powerpoint presentation · honoring the past, celebrating the present, preparing for the future...

Honoring the past, celebrating the present, preparing for the

future

2013-14 Fiscal Year End Report

January 27, 2015


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2015 Refunding Bond Sale Goals

• Secure low interest rates

• Maintain district’s Aa3 credit rating

“The district’s financial position is strong and expected to remain

stable given a favorable enrollment trend and conservative financial

management.” – Rating Report, Moody’s Investors Service,

January, 2015

• Receive credit enhancement from State of Washington

• Refund 2007 bonds at an NPV savings of greater than 4%

• Achieve savings for taxpayers


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2015 Bond Sale Results

• Total net present value savings: 10.94%

• Total savings (net of all costs): $7,617,550

• Present value of net savings: $6,596,482

• Decrease in average interest rate: 4.77% to 2.26%

• Estimated savings to taxpayers*: .06 to .14/$1,000 AV

($6 to $14 for $100,000 property)

*Savings flow directly to taxpayers as lower debt service results in lower tax levies needed to support that debt. Actual savings will vary from year to year based on debt maturity and assessed value growth.


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2013-14 Year End Report • One page financial report: all funds

• General Fund

• Financial flows - Actual to budget, comparisons

• Financial position - Ending Fund Balance

• Unassigned Fund Balance – formalize goal

• More numbers!

• Details at www.k12.wa.us\safs\pub\fin

http://www.k12.wa.us/safs/pub/fin








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Five Funds

• General Fund – normal and recurring operations, for all resources not required to be recorded in one of the other funds

• Capital Projects Fund – long-lived, capital improvements

• Debt Service Fund – redemption of outstanding bonds

• Associated Student Body Fund – students’ interest: for cultural, athletic, recreational and social uses

• Transportation Vehicle Fund – purchase and major repair of pupil transportation equipment


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2013-14 Statement of Revenues, Expenditures and

Changes in Fund Balance

General Capital

Projects Debt Service ASB Transport

Vehicle

Revenues 165,007,008 3,205,984 11,052,582 1,647,878 672,385

Expenditures 160,583,882 25,438,566 11,781,520 1,511,582 2,333,568 Revenues over/(under) Expenditures 4,423,126 -22,232,582 -728,939 136,296 -1,661,183

Other Sources 3,271,000 1,260,000

Other Uses -4,531,000

Net Change in Fund Balance -107,874 -18,961,582 -728,939 136,296 -401,183

Beginning Fund Balance 37,690,293 45,835,087 4,274,547 1,061,240 903,649 Ending Fund Balance 37,582,419 26,873,505 3,545,608 1,197,535 502,466


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2013-14 General Fund

Actual to Budget

Revenues: 100.08%

Expenditures: 94.2%

154,000,000

156,000,000

158,000,000

160,000,000

162,000,000

164,000,000

166,000,000

168,000,000

170,000,000

172,000,000

Actual

Budget


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Actual to Budget - Revenues

LocalState -

GeneralState Grants

FederalGrants

Other

Actual $22,299,342 $99,225,146 $25,939,797 $17,017,150 $525,574

Budget $21,717,590 $97,743,752 $28,086,999 $16,731,307 $600,639

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000


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Actual to Budget - Expenditures

BasicEducation

SpecialEducation

CTEPrograms

GrantsOther

Instruction

DistrictWide

Support

NutritionServices

PupilTransport

Actual 87,664,678 16,392,739 4,049,834 16,421,106 1,029,371 21,905,063 6,811,913 6,309,179

Budget 92,527,125 17,426,411 4,025,508 19,423,518 1,199,733 22,507,371 6,902,823 6,467,575

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000


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Comparisons

• Questions: Where does the district get its revenue?

How is it spent? How does Pasco compare to other

districts?

• All graphs expressed in percentage of total

revenues/expenditures

• First bar is Pasco 2013-14 General Fund, followed by

comparables:

• Prior year Pasco (2012-13)

• Prior year peer group average (2012-13)

• Prior year state-wide average (2012-13)


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LocalState -

GeneralState

GrantsFederalGrants

OtherSources

2013-14 Pasco 13.5% 60.1% 15.7% 10.3% 0.3%

2012-13 Pasco 14.2% 60.9% 14.4% 10.1% 0.4%

2012-13 SAO Peer Group 17.6% 53.3% 13.9% 14.4% 0.8%

2012-13 State Average 23.7% 53.9% 12.5% 9.0% 0.9%

0%

10%

20%

30%

40%

50%

60%

70%

% o

f To

tal R

even

ues

Revenues by Source

SAO Peer Group: Washington State Auditor’s K-12 Spending Audit Report, 2012

State Average: Office of Superintendent of Public Instruction


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BasicEd

SpecialEd

CTEProgram

GrantsOther

Instruct

DistWide

Support

NutritionServices

PupilTrans

2013-14 Pasco 54.6% 10.2% 2.5% 10.2% 0.6% 13.6% 4.2% 3.9%

2012-13 Pasco 54.9% 10.8% 2.7% 8.6% 0.7% 14.0% 4.2% 4.1%

2012-13 SAO Peer Group 49.4% 13.0% 3.3% 9.8% 3.3% 13.7% 4.4% 3.2%

2012-13 State Average 53.8% 12.7% 3.3% 6.1% 2.3% 14.1% 3.5% 4.2%

0%

10%

20%

30%

40%

50%

60%

70%%

of

To

tal

Exp

en

dit

ure

s

Pasco 2013-14

Instructional: 78.2%

State 2012-13

Instructional: 78.2%

Pasco 2013-14

Support: 21.8%

State 2012-13

Support: 21.8%

Expenditures by Program Groups


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Expenditures by Activity

• A specific and distinguishable service performed by a school district

• Teaching activities

• Teaching support • Librarians, counselors, security, nurses, professional development

• Other support (excludes supervisory activity) • Nutrition services

• Pupil transportation

• Information services, E-Rate

• Maintenance and custodial

• Central services • Board of Directors, superintendents office, fiscal services, employee

services, public affairs, AND

• Supervision only of: instruction (60% is for categorical/targeted education), nutrition services, pupil transportation, maintenance and custodial


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TeachingActivities

TeachingSupport

OtherSupportServices

Principals,SchoolOffices

CentralServices

2013-14 Pasco 58.8% 11.0% 17.8% 5.8% 6.5%

2012-13 Pasco 58.3% 10.9% 18.4% 6.0% 6.4%

2012-13 SAO Peer Group 56.8% 13.1% 17.6% 6.0% 6.5%

2012-13 State Average 58.9% 10.7% 18.0% 6.0% 6.4%

0%

10%

20%

30%

40%

50%

60%

70%%

of

To

tal

Exp

en

dit

ure

s

Expenditures by Activity Groups




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Expenditures by Object

• An article purchased or a service obtained

• Certificated Salaries - Salaries of employees who hold a professional education certificate issued by the Office of Superintendent of Public Instruction

• Classified salaries – Salaries for positions that are not certificated

• Benefits – Health care, payroll taxes, workers’ compensation, retirement, unemployment

• Travel • Does not include transporting students to and from school

• Does include other travel, lodging, meals for students and employees on official school business


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CertSalaries

ClassSalaries

Benefits Supplies Services TravelCapitalOutlay

2013-14 Pasco 42.5% 14.8% 22.3% 10.1% 8.9% 0.5% 0.9%

2012-13 Pasco 45.4% 15.3% 22.4% 7.2% 8.7% 0.4% 0.6%

2012-13 SAO Peer Group 43.7% 17.5% 21.2% 6.4% 10.7% 0.2% 0.3%

2012-13 State Average 44.8% 16.7% 21.3% 5.9% 10.6% 0.3% 0.4%

0%

10%

20%

30%

40%

50%

60%

70%

% o

f To

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Exp

en

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Pasco 2013-14

People Costs:

79.6%

State 2012-13

People Costs:

82.8%



Expenditures by Object Groups


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Fund Balance

• Year end financial position

• Fund balance categories

• Unassigned Fund Balance

• Is current goal of 5% of revenues adequate?

• Should this be formalized?


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General Fund –

Ending Fund Balance Net Change in Fund Balance (2013-14 Revenues under Expenditures and

Transfers Out) -107,874

Beginning Fund Balance 37,690,293

Ending Fund Balance 37,582,419

Categories of Fund Balance:

Restricted 7,949,577

Committed (Interfund Loan Outstanding) 4,500,000

Assignments 16,881,895

Unassigned (5% of Revenue) 8,250,947

Total Ending Fund Balance 37,582,419


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4.7% 4.9% 5.0%

5.0%

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

Aug 312011

Aug 312012

Aug 312013

Aug 312014

General Fund Balance by Category

Assignments

Unassigned FundBalance

Committed

Restricted


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Unassigned Fund Balance

GFOA Best Practice

• Purpose

• Mitigate current and future risks

• Positive evaluation of creditworthiness

• Maintain stable tax rates

• What is appropriate level?

• Opposing pressures

• General guidance (careful!)

• District’s own specific experiences

• Comfort level


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• General guidance • Various measures, involving different components of fund balance

• Pasco’s 5% of revenue goal keeps fund balance within range established by all surveyed: Moody’s, GFOA, other large districts

• Pasco particulars • Contingent on levy passage: $35.1M: levy $20.8M/equalization $14.3M

• Revenues provided by State - $106M • Past history: FY 2009-12: $9.7 M in decreased state funding

• McCleary impact

• Planned, selective use for one-time purchases: portables, busses, electronic learning devices

• Positive feedback from credit rating agency:

• What are you comfortable with?

• Recommendation: maintain 5% of revenue as goal, formalize it


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• Two ways of formalizing 5% goal

• Policy or recorded motion

• Policy: tighter lock on funds, less flexibility

• Recorded motion: existing, successful practice

continued but with documentation in minutes, maintains

flexibility to deal with unplanned circumstances;

• Recommendation: Formal motion to maintain goal of 5%

of General Fund revenue in undesignated fund balance.

Review goal on periodic basis.


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Questions?

Motion: I move to approve the goal of

maintaining an unassigned General

Fund balance of 5% of General Fund

revenues.


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General Fund Assignments –

(Actual 8/31/2014)

• New School Startup $1,900,000

• Legal/Audit Expense 260,000

• Extended Learning Opportunities 4,976,342

• FY 14-16 Student Housing 2,609,355

• Computer Replacement 815,000

• Bus Replacement 1,813,152

• Instructional Material Adoption 100,000

• PHS Science Labs 1,150,000

• Property Purchase 1,542,000

• Reserve for FY 14/15 Budgeted Net Change

in Fund Balance 1,716,046

• Total Fund Balance Assignments $16,881,895


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Expenditures by Program

• A plan of activities designed to accomplish a set of objectives

• Basic unit for internal accountability

• Can be a direct educational program: • Basic education

• Special services

• Grants

• Vocational

• Can support educational programs: • District-wide support: Board of Directors, superintendent’s office,

legal, fiscal services, employee services, maintenance ,custodial, grounds, warehouse, support services, public affairs, operations, utilities, rentals, audit and elections, special projects, technology

• Nutrition services



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4.7% 4.9% 5.0%

5.0%

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

Aug 312011

Aug 312012

Aug 312013

Aug 312014

General Fund Balance by Category

Assignments

Unassigned FundBalance

Committed

Restricted


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Expenditures by Program

• A plan of activities designed to accomplish a set of objectives

• Basic unit for internal accountability

• Can be a direct educational program: • Basic education

• Special services

• Grants

• Vocational

• Can support educational programs: • District-wide support: Board of Directors, superintendent’s office,

legal, fiscal services, employee services, maintenance ,custodial, grounds, warehouse, support services, public affairs, operations, utilities, rentals, audit and elections, special projects, technology

• Nutrition services



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Managing Fund Balance

Ending Unreserved/Undesignated Fund Balance of

5.0% $8,244,014

Nonspendable - Inventory 69,741

Proposed Assignments of Fund Balance:

New School Startup 1,900,000

Legal/Audit Expense 260,000

Retirement Rate Increase 500,000

FY 14-16 Student Housing 2,600,000

Extended Learning Opportunities 9,180,784

Total Budgeted Ending Fund Balance as of 8/31/14 $22,754,539


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FY 2013-14 FUND BALANCE SUMMARY

GENERAL

FUND

CAPITAL

PROJ FUND

DEBT SERVICE

FUND

ASB

FUND

TRANSPORTATION

VEHICLE FUND

Beginning Fund Balance:

$30,240,316

$50,321,139

$4,269,868

$1,174,603

$901,414

Add: Revenues

164,880,287

15,341,528

10,903,230

3,894,136

575,550

Add: Transfers In

1,486,000

400,000

Total Resources Available

195,120,603

67,148,667

15,173,098

5,068,739

1,876,964

Less: Expenditures*

170,480,064

47,588,084

11,881,521

3,654,831

1,080,000

Less: Transfers Out

1,886,000

Ending Fund Balance

$22,754,539

$19,560,583

$3,291,577

$1,413,908

$796,964

*The August 13th resolution will be to adopt appropriations (expenditures only) for each fund above. A second

resolution will authorize the $1,486,000 transfer from the General to Capital Projects Fund.

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• Revenues $164,880,287

• Expenditures (on-going only) (165,831,075)

• Revenues under Expenditures (on-going) ($950,788)

• Expenditures (one-time) (4,648,989)

• Revenues under Expenditures ($5,599,777)

• Transfers Out

• To Capital Projects Fund – Portables (1,486,000)

• To Transportation Vehicle Fund – Buses ( 400,000)

• FY 13-14 Net Change in Fund Balance ($7,485,777)

FY 13/14 Budget: Net Change in Fund

Balance


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• Electronic educational devices (x 2000) $1.9 million

• Edgar Brown stadium $1.2 million

• Field turf replacement

• Track resurface

• Facility projects $1.0 million

• Painting, carpets, roofs, ramps, playgrounds

• Security

• Cameras, access control $ .4 million

General Fund

One-time Expenditures ($4.7 million)

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