Welcome!

Harrisburg City School District

October 14, 2013 Informational Presentation to the Budget, Finance, and Facilities Committee for FY 2012-13 Unaudited Financial Results By Peggy Morningstar, CFO

FY2012/13 Budget vs. Actual

Revenues Local State Federal Total Revenues Approved Budget $50,009,683 $62,816,647 $20,437,694 $133,264,024 Approved Budget $80,458,872 $39,810,943 $940,280 $16,511,569 $137,721,664 ($4,457,640)

Expenditures Instruction Support Services Non-Instruction Other Financing Uses Total Expenditures (Deficit) / Surplus

FY2012/13 Budget vs. Actual

Revenues Local State Federal Total Revenues Approved Budget $50,009,683 $62,816,647 $20,437,694 $133,264,024 Approved Budget $80,458,872 $39,810,943 $940,280 $16,511,569 Unaudited 10-9-13 Results $52,473,105 $63,650,391 $15,687,072 $131,810,568 Unaudited Actual $72,505,376 $31,472,628 $788,257 $15,444,397

Expenditures Instruction Support Services Non-Instruction Other Financing Uses

Total Expenditures
(Deficit) / Surplus

$137,721,664
($4,457,640)

$120,210,658
$11,599,910

FY2012/13 Budget vs. Actual

Revenues Local State Federal Total Revenues Approved Budget $50,009,683 $62,816,647 $20,437,694 $133,264,024 Approved Budget $80,458,872 $39,810,943 $940,280 $16,511,569 $137,721,664 ($4,457,640) Unaudited Actual $52,473,105 $63,650,391 $15,687,072 $131,810,568 Unaudited Actual $72,505,376 $31,472,628 $788,257 $15,444,397 $120,210,658 $11,599,910 Variances Over/(Under) $2,463,422 $833,744 ($4,750,622) ($1,453,456) Variances Over/(Under) ($7,953,496) ($8,338,315) ($152,023) ($1,067,172) ($17,511,006)

Expenditures Instruction Support Services Non-Instruction Other Financing Uses Total Expenditures (Deficit) / Surplus

Revenue Variances
Variances Revenues
Local Revenues Under Estimated District received more Real Estate Tax, Earned Income Tax, Delinq. Real Est. Taxes and local contributions than budgeted.

$2.4 m .8 m

State Revenues Under Estimated District received more PlanCon reimb. than budgeted.
Federal Revenues Over Estimated ($2.2 m Title 1) ($483,000 Title 2) ($228,000 Title 3) ($1.5 m ARRA SIG) ($157,000 Impact Aid) ($156,000 Access) The District Over Estimated Total Revenues.

($4.7 m) ($1.5 m)

Over/(Under) Budget
$ 3.6 m

Expenditure Variances
Salaries Overest. for long-term subs., sabbaticals, overtime, regular salaries, supplements, and leave payouts

6.6 m

$ $

4.0 m 1.2 m

$ (1.6) m $ 3.0 m

Employee Benefits Overest. Group Ins. $4.6 m and Unempl. Comp. $1.4 m and tuition reimb. Professional Services Overest. Prof. Educ. Services for Substitutes, IU services, educational consultants (Unspent grant funds) Property Services Overest. trash, electric, water, and repairs Tuition Underest. Tuition for Charter Schools Supplies Overest. General supplies and books (Unspent grant funds & supplies from closed schools) Other Total Expenditure Variance

$ 0.7 m $ 17.5 m

Conclusions Based on a five-year review of the districts budgets vs. actual operations, the methods used to estimate revenues and expenditures for budgets need refined to reflect accurate forecasting. The District needs to forecast future budgets based on current operations and taking into account changes anticipated in the future, such as, higher PSERS payments, charter tuition, and debt payments. The District needs to improve communication among the Administration, educators, and Board members.

Next Steps
Next Steps: Complete the audit process. Re-evaluate the FY2013/14 budget.

Implement procedural changes in determining the budget projections for future years.
Review budget vs. actual operations and report variances to the Budget, Finance, and Facilities Committee and Board monthly.

Welcome!
Harrisburg City School District
October 14, 2013 Informational Presentation to the Budget, Finance, and Facilities Committee for FY 2012-13 Unaudited Financial Results By Peggy Morningstar, CFO