Finance – FY22 Highlights of Fiscal Year End

Presented to LCPS

Finance Committee on 8/31/22

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FY22 LCPS Fiscal Dashboard

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Dashboard Key Highlights

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Enrollment and Attendance = ADA

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• FY23 Total Budgeted Enrollment = 1,600 vs. Day 15 enrollment ~ 1,593
• FY22 Day 15 ADA ~ 1,485 (93% attendance rate) vs. budgeted 1,439 (90%)

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Cash

• Ended FY22 with $4.8M in cash = to 60 days cash on hand (Daily operating expenses are ~$80k)
• The Fiscal Team has increased efforts to true up apportionment schedules and therefore decreased deferred payments from CDE

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Revenues

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• Accrued approximately $4MM in revenue including deferred revenues earned, including “hold harmless” LCFF (Note: we were paid at pre-pandemic attendance rates x our enrollment).
• Decrease in FY 22 Revenue by $1.3MM that will be carried over as FY 23 Revenue.
• Decrease in other state revenue due to deferred / unearned from Expanded Learning Opportunities Grant ($700k); these funds will be carried over as revenue for next year.
• Decrease in local revenue is due in combination to a misclassification to local revenues (should be other state revenue) as well as unearned ($500k SWF) & ($100k PreK planning) funds

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Unaudited Actuals

September 2022

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FY22 LCPS Financial Fluctuations Throughout the Year

Note: LCPS carried over $1.3 M of revenue over to 22-23 from SWP, ELO-P, and PreK Planning.

FY22 Unaudited Actuals - Services / Operations

How we spent $7.8MM

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Summary of findings

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$5.5MM of the $7.8MM went to the following:

• $1.9MM rent ($1.2MM for Lodestar; 700K for Lighthouse)
• $1.5MM in Special Education contracts
• $1.1MM in Covid-Related expenses (testing, health coordinators)
• $440K in Amazon spending across Books/Supplies and Operations
• $500K in Technology / Photocopying Services

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Next Steps:

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• Rent: this will be documented and funded differently with our bond financing
• Special Education: $900K in Special Education services this year
• New Systems for Amazon and Credit Card Expenditures
• Updated Technology Budget: Devices, Services, and Photocopying services
• Accounting Codes (budget and object codes):

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FY22 Unaudited Actuals SWOT Analysis

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STRENGTHS

• Accruing revenue as earned; Monitoring cash more tightly
• Ended the year w/positive net income w/PPP and 60 days cash on hand
• Will revise budget outlook monthly once we settle on fall enrollments and bond financing

WEAKNESSES

• Original Budget Assumptions were unclear due to accounting practice, formulation of shared service costs and services / operations spending
• Increased COVID spending vs. summer / fall budget projections in 2021.
• Moved $1.3MM (ELO-P, SWP, Pre K Planning) in revenue to FY23 activities.

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OPPORTUNITIES

• Improving position control and personnel costs from grant funded positions.
• Informing budget managers monthly around spending to date
• Tightening our purchasing process with our financial system. particularly from Amazon and Credit Cards
• Timeline of grand spending vs. protecting our unrestricted funds
• Having protected and disciplined time to implement the items in the opportunities section

THREATS

• State budget changes year to year and could impact priorities; potential State deferrals with economic forecast

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LCPS Finance Outlook

September 2022

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LCPS 2022-23 Financial Outlook

Key Updates for October Budget Revision:

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Revenues:

• Updated Census Enrollment and Attendance Data
• An additional 6% increase in base LCFF revenue
• All new grant revenues
• Bond Financing - SB 740 revenue
• RFF Grant

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Expenses:

• Bond Financing Payments
• Up-to-date Salary, Benefits calculations
• Refined Budget for Books/Supplies and Services/Other Operating