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Board reviews cash‑flow and fund‑balance; finance director cites timing of property‑tax receipts
Summary
The district’s finance director told the board that a missing property‑tax receipt expected in February caused a temporary drop in the unassigned fund balance to 6.86%, but cash‑flow projections improved due to lower‑than‑expected expenses; the board approved the monthly financial report 7‑0 and asked for clearer recurring reporting.
The Prior Lake‑Savage Area Schools Board of Education accepted the district’s monthly financial report and discussed the unassigned fund balance and cash‑flow timing during the April 14 meeting.
Finance director (presenter) explained that the district had expected a property‑tax remittance in February but did not receive it; that timing difference reduced the reported unassigned fund balance to about 6.86% for February, below board policy 701.2’s 8% threshold for review. The director told the board the levy for the year remains unchanged and that the district has levied approximately $2,020,000,000 (as stated in the packet) and expects to receive the full levy over the fiscal year.
On expenses, administration said projected February spending was lower than anticipated (actual February expenses about $10.1 million versus a prior projection of about $11.7 million), improving the year‑end net cash flow projection from a negative $2,400,000 to about negative $1,400,000. The board previously authorized use of $957,000 of fund balance; administration said, based on current projections and anticipated audit adjustments, the year‑end unassigned fund balance is expected to be within policy range.
Board members asked for clearer, less redundant monthly reporting and discussed whether the finance overview should remain a standing agenda item rather than part of the consent agenda. Several directors recommended keeping the monthly reports available and providing a brief verbal overview at meetings; others suggested converting some manual monthly highlights to quarterly to reduce staff workload.
Mural payment: During approval of the monthly check detail (which passed 7‑0), a director asked about two payments related to a student mural project at Prior Lake High School. Administration said the district’s portion — roughly $7,000 — came from an E&I (equity and inclusion) grant, with the total mural cost about $18,000; students and community partners (including Prior Lake Rotary and other service clubs) are fundraising to cover the remainder, and the business office will record incoming donations to the gift fund when received.
Administrative details: The finance director noted cash‑flow timing differences tied to state aid being paid in monthly installments, property taxes arriving in uneven installments, and federal reimbursements that follow spending. The director also reminded the board that Minnesota statute 471.425 requires school districts to pay vendors within 35 days.
Outcome: The board voted 7‑0 to accept the monthly financial report and 7‑0 to approve the monthly check detail; directors asked administration to provide the combined summary/detail report in the packet going forward and to consider reducing redundant manual highlights.
