REPORTS TO THE BOARD

Financial and Enrollment Report

To: Asha Riley, Superintendent

From: Stacy Brown, Director of Business Services

Date: June 6, 2025

Subject: June Financial Update

Audit/Bond Reporting Update

The audit conducted by the Office of the State Auditor is now complete.  The report was issued on 5/29/25 before the 5/31/25 deadline. Opinions on the financial statements, state, and federal compliance were clean with no findings.  They made exit recommendations, which are minor things they noticed that could be improved in the area of internal controls over A/P and Payroll (this is normal in a district our size, where we have limited staff in the Business Office), compliance with state-funded professional learning and ASB activities at WHS.  We had already made some of the recommended improvements before the audit concluded.

In order to stay in compliance with our bond requirements, I am required to report to the Municipal Securities Rulemaking Board (MSRB) by May 31st.  This includes reporting on specific items regarding the outstanding bonds and the amount of taxes outstanding for the year.  It also includes uploading a copy of our audited financial statements and audit report, so the timing of completion of the audit was perfect this year. This report was filed on time to meet the compliance requirement.

2025-2026 Budget Process Update

Completed Steps

• Projected enrollment and entered into the F-203 system to generate the state revenues.
• Entered all certificated, classified, and miscellaneous dollars based on staffing discussions with the buildings and departments.
• Entered final wage schedules for secretaries, teachers, administrators, SEI,U and non-rep employees.

Current Budgeting in Skyward

• Making adjustments to staffing as necessary (account codes, changes in hours and benefits and salaries)
• Entering state revenues per the F-203 system and estimating other revenues.
• Entering non-employee costs for all buildings and departments in the General Fund.
• Entering revenue and expenditure information for the other funds.

Pending Steps

• Estimating wages for KWRL due to ongoing bargaining.
• Uploading financial information from Skyward into OSPI system.
• Generating the actual budget document (F-195).
• Finalizing the budget.

Timeline

• We will be holding the budget workshop at the July board meeting and the final approval the end of August.

Financial Update

With the timing of the June board meeting, there is not enough time to close out the month of May (I usually don’t receive the County Treasurer Report until around the 8th of the month. Financial Information Summary for May will be included with the June information in July.

We did receive some news regarding June Apportionment decreases (and increases) that Trish asked about.  Here is the information received:

As you can see, there are some fairly large decreases to the June apportionment calculation, but there are also some offsetting items that will be paid in June.  The district does not receive LEA funds, so that will not affect us.  The amount that we will be receiving for the $50.00 per student and the additional breakfast funds should almost make up the apportionment decrease.  We will receive the apportionment, just not until July.

TVF Fund Savings and $50.00 per Student Funds Received

As you may recall from our 2024–25 budget discussions, the district requested—and received—approval from KWRL to defer the 2024–25 TVF payment to the 2025–26 fiscal year. With the recent award of EV grants, the KWRL Superintendents have reviewed the TVF balance and determined that member districts will not be required to contribute to the TVF fund in 2025–26.

For our district, the amount originally deferred was $117,513.

Additionally, as noted above, we will receive $50.00 per student from the legislature, which I’ve estimated to total approximately $117,500. These funds come with no restrictions on use.

I recommend we consider using these unrestricted funds to cover the deferred 2024–25 TVF payment. Doing so would free up our levy dollars for 2025–26, allowing us the opportunity to discuss whether those funds could instead address specific district needs.

Please consider this recommendation ahead of our upcoming budget workshop. If we choose to proceed, a resolution will be required to authorize the transfer, though we have until the end of August to adopt it.

Enrollment

Deena is still in the process of finalizing the June enrollment (count day was just on Monday), so I don’t have final numbers for you.  I will include it in the July financial report.

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