QUARTERLY FINANCIAL REPORT FY 2018/2019 Quarter Ended June 30, 2019 - PowerPoint PPT Presentation

QUARTERLY FINANCIAL REPORT FY 2018/2019 Quarter Ended June 30, 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  Building Fund  Central Service  Funds Detail – Operating per Plan  On the Radar

SUPPLEMENTAL BUDGET APPROPRIATION & FUND BALANCE RESOLUTIONS  Received resolution to spend  Received Supplemental down additional fund balance Appropriation Capital Reserve General Fund • • Debt Service Debt Service Fund • • Property Management Capital Reserve Fund • • Insurance Reserve Building Fund • • Information Technology Property Management • • Food & Nutrition Services Campus Activity • • Fund Grants • Campus Activity Employee Benefits • • Child Care Child Care Fund • • Employee Benefits •

TOTAL BUDGET BY FUND TYPE REVENUE EXPENDITURES Internal Service Internal Service 5% 5% Enterprise Enterprise 2% 2% Special Special Revenue Revenue 12% 12% Capital Capital Reserve Reserve 4% 3% Debt Debt Service Service General Fund General Fund 5% 4% 74% 72% Total Budget $1,083,826,374 Fiscal Year 2019 Includes supplemental appropriation’s thru 6/30/19

CASH MANAGEMENT PAGES 1–3 Ending Cash Balances: July 2018 through June 2019 As of June 30, 2019 IN MILLIONS Prior Year Cash $301 $224 $214 $216 $187 $181 $175 OPERATING CASH $145 $144 $107 $85 $53 RESTRICTED RESERVES Capital District & Board TABOR Jul 2018 Aug 2018 Sept 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual  Cash balances were sufficient to cover operations through March  No line of credit was needed  Final property tax receipts were collected in June

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

FUNDS – MONITORED/OBSERVED

BUILDING FUND PAGES 13–16 (OTHER GOVERNMENTAL FUNDS)  Building Fund  Net Proceeds for Projects $375 million  Earned Interest of $4.7 million  Expended $44.9 million this year • $19.8 million for charters schools of which $13.5 million repaid debt obligations for 4 schools • $7 million on new site for North Transportation that was originally planned to be completed in FY20, this economically priced site became available late spring and pushed us $5 million higher than budget creating a yellow flag for plan variance • Remainder on district-wide and school-level projects

FOOD & NUTRITION SERVICES FUNDS – MONITORED/OBSERVED Special Revenue REVENUE EXPENSES Fund (Page 20) MILLIONS Budget $25.6 Budget $25.3  Unplanned school closures and less serving $24.1 days contributed to $23.5 lower revenue  Decline in daily federal reimbursable meals  Increases in compensation vs prior year (PY)  Flagged for greater spend down of reserves than planned  Adequate fund balance Current Prior Current Prior

CENTRAL SERVICE FUND PAGES 26–30 (INTERNAL SERVICE FUNDS)  Central Services REVENUE EXPENSES  Revenue ↓ due to MILLIONS decrease in copier $3.5 Budget $3.5 Budget program volume from $3.5 $3.4 new PaperCut system.  Expenditures ↑due compensation increases and purchase of card readers for new PaperCut Print Management system.  Flag for unplanned spend down of reserves/lower revenue. Current Prior Current Prior  Adequate Reserves

FUNDS – OPERATING PER PLAN

GENERAL FUND PAGES 4–12  Net gain ↑ than plan REVENUE EXPENSES MILLIONS  Revenue is ↑ due to $768.9 Budget $748.8 higher state funding, Budget $755.6 $745.8 SOT and 5A Mill Levy  5A balance $11.6M  Expense is ↑ due to compensation costs, instructional costs for 6 th grade transition, 1:1 device and Free Horizon (FHM) transition into the fund.  Fund Balance $141M Current Prior Current Prior

DEBT SERVICE FUND PAGES 13–16 (OTHER GOVERNMENTAL FUNDS)  Revenue increased with the collection of property taxes and interest revenue for better than planned yields.  General obligation (GO) interest payments • Occurred in June including first payment for 2018 GO Series • Next principal and interest payments occur in December  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 is ↓ REVENUE EXPENSES MILLIONS due to middle school Budget $47.1 additions transfer in prior year $41.2  Expenses/Other financing sources ended at 92 percent $26.4 of budget. Additions to MS, payments for work $25.5 Budget completed prior year, and purchase of 581 Conference Place (FHM).  Supplemental budget appropriation was needed for Free Current Prior Current Prior Horizon Building.

GRANTS FUND PAGES 17–22 (SPECIAL REVENUE FUNDS)  Revenue is ↑ REVENUE EXPENSES MILLIONS across multiple grants Budget $43.5 $43.2 driven by late awards $43.0 Budget $43.1 and ↑annual compensation.  Strategic shift in IDEA/Medicaid to shift 70 teachers to IDEA and move 255 PARA’s off IDEA onto General Fund to be claimed by Medicaid and EASI Grants drove increase.  Page 17 provides grant level detail for change. Current Prior Current Prior

CAMPUS ACTIVITY FUND PAGES 17–22 (SPECIAL REVENUE FUNDS CONTINUED)  Increased revenue REVENUE EXPENSES MILLIONS mostly due to: $29.3 Budget  Free Horizon Montessori Budget $28.1 School transition $27.7 $27.  Technology device fee’s/dues  Athletic supplies  Donations  Expenditures are down slightly based on the timing activities  Less 1:1 device purchases from this fund; coverage with 5A funds Current Prior Current Prior

TRANSPORTATION FUND PAGES 17–22 (SPECIAL REVENUE FUNDS CONTINUED)  Revenue is higher than REVENUE EXPENSES MILLIONS budget (timing) and↓ Budget $26.9 Budget $26.9 slightly lower to prior $26.8 $26.8 year mostly due to less:  field trips  more external transportation  timing state revenue  Expense is ↓in budget mostly due to less buses purchased and higher than prior year due to compensation and fuel rate increases in this fund. Current Prior Current Prior

CHILD CARE FUND PAGES 23–25 (ENTERPRISE FUNDS)  Revenue ↑ for State REVENUE EXPENSES MILLIONS Colorado Preschool Budget Budget $16.0 $15.5 Program (CPP) per pupil $15.8 $15.4 increase, additional classrooms and programs, and Transition of Free Horizon (FHM) before/after school program.  Expense is ↑ for more classrooms, programs, compensation, and FHM transition.  Supplemental appropriation for parity Current Prior Current Prior pay

PROPERTY MANAGEMENT FUND PAGES 23–25 (ENTERPRISE FUNDS CONTINUED)  Increase in building REVENUE EXPENSES MILLIONS rental revenue and $2.8 Budget interest revenue Budget $3.0  Expense/Transfers ↓ $2.9 $3.0 due to less planned transfers out to General Fund  Adequate fund balance and planned spend down of reserves  Adequate Fund Balance $5,885,128 Current Prior Current Prior

EMPLOYEE BENEFITS FUND PAGES 26–30 (INTERNAL SERVICE FUNDS CONTINUED)  Vision and Dental plans REVENUE EXPENSES MILLIONS Budget $7.1  Revenue ↑due to increased participation $6.1 $6.5  Expense is ↓ fewer retiree life benefit payouts Budget $5.6  Planned spend down of reserves on self insurance plans for vision and dental  Operated better than planned  Both programs have adequate reserves $11,224,088 Current Prior Current Prior

INSURANCE RESERVE FUND PAGES 26–30 (INTERNAL SERVICE FUNDS CONTINUED)  Revenues are ↑ REVENUE EXPENSES compared to prior year MILLIONS due to insurance Budget $15.3 recoveries mostly for hail damage. All recoveries received. $12.7  Expense is ↑ due to timing of payments for the hail storm; Budget $7.8 increase in premiums. $7.5  Total assessed damage ~$11.9 M (property & fleet)  Claims and financial impact are not always in same period Current Prior Current Prior

TECHNOLOGY FUND PAGES 26–30 (INTERNAL SERVICE FUNDS CONTINUED)  Revenue is ↑ due to REVENUE EXPENSES MILLIONS receiving funds Budget for Teacher Match, $29.5 $28.1 website support and increased $27.8 Budget $27.9 compensation  Spending is less than plan and ↓ from prior year due to lower depreciation  Projects: Bridge to Curriculum, PeopleSoft recruiting, food service software, Jeffco Connect, expansion of Fiber Optic Network Current Prior Current Prior