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District projects modest year‑end surplus; business official recommends treating unexpected LIPA payment as deferred revenue
Summary
Manhasset business official reported a projected $1.46 million expense surplus for 2024–25, recommended placing an unexpected roughly $421,000 LIPA payment in deferred revenue pending confirmation, and the board authorized year‑end reserve transfers to capital and TRS accounts subject to final audit.
The Manhasset Union Free School District reported preliminary 2024–25 year‑end finances showing an anticipated expense underrun of about $1,465,000 and a projected total fund-balance contribution of roughly $1.2 million after planned transfers. Sam (district staff) presented the figures and recommended treating an unexpected roughly $421,000 payment from LIPA (Long Island Power Authority) as deferred revenue until the payment is confirmed.
Sam said the district’s total projected fund balance at May 31 would be just under $1,470,000 before the recommended transfers and that the LIPA amount appears to reflect a reassessment that may be a miscalculation by the county or LIPA. “I do recommend…that we categorize it as deferred revenue,” Sam said, explaining the precaution preserves the district if funds later are retracted.
Sam walked the board through drivers of the year‑end position: interest revenue above budget, additional pilot (LIPA) money, lower-than-budgeted staffing costs and an anticipated deficit in contracted therapy and special-education tuition codes of about $450,000. He also noted the tax anticipation note expense was higher than budgeted because of interest rates and that the district had already adjusted next year’s appropriations to mitigate that impact.
On reserves, Sam described a plan to maintain the district’s 4% unassigned fund balance (the ‘‘rainy day’’ fund) and to deposit up to an estimated $1.2 million into reserves pending the year‑end audit. The consent agenda included authorizations to transfer funds into a capital reserve and a TRS reserve subfund; the board approved the consent agenda and those authorizations subject to final year‑end numbers.
Board members thanked Sam for his multi‑year work in stabilizing the business office; they emphasized the need to reduce the district’s high percentage of budget spent on benefits (a historical increase to about 37% of budget) and to plan for potential adverse changes in health insurance, retirement contributions or transportation contracts next year.
No final budget changes were adopted at the meeting; staff will finalize the year‑end audit and, if appropriate, execute transfers into reserves consistent with the board’s authorizations.
