Date: February 17, 2009
To: Michael Green, Superintendent
Subject: January Financial Report
From: Stacy Brown, Director of Business Services
Attached are the 08-09 January monthly cash flow statement for the general fund and budget status reports for all funds for the month of January. I have also included the Sources/Uses spreadsheet projecting the district's ending fund balance as of August 31, 2009.
The cash flow statement (08-09 Budget vs. Actual and Comparison to 07-08) shows payroll and accounts payable $41,000 and $49,000 less than expected and revenues approximately $53,000 less than expected. Payroll is less than expected due to one budgeted position that was not filled and January was a very, very low month for paying extra certificated days. Revenues are less than expected due to the apportionment adjustment to actual from budget (actual enrollment is less than budgeted and so is the staff mix factor, resulting in an adjustment to the apportionment in January). We also had a $36,000 adjustment from 07-08 for state forest funds that were collected in August, but not deducted from apportionment until now. This $36,000 had been reported as a reservation of fund balance until this month. The buildings have also spent down their carryovers, so the reservation has been decreased accordingly.
Fund balance statements for all funds for January are attached. I do not see any specific areas identified on these reports that need explanation, that are not explained through the cash flow and projections summary.
The projections spreadsheet needs some explanation. The difference between projected revenues and expenditures results in a fund balance increase of just over $218,000.00, with approximately $108,000 planned as reserve for building budget carryovers. As of the date of this spreadsheet, enrollment has evened out and I have estimated using these figures. I have also received information on any adjustments from last year and the apportionment for January is calculated using actual enrollment and actual staff mix factor, both of which were slightly lower than budget. As mentioned above, $36,000 in state forests were deducted in January as a prior year adjustment, which was expected and reflected in the district fund balance. I have included actual transportation allocations, but am still waiting to hear what the KWRL portion of the additional $6 million allocated for transportation for this year will be. There are a couple of reasons for the projected increase, one of those being the $53,000 in safety net that the district received for three high-cost special education students. I also received information on revenues generated in the first of three quarters of the Admin Match program. I budgeted a total of $30,000 and found out that we will receive almost $27,000 for the first quarter. I have included a conservative estimate of $50,000 for the year. All staff are also making conscious efforts to decrease spending to carry money into next year to minimize the affects of possible cuts. Deb Kernen is also working with her staff to identify 3-4 more high-cost students who might qualify for Safety Net, as the district is eligible for another $127,000 in Safety Net funding for this year. I am also still waiting to hear back from the e-rate program about whether or not we will be funded for 07-08. I'm hoping that we will get around $30,000. I have not included this amount in the projected revenues. I will continue to look at the districts financial position on a monthly basis and make adjustments, as more information becomes available.
The enrollment spreadsheets are also attached, with summaries by headcount for September through February and a comparison of budgeted FTE to actual average FTE. As you can see, we are even on headcount, and up almost .5 FTE from January, putting the average FTE at 4.89 less than budget. This is the first month that we have not lost FTE this year. I'm keeping my fingers crossed that this is the beginning of a new trend in enrollment for this year (however, I'm still taking a conservative approach to estimating enrollment for projecting revenues).
Please let me know if you have any questions.