues for each payroll posted since January 2022. It is expected that there will be some variation in posted monthly expenses until work on core financials ends due to audit.
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.
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Funding:
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As presented
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Recommendation:
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Receive the 3rd quarter financial report.
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Approvals:
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Recommended By:
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Signed By:
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Jackson Zimmermann - School Finance Officer
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Signed By:
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Rosalyn Schmitt - Chief Operating Officer
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Signed By:
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Dr. Matthew Haas - Superintendent
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