001Good evening. Welcome to the St. Mary Mellie Schools Board of Education study session of April 23rd, 2025. Tonight we have Tony Whiteley to go over the fiscal year 25 March district financial statements. Welcome, Tony. Thank you. Oh, yep, I have to take a roll. Mrs. Babs. Mr. Berthold. Present. Mrs. Gilligan, absent. Mrs. Horanek, here. Mr. Lechuca, absent. Mrs. Bragglin, here. Mrs. Weiss, here. Thank you. All right. Thank you. Good evening. As mentioned, this is the study session to go over the March 2025 monthly financials for the district. We spend primarily most of our time on the general fund and then we'll review a few things about the Grants Fund and the Nutrition Services Fund tonight. But if you have any questions on any of the other funds, please let me know. I'm going to be
002going through our dashboard that we're used to working with tonight. These financial statements were provided to the Finance and Audit Committee. Our Finance and Audit Committee meeting was canceled this month, but we did send out the FAC to the FAC membership via email these financial statements and gave them a chance to review as well ahead of time. So I'm just going to jump right in here. Again, we are nine months through the year. This is for the March financials, even though we're late into April. We're doing March and then I'll come back next month. We'll do April's. A couple things. What we try to do as we go over our financials is to do a comparison from the prior year. So a lot of these comparisons that you'll see for our Bartholet ballot sheet and
003our statement of revenues and expenditures are from a perspective of year over year. So we like to see what variances are occurring or any spikes or outliers as opposed to from the expectations. And so I'm just going to start with the general fund. As you can see, we have cash investments last year at this time. Again, this is through March of last year compared to March of this year. We've got about a hundred and seven million dollars in cash investments this point last year. And you can see this year we're quite a bit higher, about fifty million dollars higher. As we mentioned previously in previous study sessions where we've gone over the financials, this is due to a couple of reasons. One is the acceleration of our equalization payments from the state. They have adjusted
004their schedule a little bit. So we actually get our equalization payments over nine months instead of twelve and most of those payments are accelerated. We get more in those first few months because of the tax receipt cycle. The other two items that are outliers that are contributing to this increase is the sale of our iPads as well as the land reimbursement from the bond. This due to other funds is, excuse me, due from other funds. This is due from the nutrition services fund, which as we mentioned before operates on a reimbursement basis. So they spend their money to feed the kids and then they request a reimbursement from the from the state for the Healthy School Meals for All program as well as the federal National School Lunch program. And because they do that, if
005they're spending money and they haven't gotten reimbursed yet, if they don't have cash reserves sufficient to cover that expenditure, then we'll just use our general fund pooled cash to cover that and that shows up as a due from other funds. Once they receive reimbursements and we catch up at the end of the year, we get all of our National School Lunch program reimbursements and Healthy School Meals for All reimbursements, that'll go away. The other thing I was going to mention is our taxes receivable as well as the corresponding unearned revenues. Those are the same number because they're related to our tax receipts or the amounts that we are expecting to receive for taxes. That is lower year-over-year because of the aforementioned decrease in the amount of taxes that we're levying on our community. We talked
006about that previously about the the varying levies. The levies are a little bit lower as well as our lower assessed valuation. Those two combined result in a decreased amount from our community. So that's that's a real hard dollar amount. That's not an accounting issue or anything like that. That's less of a tax burden. The other item was going to mention was due to other funds. This is, I mentioned this previously, this has been on for a few months now. This is related to a payment that we received from the City and County of Broomfield related to an intergovernmental agreement for an Urban Renewal Authority. They sent an amount that we questioned whether or not it was maybe the whole thing is what should have been remitted. We think it was probably less than that. And
007so we've been in communications with them to try to get a true up of the correct amount. And so we didn't want to recognize that ahead of time as a revenue because we didn't believe the whole thing was a revenue at this stage. So we're putting it in this liability account. The cash is in our cash account. It's making certain interest. It's fine with us. We can hold on to it as long as they'd like us to. But we are certain that there's at least a portion of this is going to be sent back to Broomfield. That represents an overpayment based on a misinterpretation of the IGA. And once they provide us with the correct numbers, they'll say, okay, yep, we think you're going to keep about four or five hundred thousand. I think it's
008about what we're going to keep and then we're going to send the rest back to them. And so for now, until that gets resolved, we're going to keep that on our books as a as a liability. And then again, we'll just earn interest on it until they resolve that. I've been in contact with them. I don't think we're going to get it resolved by the end of April. We've only got seven days. So I think I'm going to be mentioning this one more time when we go over our April financials next month. And then hopefully we'll be gone by then and I'll let you know, hey, yep, that's been resolved. We paid our money back to Broomfield. We recognize the rest of revenue. That's what I expect to happen within a month. That was my
009question. Yep. Let's see here. That's all I have for the the balance sheet. So I'm going to skip down to our year to date, actual to actual. So this is our statement of revenues, expenditures and changes in fund balance through March of 2024 and March of 2025. This is FY24 and FY25. So what I'd like to just point out is the the different things here that may have changed you over a year. But I also did want to mention month over month. So last month, if you recall, we had some interesting percent variances here on the tax lines. And that's because we hadn't started receiving our tax payments. Well, in March we finally received our first tax payment. And similar to last year, we're starting to see a larger amount that gets as we receive
010those. And so that means that the variances are going to be smaller. Because, you know, it's that effective when you've got a small sample size, your variances can be a little bit larger. And now that we're getting taxes enforced, those variances are finally falling into spec. And so these amounts, I think, are still a little high because if you recall earlier, we are going to be receiving less property taxes overall this year compared to last year. So I expect these percent variances, especially this one and this one, to eventually turn negative when you compare last year to this year. So we'll keep an eye on those and let you know. But right now they're right in line compared to this time last year. This item here, you can see 12.47 percent as charges for services,
011235,000. That just represents a little bit of increase in pre-k tuition as well as TRIP charges, which is what some of the general fund budgets in some of our schools will pay our transportation department to take field trips and things. Those two combined just resulted in a little bit higher amount year over year. And then this other local sources, the 3.5 million that's causing you see this big spike, that's related to the iPad sale that we've talked about at length. Our equalization, 51 million dollars year over year, again, is related to the timing of those payments from the state we talked about. And then we have a $695,000 decrease in preschool revenues from UPK for last year compared to this year. And that's related to, after discussing that with the preschool department, that's related to
012some payments in arrears. So we actually expect to get payments to catch up for this year compared to last. But for now, they haven't paid us our entire amount yet. And so we're just expecting to get that amount. So hopefully that'll catch up as we approach the end of the year. I'll keep an eye on that, make sure I know any changes. Other state sources, this 362,000 is related to the sunset of one of our school counselor corps grant cohorts. And that was as expected. All right, on to this one. We've got some good news. So we've talked about this for a couple of months now. The state, excuse me, the federal government has provided a Build America bonds rebate for some 2010 bonds that we issued as an incentive way back in 2010. And
013what we get is a, I think it's a 30% or so rebate on the interest that we owe on those bonds. And when that money comes, that actually comes into our general fund. It's sent in two payments of about $700,000 for each payment, so twice a year, because we pay interest twice a year. And most recently, the first payment due to an IRS filing issue was late. We weren't able to get it in time. And so we've been waiting on it and waiting on it. And so that's why you're seeing this variance of 718,000 at this point last year compared to this year. There's nothing because we haven't received the payment. I'm happy to report that the IRS issue is resolved. They made the payment. It was received in April. So it doesn't show up
014yet on March financials, but next financial statements, you will see the 717 show up here. And we'll be back within expectations. So that's been resolved and happy to have gotten that addressed with our with our paper pair. Okay, other federal sources is due to a timing of our national forest land payment through the Pawnee grasslands. That always comes in a little bit. It's not a very consistently received item and varies while they year to year. So I'm not surprised to see that as a variance, but I believe this might be two years worth or a result of an accrual from the timing of the payment that we received this year compared to last year. Okay, down to our expenditures. So again, year over year, these variances we would expect to see based on increases in
015compensation as well as increases in our FTE. For purchase services, this 2.9 million is attributable to increased reliance on outside contract services by special education and custodial. That's when you know due to any kind of labor issues or anything like that having to be unable to find employees for those two roles. We actually have to use outside contractors and so that's a there is some offset to that that's built into the salaries and benefits because of unfilled positions. This supplies materials line of 2.5 million. This one's a little cerebral, so if you'll have some patience with me on this. What is happening is a change in how some accounting rules are having us require, excuse me, having us record some leases and something called a software based subscription information technology agreement. It's an arrangement. It's
016called a SPIDA is what it's called and what it is is it's just a long-term digital rights agreement that we've entered into say like for Cisco licensing or cyber security or our infinite campus program. You know when we have to license out software, usually that's a multi-year agreement and when it's a multi-year agreement we have to record it on here in a specific way similar to how we record leases. And so what's happening is in prior years those would have been recorded on this supplies materials line and now they're actually recorded the inception of them are recorded here on this capital outlay line with a corresponding receipt quote-unquote receipt of financing sources. So these two lines are inflated a little bit right here and this line is deflated a little bit artificially due to this
017accounting rule that we're required to follow. It doesn't really have a true economic impact on the district. It's not a cash flow impact at all. It's really just us having to say it's kind of like when we recorded the ipads last year we had to record like a 20 million dollars of ipad purchase and 20 million dollars of a financing source. They were net zero offsetting adjustments that were made but again didn't have a cash flow impact. What does have a cash flow impact with is the actual payment for those subscriptions or those leases and when that occurs that occurs here on this debt service line right here. So that's why that's inflated as well. Those will equalize next year when you're looking at the actual to actual because then we'll have two years behind
018in under our belts with these spittas and these lease agreements. And so we would expect there will be as big variance as next year. It's just this rule change happened this year and that's what's resulting in these changes. Okay, this other line here six hundred eight thousand dollars is a result of some renovations by the preschool program as well as sorry, I've got the note here. Oh and some increased swap withholdings. Swap is a school to work alliance program and what happens is the the state actually withholds a little bit of our equalization payments and then includes them with the division of vocational rehabilitation to generate some federal reimbursements. And then those federal reimbursements come to our fund 22 or grants fund for our swap program. And this increase is a result of that equalization
019acceleration that I talked to earlier because the swap payments are pulled out over equalization payments. And so you're seeing a proportionate increase in swap withholdings as well. All right, and then finally this transfer right here of the sixteen and a half thousand percent change year over year. That's really just related to that land reimbursement from the bond fund and building fund. On to our current year budget to actual. So again, this is the amended budget that the board adopted in January and then our current actuals compared to that. So we like to see hey approximately where we're at. We're still expecting another 92 million in property taxes and 45 million in mill levy overrides. So we and then overall about 150 million more in total revenues. And so we again don't don't anticipate any issues
020getting a majority of that. We are ahead in investment income. You can see we're only 75 percent of the way through the year, but we've already received 83 percent of our anticipated budgeted investment income. And so we expect to outperform investment income just a little bit. Down on our expenditure line again, I like to keep an eye on our salaries and benefits line here. Make sure those don't exceed the percentage of the way we are through the year because those are the sort of monthly level loaded expenditures that we would anticipate would align with that percentage. We're also within that percentage overall. There's going to be some variances here just because not all of our supplies or our other discretionary expenditures happen on a level loaded basis. And so as we talked about those earlier,
021we won't go into them, but unless you have any questions. So just to recap there at the end is what we've got right now is about 130 million dollars is our fund balance at the end of March 2025. We are budgeted to end at 161 million. So we expect to get another about 30 million dollars as written. But recall we also do anticipate outperforming our budget a little bit and without performance we think this will actually go up to about between 170 and 175. And so by the end of June this 130 should migrate up to about that range. That's all I have on the general fund. I did want to skip down to the grants fund fund 22. Go to our budget to actual. So you can see here our budgeted revenues and expenditures
022in the grants fund are about 22 million dollars. One thing to note is that this really includes about 15 million in federal grants, which itself includes a little bit of carryover from previous title and IDEA funds. And so when we think about our federal grant dollar exposure, our formula grant exposure, we're talking like 13 to 15 million dollars, I think in total or so. Now we have been assured by the state that our FY 26 federal grant funding is not in jeopardy as a result of the the changes at the federal level and the elimination of the Department of Education should be administered by someone else. And that those amounts have been granted obligated and will be expected to be received by this by the district next year. And so at this stage we don't
023see this migrating very much in terms of our federal title and IDEA grants. But we're keeping an eye on out years. And of course, I always like to be extra cautious because unless that money is literally in our bank account, I feel like anything could happen. So we don't want to put too much stock in speculation at this time. We don't think anything's in jeopardy for of course the current year as well as the next year with regard to those federal formula grants. So at the time where there's no anticipated changes to programming or needing to reshuffle expenditures or anything like that. In contrast, we've got our nutrition services fund, which you might be aware the healthy school meals for all program at the state level. Their anticipated projections for use of the program were
024a little low and so and then their anticipated revenues for the projection were a little low. The revenues were a little low from their projected amounts and then the actual expenditures that are being used for the healthy school meals for all program are high. Meaning that funding for the program is in jeopardy. And what they are understanding is that they are going to go to the vote. The legislature is going to put to the vote this November a modification to increase funding for the healthy school meals for all program to maintain full funding for all families for nutrition services for the state. In other words, just maintaining status quo, which is the current healthy school meals for all program. But the problem is, is if that vote doesn't pass in November, then the current contingency
025plan is that they will only be able to fund those school sites that are eligible for the community eligibility provision, which is a state, excuse me, a federal designation. As a result of certain schools having a certain percentage of free and reduced or poverty eligible kids. And when that occurs, the federal government just will qualify basically everyone in that school and will get reimbursed at a certain percent and the state will provide the rest. That's the obligation that the state has the commitment that the state has made. But that means that for the schools that don't qualify under the community eligibility provision, there would be no state funding for school lunch. If again, this is if the ballot measure in November doesn't pass. And so it's at that time we would need to come up
026with some contingency plans as to how we would navigate that. Based on our communication with our nutrition services department, there's only eight schools in our district that wouldn't qualify under the current parameters for the community eligibility provision. I say that current parameters because I do hear rumorings of the federal government changing the parameters so that it is harder to qualify under the community eligibility provision. And so, but under the current status, there would only be eight schools that wouldn't qualify and it's in that circumstance that we would have to talk as a as a district and decide how to address the lack of state funding for school lunches at those sites. Tell me when that discussion would be in the fall. Yeah, we we would probably want to discuss it before the fall because we
027would want to have communications and funding plans in place even before we know whether the ballot measure has passed. Just so we have a, you know, if it passes, we can go this direction and if it doesn't pass, we can go this direction. And so, you know discussed a few things, but of course, we probably need to maybe talk to you board members about your thoughts on how to manage that. The dollar impact, if the district were to help offset that a little bit or the communication plan back to the community. If for schools we needed to request that families pay for lunch again. With that, that's all the items I have slated to go over this evening. It looks like we're within time by about seven minutes. Is there any other questions by the
028board on any other funds? Any questions of the things that I've gone over or anything you'd like me to address tonight before I wrap up? With that, I'm all done then. Thank you so much for your time tonight. Thank you so much. And that's it for our study session. We invest for a motion to adjourn. Second. All in favor? Aye.