Post on 22-Jul-2016
description
FY14 Financial Audit
Presented by: Laura Claeys &
Jennifer Chambers
{Public Schools of the City of Ann Arbor}
General Fund – Budget to Actual ���Year Ended June 30, 2014
$182.4 $184.0 $184.7*
$189.5* $186.4* $186.9*
$170
$175
$180
$185
$190
$195
Revenues Expenditures
Millions
Approved Budget (June 2013) Amended Budget (May 2014) Actual (Audited)
$180.6 $181.1
$5.8 $5.8
1 *Both revenue and expenditures include $5.8 million in MPSERS pass-‐through from State of Michigan
General Fund - Approved Budget vs. Actual net of MPSERS passthrough from State ���Year Ended June 30, 2014
$182.4 $184.0
$180.6 $181.1
$170
$175
$180
$185
Revenues Expenditures
Millions
Approved Budget (June 2013) Actual (Audited)
2 NOTE: Both revenue and expenditures exclude $5.8 million in MPSERS pass-‐through from State of Michigan
Grant Programs – Budget to Actual ���Year Ended June 30, 2014
$8.8 $8.8
$6.6 $6.6
$0
$2
$4
$6
$8
$10
Revenues Expenditures
Millions
Amended Budget (May 2014) Actual (Audited)
Note-‐ Variances between budget and actual results is primarily due to Uming issues in terms of grant periods and Uming of revenue receipt versus expenditures. The District uUlizes their full grant allocaUons by the end date of the grant period. 3
Combined General Fund **– Budget to Actual ���Year Ended June 30, 2014
$182.4 $184.0
$193.6*
$198.3*
$193.0* $193.6*
$170
$175
$180
$185
$190
$195
$200
Revenues Expenditures
Millions
Approved Budget (June 2013) *** Amended Budget (May 2014) Actual (Audited)
$187.2 $187.8
4
*Both revenue and expenditures include $5.8 million in MPSERS pass-‐through from State of Michigan ** Includes general fund operaUons and grant funded programs *** The District Approved Budget (June 2013) does not provide for revenue or expenditures related to grant funded programs
$5.8 $5.8
Combined General Fund���Budget to Actual���Year Ended June 30, 2014
! 1.1% of the 2.37% expenditure variance relates to timing on grants
Amended Budget Actual Variance Percentage
Fund Balance - June 30, 2013 9,426,763$ 9,426,763$ -$
Revenue 193,557,374 192,911,951 (645,423) -‐0.33%
Expenditures 198,166,047 193,477,506 (4,688,541) -‐2.37%
Excess of Expenditures Over Revenue (4,608,673) (565,555) 4,043,118
Plus: Other Financing Sources/Uses (100,000) (42,324) 57,676
Change in Fund Balance (4,708,673) (607,879) 4,100,794
Fund Balance - June 30, 2014 4,718,090$ 8,818,884$
Fund Balance as % of Expenditures 4.6%
Days of operation (365 day year) 17
5
Comparative Combined General Fund Results ���Year Ended June 30
-‐$12,000,000
-‐$10,000,000
-‐$8,000,000
-‐$6,000,000
-‐$4,000,000
-‐$2,000,000
$0
$2,000,000
$4,000,000
2010 2011 2012 2013 2014
($10,955,601)
$3,169,120
($3,865,607)
($7,208,206)
($607,879)
6
Comparative Combined General Fund ���Fund Balance History���Year Ended June 30
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$27,971,185
$24,128,970
$27,207,021
$31,920,876
$27,914,369
$17,331,456
$20,500,576
$16,634,969
$9,426,763 $8,818,884
7
78%
9%
3%
10%
FoundaUon Allowance County Special EducaUon MPSERS Pass-‐through Other (State Categoricals, Special Ed State Funding, Local)
General Fund Revenue *���Year Ended June 30, 2014
* Excludes grant programs Total Revenue = $186,480,897
$16.4m
$19.2 m
$145.1m
8
$5.8m
12,000
14,000
16,000
18,000
16,705 16,488 16,444 16,471 16,597 16,669 16,700
16,493 16,835
Num
ber o
f stude
nts
Student Enrollment Comparison���Fall Count and Percentage Change from the Previous Years Ended June 30
(.27%) .17% .76% .44% .18%
9
(1.24%)
*EsUmated Fall 2014 count (FTE), includes all students for which State FoundaUon allowance is received by the District.
(1.30%) (1.15%) 2.08%
87%
6%
4% 3%
Salaries and Benefits (inc. $5.8 m MPSERS passthrough) Purchased Services (Custodial/Maintenance, Technology) Supplies and Materials Other (TransportaUon through ISD; Equipment related to trans/maint; dues/fees)
General Fund Expenditures *���Year Ended June 30, 2014
* Excludes Grant Programs Total Expenditures = $186,945,605
$10.3m $8.2m
$5.9m
$162.5m
10
84%
5% 1%
7% 3%
InstrucUon and InstrucUonal Support OperaUons: Custodial and Maintenance
Central AdministraUon School Building AdministraUon
Other (ex: IT, Personnel Services, AthleUcs)
General Fund Breakdown of Salaries and Benefits *���Year Ended June 30, 2014
* Excludes grant programs Total Salaries and Benefits = $162,519,360
$8.9m
$5.0m
$134.6m
11
$11.6m $2.4m
Retirement Funding – MPSERS Expense���Year Ended June 30
12
MPSERS UAAL expense from State Aid. This is a direct pass-‐through from State: -‐ 2013 includes $2.2 million -‐ 2014 includes $5.8 million
$-‐
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
2008-‐2009 2009-‐2010 2010-‐2011 2011-‐2012 2012-‐2013 2013-‐2014
$20.4 $22.0 $22.4
$27.5 $28.1
$32.7 Do
llars (in Millions)
Foundation Allowance and MPSERS Contribution ���(per pupil) ���Year Ended June 30
Commentary: -‐ In 2009, FoundaUon Allowance = $9,723 per pupil
13
-‐ In 2014, FoundaUon Allowance = $9,050 per pupil -‐ Decrease in FoundaUon Allowance = (6.9%) -‐ Increase in reUrement rate since 2009 approximates 106.8%
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
2008-‐2009 2009-‐2010 2010-‐2011 2011-‐2012 2012-‐2013 2013-‐2014
$8,484 $8,000 $8,140 $7,654 $7,334 $7,064
$1,239 $1,336 $1,350
$1,652 $1,686 $1,986
FoundaUon Allowance net of MPSERS Cost MPSERS Cost
Financial Impact of Foundation Funding and Retirement System Costs
Per Pupil Foundation - 2009 9,723$
Per Pupil Foundation - 2014 9,050
Reduction in Foundation 673$ A
Per Pupil MPSERS Cost - 2009 1,239$
Per Pupil MPSERS Cost - 2014 1,986
Increase in MPSERS Cost 747$ B
Per Pupil Impact of Reduced Foundation
and increased MPSERS Cost 1,420$ A + B
Pupil count for Fiscal 2014 16,479.79 blended count
Negative Financial Impact of these elements 23,401,302
Less MPSERS Pass-through from State (5,771,049)
Negative Financial Impact net of State support 17,630,253$
14
Retirement Funding – MPSERS Rate���Year Ended June 30
16.70% 16.94% 20.66%
24.46% 24.70% 24.79%
8.76%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2009 2010 2011 2012 2013 2014 2015
Rate (Net of MPSERS pass-‐through in '13 & '14) MPSERS pass-‐through
2.02% 4.90%
25.78%
Increase from 2009 -‐ 2014 = 106.8% -‐ gross rate Increase from 2009 -‐ 2014 = 54.4% -‐ net of MPSERS pass-‐through
15
Health Related Insurance Costs ���Year Ended June 30
16
$-‐
$5.0
$10.0
$15.0
$20.0
$25.0
2010 2011 2012 2013 2014
$23.0
$17.7 $18.0
$19.4 $19.5
Dollars (in Millions)
General Fund – Compensated Absences Balance���Year Ended June 30
Consists of: TerminaUon Pay (ended in 2003 – no new entrants and no addiUonal years of service earned) VacaUon Pay Sick Leave Pay 17
$-‐
$2.0
$4.0
$6.0
$8.0
$10.0
2010 2011 2012 2013 2014
$9.7 $9.2
$7.4 $7.1
$5.8
Dollars (in Millions)
Ann Arbor Public Schools ���Year Ended June 30, 2014���Key Takeaways
• Your current success is a community and district collaboration
• Cost containment austerity measures in all
departments are working, but will require continued focus
• Enrollment has increased by the largest percentage in the last decade, resulting in a current year increase to revenue of approximately $3 million
18
Future Developments in the���School Environment
Capital Repairs
Dependence upon state economy and politics
Union negotiations
Future retirement
contribution rates
Federal funding changes
Delayed state aid payments
Future changes in foundation allowance funding and best practice requirements Health Care
Costs
Cost of Utilities
Charter and Private Schools Legal and
Insurance Costs 19
Cash Flow Needs
Fund Balance levels
Next Steps in our ���AAPS School Environment
Monthly Monitoring Budget Reports
Build enrollment (from within AAPS) & increase revenue
Advocate
at the state level
Build Fund Equity
to ensure sustainability of the
organizaQon
Control expenditures 19
Extend & Enhance
Quality, Innovative Programming in AAPS schools
Thank You!
17
We appreciate the Board of EducaQon -‐ support -‐ courageous decision-‐making
Our AAPS employees
-‐ hard work to extend our quality and make the ‘Ann Arbor Public School’ difference -‐ understanding -‐ sacrifices
Thank you.