EDEN CENTRAL RESERVES BLUEPRINT TO DEVELOPING A RESERVE PLAN AND - PowerPoint PPT Presentation

EDEN CENTRAL RESERVES BLUEPRINT TO DEVELOPING A RESERVE PLAN AND LONG TERM FINANCIAL PLANNING

PLANNED DISCUSSION • LONG TERM FINANCIAL PLANNING • CURRENT RESERVES • RESERVES TO FACILITATE LONG TERM FINANCIAL PLANNING • PROCESS UTILIZED FOR DEVELOPING RESERVE PLAN

LONG TERM FINANCIAL PLANNING - DEFINITION Long - T erm Financial Plan . An investment plan or strategy with a term of usually longer than one year. A long - term financial plan involves more uncertainty than anything short- term because, typically, market trends are more easily predictable in the short term . Long - T erm Financial Planning . ... Long - term financial planning works best as part of an overall strategic plan . Financial forecasting is the process of projecting revenues and expenditures over a long - term period, using assumptions about economic conditions, future spending scenarios, and other salient variables. www.gfoa.org/long-term-financial-planning

OVERVIEW REASON FOR RESERVES • SAVINGS FOR FISCAL STABILITY • ALLOWS DISTRICTS TO SUSTAIN PROGRAM DURING PERIODS OF ECONOMIC DECLINE • OFFSETS LOCAL SHARE OF MAJOR PURCHASES • BUSES, CAPTIAL IMPROVEMENTS, TECHNOLOGY, ETC. • IMPROVE BOND RATINGS

PURPOSE OF EXISTING RESERVES • SAVE FOR FUTURE PLANNED EXENDITURES • CAPITAL RESERVE • BUILDING • EQUIPMENT/BUSES • EMPLOYEE BENEFIT ACCRUED LIABILITY • RETIREMENT CONTRIBUTION (ERS ONLY)

PURPOSE OF EXISTING RESERVES CONT’D • SAVE FOR FUTURE UNPLANNED EXENDITURES • UNEMPLOYMENT INSURANCE RESERVE • REPAIR RESERVE

CURRENT RESERVES AVAILABLE TO AID IN BUDGETING – REQUIRING BOARD AUTHORIZATION TO UTILIZE RESERVE PURPOSE • UNEMPLOYMENT INSURANCE • T o cover cost of reimbursement for NYS Unemployment expenses RESERVE • T o cover the cost of Employee Retirement • RETIREMENT CONTRIBUTION System (support staff) • Pay accrued benefits due employees upon • EMPLOYEE ACCURED BENEFIT separation of service for vacation and sick LIABILITY leave

CURRENT RESERVES FOR PLANNED EXPENDITURES (REQUIRING VOTER AUTHORIZATION TO UTILIZE) RESERVE PURPOSE • Repairs to capital equipment or improvements • REPAIR RESERVE that are not recurring routinely. Public hearing is required before board approval if not repaying in two (2) years. • To pay costs of items that bonds may be issued • CAPITAL RESERVE for • To purchase new buses and equipment • VEHICLE RESERVE

PROCESS FOR DEVELOPING AND ADOPTING FORMAL RESERVE PLAN ACTION PERFORMED BY • DIRECTOR OF FINANCE- • DETERMINE BOARD RISK TOLERANCE SUPERINTENDENT – AUDIT COMMITTEE • PROPOSE NEW RESERVES • DIRECTOR OF FINANCE-SUPERINTENDENT • DEVELOP RESERVE PLAN • DIRECTOR OF FINANCE • SUPERINTENDENT -AUDIT COMMITTEE • REVIEW RESERVE PLAN • BOARD OF EDUCATION • ADOPT RESERVE PLAN

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