Date: November 19, 2008
To: Michael Green, SuperintendentSubject: October Operation Report - Business Services/Food ServiceFrom: Stacy Brown, Director of Business Services
Attached are the 2007-08 year-end financial summary reports and statements, October monthly cash flow statement for the general fund and budget status reports for all funds for the months of October. I will include projected revenues and expenditures beginning with the November financial information at the December meeting. I had originally made a comment that I would include projections beginning in November, but a big part of projecting apportionment is the LEAP factor which comes from the S-275 report. I plan to have the S-275 report complete next week, so I did not have the correct factor to work with in time for this board meeting. This gives you something to look forward to for next month!!
Please review the 2007-08 year-end financial information. The district ended up with an increase to the fund balance of $184,688 for the 07-08 year. This may sound like a large increase, but approximately $129,000 is reserved in building budget carryovers, State Forest funds from August that have not been deducted from apportionment and carryover of the Promoting Academic Success (PAS) program dollars that were not spent in 07-08 in anticipation of the program being discontinued in 08-09. I have included the final sources and uses spreadsheet (which shows where the district levy/local dollars are being spent) and calculates the increase to fund balance. I have also Summary of balances for all funds, Fund Balance History and revenue and expenditures summaries with comparison to budget and explanations for some of the larger differences between budget and actual. Finally, I have included the official certification page, balance sheet, statement of revenues and expenditures and the trust statements.
The cash flow statement (08-09 Budget vs. Actual and Comparison to 07-08) shows revenues as expected, payroll $15,500 less than expected and accounts payable almost $80,000 more than expected. Payroll is less than expected due to one budgeted position not being filled and some benefit adjustments made in October for deductions that employees paid in September that they did not owe, due to changes in vision/dental requirements. Accounts payable being greater than expected can be explained by the large payment to Wilcox and Flegel. Last year, we did not receive a delivery of bulk fuel until November, but this October, we paid almost $70,000 for fuel.
Fund balance statements for all funds for October are attached. I'd like to note that the October general fund ending fund balance is higher than average, due to October being a full month for apportionment and the fact that property taxes are due in October so we receive a large amount of property taxes. This will drop back to normal levels in November and December. If you look at the October Capital Projects statement, you can see that the balance totals $486,918.95. This balance consists of $85,000 in bond proceeds, $49,759 State Forest funds transferred from Debt Service for technology, $290,075 in impact fees and $28,566 State Forest funds transferred from Debt Service designated for a future portable. I also want you to look at the Transportation Vehicle Fund. With the bus payment of $566.162 and an encumbrance of $993,240 the fund shows a negative appropriation of almost $60,000. This means that a budget extension for this fund will need to go to the board for approval in December (as long as it is sometime before we pay for the new buses from Schetky).
The enrollment spreadsheets are also attached, with summaries by headcount for September through November and a comparison of budgeted FTE to actual average FTE. The District enrollment is up 5 students and just over 3.00 FTE from October, putting the average FTE at 1.66 less than budget. This is the first time we have been up above budget for this year. Hopefully, 08-09 enrollment trends will look more like they have in the past and continue to increase as the year progresses. However, I'd like to make you aware that we are almost 30 students short in Special Ed. During budget time we Deb and I looked at projected students, based upon last years special education students. Deb and I have been in touch and we are looking at why we are so far off from budget. I will have more explanation for you at the board meeting. We are aware of the situation and will be making adjustments. I will also be preparing the preliminary forms to determine if we qualify for Safety Net again this year. We hope to complete the application in January if we qualify. I will continue to keep you apprised each month and will let you know how this affects the district projections starting with November financial data in December.
Please let me know if you have any questions.