ITEM NUMBER: 6.C.
School Board Regular Meeting
- Meeting Date:
- 10/18/2021
- Prepared By:
- Tom Sager
Item Type:
Action
Subject:
Approval of Fund Transfers
Background:
As part of the FY 21 audit process, district administration is recommending that the school board approve two fund transfers for the 2020-2021 year. One is from Fund 01 (General) to Fund 04 (Community Service). The second is within Fund 04, between three reserved accounts: ECFE to Community Education and ABE. Fund transfers require board approval.
First, the fund transfer from the general fund to community service is due to the actual expenses of providing preschool screening services exceeding the state aid for this activity. When this occurs, it is recommended that the general fund account for the difference. The district has engaged this process many times in previous years.
Second, the fund transfer between reserved accounts within Fund 04 will help create greater financial stability within Community Education and Adult Basic Ed. Due to COVID-19, Executive Order 20-19 offers flexibility for districts and authorization to transfer operating funds from certain programs that are not encumbered. Specifically, funds will be transferred from the Early Childhood Family Education account to Community Education and Adult Basic Education accounts. This transfer will leave the ECFE fund balance at approximately 50 percent, or 183 days of operation.
These fund transfers must not and do not interfere with the equitable delivery of distance learning or social distancing models.
First, the fund transfer from the general fund to community service is due to the actual expenses of providing preschool screening services exceeding the state aid for this activity. When this occurs, it is recommended that the general fund account for the difference. The district has engaged this process many times in previous years.
Second, the fund transfer between reserved accounts within Fund 04 will help create greater financial stability within Community Education and Adult Basic Ed. Due to COVID-19, Executive Order 20-19 offers flexibility for districts and authorization to transfer operating funds from certain programs that are not encumbered. Specifically, funds will be transferred from the Early Childhood Family Education account to Community Education and Adult Basic Education accounts. This transfer will leave the ECFE fund balance at approximately 50 percent, or 183 days of operation.
These fund transfers must not and do not interfere with the equitable delivery of distance learning or social distancing models.
Recommended Action:
The administration recommends approval of the aforementioned two fund transfers. These transactions will be reflected in the FY 21 financial statement.