QUARTERLY FINANCIAL REPORT FY 2019/2020 Quarter Ended December 31, - PowerPoint PPT Presentation

QUARTERLY FINANCIAL REPORT FY 2019/2020 Quarter Ended December 31, 2019 PRESENTED BY: KATHLEEN ASKELSON, CHIEF FINANCIAL OFFICER STEPHANIE CORBO, DIRECTOR OF FINANCE

HIGHLIGHTS  Cash  Funds Overview – 15 Funds (includes Charters)  Funds Status – Monitored and Observed  Food & Nutrition Services  Central Services Fund  Funds Detail – Operating per Plan  On the Radar

TOTAL BUDGET BY FUND TYPE REVENUE EXPENDITURES Internal Service Internal Service Enterprise 4% Enterprise 4% Special 2% 2% Special Revenue Revenue 10% 11% Capital Capital Reserve Reserve 3% 13% Debt General Fund General Fund Service 73% 65% 7% Debt Service 6% Total Budgeted Spend Fiscal Year 2020 $1,246,054,036 Original Adopted Budget

CASH MANAGEMENT PAGES 1–3 Ending Cash Balances: July 2018 through June 2019 Prior Year Cash As of December 31, 2019 IN MILLIONS $324 $267 $246 $236 $235 $194 $192 OPERATING CASH $162 $159 $121 $98 $76 RESTRICTED RESERVES Capital District & Board TABOR Jul 2019 Aug 2019 Sept 2019 Oct 2019 Nov 2019 Dec 2019 Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Actual Actual Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast  Cash balances are sufficient to cover operations through Spring.  No line of credit or other resource is anticipated

FUNDS OVERVIEW OPERATING PER PLAN MONITORED OBSERVED General Fund Food Services None Debt Service Central Services Building Fund Capital Reserve Grants Transportation Campus Activity Employee Benefits Insurance Reserve Technology Child Care Property Management All Charters

FUNDS – MONITORED/OBSERVED

FOOD & NUTRITION SERVICES FUNDS – MONITORED/OBSERVED Special Revenue REVENUE EXPENSES Fund (Page 19) MILLIONS  Higher revenue from $25.6 meal price ↑ and 1 extra $24.8 Budget Budget serving day vs prior year  Increase in daily federal reimbursable meals and a la carte sales  Expenditures are ↑ in $13.0 compensation and $12.7 slightly in purchased food.  Flagged for monitoring until self sustainable  Adequate fund balance Current Prior Current Prior $4,669,506

CENTRAL SERVICE FUND PAGES 25–29 (INTERNAL SERVICE FUNDS)  Revenue ↓ due to decrease in copier REVENUE EXPENSES MILLIONS program volume from new PaperCut system. $3.7 $3.6 Budget Budget  Expenditures ↑ due to one-time purchases (copiers & new service agreement) compared to prior year and at 53% of budget. $2. $1.6  Planned spend down of reserves, flagged for monitoring spend outside of plan.  Adequate reserves Current Prior Current Prior

FUNDS – OPERATING PER PLAN

GENERAL FUND PAGES 4–12  Revenue is ↑ mostly REVENUE EXPENSES MILLIONS due to higher state funding and $805.5 $800.9 Exceptional Child Budget Budget Revenue.  Expense is ↑ primarily due to compensation costs including steps, lanes, quartile increase (avg 2.9%) $387.4 additional 2.5% COLA, $3M for longevity pay, 2.67% increase (from $203. 5A funding) and 0.25% employer paid PERA increase. Current Prior Current Prior  Fund Balance $67.5M

DEBT SERVICE FUND PAGES 13–16 (OTHER GOVERNMENTAL FUNDS)  General obligation (GO) interest payments • Principal and interest payments occurred in December • Property taxes will be collected in the spring and the next interest payments are due in June 2020.  General obligation debt in this fund: • Refunding 2010 • Refunding 2012 • Remaining Series 2012 that is not refunded • Refunding 2017 • Series 2018 Bonds

CAPITAL RESERVE – CAPITAL PROJECTS PAGES 13–16 (OTHER GOVERNMENTAL FUNDS CONT’D)  Revenue/Transfers ↓ REVENUE EXPENSES MILLIONS due to higher proceeds last year for 581 Conf. $25.9 place and slightly Budget offset by the sale of 2001 Hoyt St. property this year. $16.5  Expenses are at 85 Budget percent of budget and $14.4 $14.0 ↓ compared to prior year due to pay off of 581 debt.  Fund is anticipated to operate within budget Current Prior Current Prior

BUILDING FUND– CAPITAL PROJECTS PAGES 13–16 (OTHER GOVERNMENTAL FUNDS CONT’D)  Revenue is 47% REVENUE EXPENSES MILLIONS of the $6.8M budget  Expenses are 25% of budget and operating per plan. Delays occurred at the beginning of the year due to weather and shifted the schedule back ~1-2 months. Year end projected $146.6 Budget spend ~$112M.  Fund Balance $6.8 $303,483,061 Budget $36.2 $3.2 Current Prior Current Prior

BUILDING FUND PAGES 13–16 (OTHER GOVERNMENTAL FUNDS) Interest to Date $384.6M* — Total Bond Revenue as of Dec 31, 2019 $7.9M* Bond Premium Arbitrage Requirement $50.2M $326.9M* is 85 percent Spend by December 2021 Bond Proceeds $326.5M Benchmark to Date 36.1 percent* Actual Spend to Date Expenditures 21.1 percent* $81M* REVENUES EXPENDITURES *Cumulative from issue date 12/2018; will update quarterly

BUILDING FUND PAGES 13–16 (OTHER GOVERNMENTAL FUNDS) Revenue/Expenditures Since Issuance Bond Proceeds Bond Premium $326.5M $50.2M Expenditures Interest Revenue since Issuance to date $7.9M $81M • $384.6M Total Revenue since Issuance • 21.1% spent since issuance • Arbitrage requires to be 85% spent by December 2021

GRANTS FUND PAGES 17–21 (SPECIAL REVENUE FUNDS)  Revenue is ↑ due to REVENUE EXPENSES MILLIONS $2M in new grants, state grants typically $44.9 $44.9 awarded at beginning Budget Budget of year, and higher compensation reimbursements on existing grants.  Expenditures are ↑ mostly due to $20.3 compensation $15.7 increases.  Page 17 provides grant level detail for change. Current Prior Current Prior

CAMPUS ACTIVITY FUND PAGES 17–22 (SPECIAL REVENUE FUNDS CONT’D)  Decreased revenue REVENUE EXPENSES MILLIONS and expenditures mostly due to less $27.4 $27.4 Budget Budget 1:1 device purchases from this fund; a large majority of the cost has shifted to the General Fund to be covered by 5A funds $13.0 $12.1  Student funded activities revenue and expenditures can fluctuate based on timing of school activities Current Prior Current Prior

TRANSPORTATION FUND PAGES 17–21 (SPECIAL REVENUE FUNDS CONT’D)  Revenue is higher than REVENUE EXPENSES MILLIONS prior year due to receiving a new $27.6 $27.6 Budget Budget Regional Air Quality grant for propane buses  Expense operating per budget and ↑ $17.4 compared to prior year due to purchasing $13.8 9 diesel buses. The spend for the grant will occur later this school year. Current Prior Current Prior

CHILD CARE FUND PAGES 23–25 (ENTERPRISE FUNDS)  Revenue is ↑ overall from REVENUE EXPENSES MILLIONS SAE tuition increase (6%). While State Colorado Preschool $20.7 $20.8 Budget Budget Program (CPP) per pupil funding increased, overall revenue is down for lower enrollment.  Expense is ↑ due to more classrooms, programs, $10.1 and compensation. $8.6  General Fund Transfer $2,080,910 to date to cover licenses for teachers, compensation Current Prior Current Prior and growth of Pre-k program from 5A.

PROPERTY MANAGEMENT FUND PAGES 22–24 (ENTERPRISE FUNDS CONT’D)  Revenue and REVENUE EXPENSES MILLIONS expenditures are ↓ compared to prior year from 4 high schools $3.0 $2.9 Budget each losing one renter. Budget  Lost 2 church renters, external drum organization and field use at one school $1.6 under construction. $1.3  Overall total hours booked for space is up with a shift into non billable. Current Prior Current Prior

EMPLOYEE BENEFITS FUND PAGES 25–29 (INTERNAL SERVICE FUNDS CONT’D)  Vision and Dental plans REVENUE EXPENSES MILLIONS  Revenue remains ↑ increased participation $8.0 Budget and premium increase with added services $6.3  Expense is 46 percent of Budget budget and higher than prior year due to claim losses $3.7  Planned spend down $3.1 of reserves on self insurance plans for vision and dental  Both programs have adequate reserves Current Prior Current Prior

INSURANCE RESERVE FUND PAGES 25–29 (INTERNAL SERVICE FUNDS CONT’D)  Revenue and expenditures are ↓ REVENUE EXPENSES compared to prior year MILLIONS $11.1 due to insurance Budget recoveries received in prior year mostly for hail damage. $7.6  Total expense is ↓ due Budget to prior year hail claims, while premiums are up and will remain up. $4.6 Expected Increase in $3.8 WC & auto claims from early storms.  Claims and financial impact are not always Current Prior Current Prior in same period

TECHNOLOGY FUND PAGES 25–29 (INTERNAL SERVICE FUNDS CONT’D)  Revenue is ↑ due to REVENUE EXPENSES MILLIONS receiving new E-Rate funds for infrastructure $31.4 Budget rebate. $28.8 Budget  Expense is ↓ over prior year due to less contracted services this year that was slightly offset by compensation $15.0 $13.4 increases.  Adequate Fund Balance $13,380,788 Current Prior Current Prior