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School board reviews July month‑end finances as auditors finalize beginning balance
Summary
At a work session the school board heard an expanded July 31, 2025 month‑end financial report showing early‑year encumbrances that raise expenditures to 11.16% of original appropriations; auditors are still finalizing the beginning balance and a reported $2.5 million health‑insurance lag is expected to change after audit review.
The City School Board on Sept. 2 reviewed the division’s 07/31/2025 month‑end financials and an expanded expenditure report as auditors continue work that will determine the official beginning balance for fiscal 2026. Miss Jamies, a finance staff member, presented the report and summarized early‑year encumbrances and revenue receipts.
Miss Jamies said, “You have before you 07/31/2025 month end financials,” and described a new, more detailed expenditure layout intended to increase transparency. She told the board that July represents 8.33% of the fiscal year and that, as of that date, revenues collected were 3.52% of the original appropriation while expenditures were 4.61% and expenditures inclusive of encumbrances equated to 11.16%.
The presenter said the higher early‑year encumbrances reflect the normal practice of establishing contracts, purchasing services, and paying liability insurance at the start of the school year. “We are building our school year in July. So we have ... encumbering funds for the entire fiscal year,” Miss Jamies said, explaining why encumbrances skew early percentages.
Board members asked for clarification about the audit schedule and the reported beginning‑balance volatility. Mister Lavey asked when the auditors would finish; Miss Jamies replied that the division completed its part of the work by Sept. 1 and the auditors had performed preliminary and full audits in the usual cadence, adding that auditors continue to ask follow‑up questions and review lag reports from vendors.
On revenue sources, the presenter said the division had received a state allocation equal to 5.14% of the appropriation and a federal allocation of about 12.09%; local revenue collections were expected in later months. Miscellaneous receipts were reported at 6.49% and charges for services at about 28.33% of the appropriation in the July summary.
Board members also pressed on cash flow procedures and a reported health‑insurance figure. Asked how the division would cover a month where encumbrances and expenditures outpaced receipts, Miss Jamies said the City of Lynchburg finance department provides routine month‑to‑month adjustments and can transfer budgeted allocations to cover timing shortfalls. On the health‑insurance item, a board member noted the July report showed the insurance line “under water by $2,500,000.” Miss Jamies explained that the number is affected by a lag report from the insurance company and by the auditors’ review; she said she expected the audited beginning balance and the insurance true‑up to change after the auditors complete their work.
No formal action was taken on the month‑end report during the work session; the presentation closed without a vote and the board moved on to other agenda items. The finance staff said it will continue to respond to auditors’ inquiries and provide updated figures once audit fieldwork is complete.
The board will receive further updates as the auditors finalize the beginning balance and as the division records later monthly receipts and disbursements.
