Subject:  FY 2022 Year End Review 

Staff Contact:  Leigh Burden, assistant superintendent, Department of Financial Services 

Other Staff Present:     Marty Smith, chief operating officer

                                     Alice Wigington, director, Office of Budget Services 

Meeting Category:  September 1, 2022 Regular Meeting

School Board Action Required:  Action

Summary/Background (Key Points):

All the FY 2022 accounts have been closed subject to the annual audit. A summary of the revenue and expenditure variances is provided for each of the nine funds. All comparisons are against the FY 2022 Revised Budget. In the School Operating Fund, after accounting for revenue and expenditure variances, School Board flexibility reserve, fuel contingency, and commitments and carryover, funds available for FY 2023 total $90.9 million.

Excluding School Operating Fund grants, the FY 2022 actual revenue variance totals $8.5 million, due to an increase in sales tax offset by lower Basic Aid caused by reduced enrollment; Federal revenue; offset by other revenue receipts, including tuition, fees, other service charges, Fairfax City tuition, and miscellaneous revenue.

Excluding School Operating Fund grants, the expenditure variance is $260.1 million less than budgeted. Funding available after accounting for reserves, commitments, and carryover is primarily comprised of salary and benefits fallout attributed to lower student enrollment caused by the pandemic, salary lapse, and a one-month health benefit premium holiday.

As a result of the revenue and expenditure variances, available funds for FY 2023 total $90.9 million. In addition, the General Assembly had not formally adopted the 2022-2024 biennial budget at the time of FCPS’ FY 2023 Approved Budget adoption. As compared to the budget passed by the General Assembly, FCPS will receive a net increase of approximately $25.3 million in additional state revenue. Of the additional revenue, $18.1 million is to support a one-time $1,000 bonus for Standards of Quality funded instructional and support positions.

This agenda item includes recommendations for FY 2023 expenditure adjustments, including an employee bonus and funding for staffing contingencies, stadium restrooms, major maintenance, FCPS cost share for electric buses, Young Scholars extracurricular enrichment, a shortfall in the Adult and Community Education Fund, a middle school start time study, a recruitment incentive for substitute teachers, increased electricity costs, paper inflation, a superintendent strategic reserve, food services equipment, Title IX softball field upgrades, a safety and security review, turf fields, and to maintain the beginning balance for FY 2024. 

Changes to other School Board funds are detailed in the attachment.

Recommendation:

The School Board approve the revenue and expenditure adjustments as detailed in the agenda item.

Attachment: 

FY 2022 Year End Agenda