001At this time, I'll turn this over to our finance financial consultant, our finance consultant, uh, Mr. Tyler Moore. Mr. Moore, do you have the floor? >> Good evening. >> Do you have the presentation or do I need to share my >> Yeah, if you can share your screen because it always comes out wonky on on our side. my screen. >> Yes, it was my it's my error. There we go. Go ahead. I switched speakers and then so the warning didn't go off. But if you share your screen again then we should have it. All right. There we go. All right. So yeah, uh as Dr. Slo um mentioned uh this evening we alo much like all districts need to have a revised budget prior to May 15th. Uh this is the first opportunity for Aaho
002um prior to the May 15th deadline to revise their budget. So I'll cover cover the uh revised budget highlights. Um this is our first revision since the board adopted this budget. So, you're going to see some larger changes um than you typically would if if we have already did a budget revision. Um I'll cover the MF budget changes, the capital budget changes, and then talk about next steps as we look towards fiscal year 27 budget. So, as I mentioned, the 26 budget highlights this revision reconciles um everything that we've done uh to close out the last fiscal year. Um so, again, the board adopted uh the current budget that we're operating under in July 7th. The AFR and all the year and reconciliation items took place um in October. So again, you're going to see
003quite a bit of change uh just because of that discrepancy in timeline and that's that's an annual thing. Um what this budget does capture is all the onetime funding. Um there was the DAA the district additional assistance onetime funding that the legislature appropriated into fiscal 26. We did not capture that on the adopted. we're budgeting for a more conservative outlook uh as that capital one time funding in the free and reduced supplemental we're not guaranteed at the time the board approved the fiscal 26 budget. So those are add-ons. Um we also have uh from the adopted budget we estimate enrollment for the school year and as that enrollment um as imposses on the 100th day we kind of do reconcile to that enrollment number we did see some growth there within the not the headcount
004per se but the um in students with either um uh an IEP or various weighted um add-ons in the group E weight. And so looking at M um the top line here reading left to right uh the base level amount this is what you get per pupil from the state. This has did not change from the time you adopted the budget to the time you're revising. it it rarely does, but that's a the basis of the funding formula. The weighted ADM, so this is not only your headcount, but this also includes additional weights for those students who have IEPs. You get additional weights for ELLL, three reduced population, various individual student uh needs that the state recognizes and provides additional funding support for. So that's uh the biggest change is uh you had a few
005more students classify in various weights and so we saw a difference of weighted ADM increase to um approximately 35 students or 35 ADM excuse me not students um and so we when we adopted we were in 670 weighted ADM and now revising we're capturing some additional ADM capacity there >> kind Is that because we have to provide services for those people? So, it's costing us more money. >> Is that why they give us more money? >> It Yeah, you're exactly right, Mr. It does. It does cost more money to service the students. So the state does recognize that and gives you more money. Um so identifying those students is very important through that process through the IEP process and um making sure they're classified correctly um in your student information system which I believe all
006us is powers school um is very important in the grand scheme of the the way the budget works because they're they're identified correctly the state sees that they're identified that way you get the funding to support those those students and so Um you can see how that uh relates to the calculation in terms of the revenue control limit which basically takes the base level amount times the weighted ADM and you get your your baseline um funding from the state. So you can see that increase of 211,000 um in annual budget capacities based on your current ADM, your transportation RCL. Uh this number uh will probably be forever this number. What the state does is they'll uh at one point Idaho was transporting a lot more students. you know, when the when the town's booming, you
007have the mind going, but they don't hold districts harmless. They'll never bring your transportation level support down. Um, so while you don't need this much money, the the formula continues to generate 118,000 in transportation support. So, >> and that's just that's just awful, right? That's not the >> No, just awful. >> Yeah, it doesn't cover Luca, right? just know >> just yeah just students transported within Ohio >> not the U >> and do those funds carry over year to year or we spend them all or >> yes is it these get included into the total budget and so it's in your total appropriation and how do you want to you know allocate those funds what what are the the larger reconcile differences is from the the budget maps carry forward. Um so we had a
008few items that exceeded what we anticipated in terms of budget uh last fiscal year. Uh and so we tapped into the the contingency to carry forward a little bit uh to the 22 246,000. Um there were some overtime, there were some onetime costs uh that were expended from last fiscal year that we didn't account for. Uh and that is that we're reconciling that into uh this year's budget. Again, those were kind of onetime expenses. Um we don't anticipate those being ongoing. And talking to Dr. our goal is to bring that carry forward or contingency back up to about 500 550,000 uh for next year. the uh add-ons and adjustments. While I did allude to in the last slide, we did um allocate and we did collect on those one time appropriations. Um auto is still
009on a fiscal year um uh comp or compliance cap. Right now, the state is withholding 3% of AHO's um revenue on a monthly basis um due to the audit from 2020. one from the esser timeline. Um if you remember the auditor general came in reviewed um a lot of the audit findings from that 21 timeline. They're always working two years back. Um we've corrected those. Mate has also submitted the uh the revised uh cap corrective action plan to the auditor general. We're just waiting right now on them to accept that and take that back to the state board. Once the state board accepts that, they will reverse and return a lot of these funds that we they've been withholding. So, anticipate that um add-on and adjustments being corrected and then turning green into the positive
010when we finally close this case with the general from um that 2021 audit. Hey, Tyler. Uh, Tyler, was it was it 2021 or was it the fiscal year 23? >> It was 2023, right? >> The fiscal monitoring was 2023. >> The the fiscal monitor. >> Yeah, the corrective action plan, I believe, was for for the fiscal year 2023, >> right? Because I heard you say 2021 for Esther, which is when >> Oh, yeah. You're right. That what I referred to. Um I mean that was still a thing in 23. So that was some of the biggest um compliance issues with regards to that audit. >> Okay. And we won't have that that issue 2024. >> No any all the all the previous audits from that um after that one have been in good standing. It's
011just um there until we've made a corrective action plan complete in the eyes of the attorney general uh they will not release that current poll with the state board of education. Right now >> we keep getting love notes from the auditor general in our emails. I was telling Dr. Sedto before the meeting started that they keep sending us emails about the audit. This last year's audit Dr. Yes. Yes. They're waiting for the audit for in fiscal year 25. Yes. I believe it's very Yeah, those emails for the current audit are because it went past the March 31st deadline. And we're working with our audit firm which has not been how to say this nicely just you know very a partner in this in this process. Um, with Ottawa being very small, I haven't seen an
012audit firm treat a district like this uh in a very long time. And I feel like they're taking advantage of auto because they're small. Uh, and so we we probably will be um looking for a new audit firm and that that process is very regulated. So, we'll have to submit an RFP and stuff like that. But um it's very hard to get an audit firm to come down to Aaho uh and take the uh district under their wing. And so the audit firm we currently have is just really underperforming and it's causing a lot of headaches that we're currently going through right now. Move to capital. Well, so that's M. You can see the I'll actually close this up. The general budget limit is really the number you need to look at. And so if
013you look from the adopted budget again, which what we the board approved in July to where we're revising, we're seeing a difference of about 88,000. Um, and that is largely in some one-time spending adjustments that were done in the prior year that we're correcting into this budget. If you look at the capital side, um far less changes, but kind of similar story. So you have um the adjusted DAA or district additional assistance. That's your capital allocation. It's also paid on a a per ADM basis. Um so that 269,000 we were just $78 off in terms of our budget estimate from the adopted So that 269 217 that's what you get appropriated annually from the state in terms of capital funds. The next line is your budget balance carry forward. This is what you've been carrying
014over as a contingency or carry forward. Um the district did make some time investments. If you recall uh we had uh investment into um security camera system right that that's those are expended from capital funds. Um, but that is a one-time investment and that's good for about uh that's a 10-y year license on those cameras. And so it's pretty normal to see again a capital um ad and flow as you make some of these one-time uh investments. And then the add-ons, that's interest earned. You can you can uh recollect the budget capacity from any interest earned. So when you do have a healthy uh carry forward or contingency, you're collecting interest on that and then you get to add that back onto your budget in the capital fund. So right now you're sitting at just
015over a million dollars in capital funds uh in a small adjustment 47,000 from your adopted budget. Again, mostly coming from the budget balance carry forward. >> I didn't see that. And so you have a question. >> Could you just go back once late? Is that possible? So the adopted budget we we budgeted we said 1 million 56 and then in the the actual budget 1008 but the in the red said the difference is 7,000. I'm sorry I didn't see that right. I didn't see the five. I >> went 1 million. >> Yeah. Okay. I got it. >> Yeah. 1,88,497. So is is the new budget. >> Okay. So like um mentioned earlier tonight, presenting the uh PowerPoint, the presentation for the budget revision on May 6, uh you'll officially approve the the budget forms. And
016then in June, uh, we'll start this process over again. We'll looking towards fiscal year 27. Right now, um, we're currently analyzing the available funds to see if there's a potential cost of living adjustment that can be added to classified hourly staff for next fiscal year. If you remember, the board um earlier this spring approved the increase um from the uh classroom site fund um bucket of money. Remember that that bucket of money is is a separate bucket of money that the state provides the district. Uh that's based on a 610 sales tax and that is strictly regulated in terms of where you can spend those funds. um most of it being in your certified teaching staff. uh you you have a a large fund balance in there and so you were able to support some
017compensation increases to those certified eligible staff earlier this spring and so um looking into 27 there's a lot still to be done from the legislative level in terms of the K12 budget for next year as as of right now the state uh Republican party issued a proposed budget um to the house and the governor uh that budgetcled widespread cuts to state agencies about 5%. And uh it did have K12 kind of held that um but the state is struggling too with budget implications trying to one conform to the new federal tax conformity and uh they're also lower than seem lower than projected revenues from from the state level as well. So um they're getting pinched. uh they're looking at ways to reduce their budget spending. And so a K12 budget um hopefully I think in
018best case scenarios is called harmless. That that means we we see no reductions in the funding support that's that we're getting. But uh time will tell as as that process at the legislature still goes, you know, still gets debated. And then in July, we'll officially have to adopt the budget before uh July 18th. And that's just uh to meet the statutory requirements. So I'll be happy to take any questions. >> So how are we doing >> the district? >> Yeah. How are we doing financially? Doing great. Are we doing medium? We're doing how are we doing? >> Yeah, you guys are still in a very strong position. I think um working with Dr. Lero and Miss M Miss putting in some more I would say budget um constraints for for some of our our teams.
019Um you know some departments maintenance technology uh you know putting some more controls will help us uh kind of maintain the carry forward levels at at a at a level that Dr. So um feels are appropriate in terms of uh being at a nice level. So I think you with Miss Kay coming in uh and starting to to learn and really grow. I think she's uh doing great so far. And uh my goal is to give her some tools to uh help take the reigns a little bit with your budget and um put in some more controls with monitoring budgets and uh being able to support uh the district as a whole. So I'd say in short, you're in still a very healthy position. you guys have been able to provide compensation increases um support
020the compensation increases on an ongoing basis and that's more to say than most districts. Um the big thing with with K12 right now is watching enrollment. Most of the Maricopa County schools going through massive enrollment declines whereas been relatively steady. So, I think that's the that's the big thing to watch if if I were a governing board. Um is just monitoring enrollment. And so, you've been Ottawa's been relatively steady and that's going to keep your budget um in a good place as long as enrollment stays stays steady. >> So, Daniel can buy a new shovel next year then. >> We hope I missed that comment. >> He said Daniel can buy a new shovel next year, right? >> You can buy a used shovel. >> Mr. uh Mr. President, um I wanted just to share
021something. Uh Tyler and I had a a a meeting on Friday. So just brainstorming some some some action plans moving forward. We're in a strong place with the carry forward. It's at 18 18% but we want to get back to the 500 to 600,000. Um we're looking at utilities. Utilities has seen an increase. So that's just one of those things you have to do. It's the second most uh the second highest expenditures comes from our utilities. Um what we want to what we talked about with Tyler uh Tyler and I Friday and I share that with u with our district office team is is to focus more on our capital budget to purchase new items uh but to still have a very stringent process like Miss Cotay approves it then it goes to Tyler and
022before I sign off he has to approve it starting starting like immediately. Um, also what we want to do is is uh I've I've directed Tyler and Miss Kotay and Angelina and Miss Vosquez to put a hold on repair requisition items because repair requisition items come out of the M. So this month and next month, we don't want nothing extra to come out of that carry forward line. So we're not going to I'm not going to sign off on any repair requisition items for right now. If there's an emergency and we have to purchase something, we're going to purchase it as you see through our capital budget because that leaves our M alone as you saw. Also, uh there there is a reserve about 730,000 but I just want to remind everyone we always have
023a reserve within the reserve. We have about 400,000 within that reserve for a bus, for a freezer, and for AC units right now because we're not finding at the state level that those grams are as available as they used to be. So, so we want to have a reserve in there just in case we have to get a freezer. And if you don't have a freezer, like Jose shared with me, we can't have a full because we don't have we need to have a place to keep the food taken care of. So, I'm just sharing with you some of the details. Um I we met this uh this afternoon our district district office team uh we've taken steps uh your entire mentioned earlier about overtime. Uh this is the third week that no no overtime
024will be approved unless it's extenduating circumstances and the request has to be made in writing to myself and Miss Cotay and we have to approve it in writing before it is carried forward. Just as you heard what he said right now that carry forward kind of came down because of of some overtime. So, we just have to look at all these details even more. Uh, we're going to have a plan moving forward the next starting the next fiscal year with our our finance analyst. Uh, just keeping more of a of of a check on on overtime every pay period. And so, u, that's just some of the things that we're doing. Miss Cotay is going to uh I instructed her to prepare to to prepare a facilities repair oversight at the facilities repair requisition plan.
025So, she's going to talk more in detail with our facilities team leaders, with our school office as far as just keeping keeping better oversight on these details so that that carry forward can go back up. So, we're very good. But we want to be great. We have a very strong carry for, but we wanted to be back to 20 to 30%. So, um, but like Tyler mentioned, these things happen. That one time purchase of occupants was about 15,000. We had to purchase some other equipment to replace some equipment that we had for 30 or 40 years, but now we're not going to have to spend that 10, 20, 30,000 again. So, that's going to be in better standing the next fiscal year. There any other questions for Tyler? >> Thank you very much, brother. >>
026Thank you, brother. >> Thank you. >> Have to get some couple rolls of duct tape, I guess. >> There's no more on the motion to >> I'll second. Say I carries four to zero. We got three minutes. >> So, yeah.