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District treasurer reports stronger-than-expected investment income, improves revenue outlook
Summary
Mr. Forbes told the board the district earned roughly $177,000 more than budgeted through May from treasury-bill investments and noted elevated Medicare-aid receipts and roughly $2.5 million in basic formula aid, prompting dashboard adjustments ahead of the audit.
Mr. Forbes, the district's finance presenter, told the Fredonia Central School District Board on July 22 that higher short-duration interest rates have boosted investment income and the district's near-term revenue outlook.
"We're at 4.17, 4.2 ish on the treasury bills," Mr. Forbes said, and reported that those returns "allowed us to generate through the May a 177,000 more than we had anticipated" in the budget numbers. He also said the district has received a notable amount of Medicare aid this year and has adjusted the financial dashboard to reflect the higher-than-budgeted revenue.
Mr. Forbes told the board the district also "did receive 2,500,000.0 expected basic formula" aid (transcript phrasing) and said staff will present a preliminary June close and then finalize figures after the annual audit and any adjusting entries.
Board members asked procedural questions about timing for the final budget close; Mr. Forbes said a preliminary June tally should be available by the board's next meeting and that audited adjustments will follow. The board received the report and accepted the treasurer's materials for review.
Why it matters: The unexpected investment income and state basic-formula aid provide one-time and ongoing flexibility in the near term, reducing planned fund-balance draws and improving the district's reported fiscal position ahead of the audit.
