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Woodford County board warned of tightening cash flow after fiscal year report
Summary
Treasurer reported that, on a simple basis, district expenses exceeded revenue by about $2 million and that the district faces cash‑flow pressure between July and November; board scheduled a work session and did not take emergency loan action but said it might consider short‑term borrowing if needed.
The Woodford County Board of Education on July 28 received a detailed financial report that officials said shows the district is operating with a significantly smaller unencumbered fund balance and faces seasonal cash‑flow pressure heading into the school year.
Mr. Smith, the district finance lead, told the board the simplest calculation shows expenses exceeded revenue by about $2 million this fiscal year. He pointed to the district’s year‑to‑date statements and the way encumbrances carried forward from prior years affect the beginning and ending fund balances. “Yes. That's the simple— that’s the simple math,” he said.
Why it matters: the board must cover payroll and bond payments from July until the major property tax settlement in November. Smith warned that monthly payrolls and bond obligations create a period of tight cash availability and said the board may need to consider short‑term borrowing if cash reserves fall too low.
What the report said: Smith described the mechanics that drive the numbers. He explained that encumbrances—purchase orders still open at year‑end—are carried forward and are not spendable as part of the general fund, and that when those encumbrances are netted out the available beginning balance was roughly $6.9 million. He noted an approximate remaining restricted contingency for recent capital projects of $3,328,329. Smith also described bond payments and monthly payroll obligations that reduce the district’s available cash between July and November.
Board reaction and next steps: Board members pressed for clarity about how much of the shortfall is timing related and how much reflects structural spending above recurring revenue. One member urged a budget work session; Smith said an August meeting is planned once SEEK (state funding) numbers are posted. He also said he is investigating a shortfall in a few vendor payments that usually produce $200,000–$300,000 in revenue and that those reconciliations could change the picture modestly.
Formal action: the board approved the June financial (treasurer’s) report as presented and asked staff to bring more detailed cash‑flow projections and SEEK reconciliations to a planned August work session. No loan or formal borrowing was authorized during the meeting.
