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Board hears why federal funds sometimes show negative balances; state reimbursements arrive later
Summary
Board members asked about a negative federal balance and Medicaid billing; CFO Brian Brown explained negative Fund 6 balances reflect district-paid costs that the state reimburses on a prescribed schedule and confirmed Medicaid billing posts to the federal account.
Board members raised questions about a large negative balance in the federal funds column and whether those dollars could be used for other purposes. A board member observed there was a “huge negative balance in fund 6,” and Brown explained that negative figures often reflect expenditures the district pays up front and later receives reimbursement for from the state.
"The negative $943,000 those are expenditures that we have the district puts the bill on the front end and the State pulls those expenditures on, prescribed schedule and they reimburse us after the fact," Brown said, explaining the timing causes temporary negative balances that are expected to be reconciled when state reimbursements arrive (typically by September). When asked specifically about Medicaid billing for student services, Brown confirmed the district bills Medicaid and that Medicaid receipts post to the federal account (Fund 6).
