Warsaw Schools received its summer school reimbursement from the state in November, but it was about $30,000 less than the prior year, Chief Financial Officer Kevin Scott told the school board Tuesday at its public work session.
For 2014, the reimbursement totaled $452,921. While the expense total Warsaw was allowed to submit was $444,645, its total expense for summer school was $505,064. The result net expense to the General Fund was $52,143.
“I do want to stress that at this point, we did talk about this briefly before, there’s some misconception that we actually make money with summer school. We don’t,” Scott said during his financial report. “We can’t claim all of our expenses.”
He said he generaly budgets $100,000 for the net expense to the General Fund. “So it did perform better than we budgeted, so that’s good news,” Scott said.
Jennifer Tandy, board president, asked Scott if he could anticipate what next summer would look like.
“It’s too early to tell,” he replied. However, the last couple of years have been much like 2014, he said.
Also of note in November’s financial report, he said, was the State Basic Grant corrected in November for the lower September student count for Warsaw Schools. The grant shrank by $44,954 to $3,735,179.
The state provides funding to schools based on student enrollment. Warsaw Schools receives about $5,300 per student. Student counts are taken in September and February, resulting in a change in the State Basic Grant depending on whether student enrollment increases or decreases.
“So those things don’t come across as positive, but as you look at the summary for current month and year to date, General Fund is doing fine. Expense to revenue percent is 98 percent, which is the same as it was in 2013,” Scott said.
One thing he suggested the board keep an eye on is property tax funding.
“You can see in November – transportation, bus replacement, capital projects, debt service, pension debt all receive property tax dollars – we asked for an advanced withdrawl in those dollars. So we are going to watch closely the summer result to see where we’re going to end up,” he said.
Another thing that he sees happening, when he looks at cash balances in the various funds, is that the capital projects fund is going to see a significant impact due to “this protect-the-funds concept where the property tax cap isn’t distributed across debt service and pension debt as well as capital projects and transportation and bus replacement fund. It’s just going to be on capital projects, transportation, bus replacement.”
Those funds, particularly captial projects, are going to see a cash shrink even though Warsaw Schools is on target for budget spending, he said.
“So overall, the general fund has perked up a little bit. We should be in the black a little bit in general fund. Transportation this year is right at breaking where we expected,” Scott said. “As we look at 2015, as Affordable Care Act continues to impact us, that picture is going to change.”
Scott then discussed Warsaw Schools advertising to purchase three used vehicles to replace 1995 models. Dollars were put aside at the end of last year to purchase vehicle replacements, but were held back to see how this year went.
“At this point I’m coming back and asking permission to use those dollars to look at used vehicles,” Scott said.
One vehicle would be for the maintenance HVAC employee, one for technology and the other would be a mini-van to transport small groups to conferences. Cost would be no greater than $70,000 for all three vehicles.
The board will vote on the request to advertise for the vehicles at its regular monthly meeting Monday at 7 p.m.
In another matter, Scott said he received information on the second year of the Indiana Secure School Safety Grant from the state. He requested the board’s permission to add that grant application to its agenda Monday so it can be signed and sent out.
The dollar amount will be $25,000, with a required $25,000 match. Last year, the grant was for $50,000 and required a $50,000 match.
The board told him to add it to the agenda.
In his final business before the board, Scott said he will ask the board Monday to approve the year-end appropriations transfer. School corporations are directed to finish the calendar year with appropriations in program accounts either at zero or with a positive balance. By resolution of the board, appropriations can be transferred to meet the State Board of Accounts requirements.
