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Finance director explains $5.3M reconciliation and projected year-end negatives; board seeks clarifications
Summary
Finance director walked the board through bank reconciliation ($5.3 million figure) and year-end projections showing some temporary projected deficits that will be corrected by transfers, reclassifications and auditor reconciliation; board members asked for clearer timing of tax and state-aid receipts.
The finance director explained the district’s month-end reconciliation process and a January bank-reconciliation figure of $5,300,000 that is used as the baseline for internal reports. She said the projected year-end cash balances can show temporary negatives in some fund lines because revenue timing differs across funds, and those are addressed in June through transfers and reclassifications.
A board member asked whether multiple projected negative lines indicated a structural problem. The finance director described the projection method: starting from the reconciled bank balance, she projects outstanding revenues (taxes, state aid), estimated payroll and encumbrances, then models transfers. She said some projected negative lines "would have to be fixed with either reclassing expenses or increasing or decreasing a transfer" and that many adjustments are typical at year end.
Board members pressed on why only ~35% of expected revenue had been received by January and the timing of LOB and other fund payments; the finance director responded that tax and state-aid payments arrive in several months (September, October, December, January, March, June) and that the timing creates apparent seasonal shortfalls.
No budget-cutting motions were made; the board asked for continued transparency and for the finance office to provide clearer projected cash-flow timing and cohort comparisons when possible.
