1. Williamsville Central School District
November 2016
1. Financial Analysis of Audit
2. Review of Historical Budget Reductions
Dr. Scott Martzloff Mr. Thomas Maturski
Superintendent Assistant Superintendent

2. Overview of Financial Summary
The District’s audit reviewed the six major funds and the
student extra-classroom accounts:
General Fund
Special Aid
Capital Projects
School lunch
Debt service
Community Education
This review concentrates on the General Fund and addresses:
Revenues, Expenditures
Balance Sheet (Assets, Liabilities, and Fund Balance)
Change in Fund Balance

3. Revenue and Expenditures
Explanation of Major Changes between June 30, 2016 vs. June 30, 2015:
Revenue-Increase in Tax Levy +$1.9m, State aid +$2.6m
Expense-Increase $4.5m instructional staffing, $6.9m transfer to capital fund due to voter authorization.
Expense –Decrease $-1.5m employee benefits.
Reference – audit pages 16, 50 and 51.

4. Balance Sheet Usage of Fund Balance:
Capital reserve – Increase $1.8m, funding for school building capital projects.
Reference - Audit pages 14 and 40.

5. Changes in Fund Balance and Reserves
Reference – Audit p. 14, 40, 41

6. Financial Analysis of 2016 Audit
Change in Total Assets
Positive – Operation cash balance remains stable
Positive – Restrictive cash (reserves) increases $2.0 million
Positive – Asset to liability ratio: Decreased from 20.76% to 17.10%
Decrease attributed to NYS Retirement System
Impact of Audit on District Budgeting and Planning
Positive – Stable financial position means that current instructional and support programs are fully funded
Positive – Potential exists to reallocate certain budget areas to support increased expenses for current instructional and support programs.
Negative – Rising expenses without equal increases in revenue will decrease future fund balance that negatively impact budget additions, capital reserve funding/future capital projects.
Negative – Revenue increases will be limited to the tax levy and state aid
Tax cap will result in approximately $2.75 million
State Aid may provide $600,000

7. Impact on 2017-18 Budget Development
Total revenues were higher than budget by $2.0m
The higher than budget amount was mainly from sales tax revenue and State Aid. A review of the current budget performance is required to determine whether these two categories may be increased for the budget.
Total expenses were under budget
District must analyze the budget and reallocate identified expense budgets where available.
Savings were received from energy, fuel, and favorable retirement system payments.
Potential budget reallocation may assist in future budget planning if these areas continue to show budget savings.

8. Historical Budget Reductions
Human Resources – Salary and benefits = 96.83% of total net budget increases for the ten year report period. Total $41,577,650. Average $4,157,765! Program – Minimal program increases over ten year period, + $1,225,471. Average $122,547! Support – Minimal increases for operational areas contained in the section. Facility operations (heating and building maintenance), bus transportation (fuel, route changes), +$1,356,786. Average $135,679! Other – Net reductions of – $249,003. (materials and supplies). Essentially, average increase is $0!

9. Historical Budget Reductions and their impact on 2017-18 Budget Planning
1. Greater uncertainty of State Aid revenue
2. Continuation of new tax levy revenue due to the CPI increase
3. Negligible other revenue sources
4. Review/reallocation of current budget to offset some increases
5. Recognize the need to fund program continuation expenses, (HR)
6. Budget increases need to consider the compounding effect for the future
7. Consider the potential of an economic downturn
8. Realization that there will be new state mandates that will negatively impact budgets

10. Next Steps
Upcoming Budget Development Information: Review the updated Long Range Financial Plan Review of the Fund Balance and Reserve Plan

11. Appendix – Fund Balance Definitions
Definition of Assigned Reserves:
Have been formally assigned for use by the Board of Education for a specific purpose
Appropriated Fund Balance – Revenue allocation to balance budgets
Encumbrances – Prior year purchase orders that will be paid in the following fiscal year
Definition of Unassigned Fund Balance:
Funds that are not classified or committed for future use
Unassigned fund balance – New York State limits school districts to a maximum of 4% of their budget

12. Appendix – Fund Balance Definitions
Definition of Restricted Reserves: Funds deposited in these accounts are legally restricted to support expenses that are within their assigned category
Insurance – Payments for uninsured losses
Unemployment – Benefit claims
Tax Certiorari – Article 7 refunds
Capital (Building and Bus) Proposition ballot vote required
Workers compensation - Self-funded workers compensation claims
Repair – Board authorized repair reserve expenses (public hearing)
Employee benefit and accrued liability – Accrued employee payments for sick time payable at retirement
Employee Retirement system (ERS) – Payments made to New York State