REPORTS TO THE BOARD

Financial and Enrollment Report

To: Asha Riley, Superintendent

From: Stacy Brown, Director of Business Services

Date: May 15, 2025

Subject: April Financial/April Enrollment

Audit Update

The audit conducted by the Office of the State Auditor is now complete, and the exit conference is scheduled for May 21st and is open to board members to participate in. You have received an invitation to this meeting directly from the auditor.  Please let Nicole know if you wish to participate. 

We are thrilled to share that the audit concluded with no findings and no management letter, which is great news! This outcome is a testament to our strong internal controls, excellent fiscal management, and commitment to transparency.

Achieving clean audit opinions in all areas—financial statements, federal grants, and compliance—demonstrates the district’s proactive and responsible stewardship of public funds. This result should instill continued confidence in our financial practices among both the Board and our broader community.

2025-2026 Budget Process Update

Completed Steps

• Projected enrollment.
• Reviewed certificated and classified staffing needs with building and department staff.
• The State Legislature has set the K-12 budget.  We are not expecting any major increases in State funding for next year.
• Entered projected wages for secretaries, teachers, and administrators.

Current Budgeting in Skyward

• Pulling current staff from payroll into the new budget year.
• Adjustments to salaries and benefits.
• Making adjustments to current positions and adding additional positions.

Pending Steps

• Waiting for OSPI to open the F-203 site for revenue generation.
• Estimating wages for SEIU and KWRL due to ongoing bargaining.
• Uploading financial information from Skyward into OSPI system.
• Generating the actual budget document (F-195).
• Finalizing the budget.

Timeline

• Typically, we’ve shared the proposed budget at the beginning of August. I would like to propose that we hold the budget workshop in July. This would provide the board more time to consider the budget and the reinstatement of levy funds before approving it in August.

Financial Update

Financial Information Summary as of April 30, 2025, based on attached documents.

• Fund Balance: Projected to decrease by  $296,000, which is $400,000 favorable to the budget.
• Minimum Fund Balance: Expected to reach $880,000 in June, avoiding the need for a loan from the Capital Projects fund.
• Local Revenues: Only 20.96% of budgeted revenues were collected in March, due to local tax revenues not being due until the end of April. By the end of April, we’ve collected 78% of the local property taxes.  
• Overall Expenditures: Generally close to projected amounts.
• Budget Variance Report:  To date,  total revenue was $333,000 more than planned, and total expenditures were $255,000 less than planned. The combined result is a $582,000 favorable surplus to date. For further details, please see the Budget Performance Update Report attached 

Attached Documents:

• Budget Performance Update Report (page 1)
• Month-End Fund Balances (page 2)
• YTD Financial Forecast (page 3)
• High-level summary of year-to-date revenues and expenditures.
• Projected amounts for the rest of the year.
• Projected ending fund balance.
• Budget Status Reports for all funds (pages 4-8)

Enrollment

The May enrollment decreased by 18 students and 17.4 FTE compared to April (Headcount Enrollment on page 9). A portion of the decrease is at TEAM High as we have some students that are finished with their graduation requirements and just waiting for graduation!  The FTE count is currently .35 FTE over the budgeted allocation and the year-to-date average FTE is 9.68 above budget (FTE Enrollment on page 10). Special Education enrollment is up a total of more than 13 students over budget. Both are factored into the annual projections.

As always, please let me know if you have any questions.