School Finance Overview

Transcription

1 School Finance Overview Presented by Christopher J. Smith, CFO January 18, 2018

2 School Finance Overview Financial Services Division School Finance 101

3 Financial Services Budget & Treasury Payroll Risk Management Purchasing Accounts Payable Accounting District-wide Support & Training Awards & Recognitions

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5 Budget & Treasury

6 Financial Services Budget & Treasury District Budgeted Funds District-wide coordination Staffing Plans 126 Organizational expenditure budgets Combines & Prepares monthly budget amendments Continuous Long Range Planning District-wide budget support and training

7 Financial Services Budget & Treasury (continued) District Investments Safety, Liquidity and Yield Maintain compliance with PFIA Fund Cash Disbursements Manage Bond Payments Quarterly Investment Reports

8 Payroll

9 Financial Services Payroll Manage Two Payrolls Semi-monthly - 24 Bi-weekly - 26 Teachers Retirement System (TRS) Reporting IRS Submissions & Reporting

10 Financial Services Payroll (continued) Semi-Monthly Payroll 9,337 employees 9,274 ACH or Direct Deposit (99.3%) 63 Checks Amount $19,527,563 Average Tax deposit (Medicare/WH) $2,333,182 Average TRS Contribution: $1,468,209

11 Financial Services Payroll (continued) Bi-Weekly Payroll 1,860 employees 1,808 ACH or Direct Deposit (97.2%) 52 Checks Amount $2,052,116 Average Tax deposit (Medicare/WH) $202,525 Average TRS Contribution: $155,097

12 Financial Services Payroll (continued) District Time & Attendance Automated Campus & Department Kronos Managers 11,197 Staff Teachers Retirement System (TRS) Reporting IRS Reporting 13,798 W2 s Wage Verifications, Liens and Child Support automated now through The Work Number

13 Purchasing

14 Purchasing Operations Processing about 45,000 purchasing requests per year; each one being reviewed for compliance in areas applicable. Procurement processes are controlled by State and Federal statutes and regulations, as well as local policies and procedures. Assisting vendors with the processes for doing business with the District can present challenges.

15 Purchasing Operations- Procurement Performs competitive bidding process for the purchase of goods and services, in accordance with State requirements Coordinates purchase and delivery of furniture, fixtures, and equipment (FF&E) for new schools and school renovation projects Every effort is made to grow local business whenever possible.

16 Accounts Payable

17 Financial Services Accounts Payable Weekly Check Runs 616 Average checks per week 30,800 Checks per year Invoices 76,981 Invoices per year $411,74,865 in bills paid

18 Financial Services Accounts Payable (continued) Weekly epayables Runs 175 Vendors $28,154,502 in bills paid $36,473 earned in Rebate $1,853,347 in earned Rebate since inception $14,1071,249 in wires processed 1,080 refunds processed

19 Financial Services Accounts Payable (continued) s Produced 5,604 Employee Expense Claims Reimbursed

20 Accounting

21 Financial Services Accounting Maintain District s accounting & financial records Transactions are recorded and reported as prescribed by: Generally Accepted Accounting Principals (GAAP) T.E.A. Financial Accountability System Resource Guide (FASRG) FEMA processes post-harvey

22 Financial Services Accounting (continued) Maintain 216,271 General Ledger Accounts Reconcile 23 bank accounts each month Remember Volume of Payroll & Accounts Payable Fixed Assets Department Implements system of internal controls Post Issuance Compliance Financial Procedures Manual District-wide Support

23 Risk Management

24 How many facilities does the District insure and what is the total value?

25 The District insures 90 locations with over 37 Million square feet. The insured value is about $1.8 Billion.

26 If you were to take the dollars spent on Health Care, $52 Million, and line them up, you would reach Paris. Paris, France, that is!

27 Support & Training

28 Financial Services Support & Training Financial Clerk Training Campus on-site training and support Departments New Financial Clerk Training Monthly Adobe Connect Sessions Maintain User Manuals

29 Awards & Recognitions

30 Financial Services Awards & Recognitions Association of School Business Officials (ASBO) Certificate of Excellence in Financial Reporting Government Financial Officers Association (GFOA) Certificate of Achievement in Financial Reporting Schools FIRST (Financial Integrity Rating System of Texas) Highest possible rating of Superior Achievement

31 Financial Services Awards & Recognitions (continued) Texas Comptroller of Public Accounts: Transparency Star Traditional Finances Credit Ratings AA by Standard & Poor s Aa1 by Moody s

32 School Finance 101

33 School Finance 101 Student Enrollment Tax Rates Property Values District Budgets

34 School Finance Overview HOW DO WE PAY FOR KATY ISD? EXERCISING GOOD STEWARDSHIP OF EVERY DOLLAR WORKING SMART DOING MORE WITH LESS MAINTAINING A BALANCE BETWEEN ADDRESSING TODAY S NEEDS WHILE BEING SENSITIVE TO THE TAX BURDEN SHOULDERED BY CURRENT & FUTURE TAXPAYERS

35 Student Enrollment

36 100,000 Enrollment Growth 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, Student Enrollment

37 6 th largest district in Texas 49 th largest district in U.S. Source: PEIMS & American Schools & Universities September 2016

38 Property Values

39 Billions Property Values

40 School Finance Overview Property Value Information By Category Single Family Residential Minerals 70.0% 60.0% School Finance Overview 50.0% Commercial / Industrial 40.0% Vacant Land 30.0% 20.0% Other 10.0% 0.0%

41 Tax Rates

42 Breaking Down Local Property Taxes More than half of a school district s revenue comes from its local citizens through property taxes. A school district s tax rate is comprised of two parts: Maintenance & Operations (M&O) Interest & Sinking (I&S)

43 LOCAL PROPERTY TAXES M&O MAINTENANCE & OPERATIONS TAX RATE SCHOOL DISTRICT TAX RATE I&S INTEREST & SINKING TAX RATE Funds the day-to-day maintenance and operations of the district AKA GOF Can only be used to pay debt AKA Debt Service

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45 Tax Rates $2.00 $ $ Interest & Sinking $1.40 $ $1.00 General (M&O) $ $ $0.40 $0.20 $0.00

46 Maintenance & Operations

47 MAINTENANCE & OPERATIONS (M&O, GOF) Used to account for the daily operations of the district Primary Revenue Sources Property tax revenues State funding Federal

48 MAINTENANCE & OPERATIONS (M&O, GOF) Salaries (for teachers & other staff) Facility repairs and maintenance Bus repairs, maintenance and fuel Food services School supplies and materials Utilities (electricity, water, etc.) House repairs Car fuel and routine services Groceries Cleaning supplies Utilities (electricity, water, etc.)

49 Projected M&O Revenue

50 District Budget General Fund Maintenance & Operations $450 $400 $350 $300 $250 $200 $150 $100 $422.1 Budget Overview Instruction & Instruction Related Instruction & School Leadership Support Services - Student Administrative Support Services Support Services - Non-Student $50 $0 $77.8 $65.6 $42.3 $13.3 *Expenditures based on Official GOF Budget $10.5 Ancillary Services

51 District Budget General Fund Maintenance & Operations: Purchased & Contracted Services 5% Supplies & Materials 5% Other Operating 2% Capital Outlay 0% Payroll Costs 88%

52 Interest & Sinking (I&S) (also known as Debt Service)

53 School Finance Overview District Budget Debt Service Used to account for resources set aside to pay principal, interest and fees on long-term debt Primary revenue sources Tax revenues State allotments Interest earnings Primary costs Debt principal Interest on outstanding debt

54 Debt Service Funded by Source State 22.9% State 1.7% Local 77.1% Local 98.3% Local 100% to Current

55 Test Time

56 Employee Bus Custodian Teacher Paper/Supplies Debt Fuel Driver Debt Utilities Books for Principal Interest Fees Benefits Buses Salaries $1.13 Maintenance & Operations (M&O) $0.39 Interest & Sinking (I&S)

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58 SO, WHAT IF OUR PROPERTY VALUES GO UP? TIER I STATE FUNDING 49% LOCAL PROPERTY TAX 51%

59 OUR STATE FUNDING GOES DOWN! TIER I STATE FUNDING 35% - 14% + 14% LOCAL PROPERTY TAX 65%

60 Importance of Property Value to School Funding Market Data County Appraisal Districts Comptroller Property Tax Division (CPTD) School District Property Value Study Budget & Tax Rates CPTD - State Value CPTD Local Value

61 Thank you!