1. FY18 Mid-Year School Financial Review January 17, 2018
Taylor Harvie, County Administrator
Carla Cave, CPA, County Finance Director
Becky Boswell, MBA, Schools Accounting Manager

4. Breakdown of FY18 Budgeted Operating Revenues and Expenses
Move this slide to just behind a budget slide. New Page #5

5. Review of Prior 5 Years School Spending
Fiscal Year
Avg Daily Membership – obtained from DOE website
Audited Operating Expenditures – obtained from County annual audit reports
$ Increase Over Prior Year
% Increase Over Prior Year
Cost per Student
2017
1739
$18,117,289
$1,372,864
8.20%
$10,418
2016
1764
$16,744,425
$481,509
2.96%
$9,492
2015
1754
$16,262,916
($45,156)
(0.28%)
$9,272
2014
1751
$16,308,072
$1,451,203
9.77%
$9,314
2013
1746
$14,856,869
n/a
$8,509

8. Put first page of Midkiff letter in front of this slide
Put first page of Midkiff letter in front of this slide. It will show date decisions were made that had to be recommended by Central Office and approved by School Board. Add second page after this. with Health insurance decision spelled out. Put it in a red box too.

11. Put front page of MOU in front of this slide
Put front page of MOU in front of this slide. Not to show anything but what this page is. Tied ot together but won’t spent 15 seconds on it. Add last page od document with SB signitures. Don’t want this to look like it was forced. WON’T SPEND 10 SECONDS ON IT.

12. Timeline of County’s Transition to School Accounting
– MOU in place which states School Board must eliminate positions of AP Clerk and Payroll Clerk (and leave Finance Director position unfilled). Those two employees to become temporary County employees for 30 days and report to County Administrator. MOU also states Board of Supervisors will hire a School Finance Director and two additional accounting staff.
– County hires Schools Accounting Technician to process payroll and accounts payable checks.
– County hires Schools Accounting Manager to oversee revenue collections, correctly record expenditures into system, and reconcile monthly with County Finance Director.
– Schools Accounting Manager provides first report of school revenue and expenditures.
– County Administrator and finance team has determined that School Expenditures are tracking to exceed the appropriated budget for the second year in a row.

13. Assumptions Upon Which This Analysis is Based
Reports as of are accurate
All budgeted revenues will be received
Annual revenues (including local contribution from County) will equal annual expenditures
The Cafeteria Fund will not operate at a loss and cause Operating Funds to cover the difference
Amount to be reimbursed to the County for the two School Accounting personnel salaries and benefits is $93,858.

14. FY18 Operating Expenses To-Date
July 2017
FY17
Aug 2017
Sept 2017
Total
Payroll
$878,432
851,886
$1,730,318
*reflected in FY17 audit report
Accounts Payable
$22,196
18,028
48,059
$88,283
FY18
Oct 2017
Nov 2017
Dec 2017
Monthly
Average
$272,076
1,056,490
1,252,459
1,220,599
1,202,327
1,227,710
$6,231,661
$1,225,774 (Sept-Dec)
$307,894
196,611
191,513
446,362
218,640
201,584
$1,562,604
$260,434
(July-Dec)
Totals
$1,480,598
$2,123,015
$1,492,031
$1,666,961
$1,420,967
$1,429,294
$7,794,265
(agrees to YTD financial reports)
$1,486,208

15. Monthly Non-Payroll Expenditure Trend – Year-To-Date and Prior Four Years Budget Year - First Half Budget Year – Second Half July – Dec Total = $1,927, Jan – June Total = $2,222, July – Dec Total = $1,366, Jan – June Total = $1,704, July – Dec Total = $1,692, Jan – June Total = $1,938, July – Dec Total = $1,788, Jan – June Total = $1,542, Prior 4-Year First Half Average = $1,693, Prior Four Year Second Half Average = $1,852, July – Dec Total = $1,562, Prior 4-Year First Half Monthly Average = $282, Prior 4-Year Second Half Monthly Average = $308,690
Try to find out what was purchased in May/June of 2014.

16. January 2018 – June 2018 Forecast
FY18 School Operating Total Budget
$17,372,639* (a)
* Operating Budget $17,372,639
Cafeteria Budget ,550
FY18 Total Expenditures as of
7,794, (b)
Textbook Budget ,472
Total FY18 Budget $18,515,661
FY18 Payroll Expenses Remaining
Using Monthly FY18 Payroll Avg x 7 contract months remaining, with adjustments for 12 month employees and reimbursement for County personnel
8,580,418
(272,076)
93,858
8,402, (c)
**Total FY18 Costs Using Predictions:
Total FY18 Expenditures at Year-End WITH REMAINING PAYROLL ONLY
$16,196, (b + c = d)
$18,048,  $675,966 over budget (uses monthly non-payroll avg from prior 4 years)
$17,759,  $386,430 over budget
(uses monthly non-payroll avg from FY18 July through December)
Amount Remaining for Non-Payroll Expenditures
$1,176, (a – d = e)
Jan – June Monthly Avg over Prior 4 Years
$308,690
Monthly Avg Available To Stay Within Budget
$196,029 (e / 6 remaining months)
Adjust $8,580,418 to show 12 month pulled out of June with Dorsey/Boswell added back. Adjust remaing balance available for AP. Put small note to side to explain. Add slide with Bar Graph showing Historical Second Half AP, Current AP level, Available AP remaining for FY18, by month and period if possible.

17. A Look at Available FY18 Non-Payroll Budget Remaining Review in Total Dollars Review by Month