02/03/2014 – Financial Report

Dec 2013 Financial Report



Summary

Dr. Michael Bell (Chief Financial Officer)
This is the end of December ’13 financial report. Property tax payments are over, so month to month we will spend more than we take in.

Page 1
At the end of December we should theoretically be at 50% of expected receipts. We are at 67.6% of expected receipts YTD and running ahead of last year with the same millage rate. The digest is fairing better than last. We are about $21 million ahead in local property tax collections compared to where we were last year. We are a little behind in expected state collections.

This report was put together before the Governor recommended in terms of his interim supplemental budgeting, next year’s budget relative to state sources.

Page 3
We projected a total revenue of $481 million and we are at $511 million at the end of December. Local revenue was projected to by $327 and we are actually at $357 million, or ahead by 9%. Flat on the state sources. State QBE allotments will be adjusted in March.

Page 34
Variance report is the last page and it’s basically the same.

Mid Year Adjustments
Based upon this and our expenditure analysis, along with revenue information, we’re working with the county tax commissioner office. I’d like to talk about mid year adjustments to anticipations of appropriations.

T-Sheet
[Note: I’m working on getting this doc] The left side is anticipations which is revenue. Appropriations on the right side which is expenses. You can see the highlighted changes and the balance is at the bottom.

T-Sheet Revenue
Y’all voted on a budget of $755.761 million on June 26th. Since then there have been some minor modifications since then and the budget is now $755.927 million. Working with Mr. Thurmond and the senior staff, what we are proposing is on the left side of the page.

Local Revenue
We would add to our revenue anticipation from all local revenue sources, we would like to anticipate an additional $8.093 million. We are well ahead of that now. We are about $21 million ahead. We feel confident we will keep that $8 million. We would like to put it on the books and use it. You’ll see the areas we want to use it.

QBE Revenue
We would like to anticipate an additional $3.8 million in QBE revenue. We are currently flat, but we should be able to pick up an additional $3 to $4 million.

Heery Settlement
Of course, the legal settlement, we have received $6 million from the legal settlement. We’d like to put it on the books. You’ll see where we put it … down below.

Field Trips
We feel in terms of reimbursements from field trips, there will be an additional $500,000 dollars more that we can anticipate.

RTTT Reimbursement
You voted on professional learning days on April 7th and May 22nd. That will be paid for out of the general operating budget. Then we’ll be reimbursed by RTTT. I want to bring in that reimbursement to the general operating budget. I want to anticipate $2.7 million.

Fund Balance
We are now far enough into the year to where we are looking at things we want to say are going to be a firm fund balance as we get to the end of the year. I want to reserve $11.5 million for a fund balance. That’s made up of $3.6 million that’s on page 14 of the monthly report. It’s $1.8 million in something called transfers. And, it’s the $6 million from the Heery settlement. Anything more that we collect than anticipated will go to the fund balance.

Adjusting for that fund balance reserve, we want to add $9.544 million to the revenue side. The next section is adjustments for things we were hoping we were going to get, but doesn’t look like we are going to get. Medicare/Medicaid Reimbursement – $1.2 million that it doesn’t look like we will get. When you net all of that out, we get $764 million.

T-Sheet Expenses

Workers’ Comp
Looking at the expenditures in Workers’ Compensation, there was a lot of clean up on Dr. Ramsey’s side, we need to appropriate an additional $2.250 million.

Charter School
The charter school’s payout, because we have learned that we have to payout what they have grown to and not necessarily what we agreed their max enrollment was. We need to add $800,000 to the charter schools monies.

Salaries
The tension in the salary area seems to be school based. When we take a look at our salary expenditures along with benefits, as you know the benefits component is controlled by the state. I’d like to add an additional $2.092 million in salary and benefits to the school component.

International Teacher
You passed two international teacher agreements. One of them we think will be covered by that $2 million. The second one, I’d like to appropriate an additional $600,000.

Transportation
After talking to Dr. Wilkins, I’d like to add $500,000 to the transportation department. He is discussion with Mr. Thurmond how that will be spent.

RTTT Reimbursement
$280,000 of the professional learning will not be reimbursed by RTTT. That will need to come out of the general fund.

Comparability
We experienced a comparability penalty a month or two ago relative to how schools are staffed. We had to pay the state $570,000. That wasn’t budgeted.

Appropriations
So, we want to appropriate an additional $9.720 million. Revenue is at $9.744 million. But when we track the expenditures on everything but salary and benefits at a 95% expense level. As you know, as we move to the end of the year, we start to tighten up on purchasing. Our year end is in the Summer, but Christmas shopping can happen in the Summer. We think we are going to be able to hold back on at least $1.375 million in terms of stuff that is already budgeted. So, I want to take that out of the expense side.

When you look at all of that we get into a balance of $764.271 million. It is a true statement that based on our beginning budget, we are asking for $8.344 million.

This is different that what has been done in prior years where we voted and held on. This is what SACS is talking about with fiscal management. Our target fund balance is 8.3% and this will put us at 1.5%, so we still have a ways to go.

That is the Superintendent’s recommendation on the mid year appropriations adjustments.

[00:12:30] Disccusion – 35 minutes left