06/02/2014 – Monthly Financial Report

April 2014 Financial Report

Presented by: Dr. Michael J. Bell, Chief Financial Officer, Division of Finance

Bell
The state has notified us that we no longer need to submit the monthly deficit elimination plan.

We are about 83.3% through the fiscal year.

Page 1
Total monthly receipts – $44M
Total monthly disbursements – $70.7M
This is the time of year we spend more than we collect. We are over anticipated receipts by 7% and under anticipated disbursements by 3%.

Page 3
Local revenues are driving receipts up.  We are 17% over expected local revenue.  We are 4% under expected state revenue.

Page 13
We are still operating with a surplus of $82M.  We will still need a $35M TAN (Tax Anticipation Note).  That item is later in the agenda.  We will need that in July and it will be paid off by December.

We are projecting a $20M fund balance for the general operating budget this year when we close the books.

[00:07:36]

Coleman
Looks like we are on track for legal fees.

Bell
We think there will be pressure on that part of the budget.  We expect to slightly go over.  Fortunately the Heery Mitchel settlement will give the legal fee situation relief.

Coleman
Workers comp seems to have plateaued.

Ramsey
That is correct.

Bell
Midyear we adjusted the Workers’ Comp budget and it looks like we are going to stay within that.

Mayfield
How accurate are is the “TAXES-BEVERAGE” category?

Bell
We get about 50% of the beverage tax and that is administered by the county.  The board of ed has the right to go look at the calculations.

Mayfield
How is the surplus money held?

Bell
The fund balance is made up of a number of components.  You have some receivables, some cash.  The cash part will be in a money market fund yielding about .15 on it, but it is immediately reachable.  Even though the stock market is up, interest rates have not followed.

McMahan
Fantastic job this year.  When is the next principle payment due for the debt service on page 1?

Bell
That payment in FY’13 is a remnant of the famous text book lease.  I can’t say right now when the principle is due. The next big payment will come with the $33M bond issue that took place in Dec ’12.  It’s interest only payments until ’17, then we have to pay it off.  That all comes out of SPLOST money.

McMahan
The budget for instruction is $364M.  That was adjusted up midyear.  Are we going to be under on instruction?

Bell
I’m not certain.  There is often a substantial lag in these payments.

McMahan
Is this all salaries

Bell
I’m not sure if it’s only salaries.

McMahan
Pages 4 – 8 : What is “OTHER” ?

Bell
I don’t know.  I’ll check on that.

McMahan
Pages 32-34: This is budget transfers where we move money internally between systems.  Historically we move a few hundred thousand.  We are at almost $6M this year.  It comes down to budget analysis.

Bell
These transfers are budget adjustments.  I feel like we are not precise enough and have to many adjustments.