Agenda Item
Meeting Date: 10/16/2018 - 6:30 PM
Category: ITEMS OF BUSINESS
Type: Action
Subject: 10. Action on a Request to Carry Over FY18 School Deficit Amounts
Strategic Plan Compatibility Statement:
Goal 3
Effective and Efficient Operations
Policy: Admin Policy 3.05 - Fund Carryover
Attachments: 1. FY18 School Deficit Amounts
File Attachment:
1. FY18 School Deficit Amounts.pdf
Background: School leaders take the lead responsibility for spending in accordance with the school’s budget. A school’s overall deficit balance occurs when total expenditures exceed the total to-date 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 staff 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, year-end deficits incurred shall be carried over into the next year.
Fiscal Impact Statement: Approval of the deficit carryover will result in each school paying back the deficit within three to five years. The total deficit among the schools is $1,409,873.04. About $469,958 will be paid back in the first year.
Implementation and Assessment Plan During the fall adjustment period schools with a deficit will budget an amount to pay back the deficit. The amount schools pay back will be put toward undesignated fund balance for future contingencies.
Recommendation: The Administration recommends that FY18 school deficit amounts be carried over to FY19 and that schools with a deficit from FY18 pay back the amount within three years and not more than five years.
Approvals:
Recommended By:
Signed By:
Martha Kreitzman - Interim Chief Financial Officer
Signed By:
Keith Posley, Ed.D. - Superintendent