Minutes 07/26/2016 - Laserfiche WebLink

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July 26, 2016 Background:  Virginia State Code Section 22.1-100 states that “all sums of money derived from the Commonwealth which are unexpended in any year in any school division shall revert to the fund of the Commonwealth from which derived unless the Board of Education directs otherwise. All sums derived from local funds unexpended in any year shall remain a part of the fund of the governing body appropriating the funds for use the next year, but no local funds shall be subject to redivision outside of the locality in which they were raised.”  As stated in City Ordinance 2015-29, funds encumbered but unpaid by the end of the fiscal year will be deemed unspent appropriations that will require re-appropriation by the City Council. Discussion:  The preliminary estimate of June 30, 2016 unexpended funds for PPS as of July 14, 2016 is $3,675,345. This number is based on PPS receiving $144,175,013 (which includes re-appropriated FY2015 encumbrances of $7,658,668) of cash from all revenue sources within the General Fund and PPS paid expenses totaling $137,947,807 on June 30, 2016, preliminary encumbrances totaling $1,605,285, and estimated FY2016 payroll accrual of $946,577.  The amount does not include funds received within the 45 days subsequent to year end which under the modified accrual basis of accounting is required to be accrued back to the previous fiscal period if the funds are deemed to be measurable and available as of June 30, 2016. This number also does not include any adjustments to be identified as part of the financial reporting process (i.e. expense accruals) and external audit.  As such, there will be adjustments to the preliminary figure. Final adjustments will be submitted to City Council for re-appropriation or acceptance. Due to monies that stth relate to FY2016 that will not be received until July 1 thru August 15, PPS expects to submit a re-appropriation request. The amount is unknown due to the timing of this request, therefore, only unassigned funds from money received (as of June 30, 2016) are included in this ordinance.  A Council Resolution passed June 12, 2001 stated that unused (unassigned) fund balance would be divided as follows 75% to PPS and 25% to the city. PPS is requesting that 100% of unexpended funds be re-appropriated as follows:  $1,040,463 to be used to pay the final principal and interest for the energy lease loan due at the end of FY2017. This was planned and stated in the FY2017 budget book.  $1,341,864 to be used to support a one-time bonus for PPS employees in FY2017 to supplement FY2017 funds earmarked for this same purpose. This was planned and stated in the FY2017 Budget book.  $634,983 to be used for first college and dual enrollment tuition. This is the amount of funds received from Tidewater Community College (TCC) as reimbursement for fall and spring tuition paid in FY2016. It is the division’s plan to apply this reimbursement back to the First College/Dual Enrollment program.  $376,000 to be used to fund paving projects throughout the division.  $100,000 to be used to fund the replacement of a water cooling tower at Waters Middle School.  $78,000 to be given to the City for the completion of the Cradock Middle School bleachers replacements. This amount is not included in the tables below.  $62,528 to be used to fund EMC Software, Equipment and Services Technology to upgrade and expand existing infrastructure and facilitates backup and recovery for all data as well as critical system configurations such as VMware.  $41,487 to be used for Special Education services/expenses. This money is the amount of unused Medicaid reimbursement funds received but not used as of June 30, 2016. It is the division’s plan to apply this reimbursement back to the Special Education program.  PPS preliminary encumbrances are based on commitments to third party vendors for the payment of funds based on goods and services provided or to be provided to the school system.  $1,605,285 is the preliminary amount of encumbrances prior to the completion of the financial reporting process and external audit. The actual final amount, of June 30, 2016 encumbrances, will be a lower amount once the financial reporting process and external audit is complete due to the following: