Subject:  FY 2020 Year End

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:  July 9, 2020 Regular Meeting

School Board Action Required:  Information

Ignite Link: Goal 4 - Resource Stewardship

Summary/Background (Key Points):

All the FY 2020 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 2020 Third Quarter Budget Review.

In the School Operating Fund, after accounting for the revenue variance and the FY 2021 budgeted beginning balance, flexibility reserve, fuel contingency, textbook reserve, and other commitments, the FY 2020 funds available total $38.2 million.  

Revenue variances begin on page one of the agenda attachment. FY 2020 actual total funds available are $4.0 million less, or 0.1 percent, than the FY 2020 Third Quarter Budget Review. State Aid for FY 2020 totals $491.9 million, which is $1.8 million less than budgeted, and sales tax receipts total $214.7 million, $25,492 less than budgeted. Federal revenue totals $45.7 million, which is $0.8 million less than budgeted primarily due to the unspent multiyear grant awards that will be carried forward and re-appropriated in FY 2021. Other revenue receipts, including tuition, fees, other service charges, and miscellaneous revenue, are $1.4 million less than the third quarter estimate.

Expenditure variances on page two of the agenda attachment, total $42.2 million. Due to the changing fiscal landscape brought about by the COVID-19 pandemic, FCPS implemented spending guidance that deferred all non-critical expenditures including maintaining position vacancies and only hiring for positions that fulfill critical FCPS functions.

The total expenditure variance is 1.4 percent of the FY 2020 Third Quarter Budget total disbursements and is largely attributed to savings of $15.4 million from salaries and employee benefits primarily resulting from additional turnover and savings of $25.3 million primarily from utilities, fuel, and supplies as a result of the pandemic. Multiyear unspent federal grant funds of $1.6 million is carried forward and re-appropriated for FY 2021.

As a result of the revenue and expenditure variances, the total funding available from FY 2020 totals $38.2 million. This agenda item includes recommendations for FY 2021 expenditure adjustments including $9.7 million to support FCPS’ post COVID-19 response plan. Prior committed priorities and requirements include $3.6 million to continue FCPS’ annual commitment to allocate funding from year-end to major maintenance projects and one-time funding of $0.2 million to address a shortfall in Adult and Community Education Fund (ACE). Other funding includes $0.3 million to support the Global STEM Challenges program.

All the remaining funding available, $24.4 million, is recommended to be set aside for the FY 2022 budgeted beginning balance. This reflects no change from the FY 2021 beginning balance.

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

Recommendation:

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

Attachment: 

Will be posted prior to the meeting.