PCSSD finance chief warns of cash-flow squeeze; legal fund balance reported at $682.72
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Summary
CFO Rita Guess told the board period-4 figures show a beginning balance of about $2.7 million, month revenues near $15 million and expenses of $17.57 million, leaving a legal fund balance of $682.72. She recommended rebuilding reserves ahead of large county tax receipts.
Rita Guess, the district's finance presenter, told the Pulaski County Special School District board that cash-flow timing had driven the legal fund balance low in period 4.
"We have a beginning balance of 2,700,000.0, current revenues of almost 15,000,000, current expenses of 17,570,000.00, and our ending legal balance is $682.72," Guess said.
Guess explained the pattern is largely timing-related: the district does not receive state aid monthly and relies on large county tax remittances that typically arrive in mid-November and again in spring. She said the district collected roughly $47 million in funds 2 and 4 in a prior November and expected a similar large inflow this month.
The finance report highlighted several reconciling items: a $470,000 software purchase, about $100,000 in vehicle purchases and a $253,000 increase in fleet insurance that contributed to higher monthly expenses; periodic SPED classroom construction and ebook purchases explained prior-period variances.
Board members asked what steps the district can take to avoid recurring low balances. Guess said the most direct remedy is to rebuild the district's 2000 legal fund reserve (the unrestricted fund) to levels discussed during budget planning and that the budget had planned for a larger reserve in the coming year.
She also flagged the district's food-service account: the year began with about $1.7 million in that fund but period 4 shows it at roughly $289,000; September and October meal reimbursements had not yet been received and those reimbursements will affect the account.
Trustees asked for follow-up percentages and suggested continued transparency and planning to smooth payroll cycles and large tax-driven inflows. Guess said she will return with additional detail.