Board of Education receives treasurer's July report

Assistant Superintendent for Business Joe Lin presented the monthly treasurer’s financial report for July at the Board of Education meeting last Tuesday. He provided details on financial information such as cash flow, balances, and how the district is executing the budget.

Click here to watch the report to the Board

 Click here to view the presentation

Treasurer’s Monthly Report

 Mr. Lin provided a snapshot of cash balances, receipts and transfers to start the presentation. The District's cash position increased by $40.5 million during the month as receipts and transfers exceeded disbursements. While receipts and transfers were consistent with last year, disbursements were $5.5 million less. This contributed to the school district’s higher ending cash balance, which was $27.7 million higher than the previous year.

The Business Office continued its 2025-26 year-end closeout process and took a more measured approach to invoice review and payment processing, helping reduce disbursements during the month. Outstanding invoices were subject to additional scrutiny to ensure costs were properly supported, accurately coded, and charged to the appropriate fiscal year before payment was released.

The favorable cash position of $79.6 million reflects strong summer tax collections, improved liquidity entering the 2026-27 fiscal year, and ongoing efforts by District administration to strengthen financial oversight and cash management practices.

General Fund Cash Flow Report

 The general fund cash flow report provided a month-by-month summary of actual and projected receipts and disbursements, highlighting the resulting operating cash balance of $35.9 million to begin the fiscal year. July receipts totaled $57.6 million, driven primarily by property tax collections, while July disbursements totaled $17.6 million. As a result, operating cash ended July at $75.9 million, compared to $47.0 million on July 31, 2025, an increase of $28.9 million.

Mr. Lin also shared highlights of cash flow trends:

·         The projected low point of the District's cash flow cycle is $3.3 million in December.

·         During 2025-26, the District issued a $17.0 million Tax Anticipation Note (TAN) in December to maintain positive cash flow.

·         Without TAN proceeds, the District's December 2025 operating cash balance would have been negative $6.9 million.

·         The current 2026-27 cash flow projection assumes no TAN borrowing and still projects a positive operating cash balance in December.

·         The District has an agreement with the Mount Vernon Public Library to pay 50% of their tax levy in August and 50% in February.

The school district is expected to end the 2026-27 school year with $41.3 million in operating cash, and the Business Office will continue to monitor actual results and update projections as revenues and expenditures are recorded throughout the year.

General Fund Appropriation Status Update

 Mr. Lin shared a snapshot of the district’s spending progress and budget execution during the appropriations update, sorted by function department (general support; instruction; transportation; benefits; debt service/transfers).

As of July 31, the general fund budget totaled $275.5 million. Of this amount, $9.8 million had been expended, $90.9 million was committed through purchase order planned spending, and $2.2 million was pending as requested spending, leaving $172.7 million, or 62.67%, of appropriations available.

Purchase order commitments and planned spending totaled $90.9 million, compared to $50.5 million at the same point last year, an increase of $40.4 million. This reflects a more proactive approach to identifying known obligations, resulting in improved budget monitoring and a more accurate picture of available funds.

The Business Office is continuing its closeout of the 2025-26 fiscal year. Once the fiscal year is closed, the administration will review the 2026-27 budget and recommend appropriation adjustments, where necessary, to better align the budget with actual operating requirements and expenditure trends.

Monthly Fund Transfer Activity Report

During the monthly fund transfer activity report, Mr. Lin shared the movement of resources between funds to support cash flow needs, payroll processing, grant activity, and statutory fund requirements. The report documents the purpose, timing and amounts of transfers, and it confirms that all activity is consistent with Board authorizations and applicable fiscal regulations.

During July 2026, the school district processed $907,544 in budget transfers, consisting of $902,544 within the General Fund and $5,000 within the Grant and Special Aid Funds. The majority of transfer activity was related to payroll accounts and the reallocation of appropriations to support known operational needs. Notable transfers included:

●     $200,000 transferred to fund projected State Monitor contractual services for the 2026-27 fiscal year. About $175,000 will be covered by State reimbursement later in the year.

●     Transfers to support field trip activities at Rebecca Turner Academy and Graham School.

●     Various payroll-related transfers to address account deficits resulting from July payroll allocations and staffing assignments.

●     A $5,000 transfer within the Title I grant to increase funding available for instructional materials and supplies.

For the first month of the fiscal year, transfer activity was limited and consisted primarily of routine budget maintenance. Administration will continue to monitor account balances and process transfers as needed to ensure appropriations remain aligned with operational requirements throughout the fiscal year.

Revenue Summary Report

 The revenue summary report will provide an overview of the District’s actual revenues compared to budget, highlighting major revenue sources and trends in collections throughout the fiscal year. The Business Office is targeting September for the first revenue summary report, as it completes the 2025-26 fiscal year closeout process and establishes the financial reporting

structure for 2026-27.

Once implemented, the report will provide a comparison of budgeted revenues to actual collections and identify significant revenue trends and variances. Administration will continue to monitor revenue activity and complete the remaining 2025-26 year-end revenue reconciliations to support accurate and reliable financial reporting.

The next treasurer’s financial report will be presented at the Board of Education Business Meeting on Tuesday, September 29.