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Finance report shows February surplus; trustees debate fund-balance target and monitoring procedures
Summary
Finance staff reported February revenues exceeded expenditures and year-to-date revenues exceed expenditures, though a small deficit of about $300,000 remains on paper; trustees discussed aligning board fund-balance language with state reporting and creating clearer monitoring/operating procedures.
Finance staff told the Tecumseh Public Schools Board that February produced more revenue than expenditures and that, year to date, revenues exceed expenditures. The treasurer's report noted a small budget deficit of about $300,000 in the current budget documents but said administrators expect to present a positive year-end outlook in a May update.
"February was a good month in that we actually brought in more money than we spent," Mr. Lar said while presenting payrolls, invoices and the check register. He said the district plans a May budget update and that non-general-fund budgets will be reviewed next month.
Trustees and staff spent a lengthy portion of the meeting discussing the board's fund-balance policy, which sets a goal of maintaining at least 12% of estimated expenditures as unassigned general fund balance. Several trustees noted the state of Michigan measures fund balance as a percentage of revenues and recommended the board consider rewriting the policy language to match state reporting. Administrators emphasized that fund balance is a trailing indicator and recommended stronger, standardized monthly monitoring and operating procedures to detect problems earlier.
Board members also discussed adding formal auditor study sessions so trustees can review audit findings in small groups prior to the formal audit presentation to the full board. Administrators said they would research model policies and procedures from neighboring districts and present recommended language and processes.
Next steps include an administration-prepared May budget update with refined year-end projections and staff research into board operating procedures and reporting metrics to improve early detection and standardize responses if targets are missed.
