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HomeMy WebLinkAboutDistrict School Board of Pinellas County - Public Financial ReportPOPULAR ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2021 THE DISTRICT SCHOOL BOARD OF PINELLAS COUNTY 301 4TH St. SW Largo, FL 33770 www.pcsb.org ISSUED MARCH 2022 Pinellas County School Board | Front Row: Lisa Cane— Vice-Chairperson, Eileen Long— Chairperson, Carol Cook Back Row: Laura Hine, Caprice Edmond, Dr. Michael Grego— Superintendent, Dr. Nicole Carr, Bill Dudley PINELLAS COUNTY SCHOOLS PREPARING EVERY STUDENT FOR COLLEGE, CAREER AND LIFE A MESSAGE FROM OUR CHIEF FINANCIAL OFFICER The Finance and Business Services Division of the District School Board of Pinellas County is pleased to present to our community the district’s first Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021. We are proud to provide this report to communicate the basic financial health of our district, and to help our residents and stakeholders understand how their tax dollars are spent. As a means of increasing public awareness, the PAFR summarizes the financial activities and operating results of the district. Financial information in this PAFR was gathered from our audited fiscal year 2021 Annual Comprehensive Financial Report (ACFR). The ACFR is a more comprehensive document that is prepared in conformance with Generally Accepted Accounting Principles (GAAP) and was audited by the district’s independent external auditors. This PAFR is unaudited and presented on a GAAP basis. Not all of the district’s funds are presented in the PAFR. More information on all funds can be found in the ACFR at https://www.pcsb.org/auditreport I would like to thank the Pinellas County Schools Board Members and Superintendent for their leadership and support of this report, and their continued promotion of excellence and transparency in financial reporting. Any comments or questions regarding this report are welcome. Please call 727-588-6491 or email IANNIK@pcsb.org with any questions or comments you may have. Respectfully, Kevin Smith, CPA Associate Superintendent, Finance and Business Services TABLE OF CONTENTS BUDGET............................................................................... 4 WHERE THE GENERAL FUND MONEY COMES FROM ....................... 5 HOW THE GENERAL FUND MONEY IS SPENT................................. 7 OTHER FINANCING SOURCES..................................................... 9 FUND BALANCE..................................................................... 9 SPECIAL REVENUE FUNDS...................................................... 10 LONG-TERM DEBT................................................................. 11 CAPITAL PROJECT FUNDS....................................................... 12 FIXED OR CAPITAL ASSETS..................................................... 13 PCS BY THE NUMBERS.......................................................... 14 DISTRICT POINTS OF PRIDE.................................................... 15 VISION: STUDENT SUCCESS 100%MISSION: EDUCATE AND PREPARE EACH STUDENT FOR COLLEGE, CAREER AND LIFE • 4 •PINELLAS COUNTY SCHOOLS BUDGET By law, the district must prepare an annual budget. A budget must be prepared for each governmental fund type as specified by law and State Board of Education rules. The budget preparation follows an in- depth process to ensure completeness and accuracy. The budget is presented to the district’s Board at an initial public board hearing in July, then again in September for the Board’s final approval and adoption. This approved budget becomes the original budget. The original budget is sent to the Florida Department of Education for approval. The budget is prepared using categories to capture the funding source and allocate activity by purpose. During the fiscal year, the budget is amended, and those amendments are approved by the Board. At fiscal year end, the final amended budget contains all the approved revisions of the original budget made throughout the year. The budgetary information is incorporated into the district’s accounting system to control all spending. For further control over salaries, the district utilizes a centralized position control system. Every year, the district utilizes an instructional staffing plan that allocates teaching positions based on anticipated student enrollments and student populations served. For control over expenditures of goods and services, budget is reserved when purchase orders are issued. The adopted budget covers one fiscal year (FY), which begins on July 1 of each year and ends June 30 of the following year. StaffingAllocations toSchools Budget ProcessBegins Capital OutlaySteeringCommitteemeets LegislativeSession &ConferenceReport School Board Workshop New Fiscal Year Begins State Funding Determined Public Hearings Budget Approvedand Adopted Budget Updates FTE Counts -Current Yr Estimates -New YearProjections Base Budgets/NewRequestsReceived;DiscretionaryBudgets Allocated JAN U A R Y M ARCH J U N EJ U L Y SEPTEMBER BUDGET CYCLE POPULAR ANNUAL FINANCIAL REPORT • 5 • WHERE THE GENERAL FUND MONEY COMES FROM The General Fund is the district’s operating fund. The General Fund will be the primary focus of this report since 70.2% of the district’s total revenue is posted to the General Fund. The district received $870,083,259 in General Fund revenue during fiscal year 2020-2021, an increase of 1.4% over the previous year. The district’s revenues come from local, state, and federal sources, with local revenues being the primary source. LOCAL SOURCES 56.8% Local sources of revenue generated 56.8% of all General Fund revenue. This was an increase of 3.5% over the previous fiscal year. Local sources are primarily comprised of ad valorem taxes on property (see Property Taxes section), interest income, post-secondary vocational course fees, and other miscellaneous local sources. Of the local sources, 95.7% came from the collection of property taxes—what you, as a citizen, pay for educating our students. STATE REVENUE 42.5% State sources of revenue make up 42.5% of the General Fund. These are primarily comprised of the Florida Education Finance Program (FEFP) at $229,007,755; Categorical Education Program (class size reduction) at $108,848,909; and Workforce Development Program at $26,314,745. GENERAL FUND REVENUE TREND FY 2017-2021 TOTAL REVENUES FY 2017-2021 Local Revenue State Revenue Federal Revenue LEGEND FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 $824,857,063 $840,825,904 $850,747,465 $857,910,389 $870,083,259 • 6 •PINELLAS COUNTY SCHOOLS Fiscal Year Ended June 30 Tax Year Tax Rate Assessed Values (Less Exemptions)Taxes Levied Amount Collected Percentage Collected 2017 2016 7.318 $74,667,304,252 $546,415,333 $529,240,277 96.86% 2018 2017 7.009 $80,427,539,396 $563,716,624 $544,656,998 96.62% 2019 2018 6.727 $86,624,154,891 $582,720,689 $562,838,609 96.59% 2020 2019 6.584 $93,013,302,612 $612,399,584 $591,028,376 96.51% 2021 2020 6.427 $99,447,950,796 $639,151,979 $617,177,275 96.56% FEFP is a funding formula to equitably allocate funds appropriated by the Legislature to school districts for operations. The FEFP implements the constitutional requirement for a uniform system of free public education. The funds are allocated based on a unit of measure for each student, called a “full-time equivalent” or FTE. Students are counted during survey periods, and the counts are reported to the Florida Department of Education. Funding may be adjusted as a result of the surveys. FEDERAL REVENUE 0.7% Federal revenue sources make up 0.7%, which totaled $6,170,004. The district receives federal revenues directly or through the State. These revenues include Medicaid and Junior Reserve Officers’ Training Corps. Medicaid reimbursement is claimed for certain services provided to our Medicaid-eligible students with Individualized Education Plans (IEPs). PROPERTY VALUES AND TAXES Property taxes, or ad valorem taxes, are locally assessed taxes. Owners of residential or business real estate and personal property pay taxes to support services and agencies within Pinellas County. The taxable value of real estate or personal property is established by the Pinellas County Property Appraiser. The Florida Legislature sets the millage, or rate of taxation, for schools. The millage rate is the rate of taxes levied based on a mil, or $1 per $1,000 of taxable value. The chart below shows the school millage rate and collections over the past five years. The tax rate shown includes a local voter-approved one-half mil referendum for education. Although the tax rate continues to decrease, the rising taxable property value results in increasing taxes levied. In FY 2021, the General Fund portion of the amount collected was $473,200,489; while $143,976,786 was for local capital improvement projects in the Capital Projects Fund. POPULAR ANNUAL FINANCIAL REPORT • 7 • GENERAL FUND EXPENDITURES BY OBJECT FOR FY 2021 Payroll: 82.5% or $747,569,928 Energy Services: 2.5% or $22,507,681 Capital Outlay: 1.0% or $8,911,918 Materials & Supplies: 2.3% or $20,780,361 Purchased Services: 10.7% or $96,703,981 Other Operating Costs: 1.0% or $9,669,713 GENERAL FUND EXPENDITURES BY FUNCTION FOR FY 2021 LEGEND Expenditures in the General Fund totaled $906,143,582; a slight increase of $4,652,052 or 0.52% from the prior fiscal year. The primary use of funds in the General Fund is for instruction, instructional support, materials, and transportation, which together encompass 75.7% of total expenditures. As set forth in the Florida state guidelines, we classify expenditures by object and function codes. The object code identifies how the funds are spent (Payroll, Purchased Services, etc.), while the function code relates to the what (Instruction, Operation of Plant, etc.). Below are the General Fund expenditures displayed by object code and function code. HOW THE GENERAL FUND MONEY IS SPENT • 8 •PINELLAS COUNTY SCHOOLS GENERAL FUND EXPENDITURES BY FUNCTION – FY 2017 THROUGH 2021 Expenditures by Function FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Instruction $556,033,102 $564,907,407 $571,047,760 $577,597,141 $570,142,136 Student support services $33,139,755 $34,092,549 $35,959,529 $39,259,537 $42,792,778 Instructional media services $6,484,381 $6,302,576 $6,323,446 $6,592,281 $6,363,283 Instruction and curriculum development $12,674,772 $14,304,735 $15,426,863 $15,923,422 $16,441,877 Instructional staff training $11,754,419 $8,806,073 $9,186,043 $9,727,501 $9,498,462 Instruction related technology $7,868,501 $8,267,893 $8,429,244 $9,087,039 $9,442,118 School Board $1,052,161 $1,925,372 $1,461,780 $1,541,529 $2,444,761 General administration $3,228,959 $3,195,061 $4,200,379 $3,847,202 $4,729,433 School administration $56,949,278 $59,534,382 $61,179,805 $62,787,358 $64,649,071 Facilities services $741,036 $509,021 $618,277 $4,143,381 $4,164,843 Fiscal services $4,453,272 $4,383,774 $4,768,888 $4,924,975 $5,033,302 Food services $418,109 $460,660 $454,353 $432,609 $308,478 Central services $13,795,868 $12,971,816 $15,340,337 $14,875,685 $15,151,016 Student transportation services $33,089,663 $33,926,256 $33,864,185 $32,259,082 $32,760,613 Operation of plant $76,424,447 $79,189,889 $87,204,723 $88,356,405 $91,420,962 Maintenance of plant $21,820,537 $22,249,431 $22,396,241 $22,476,709 $22,131,052 Administrative technology services $3,524,797 $3,859,257 $3,622,292 $4,245,007 $4,266,520 Community services $728,831 $824,105 $721,484 $772,990 $682,410 Interest and Fiscal Fees $513,900 - $1,146,200 - $717,494 Capital Outlay $4,477,464 $12,655,513 $9,713,174 $2,641,677 $3,002,973 Total Expenditures $849,173,252 $872,365,770 $893,065,003 $901,491,530 $906,143,582 POPULAR ANNUAL FINANCIAL REPORT • 9 • FUND BALANCE District fund balance increased in fiscal year 2021 due to Federal education stabilization reimbursements for operating expenditures during the pandemic. In both FY 2020 and 2021, funds were spent to maintain an effective learning environment, lessen the effects of the pandemic, and minimize learning loss. Fund balance is the net worth of a fund measured by assets minus liabilities. At the end of each fiscal year, the difference between revenues minus expenditures will affect fund balance. If revenue is higher, then it will increase fund balance. If expenditures are higher, then fund balance will decrease. GENERAL FUND BALANCE OVER THE LAST FIVE FISCAL YEARS OTHER FINANCING SOURCES While not considered revenue, Other Financing Sources may contribute to the bottom line. During fiscal year 2021, the district’s General Fund posted Transfers-in of $63,134,860. Transfers-in are cash moving from one fund within the district to another without a required repayment. Transfers-in were from the Capital Funds ($41,441,960) for building repairs, purchased parts, and technology. The remainder, $21,692,900 was transferred from Special Revenue Funds to cover costs associated with the pandemic. Transfers to the General Fund reduce the availability of monies from the funds they were transferred from. In both FY 2020 and 2021, funds were spent to maintain an effective learning environment in spite of the challenges of the COVID-19 pandemic. One effective use of funds was through PCS Connects, an initiative to distribute one-to-one digital devices like laptops and tablets for students to use in school and at home. 42,000 DEVICES WERE DISTRIBUTED TO STUDENTS IN THE 2020-21 SCHOOL YEAR. • 10 • FY 2021 SPECIAL REVENUE BY PERCENTAGE SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenue sources that are restricted for specified purposes. Expenditures in these funds are generally equal to revenues each year. During fiscal year 2021, the district received $210,478,605 in Special Revenue. This activity is accounted for in separate funds (within Special Revenue) as detailed below: Student Activities Fund contains monies collected at the school level for club, field-trip, and other activities. In fiscal year 2021, due to a change in accounting standards, the district began accounting for these activities within the Special Revenue Fund. In fiscal year 2021 revenue collected was $6,252,484. Federal Stabilization Fund reports Federal funds received from the Coronavirus Aid Relief and Economic Security Act (CARES Act). Total revenue earned in fiscal year 2021 was $86,430,252. This includes $17,276,993 from Pinellas County government (passed through from the Federal government) to assist with providing technological equipment to students. Other Federal Programs accounts for resources received from the Federal government for the enhancement of various programs that assist the disadvantaged, those with disabilities, and financial assistance at the Technical Colleges. Revenues in this fund were $68,837,983. Food Services is dedicated to providing and serving nutritious meals to the students of the district. In fiscal year 2021 the district received $48,957,886. The district served over 12,950,000 meals in FY 2021. SPECIAL REVENUE - FIVE YEAR HISTORY FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Federal Direct $4,151,248 $3,404,948 $3,697,861 $3,961,456 $4,739,760 Federal through State $110,554,480 $113,030,459 $116,188,343 $108,391,285 $180,198,836 State Sources $731,401 $599,336 $589,642 $594,343 $503,502 Local $7,083,365 $6,241,557 $6,783,267 $5,455,651 $25,036,507 Total $122,520,494 $123,276,300 $127,259,113 $118,402,735 $210,478,605 Federal Through State85.6% POPULAR ANNUAL FINANCIAL REPORT •11 • LONG-TERM DEBT The District’s debt consists of Certificates of Participation, state school bonds, and capital lease payments. Certificates of Participation (COPs) collectively are a financing tool that provides the district with the ability to finance property to be paid over time in the form of lease payments. The proceeds are used to acquire, construct, and equip several new educational facilities. The lease payments to repay the debt will be funded by the 1.5 mil capital outlay property tax levy. State school bonds are issued by the State Board of Education (SBE) on behalf of school districts to finance capital projects. These payments are secured by a pledge of the district’s portion of the state-assessed motor vehicle license tax. These bonds are administered by the SBE and will end in fiscal year 2022. The district’s capital leases were for the purchase and outfitting of buses. Outstanding Debt FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Certificates of Participation Bonds - $68,642,523 $65,241,168 $61,059,813 $133,888,657 State School Bond $6,748,440 $1,665,960 $618,000 $14,000 $6,000 Capital Lease Obligation $6,451,652 $5,611,627 $4,752,393 $3,873,480 $2,974,406 Total Debt $13,200,092 $75,920,110 $70,611,561 $64,947,293 $136,869,063 LONG-TERM DEBT - FIVE YEAR HISTORY DEBT PER STUDENT BOND RATINGS A good bond rating saves the district money. Bond ratings indicate the general quality of a bond, including the likelihood that investors will receive their money back when lent. Bonds with higher ratings are seen as safer investments. Higher bond ratings mean lower interest rates for the district, which save taxpayer dollars. In FY 2021, Moody’s rated the district’s COPs as Aa3, which is high quality, subject to very low credit risk. • 12 •PINELLAS COUNTY SCHOOLS CAPITAL PROJECT FUNDS The Capital Project funds are used to account for proceeds from the collection of Local Capital Improvement Tax, Certificates of Participation, SBE bonds, and other financial resources. These proceeds are used to pay for the construction and equipping of new schools and facilities; renovations of existing facilities; and the purchase or lease of school buses, classroom technology, and other equipment. In fiscal year 2021, capital projects included construction on ten schools, with Tarpon Springs High, Pinellas Park Middle, and Cypress Woods Elementary placed into service. Major projects underway are Clearwater High, Lakewood High, St. Petersburg High, Mildred Helms Elementary, and Tyrone Middle schools. Top: Groundbreaking ceremony at Tyrone Middle School Bottom: Groundbreaking ceremony at Clearwater High School Rendering of the future Clearwater High School campus, scheduled to be completed in October 2023 CAPITAL PROJECTS FUND - FIVE YEAR HISTORY FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Local Capital Improvement Tax $108,454,882 $116,551,802 $125,495,395 $134,645,753 $143,976,786 Certificates of Participation - $68,003,375 - - $75,465,199 State Sources $6,032,105 $5,892,905 $10,932,097 $11,864,869 $10,340,070 Other Local Sources $2,908,830 $2,854,029 $4,699,462 $6,237,729 $4,652,449 Expenditures (Capital Projects) $102,539,001 $137,227,946 $150,169,625 $166,253,819 $183,829,276 Net Change in Fund Balance $14,856,816 $56,074,165 ($9,042,671) ($13,505,468) $50,605,228 Re v e n u e POPULAR ANNUAL FINANCIAL REPORT • 13 • FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Land $97,387,875 $97,387,875 $97,608,976 $97,568,925 $97,568,925 Land Improvements $22,717,599 $22,717,599 $22,717,599 $22,717,599 $22,717,599 Improvements other than Building $12,520,289 $14,119,427 $14,779,197 $16,700,780 $17,224,562 Construction in Progress $63,323,934 $57,811,522 $82,826,702 $84,092,328 $99,238,164 Buildings and Fixed Equipment $2,419,364,490 $2,507,221,468 $2,578,149,140 $2,664,235,288 $2,746,398,726 Relocatables $16,615,323 $16,615,323 $16,615,323 $16,615,323 $16,615,323 Furniture, Fixtures and Equipment $144,274,105 $136,223,188 $128,315,399 $125,934,632 $125,466,284 Vehicles $57,284,165 $55,895,677 $60,476,216 $68,298,273 $67,450,994 Property under Capital Lease $8,075,899 $8,075,899 $8,075,899 $8,075,899 $8,075,899 Audio Visual / Software $10,103,911 $10,048,923 $9,904,285 $7,994,920 $7,381,822 Total Capital Assets $2,851,667,590 $2,926,116,901 $3,019,468,736 $3,112,233,967 $3,208,138,298 Less Accumulated Depreciation $1,005,059,161 $1,052,356,047 $1,098,053,179 $1,150,990,041 $1,192,624,001 Total Capital Assets (Net) $1,846,608,429 $1,873,760,854 $1,921,415,557 $1,961,243,926 $2,015,514,297 CAPITAL ASSETS AT JUNE 30 - FIVE YEAR HISTORY FIXED OR CAPITAL ASSETS A district’s capital assets often represent the most significant investment of resources. Purchases of land, buildings and improvements, furniture, equipment, and vehicles all contribute to the district’s capital assets. At June 30, 2021, the district had $2.0 billion invested in net capital assets. Net capital assets are the purchase or build price of the asset minus accumulated depreciation. CAPITAL ASSETS PER STUDENT •14 •PINELLAS COUNTY SCHOOLS PCS BY THE NUMBERS DIVE INTO THE DATA BEHIND PINELLAS COUNTY SCHOOLS WHITE - 53.0% BLACK - 19.0% HISPANIC - 18.3% MULTICULTURAL - 5.0% ASIAN - 4.5% NATIVE AMERICAN - 0.2% STUDENTDEMOGRAPHICS PREK - 2,315 ELEMENTARY - 35,502 ELEMENTARY/MIDDLE - 1,905 MIDDLE - 18,546 HIGH - 27,843 EXCEPTIONAL CENTERS - 536 CHARTER - 6,941 OTHER - 1,278 VIRTUAL - 1,541 PINELLAS TECHNICAL COLLEGES - 3,548 ADULT GENERAL EDUCATION - 9,145 109,100STUDENTS ENROLLED 7,394ADMINISTRATIVE STAFF410 INSTRUCTIONAL STAFF5,580 13,384SUPPORT STAFF ++ =TOTAL EMPLOYEES COUNTYWIDE EMPLOYEE 9,924 ACTIVE VOLUNTEERSASSISTING IN AREAS LIKE TUTORING PTA & PTSA SCHOOL ADVISORY COMMITTEES CLASSROOM ASSISTANCE District data is collected annually and reported in the Pinellas County Schools Facts at a Glance. To see the full 2021 Facts at a Glance, visit pcsb.org/Page/650. 92.0%2020-2021 HIGH SCHOOL GRAD RATE 91.5%2019-2020 86.3%2020-2021 BLACK GRAD RATE 85.5%2019-2020 83.8%2020-2021 ESE GRAD RATE 81.8%2019-2020 GRADUATION DATA POPULAR ANNUAL FINANCIAL REPORT •15 • DISTRICT POINTS OF PRIDE 2020-2021 SCHOOL DISTRICT ACCOMPLISHMENTS RISING GRADUATION RATES PASSING THE REFERENDUM CREATING FLEXIBLE LEARNING OPTIONS LEADING ANTI-VIOLENCE EFFORTS CLOSING THE DIGITAL DIVIDE ACHIEVING IN THE ARTS CONSTRUCTING AND RENOVATING ENSURING MUSIC ACCESS FOR ALL RECOGNIZING AWARD-WINNING SCHOOLS EXPANDING COLLEGE AND CAREER READINESS The Pinellas County Schools’ graduation rate rose to 92% in the 2020-21 school year, up one half a percentage point from last year’s record high, and over 20 percentage points since 2013. Pinellas also continues to lead the state with the highest graduation rate among Florida’s ten largest public school districts. The Pinellas County Schools Referendum passed, enabling the district to boost teacher salaries, reading, music and art programs; provide updated technology and textbooks; and help recruit and retain teachers. In November 2020, nearly 80 percent of voters chose to renew the Referendum, the largest margin since it was first approved. The district successfully reopened schools amid the COVID-19 pandemic and supported student and family choice with three high-quality learning options that became a model for the state: Traditional In-Person, MyPCS Online, and Pinellas Virtual School. Ten district schools received national recognition for anti-violence efforts. The schools received Students Against Violence Everywhere (SAVE) Promise Club Stipend Awards. SAVE is the student leadership initiative of Sandy Hook Promise that empowers students to increase school safety and prevent violence. The district implemented the PCS Connects initiative to provide all students with digital devices and internet connectivity. The initiative provided laptops to students in grades 4-9, with plans to expand the program to students in grades 3-10 in 2021-22, and all students in the 2022-23 school year. Pinellas students won 17 prestigious National Scholastic Art and Writing Awards. The competition is the nation’s longest-running, most prestigious recognition program for creative teens. Construction projects included a new veterinary science building at Richard O. Jacobson Technical High School at Seminole; new classroom additions at North Shore, Shore Acres, and Sawgrass Lake elementary schools; and major renovations at Tyrone Middle School and Clearwater High School. For the second year in a row, the NAMM Foundation named Pinellas County Schools one of the Best Communities for Music Education, recognizing the district’s commitment to providing music access and education to all students. Magnet Schools of America awarded Richard O. Jacobson Technical High School at Seminole the New and Emerging Magnet School of Excellence Award. This is the highest honor for a new magnet school. Magnet Schools of America is a nonprofit that supports innovative programs. The district expanded the implementation of Naviance, a comprehensive college- and career-readiness platform that helps students align their strengths and interests to their postsecondary goals and added College and Career Centers at four additional high schools. College and Career Centers are now open at nine schools with plans to operationalize at all high schools. SCHOOL BOARD OF PINELLAS COUNTY Eileen M. Long, Chairperson Lisa N. Cane, Vice Chairperson Carol J. Cook Nicole M. Carr, Ph.D. Bill Dudley Caprice Edmond Laura Hine SUPERINTENDENT OF SCHOOLS Michael A. Grego, Ed.D. MISSION 100% Student Success VISION Educate and prepare each student for college, career and life