June treasurer's report presented at Board of Education

Mount Vernon City School District Treasurer Joe Lin provided a financial update to the Board of Education on Tuesday during the monthly treasurer’s financial report. He detailed the school district’s cash position, receipts and disbursements, and the impact on the budget and funds. 

Click here to watch the report to the Board 

Click here to view the presentation 

June Cash Position 

During June, expenditures increased and exceeded receipts and transfers, causing the cash position to decrease from $69 million to $39 million. This is consistent with normal fiscal year-end cash flow activity. The increase in expenses was due to the repayment of approximately $17 million in Tax Anticipation Notes (TANs) as well as payroll costs, BOCES services, utilities and contracted services.  

Despite expenses, the ending cash balance in June 2026 was $22.3 million higher than the ending cash balance in June 2025, which was supported by an advance of $11.5 million in 2026-27 State Aid that would have been received later in the 2026-27 school year. The improved cash position also reflects the impact of strict controls on hiring and new positions implemented by the superintendent and state monitor, as well as continued operational improvements within the Business Office.  

“Operational and reporting improvements allowed us to see some benefits on the receipt side,” said Mr. Lin. “On the operational side, we're putting some stricter diligence towards how we pay invoices and manage budget transfers.” 

There are currently about $11.5 million in open purchase orders against the 2025-26 budget. With related payments to be made after the school district’s year-end, the June cash position appears somewhat stronger than it will be once all fiscal year obligations are settled.  

General Cash Flow 

In the general cash flow report, Mr. Lin described actual versus projected cash receipts for June. With an ending operating cash balance of $35.9 million, the school district exceeded the $18.8 million projected in the May cash flow report. The main cause of the variance is due to the accelerated State Aid that was received in June.  

Additional increases in receipts include about $400,000 in BOCES aid, about $300,000 in additional State Aid due to other funds, and $2.8 million in other revenue categories including interfund transfers primarily related to year-end activity as the Business Office closes out financial obligations for the school year. Expenditures were also $2.6 million lower than projected, primarily due to the timing of payments. Some 2025-26 invoices remain unpaid, so the favorable cash balance will decrease when those are settled.  

Despite pending payments, the year-end cash position remains stronger than projected, and because of this, Mr. Lin said that he does not expect the need for Tax Anticipation Note borrowing in the 2026-27 school year. Reducing the amount of loans the school district takes will help to reduce interest expenses in the upcoming year.  

In the tentative general fund appropriations status update, Mr. Lin described budget appropriations and expenditures. The report is tentative as the district is continuing to close the books for the 2025-26 fiscal year and any outstanding invoices applicable to the 2025-26 school year will be charged to the current year’s budget as they are reviewed and processed.  

 Appropriations 

As of June 30, available appropriations totaled $7.3 million, or 2.66% of the $273.2 million budget, compared to $10.4 million, or 3.81% on May 31. The decrease reflects normal year-end conversion of purchase orders into expenditures and the continued processing of goods and services. Open purchase orders also decreased from $47.4 million in May to $11.5 million in June, indicating substantial progress in closing outstanding obligations.  

The appropriations report and cash flow report measure different aspects of the district's financial condition. The cash flow report focuses on available liquidity and the timing of cash receipts and disbursements, while the appropriations report measures budgetary spending and remaining budget capacity. As a result, a strong cash position does not necessarily translate into an equivalent amount of available appropriations, and available appropriations should not be interpreted as available cash.  

Ongoing Year-end Closeout Process 

Because the year-end closeout process remains ongoing, the June available appropriations should not be interpreted as the District's final operating surplus for 2025-26. In addition, the remaining $11.5 million in open purchase orders represents a significant area of uncertainty. 

To the extent purchase orders are closed without being fully expended, the district's year-end fund balance may be higher. Conversely, as outstanding invoices are received and processed, available appropriations will continue to decline. A final 2025-26 appropriations status update will be presented to the Board upon completion of the year-end closeout process. 

Monthly Fund Transfer Activity 

Mr. Lin then presented the tentative monthly fund transfer activity report. Interfund transfers totaled $1,769,180. Transfers included $17,310 for the cafeteria fund, $1,401,099 for the general fund and $350,771 for grant and special aid funds. 

The June 2026 Monthly Fund Transfer Activity Report reflects routine year-end budget adjustments made to align appropriations with actual expenditures, support grant activity, and ensure sufficient funding is available in accounts where spending exceeded original budget allocations. These transfers do not increase the District's overall budget and are a normal part of the year-end financial close process. The report promotes transparency and accountability by documenting the purpose, timing, and amounts of budget transfers and ensuring all activity is consistent with Board authorizations and applicable fiscal regulations. 

The June 2026 Monthly Fund Transfer Activity Report is tentative as the District continues to close the books for the 2025-26 fiscal year. Additional budget transfers may be required as outstanding invoices, payroll adjustments, accruals, and other year-end obligations are reviewed and recorded.  

Notable June transfers included:  

• $308,342 transferred to cover TAN interest expense.  

• $275,000 transferred to cover special education tuition services.  

• $100,602 transferred to cover county sewer and refuse taxes.  

• $40,000 transferred to cover homebound instructional services invoices. 

Additional transfers were processed to address salary, benefit, contractual, and grant-funded account balances as part of the District's year-end review. A final 2025-26 Monthly Fund Transfer Activity Report will be presented to the Board upon completion of the year-end closeout process. 

Tentative Revenue Summary 

Mr. Lin closed out his presentation with a tentative revenue summary report, which provides an overview of the District’s actual revenues compared to budget, highlighting major revenue sources and trends in collections throughout the fiscal year.  

The General Fund ended June 30 with $276.9 million in revenue against an estimated $272.2 million, or 102% of projected revenues. The favorable variance was driven primarily by State Aid and other local revenue sources that exceeded budget estimates. Notable revenue categories that exceeded projections included:  

• Excess Cost Aid: $17.8 million received (+$2 million).  

• Mobile Sports Wagering Aid: $4.4 million received (+$1.3 million)  

• Interest and Penalties: $3.2 million received (+$1.9 million)  

• BOCES and Other Refunds (Prior Year): $1.4 million received vs. $75,000 estimated.  

The revenue summary and cash flow report measure different aspects of the district's finances. While the reported general fund revenue exceeds 100% of budgeted revenue, the number is slightly skewed due to property tax revenues being recognized at the beginning of the fiscal year for reporting purposes. Approximately $6.1 million in 2025-26 school taxes were still unpaid as of June 30, so reported tax revenues may not reflect actual collections. Administration plans to review revenue recognition practices during the 2026-27 fiscal year to improve reporting transparency and accuracy. Actual tax receipts are reported in the treasurer's report and cash flow report.  

State Aid receipts also totaled $125.3 million, exceeding the estimated amount by $4.1 million. The June revenue summary is tentative as the district continues to close the books for 2025-26. Additional revenue adjustments may be recorded as part of the year-end closeout process. A final 2025-26 revenue summary will be presented to the Board upon completion of the year 

end closeout process.