SYRACUSE CITY SCHOOL DISTRICT MONTHLY FINANCIAL REPORT. November 30, 2015 (Unaudited)

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1 SYRACUSE CITY SCHOOL DISTRICT MONTHLY FINANCIAL REPORT November 30, 2015 (Unaudited) This document is a preliminary working document produced by the Syracuse City School District fiscal services group and is being presented to the District Board of Education for their consideration. It is an internal working document and as such is not intended for distribution or republication in any form. 1

2 Syracuse City School District Monthly Financial Report November 30, 2015 (Unaudited) TABLE OF CONTENTS Page Combined Balance Sheet 3 Statement of Revenues and Expenditures General Fund Prior Year Comparison 4 Budget Comparison 5 Statement of Revenues and Expenditures Special Aid Fund 6 Statement of Revenues and Expense Cafeteria Fund 7 (Through October 31, 2015) Management Discussion and Analysis General Fund 8-9 Cash Flow Statement Year to Date Actual with Projected Year End Balance 10 Budget Transfer Schedule 11 Notes to Monthly Financial Statement Financial Dashboard Summary Current Year 15 Financial Dashboard Detail Current Year 16 2

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6 SYRACUSE CITY SCHOOL DISTRICT Statement of Revenue and Expenditures Special Aid Fund For the 5 months ended November 30, 2015 Unaudited Year to Date Current FY Percentage Actual of Total Revenues Federal / State / Local $ 32,078, % Total Revenues 32,078, % Expenditures Salary 12,917, % Overtime and extension services 4,044, % Extra pay 2, % Benefits 6,283, % Textbooks 12, % Library books - 0.0% Supplies and materials 736, % Computer hardware - 0.0% Computer software 50, % Contract services 8,005, % Equipment 25, % Capital outlay - 0.0% Bond principal/ interest - 0.0% Interfund - 0.0% Total Expenditures 32,078, % Excess (Deficiency) Revenue / Expenditures $ - 6

7 SYRACUSE CITY SCHOOL DISTRICT Statement of Revenue and Expenditures School Lunch Fund For the 4 months ended October 31, 2015 Unaudited Year to Date Year End Projection Current FY Current FY Favorable FY Ending FY Ending Favorable (Unfavorable) June 30, 2016 June 30, 2016 (Unfavorable) Actual Budget Variance Projection Budget Variance Revenues Breakfast $ 887, ,379 $ 137,864 $ 3,746,895 $ 3,746,895 $ - Lunch 1,819,586 1,619, ,637 8,099,744 8,099,744 - Snack 179, ,940 60, , ,699 - Sales Lunch (672) 4,492 4,492 - Summer Feeding 494, ,085 (17,354) 494, ,085 (17,354) District Other (a la carte sales at register) ,080 (14,623) 75,401 75,401 - Surplus Food , ,000 - Interest Revenue 1 13 (12) Miscellaneous (catering, lunch service for Early Ed) 60,170 36,612 23, , ,058 - Total Revenues 3,442,120 3,052, ,165 13,929,059 13,946,413 (17,354) Expenditures Salary 1,120,302 1,063,825 (56,477) 4,819,123 4,819,123 - Benefits 549, ,859 (34,561) 2,199,295 2,199,295 - Equipment 248, ,000 1, , ,525 - Outside Services 23,432 30,000 6, , ,354 - Outside Purchases - Food & Supplies 688, ,000 (13,209) 6,157,997 6,157,997 - Indirect Costs 315, ,347 (214,254) 1,686, ,257 (1,067,898) Total Expenditures 2,945,612 2,635,031 (310,581) 15,737,449 14,669,551 (1,067,898) Excess (Deficiency) Revenue / Expenditures $ 496,509 $ 417,925 $ 78,584 $ (1,808,390) $ (723,138) $ (1,085,252) 7

8 Syracuse City School District Monthly Financial Report November 30, 2015 (Unaudited) Management Discussion & Analysis The information included in the Monthly Financial Report for the month ended November 30, 2015 reflects information that has been discussed at various committee and Board of Education meetings regarding the requirement to put in place a reporting package that will allow for accurate and timely presentation of the District s financial condition. We will continue to modify information based upon feedback from users of the reporting document. Revenue For the month ended November 30, 2015, total revenue was approximately $14.6 million, or 3.7% of annual budgeted revenue of $392.7 million. Year to date, total revenue was approximately $65.3 million, or 16.6% of annual budgeted revenue of $392.7 million. General Fund property tax calculations are prepared and filed by the City of Syracuse Tax Assessor s office in April and the budget for property tax and STAR are estimated based on the prior year figures and known adjustments. Federal Sources include Medicaid, Medicare and e-rate revenues. State Aid receipts were $701 thousand more for the month of November when compared to the same month in the prior year due to the increased amount received for the District s Teachers Retirement System (TRS) payment. State Aid year to date is $14 thousand less than in the prior year as the increase in the TRS payment amounts were offset by lower Lottery VLT aid and the fact that the District received $1.0 million for a Special Legislative Grant in August 2014 that was not received again in the current year. Expenditures The expenditures for the month ended November 30, 2015 were $33.7 million, or 8.6% of the $392.7 million amended annual budget. Year to date expenditures were $122.8 million, or 31.3% of the $392.7 million annual budget. Salaries are $5.3 million more than in the prior year and $1.6 million more than budgeted year-to-date. The salary increases reflect the impact of up to two years of retroactive salary increases as negotiated during the contract settlements. Three bargaining unit contracts remain to be settled. As salaries are finalized, the District will provide projections for the impact of these increases in the coming months. Overtime and Extension of Service is $158 thousand more than budget year to date mainly due to an increased need for overtime for the Facilities Department staff with summer school programs operating at more locations than anticipated requiring additional custodial staff support and an increased number of school reconfiguration requests and coverage for medical leaves. 8

9 Medical and Dental expenditures were $847 thousand less than budgeted for the month and $5.5 million less than budget year to date. The District is self-insured paying out actual claims as incurred. The amount budgeted for medical and dental claims is spread evenly over the 12 months of the year while actual claims paid may vary widely from month to month resulting is significant favorable and unfavorable monthly variances. The T District will continue to closely monitor the volume and severity of claims for trends as the year progresses. Contract services are $1.6 million more than in the prior year and $0.3 million more than budgeted year-to-date due in part to payments that were made earlier this year for Transportation, Teaching and Learning, and Student Support Services contracts as well as budgetedd new contractss or contractt expenses that were covered by grants last year. Fund Balance As of November 30, 2015, the Fund Balance was segregated into the following components: Note: Fund balance amounts have been updated to reflect the final year-end balances. Balances willl be updated, if necessary, based on the resultss of the annual external audit. Budget Transfers Includedd in the monthly financial statement report is a schedule of budget transfers. A budget is an estimate of planned expenditures in the fiscal year. The schedule of budget transferss represents reclassifications of appropriations for a variety of reasons, most frequently routine adjustmentss to object codes and/or location codes. On occasion, as new expendituree and revenue information is received, appropriations may be modified to reflect the most current information. In some cases, a budgeted item needs to be distributed among a number of different locations. This distribution is dependent on factors suchh as BEDS enrollment numbers and is not always known at the time the budget is approved. At other times, an account code may need to be adjusted, perhaps from office supplies (5010) to software (5190). A program administrator may also decide to transfer funds from one object code to another if the need exists. Finally, some capital fund budgets need to be initially established from a general fund transfer. 9

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11 Syracuse City School District Budget Transferr Report November

12 Syracuse City School District Monthly Financial Report November 30, 2015 (Unaudited) NOTES TO MONTHLY FINANCIAL REPORT Basis of Accounting All governmental funds utilize a current financial resources measurement focus. Only current financial assets and liabilities are generally included on the balance sheet(s). Operating statements present sources and uses of available spendable financial resources during a given period. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when measurable and available. Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or generally within sixty days after year-end. General Fund The General Fund is the primary operating fund of the District and is used to account for all activities except those legally or administratively required to be accounted for in another fund. Special Revenue Fund The Special Revenue Fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Special Aid is reported as a Special Revenue Fund. Revenue Descriptions The following provides basic descriptions of various revenue items. Due to the complexities associated with the state formula(s) for funding, it is not practical to completely describe each revenue item and the detail calculation. Additional information is available on the New York State website or can be provided as requested. Tax Levy Real Property taxes are levied annually by the City of Syracuse, New York, Common Council. Uncollected real property taxes are subsequently enforced by the City of Syracuse, New York. An amount representing uncollected real property taxes must be transmitted by the City to the Syracuse City School District within two years from the return of unpaid taxes to the City. Property tax is billed quarterly by the City then actual taxes collected are remitted to the District monthly with a tax sale the following October to collect the year-end uncollected balance. 12

13 For the fiscal year, the following summarizes the calculation of the tax levy: Budget Total Appropriations $ 392,683,824 Less: Estimated Revenues 328,294,848 Net Tax (includes STAR) 64,388,976 STAR Revenue 6,527,798 NET TAX LEVY $ 57,861,178 The net tax levy revenue represents approximately 14.7% of the District s total budgeted revenue. Budget estimates for property tax and STAR did not take into account assessment reductions from certioraris as these are recognized after the budget process. Sales Tax Revenue reflects the District s allocated share of Onondaga County, New York Sales Tax. The County distributed approximately 2.9% of sales tax collections to school districts located within the County until December 31, Effective January 1, 2012 through December 31, 2015, the school districts will receive approximately 1.5% and then the percentage will be reduced to approximately 0.7% from January 1, 2016 through December 31, The District receives a percentage of this amount based upon average daily attendance for the last preceding school year. Foundation Aid The Foundation Aid is the sum of the Foundation Aid Base (FAB) plus a Phase-in Foundation Increase; it is at least a 0.85 percent increase over Foundation Aid and cannot exceed a 15 percent increase over Foundation Aid. As part of the New York State budget, the payment schedule for General Aid was revised. General aid payments will now occur on the last business day of the month with the exceptions of October, November and January payments that will occur on the 15 th of the month. Building Aid Building Aid is an expense-based aid for construction and financing of approved building projects for aidable building expenses for leases, certain capital outlay exceptions, certain refinancing costs and an assumed debt service payment based on the useful life of the project and average interest rate. Up to an additional 10 percent incentive was provided for projects approved on or after September 1, Allowable construction costs were adjusted for regional cost differences starting in Starting in , debt service expenses are aided on an assumed amortization schedule. For projects approved before July 1, 2011, aid is received beginning the later of 18 months after NYSED approval or contract signing. For projects approved after July 1, 2011, aid will begin when the Final Cost Report and Certificate of Substantial Completion for the project are filed with NYSED. 13

14 BOCES & Special Services Aid Expense based aid for districts that are components of BOCES to obtain services such as career education and technology administration. The District is not eligible to receive BOCES aid. In lieu of BOCES aid payable to other school districts, non-components of BOCES and the Big 5 School Districts receive Special Services Aid for career education and computer administration. STAR Revenue STAR is the New York State program to relieve local property taxes. The application for STAR revenue is prepared by the City s Department of Assessments. This determines the amount of STAR revenue that the City, including the District, will receive as state aid. STAR payment will be paid by New York State no later than January. In prior years, New York State made STAR payments on a monthly basis from October through January but as the State has faced cash flow issues in recent years, payments have been delayed until January. For cash flow reporting purposes, STAR receipts are recorded as State Aid. Textbooks, Software and Library Aid Reimbursement of expenses up to a maximum rate per pupil for each category - amounts per pupil are as follows: Textbooks $58.25, Software $14.98, Library $6.25 Sections 701, 751 and 753 of NYS Education Law were amended beginning with expenses for aid to provide flexibility in the use of instructional materials aids including textbooks, library materials, computer software and instructional computer hardware. Under the new provisions, if the District spends more than its maximum allocation in any one of the areas, the excess expenditures over the maximum allocation can be designated as expenditures for aid in another category that was not fully expended. Transportation Aid Expense based aid for approved capital and operating expenses for transportation of pupils. Property wealth equalized with a choice of aid ratios and sparsity adjusted. Hardware and Technology Aid Expense based reimbursement up to an equalized ceiling amount per pupil for computer hardware and educational technology equipment using the district s current year building aid ratio, which reflects its relative property wealth. Local share is not required for Hardware and Technology Aid. The reimbursement amount per pupil is $24.20 times the current AV/RWADA Aid Ratio. Medical and Dental Expenditures The District is self-insured. Actual medical and dental expenditures vary each month based on the volume and severity of claims submitted resulting in peaks and valleys in the monthly expenditure amounts. For budgeting purposes, medical and dental expenditures are assumed to occur evenly throughout the fiscal year as these peaks and valleys cannot be reliably predicted in advance. As a result, significant favorable and/or unfavorable variances from budget to actual for a single month will occur and are expected. The District closely monitors the year-to-date budget to actual amounts for any indications that expenditures are likely to trend over or under the budgeted amount for the year. 14

15 FINANCIAL DASHBOARD SUMMARY CURRENT FISCAL YEAR - NOVEMBER 2015 REVENUE, EXPENDITURE AND FUND BALANCE INFORMATION Millions $20 $15 $10 $5 $ Monthly Revenue Millions $35 $30 $25 $20 $15 $10 $5 $ Monthly Expenditures Millions Impact of Current Year's Operations on Fund Balance $20 $ $(20) $(40) $(60) REVENUE TO BUDGET COMPARISONS YTD Revenue Compared to Total Budgeted Revenue YTD Revenue Compared to Total Budgeted Revenue YTD Revenue $65,341,657 17% Remaining Budgeted Revenue $327,342,167 83% Millions $400 $350 $300 $250 $200 $150 $100 $50 $ YTD Revenue Remaining Budgeted Revenue YTD Revenue Remaining Budgeted Revenue EXPENDITURE TO BUDGET COMPARISONS YTD Expenditures Compared to Total Budgeted Expenditures YTD Expenditures Compared to Total Budgeted Expenditures YTD Expenditures $122,768,660 31% Remaining Budgeted Expenditures $269,915,164 69% June 2016 May 2016 April 2016 March 2016 February 2016 January 2016 December 2015 November 2015 October 2015 September 2015 August 2015 July 2015 $ $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 $300 $325 $350 $375 Millions YTD Expenditures Remaining Budgeted Expenditures YTD Expenditures Remaining Budgeted Expenditures 15

16 FINANCIAL DASHBOARD DETAIL CURRENT FISCAL YEAR - NOVEMBER 2015 BALANCE SHEET STATISTICS Cash Balance Dollar Amount of Receivables Number of AP Vouchers Entered Millions $90 $80 $70 $60 $50 $40 $30 $20 $10 $ Millions $60 $50 $40 $30 $20 $10 $ 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 MEDICAL AND DENTAL CLAIM PAYMENT STASTICS (presented on a one month lag) Medical Claims Paid Prescription Claims Paid Dental Claims Paid $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Monthly Budget $3.99M Prior Year Current Year Budget $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Monthly Budget $1.99M Prior Year Current Year Budget $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Monthly Budget $283,277 Prior Year Current Year Budget Number of Non Zero Dollar Workers' Compensation Claims WORKERS COMPENSATION CLAIM STASTICS (presented on a one month lag) Number of Lost Time Workers' Compensation Claims Number of Student Involved Incidents Workers' Compensation Claims Prior Year Current Year Prior Year Current Year Prior Year Current Year 16