Agenda Item
Meeting Date: 10/20/2020 - 5:30 PM
Category: ITEMS OF BUSINESS
Type: Action
Subject: 5. Action on a Request to Carry Over FY20 School Deficit and Surplus Amounts
Strategic Plan Compatibility Statement:
Goal 3
Effective and Efficient Operations
Policy: Admin Policy 3.05 - Fund Carryover
Attachments: 1. FY20 School Deficit and Surplus Amounts
File Attachment:
FY20 School Deficit and Surplus Amounts.pdf
Background: A school leader takes the lead responsibility for spending in accordance with their school's budget. A school's overall deficit balance occurs at the end of a fiscal year when total expenditures exceed the total authorized funding amount in non-position costs. A school's overall surplus balance occurs at the end of a fiscal year when total expenditures are less than the total authorized funding amount in non-position costs. A school's spending is tracked monthly by the school leader and the administration. The administration and school leader are alerted to potential problems, and where warranted, controls to limit school spending are put in place to mitigate risk.

According to Administrative Policy 3.05, concerning school deficits or surpluses, year-end deficits or surpluses incurred shall be carried over into the next year. Surpluses have been limited to $5,000 per school except as adjusted by contract for instrumentality charter schools.
Fiscal Impact Statement: Approval of the deficit carryover will result in each school's paying back its deficit within three to five years. Surpluses are available to the school to use during the following year. The total deficit among schools is $864,788. About $288,263 will be paid back in the first year. $646,530 will be carried over as a surplus to be used by the school.
Implementation and Assessment Plan Upon Board approval the adjustments will be made to school budgets.
Recommendation: The Administration recommends that FY20 school deficit and surpluses be carried over, as noted in the attachment, to FY21 and that schools with deficits from FY20 pay back the amounts within three to five years and not more than five years.
Approvals:
Recommended By:
Signed By:
Lynn Ruhl - Director of Financial Planning and Budget
Signed By:
Martha Kreitzman - Chief Financial Officer
Signed By:
Calvin Fermin - Deputy Superintendent
Signed By:
Keith Posley, Ed.D. - Superintendent