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Meeting Date:
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3/10/2022 - 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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2nd Quarter FY 2021/22 Financial Report (8:20 to 8:30)
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ACPS Division Objective :
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Goal 3 Equitable, Transformative Resources
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Enclosure
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2nd Quarter Financial Report
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File Attachment:
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Summary:
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The second quarter financial reports representing October, November, and December 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. State revenue projections are based upon updated numbers from Governor Northam’s amendments provided to the General Assembly in December. Sales tax revenues and lottery proceeds are anticipated to be stronger than originally projected, and will likely be updated very soon with new figures from the House and Senate crossover discussions in March. State proceeds are anticipated to exceed budget by more than $1.5M. 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: Future total compensation and benefit expenses are estimated for this report. Estimates are based upon expenses incurred, payroll runs through February 18, and estimated payroll expenses from the new ADP 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. Overall compensation and benefits are estimated to be less than budgeted by ~$630,000. 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. 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. Operational savings are expected to exceed $3.2M due to the contingency of ~$2.8M for the 4% March pay increase being unneeded due to estimated salary savings. Page 7 of the report provides summary information regarding changes during the year.
Balance of Revenues over Expenses: Reported December 31 revenues exceed expenses by slightly more than $15.2M. Reported state revenues collected totaled nearly $23.5M. Projected balances at year end are anticipated to be near $5M.
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.
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Funding:
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As presented.
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Recommendation:
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Receive the 2nd Quarter FY 2021/22 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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