District quarterly financials reported to the RE1J school board last week

Health fund garners $200,000 surplus

An anticipated general fund balance of $3.1 million was reported to the RE1J school board on Monday, September 9, during a run-down of the district’s quarterly financials.

 

 

The preliminary report demonstrated all income acquired up to June 30 during the 2013-2014 fiscal year. However, additional tax revenue from subsequent months was also included in the estimate. Those funds, amounting to approximately $500,000, will be accounted for in the final audit this November.
District business manager Stephanie Juneau explained that the general fund balance—originally budgeted at $2.8 million—was heightened by expenses intended to be spent by June 30, but came through late. Therefore, the leftover balance will be disbursed during the current fiscal year on identified expenditures.
“Unlike the property tax revenue, which can be booked back during a 60-day window, expenses have to be realized when they actually happen,” Juneau said. “Those expenses were budgeted to be spent by June 30, but since they didn’t happen until July or August, I have to book them into the ‘14-’15 fiscal year.”
 One expense built into the original budget was the purchase of a $135,000 school bus. Although the bus was ordered before June 30, it did not arrive in time, causing the expense to be pushed into the ‘14-’15 fiscal year.
The capital reserve fund also experienced a higher ending balance than budgeted. Expenditures within the capital reserve fund had been adjusted in order to install new STEM labs, but not all services and products were disbursed by deadline.
“The labs were completed in July and August before school started, so the funds will be expended and the balance will be used for the original purpose, just over a different fiscal year,” Juneau said.
Results from the newly implemented health fund were also presented to the board, with a surplus of $200,000 reported through the district’s partially self-insured health insurance plan. This money will provide security for the district and its employees in case of increased rates in subsequent years.
“It’s really a way for the district to better manage its own health care expenses. It’s the district taking control of its own destiny a little bit more when it comes to health care cost, rather than letting the insurance company run it for them,” Juneau explained.
In addition to the quarterly financial report, a detailed year-end report will be presented to the board this December.

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