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HomeMy WebLinkAboutWashoe County School District - Public Financial ReportPopular Annual Financial Report Washoe County School District Reno, Nevada Fiscal year ended June 30, 2021 CONTENTS Summary of District's Funds Annual Statement of Revenues, Expenditures, and Fund Balances General Fund Letter to Citizens and Taxpayers of Washoe County   General Fund Expenditures Special Revenue Funds Debt Service Funds General Fund Revenues Capital Project Funds Nutrition Services Fund Washoe County School District at a Glance Internal Service Funds 2020 Financial Reporting Award 4 5 6 3 8 9 10 7 11 12 13 12 14 SUMMARY OF THE DISTRICT'S FUNDS I n accordance with State law and government accounting principles, the District tracks its revenues and expenditures in separate funds. Each fund is like a separate bank account, which is used to keep monies in each fund from being commingled with other monies. Capital project funds are used to track capital projects such as the construction of new schools. The district reported on 17 capitalproject funds in FY21. 4 Capital Project Funds$225,388,342 Popular Annual Financial Report  Debt service funds are restricted by law for the payment of school district debt. The district reported on 2 debt service funds in FY21. Debt Service Funds$90,095,656 Special revenue funds are restricted to the specic purpose of the grantor or donor. The district reported on 28 special revenue funds in FY21. Special Revenue Funds $190,043,337 The district uses two types of proprietary funds, an enterprise fund to track food services provided to schools, and internal services funds that are restricted to the self- insurance of health, workers' compensation and property/casualty insurance of the district. Enterprise funds are used to account for activities for which external users are charged a fee for goods or services. $22,320,206Enterprise Funds 4 Types of GovernmentalFunds There are four types of governmental funds and two types of proprietary funds, as shown below. Information on each type of fund is provided in the following pages of this document. Internal Services Funds$85,139,746 Internal Services funds are used to account for activities that provide goods or services to other funds, as well as to departments or agencies of the primary government or to other government entities for cost-reimbursement. INSIGHTS The general fund is used for general operating expenditures such as salaries, benets, supplies and equipment. General Fund $478,567,428 The General Fund is the primary operating fund of the District. Most of the District’s expenditures, such as teachers’ salaries and benefits, are paid from this fund. In FY21, total expenditures and other uses of all funds were just over $1 billion, at $1,091,554,715. 2 Proprietary Funds Types of FY21 Annual Statement ofRevenues, Expenditures & Fund Balances 5 Washoe County School District 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 6 Fund Balance by Fiscal Year GENERAL FUND General Fund Balance INSIGHTS Popular Annual Financial Report  A budget is a financial plan of revenues and expenditures for an agency.  State law prohibits school districts and other governments from expending funds in excess of the approved budget. Budget variances occur every year on both the revenue and expenditure side of the ledger.  Revenues may exceed or fall below budgeted amounts due to the strength or weakness of the economy, changes in enrollment, or many other factors.  Similarly, expenditures usually are lower than the budget due to vacant positions, an inability to make certain purchases, or other circumstances.  Any actual savings results in a surplus for the fiscal year, which increases the fund balance, or reserves, of a fund.  A deficit may occur when revenues fall short of budget, such as due to falling enrollment, or when an agency has to cover expenditures with reserves. As a Percent of Expendituresand Transfers Out B y m a k i n g m o r e t h a n $ 6 0 m i l l i o n i n b u d g e t c u t s f r o m 2 01 8 - 2 0 , t h e D i s t r i c t s t o p p e d d e f i c i t s p e n d i n g a n d d u e t o i t s c o n s e r v a t i v e f i s c a l a p p r o a c h i s r e b u i l d i n g i t s r e s e r v e s. FY 18 8.8% FY 20 10.9% FY 19 9.0% FY 21 12.2% FY 17 9.8% $484,438,690 General Fund Total Revenues and Other Sources 5 INSIGHTS UNDERSTANDING FY21 GENERAL FUND REVENUE The funding formula that Nevada uses to distribute monies to school districts is commonly called “the Nevada Plan.” This hybrid funding model was created in 1967, and is set to be replaced with the new Pupil Centered Funding Plan in FY 22. VariableFY 21 State Funding Sources 7 Guaranteed Washoe County School District Funded by the State $364,958,942 92,832,450Direct School Funding (DSA) Funded Locally/Other $119,479,748 FY 21 Local/Other Funding Sources $ 42,000,8501/3 from Property Taxes 230,125,642Local School Support Sales Tax 25% General Fund Locally/Other Funded The remaining 25% of the General Fund's revenues are considered "local revenues," For these revenues, the District either keeps any excess revenues (i.e., when actual revenues exceed budget) or has to make up any shortfalls in revenues. How Much Was Locally/Other Funded? P e r P u p i lState Funded 75% General Fund Approximately 75% of General Fund revenues are received by the District through per-pupil funding from the State. In FY 21, Washoe County School District received $6,109 per student. This funding comes to the District via the following revenue sources. Guaranteed Funding $6,109= How Much Was State Funded? 5,168,185Special State Funding 5,451,974Miscellaneous $84,001,7002/3 from Property Taxes 352,056Federal Revenues 96,425Investment Earnings 21,246,163Motor Vehicles Registration 3,163,245Other Sources 380,748,756.0 49,831,287.0 32,121,173.0 15,866,211.0 Funding Directly to Schools 79.6% Operation and Maintenance 10.4% Administrative Costs 6.7% Student Transportation 3.3% Where does the money go?79.6% General Fund expenditures directly support schools. With the addition of the Student Transportation and Maintenance Costs, that total increases to over 93%. 91% General Fund expenditures go to salaries and benets of district employees. Salaries & Benets FY 2021 % Salaries & Benets 393,279,800 91 Non-Personnel Costs 38,969,005 9 Total $432,248,805 100 INSIGHTS In FY21, total General Fund expenditures and interfund transfers were only 0.04% higher than FY20.  A significant reason for this was a decrease in enrollment of more than 2,000, compared to budgeted estimates.  Due to COVID-19, many families chose to homeschool their students or left Washoe County, in part due to rising housing prices.  Kindergarten enrollment fell by nearly 800, as many kindergarten-aged students were held back from attending school, due to concerns about the pandemic. This led to an associated reduction of teacher positions and other cost reductions.  Due to the “Great Resignation”, the District also was challenged in filling many school support positions, resulting in additional vacancy savings.  Total Uses FY 2020 FY 2021 Funding Directly to Schools 382,331,524 380,748,756 Operations & Maintenance 49,082,387 49,831,287 Student Transportation 16,489,799 15,866,211 AdministrativeCosts 30,482,069 32,121,173 Total $478,385,779 $478,567,427 General Fund Spending UNDERSTANDING FY21 GENERAL FUND EXPENDITURES 8Popular Annual Financial Report  This includes only expenditures and not interfund transfers. UNDERSTANDING FY 21 SPECIAL REVENUE FUNDS Total Special Education expenditures include Medicaid costs,costs covered by federal funding related to the Individuals with Disabilities Education Act (IDEA), and costs reported in the District’s Special Education Fund. Special Education:Educational services provided to students with special needs. Special education expenditures accounted for 47% of special revenue fund expenditures. A transfer from the general fund in the amount of $43.3 million was required in FY21 to cover expenditures that exceeded federal and state special education support. The District met its Maintenance of Effort (MOE) requirement for special education services in FY21. Federal Grants: Federal funding to support a variety of different initiatives. The district received $15.3 million of federal relief through the Coronavirus Aid, Relief, and Economic Security Act (CARES) and Coronavirus Relief Funding (CRF). These funds were used to cover expenditures that were incurred due to the public health emergency with respect to the Coronavirus outbreak. 9 State Grants: State funding to support a variety of different initiatives. Victory Schools, Zoom, and Social Workers were some of the programs supported with these funds in FY21. Washoe County School District S p e c i a l R e v e n u e E x p e n d i t u r e s Class Size Reduction: To reduce class sizes in grades K – 3 by providing funding for additional teachers. $190,043,337 Title I: Financial assistance to schools with high numbers or high percentages of children from low-income families to help improve the academic achievement of disadvantaged students. Special Revenue Expenditures Special Revenue Funds INSIGHTSLargestFunds $89,732,401 Special Education Other Special Revenue Funds$32,970,063 Title I$12,676,615 State Grants $16,592,186 Federal Grants $17,735,746 Class Size Reduction$20,336,326 Due to GASB Pronouncement 84, student activity funds are now reported as special revenue funds instead of fiduciary funds. This change increased special revenue fund expenditures by $6.6 million in FY21.$190,043,337 $179,877,805 $168,147,118 $159,629,870 $178,744,425FY17 FY18 FY19 FY20 FY21 0 Because of the hybrid schedule at middle and high schools and the decrease in enrollment in FY21, the total number of Medicaid-eligible services and therefore costs for these services were slightly lower than in FY20.  For the same reason, transportation costs for students with disabilities were also lower than the prior year.   UNDERSTANDING OUR DEBT $574,325,000 $547,085,000 $7,564,428 General Obligation Bonds (Paid by Property Tax)$574,325,000 General Obligation Revenue Bonds (Paid by WC-1 Sales Tax)$547,085,000 Medium Term Bonds (for Fleet Purchases)$7,564,428 How Does the District Pay its Debt? 2.24 Ratio of Revenue to Debt Payments (FY21) 10 WCSD Debt Ratings $60,244,911 Popular Annual Financial Report  AA Paid by Property Tax Standard & Poors Aa3 S25,255,860 Moody's Held Steady December 2020 Paid by WC-1Sales Tax Held Steady December 2020 Outstanding Indebtedness Property Tax Revenues to Pay Debt: $67,872,850 $56,634,696 WC-1 Sales Tax Revenues to Pay Debt:1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 2016 2017 2018 2019 2020 2021 District Debt is Increasing to Build New Schools 2016-2021 Annual Debt Service 1.13 Ratio Revenue to Debt Payments (FY21) Marce Herz Middle School John C. Bohach Elementary School Capital Project Spending 41,986,925 $104,544,080 $216,726,287 $209,213,950 $198,328,416 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 INSIGHTS The District uses a combination of long-term debt (see prior page) and cash reserves to build its new schools. Washoe County voters’ passage of a 0.54% sales tax for school capital projects has allowed the District to address long-overdue overcrowded conditions at schools, as well to upgrade and repair many older schools. Desert Skies Middle School Sky Ranch Middle School Nick Poulakidas Elementary School Nutrition Services Building Expansion Michael Inskeep Elementary School Damonte Ranch High School Addition 2 018 *2024202320212020 Promises Made, Promises Kept CAPITAL PROJECTS *FUTURE PROJECTS *NEW HUG HIGH SCHOOL *SWOPE MIDDLE SCHOOL EXPANSION * O'BRIEN MIDDLE SCHOOL REBUILD *DEBBIE SMITH CTE 11 Washoe County School District 2019 2022 Includes expenditures only. Does not include interfund transfers. FY 21 NUTRITION SERVICES at a GLANCE INSIGHTS 12 Meals Served Popular Annual Financial Report  Breakfast2,235,622 Lunch3,399,495 $23,426,460 $22,320,206$21,409,026 $28,106,58630,000,000 20,000,000 10,000,000 0 2020 2021 Revenues Expenses Revenues & Expenses FY 21 INTERNAL SERVICES at a GLANCE $77,458,505 $85,139,746$86,751,513 $93,501,032100,000,000 50,000,000 0 2020 2021 Revenues Expenses Revenues & Expenses INSIGHTS The Nutrition Services Fund pays for transactions relating to the food services provided to schools and other locations. The main objective is to provide healthy, nutritious meals to students. Due to the Families First Coronavirus Response Act, all Washoe County School District students received free meals during the second half of the school year. Internal Revenue Funds = Insurance Funds Property & Casualty Funds are for the self insured property and casualty costs of the District. Covers losses due to acts of nature, damage to property, etc. Health Insurance Funds account for the self insured employee health benefit costs of the District. Types of insurance provided are medical, dental, vision, life , and long term disability. 1 2 Last fiscal year the Nutrition Services fund had a loss of $2,017,434 due to a pandemic related statewide lock-down. Schools were physically closed resulting in a cessation of meal service. In FY21 the fund rebounded with an increase in net position of $5,786,380 primarily due to the extra support and pandemic flexibilities extended by the federal government. WASHOE COUNTY SCHOOL DISTRICT-FY21 FAST FACTS Elementary Students in Sixty-veSchools 27,406 13 2nd Largest School District in Nevada Washoe County School District Student Population by Race/Ethnicity Hispanic Students = 61,599 Pacic Islander 13,811 Multiracial Middle School Students in White Eighteen 41.8% Schools 1.4% 1,069 6.2% 19,313 42.6% Fourteen African American Comprehensive High Schools 2.5% Five American Indian Other Schools 1.3% High School Students in 4.2% Students in Asian6,342 SCHOOLS Total Square Miles ONE HUNDRED & TWO Total Buildings Owned 109Sponsored Charter Schools 7New Schools Opened 2 75 Among the Seventy-ve Largest School Districts 14Popular Financial Annual Report  Questions concerning any of the information provided in this report may be addressed by phone at 775-348-0312. Written inquiries and requests for copies of the Annual Comprehensive Financial Report (ACFR) should be addressed to: Office of Business & Financial Services PO Box 30425 Reno, N V 89512