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District finance director reports October balances, explains coding and answers questions on rainy-day and operations funds
Summary
Mr. McMichael said October financials were tracking near expectations, described a seasonal negative operating-fund balance and a rainy-day fund of roughly $4.5 million, and explained that purchase-services variances were largely due to coding and timing of large invoices.
Mr. McMichael provided the board with the district’s October financial update, saying the three primary funds—education operating, operating referendum and rainy-day—are generally tracking close to expectations after adjusting for timing differences in transfers. He said the district’s cash-balance presentation would look different if transfers were posted monthly and noted a rainy-day fund balance near $4.5 million.
Mr. McMichael called an operating-fund deficit of roughly $3.6 million typical for this point in the year because property-tax revenue is received later in the calendar, and he said the district expects to reconcile as tax receipts arrive. He explained purchase-services variances and month-to-month lumpiness as largely coding-related (facilities invoices and lump-sum purchases like buses can create spikes) and identified a recurring roughly $17,700 charge related to a teacher-evaluation consulting vendor.
Board members asked whether the additional appropriation would largely fund teachers and staffing; Mr. McMichael said about 96% of the two implicated funds’ expenditures are salaries and benefits and that the requested appropriation is mostly to cover staffing and timing differences.
