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Financial Review

Financial Review. South Kitsap School District. Looking Back to 2012-2013 Fiscal Year. What are the Financial Results of Fiscal Year 2012-2013?. Recap Fiscal Year 2012-13 F-196 Report. Fiscal Year 2012-13 Recap. Began the fiscal year with $634,025 less in reserves than projected

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Financial Review

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  1. Financial Review South Kitsap School District

  2. Looking Back to 2012-2013 Fiscal Year What are the Financial Results of Fiscal Year 2012-2013?

  3. Recap Fiscal Year 2012-13F-196 Report

  4. Fiscal Year 2012-13 Recap • Began the fiscal year with $634,025 less in reserves than projected • Less Student Enrollment than Projected • 116 AAFTE below projections or $592,775 • The reliance of reserves to meet on-going expenditures $1,600,000 • Increased costs associated with unfunded mandates – Special Education

  5. Recap Fiscal Year 2012-13Revenue by Source

  6. Recap Fiscal Year 2012-13Revenue by Source

  7. Recap Fiscal Year 2012-13Expenditure by Program

  8. Recap Fiscal Year 2012-13Expenditure by Program

  9. Why do we need Fund Balance? • To Cover Cash Flow needs – Current reserve of $4.8 million covers approximately 20 days of annual expenditures. Available Reserves covers 16 days of annual expenditures • Emergency Resources • Uncertainty (Legislative, Voter Approval) • Evidence of Financial Condition • Board Policy of 3.0% growing to 5.0% by 2016-17

  10. Fund Balance 5-Year History * 2013-14 Budget assumes no carryover and all funds will be fully expended.

  11. Fund Balance Per Student

  12. Fund Balance Subcomponents • Non-spendable • Restricted • Assigned • Committed • Unassigned

  13. Fund Balance by SubcomponentAs a Percent of Revenues

  14. Budgeted Reserves Compared to Actual

  15. Cash Balances • Board EL-7 Budget Planning – Requires cash balances to be equal to or greater than 35 days of cash on hand for operating expenditures by the 2016-17 budget proposal • Currently have 20 days Cash on hand at $4.7 million • Thirty-five days cash on hand at August 31, 2013 equals $8.5 million

  16. Looking Forward What’s the Impact to This Year’s 2013-2014 Budget

  17. Student Enrollment ForecastCurrently -154 Average Annual FTE 2013-2014 Budget AAFTE 2013-14 YTD AAFTE

  18. 2013-14 Budget Impacts • Loss of funding from decrease in budgeted students (based on 154 students @ $5,498 = $846,650 • Mitigated loss of approximately 154 AAFTE by reallocating current certificated and classified staff resources to areas of need versus hiring new positions • The Adopted 2013-2014 Budget is balanced and does not use reserves except for approved carryover budgets (unspent) from the 2012-13 Fiscal Year • The Board Reserve will be in Compliance with EL-7 at 3% at August 31, 2014

  19. South Kitsap School District – Budget Challenge (Gaps) History

  20. Potential Future Budget Challenges ued) • Unstable student enrollment • Build Board Designated Fund Balance from 3.0% to 5.0% by 2016-17 budget adoption • Build 35 days of cash on hand for operating expenditures by 2016-17 budget adoption • Reduction of Federal Funding - Sequestration • Could see additional reductions in all Federal Grants which includes Title I and Special Ed - Title VI-B Grants in 2014

  21. Potential Future Budget Challenges(Continued) • Compliance with State Mandates • Learning Assistance Program • High Poverty K-2 Class Size • 1080 Hours for 7-12 grade • How does the McCleary Decision impact budget?

  22. Continued Budget Development Strategies • Investing in our End Statements • Focusing on the success of the whole child • Developing a new Community Budget Group of 25 individuals who will analyze the budget annually preparing a 3-5 year budget recommendation to the Board of Directors • Identifying Efficiencies, Deferrals, Savings, Reductions and Revenue Enhancements

  23. Continued Budget Development Strategies (Continued) • Continued Clarity & Transparency • Beginning third year of detailed reports that includes: • Adopted Budgets including the F195 Report • Monthly Enrollment Reports • Monthly Budget Status Reports • Monthly Warrants Paid • Annual Audit Reports • Continued Resourceful and Responsible Fiscal Management

  24. What’s Next? • Continued Monthly Monitoring of Student Count • Work with Demographer to develop high medium and low enrollment and average annual FTE projections for 2014-15 school year • Actively Participate and Monitor Legislative Actions and its Impact to South Kitsap School District • Identify Savings and efficiencies to build available resources for current and future years • Develop 2014-2015 Budget strategies starting in November 2013 • Stay Informed

  25. Questions

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