Date: May 23, 2019
To: Michael Green, Superintendent
Subject: March/April Financial/Enrollment Report
From: Stacy Brown, Director of Business Services
I have attached the 2018-19 Budget Vs Actual and Comparisons to 17-18 for March and April (page 1-3). Also attached are the March Budget Status Reports for all funds (pages 4-8), the April Budget Status Reports for all funds (pages 9-13) and the Sources and Uses sheet which projects revenues, expenditures and ending fund balance for 18-19 (pages 14-15). The May Enrollment Spreadsheets are attached as well (16-18).
Budget vs Actual Comparisons for March
Revenues in March
Revenues in March were $71,000 more than expected (page 3). The only thing out of the ordinary for this month is the additional $574,000 that we are receiving for transportation this year. We received 9% or $52,000 in March. We received about $22,000 in some of our federal allocations that are claimed as the money is spent and in prior years we did not collect on these programs in March. We also did not receive any National School Lunch or Breakfast funds last March, which would decrease the 3 year average. My office staff and I have worked hard the past year or so to really be consistent with recording receipts and invoicing on a regular basis. This should make our revenues more consistent from year to year.
Payroll in March
March payroll was about $18,000 greater than expected (page 3). Now that we have rolled the certificated teacher optional days into the contracts, the overall monthly pay is higher than expected, based on the old base pay, plus whatever days were submitted for the month. With this change, the monthly totals for October, through March have evened out and we do not have the big swings from month to month that we had in the past. We have filled pretty much all open positions (except bus drivers). We have quite a few staff members out on leave, so we are paying their salary plus the cost of a sub. I look at every payroll and benefit account during my projections and this is consistent with what I am seeing there.
Accounts Payable in March
March accounts payable was $106,000 less than expected (page 3). Last March we paid and invoice from the ESD for 3 months of Quest Academy, for around $60,000. They have been billing monthly this year. As usual, I reviewed all expenditures and the amounts paid do not look unusual.
Budget vs Actual Comparisons for April
Revenues in April
Revenues in April were $303,000 less than expected (page 3). We received approximately $450,000 less in tax revenue and $130,000 in Local Effort Assistance (LEA) this April than we did last April, due to the change in levy requirements. The total decrease is spread out over all months in the spreadsheet, but because the difference in April is so large, this is the reason for the difference. I will talk a bit more about LEA in my discussion about projections.
Payroll in April
April payroll was about $31,000 greater than expected (page 3). This is consistent with the other months and I have reviewed all salary and benefit accounts during my review of projections.
Accounts Payable in April
April accounts payable was $129,000 less than expected (page 3). Last year we paid $63,000 for new boilers, Tech spent $45,000 on Chromebooks and this year purchases were pretty much business as usual. I reviewed all expenditures and the amounts paid do not look unusual.
Projected Revenues, Expenditures and Ending Fund Balance
I spent quite a bit of time reviewing and projecting out the district revenues, expenditures and ending fund balance. The updated projections have the district ending the year with an increase of approximately $70,000 (pages 14-15). The budget included a loss of approximately $66,000. The last update showed an increase of approximately $150,000. Since then, I have found out that the spreadsheet I used during the budget process for calculating Local Effort Assistance had some issues. I knew that our assessed valuation was greater than they showed, but I couldn’t update and didn’t realize what a great affect it would have on the calculation. I also misunderstood that the LEA would be based on the current year enrollment (not the prior year). I am going to sit down with Gavin, ESD CFO and have him walk through the numbers with me and help me understand where the differences are and if there will be adjustments for 18-19. Also, to ensure that moving forward I have a better understanding of how to properly calculate for future budgeting. On the bright side, with the increase in the assessed valuation we should get more property taxes than budgeted, but I am being conservative until I actually see the funds. I am also holding my breath awaiting our safety net award. We applied for $431,000 and I am projecting $400,000. Adjustments up or down will have a direct effect on our ending fund balance.
May enrollment reports are attached (pages 16-18) has been reported and we are up 5 students and 5.8 FTE from April. The average is still 9.1 FTE under budget. This has a direct effect on the projected ending fund balance. Being under budget by this amount results in approximately $75,000 less apportionment than budgeted.
Please let me know if you have any questions.