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HomeMy WebLinkAboutFairfax County Public Schools - Public Financial Report Popular Annual Financial Report COMPONENT UNIT FOR THE FISCAL YEAR OF THE COUNTY OF FAIRFAX, VIRGINIA ENDED JUNE 30, 2021 MESSAGE FROM THE SUPERINTENDENT December 13, 2021 Most of this year has been spent navigating the global pandemic. In fiscal year 2021, Fairfax County Public Schools (FCPS) received funding from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act under the Elementary and Secondary School Emergency Relief (ESSER) fund and Coronavirus Relief Fund (CRF) to address the impact of the pandemic on schools. FCPS will benefit from additional funding from the American Rescue Plan (ARP) Act. FCPS continues to focus on providing support to our students as we recover from the pandemic. I am pleased to present FCPS’ Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021, to the citizens of Fairfax County, Virginia. This report provides an overview of the school system’s financial operations and highlights key accomplishments of interest to parents, teachers, and community members. FCPS’ PAFR earned the prestigious Award of Outstanding Achievement in Popular Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA) for the fiscal years ended June 30, 2020, and June 30, 2019. The information in this report is derived from the financial information contained in our Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. The ACFR is a more detailed report prepared in accordance with generally accepted accounting principles (GAAP) and is available on the FCPS website at https://www.fcps.edu/about-fcps/budget/financial-reports. FCPS’ financial statements received an unmodified audit opinion, the highest audit rating, by our independent auditors, Cherry Bekaert LLP. While the PAFR is prepared consistent with GAAP, it is unaudited and simplifies reporting by summarizing FCPS’ financial activities in an easy- to-understand format. The PAFR will help stakeholders understand how their tax dollars are being utilized to educate our students. Our goal is to provide financial transparency in an understandable manner. Sincerely, Scott S. Brabrand, Ed.D. Superintendent of Schools FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | ii TABLE OF CONTENTS About Fairfax County Public Schools School Board Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Accomplishments Division Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Student and Teacher Achievements . . . . . . . . . . . . . . . . . . . . . . . . . .5 Financial Highlights Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Revenues by Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Expenses by Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Initiatives Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Planned Capital Projects With Estimated Cost . . . . . . . . . . . . . . . . . . . .9 Trends Average Teacher Salary Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Student Enrollment Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Cost Per Pupil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Food and Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Instructional Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 1 ABOUT FAIRFAX COUNTY PUBLIC SCHOOLS SCHOOL BOARD MEMBERS Stella Pekarsky Chair Sully District Rachna Sizemore Heizer Vice-Chair Member-at-Large Karen Keys-Gamarra Member-at-Large Abrar Omeish Member-at-Large Megan McLaughlin Braddock District Elaine Tholen Dranesville District Melanie K. Meren Hunter Mill District Tamara Derenak Kaufax Lee District Ricardy Anderson Mason District Karen Corbett Sanders Mt. Vernon District Karl Frisch Providence District Laura Jane Cohen Springfeld District Pranav Choudhary Student Representative FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 2 ACCOMPLISHMENTS DIVISION RECOGNITION Award for Outstanding Achievement in Popular Annual Financial Reporting The Government Finance Officers Association (GFOA) of the United States and Canada awarded an Award for Outstanding Achievement in Popular Annual Financial Reporting to FCPS for its PAFR for the fiscal year ended June 30, 2020. The award recognizes conformance with the highest standards for preparation of state and local government popular reports. To receive the award, a governmental unit must publish a PAFR whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 3 ACCOMPLISHMENTS HIGHLIGHTS OUR SCHOOLS DEMOGRAPHICS OUR STUDENTS 11th largest school division in the U.S. Largest school division in Virginia 199 Schools and Centers 142 Elementary Schools 3 Middle Schools (6-8) 20 Middle Schools (7-8) 3 Secondary Schools (7-12) 22 High Schools (9-12) 2 Alternative Schools 7 Special Education Centers THE FCPS STRATEGIC PLAN Provides a framework for decision making that builds upon a common mission vision, and guiding principles held by the community. The Portrait of a Graduate is the center of the Strategic Plan. STUDENT SUCCESS SECOND 179,748 STUDENTS They come from 204 countries with over 200 different languages spoken at home. 31% Economically Disadvantaged1 19% English for Speakers of Other Languages (ESOL) 15% Special Education Two or more races African American 6.3% 10.0% Asian American 19.8% White 36.8% Hispanic 27.1% 94.6% 4-YEAR ON-TIME GRADUATION RATE STUDENT SUCCESS 84% Of graduates attending post secondary programs 72% Passed an AP/IB or Dual Enrollment course 212 National Merit Semifinalists Class of 2021 1201 FCPS Class of 2021 SAT Score VA: 1151 US: 1060 LARGEST EMPLOYER FCPS NAMED A 2022IN FAIRFAX COUNTY INVESTING IN EXCELLENCE BEST SCHOOL DISTRICT 25,389 Full-Time Employees $3.4 Billion Operating Budget FY 2022 Given an overall grade of A 92.9% School-Based Employees 86.1% of our budget is spent on instruction by Niche. 7.1% Nonschool-Based Employees DATA SOURCE: 1 FY2022 Budget Projected Enrollment (excludes students outside of FCPS) FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 4 ACCOMPLISHMENTS STUDENT AND TEACHER ACHIEVEMENTS Individual students and groups annually earn honors and awards in all academic, extra- curricular, and athletic areas in regional, state, and national competitions. For SY 2020-21, FCPS’ average overall composite SAT score was 1201, compared to the State average of 1151 and the national average of 1060. The highest possible combination score one can receive on the SAT is 1600. Nine FCPS high schools made the U.S. News & World Report 2021 list of top ten Best High Schools in Virginia. Thomas Jefferson High School for Science and Technology (TJHSST) was ranked number one best high school in Virginia, and number one best high school in the national rankings. Sangster Elementary School has been named 2021 National Blue Ribbon Schools by the U.S. Department of Education. This FCPS school is among seven schools in Virginia receiving the honor this year. Thirteen FCPS students were named winners of 2021 National Merit corporate sponsored scholarship awards. A teacher at South County High School was chosen as the 2021 George Washington’s Mount Vernon History Teacher of the Year. The award is given each year to one teacher in the Washington D.C. Metropolitan area who brings creativity and passion to their teaching, generates a love of learning, and deepens their students’ understanding and appreciation of history. SY 2020-21 Average SAT Scores Fairfax County Public Schools 1201 1600 State 1151 1600 National 1060 1600 FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 5 FINANCIAL HIGHLIGHTS FINANCIAL OVERVIEW REVENUES BY SOURCE Financial information in the report is derived from the ACFR. The ACFR is prepared in conformity with GAAP, as applicable to governmental units and includes detailed information of significant financial and nonfinancial events. This report is prepared consistent with GAAP, but does not include the level of detail presented in the ACFR. It presents an overview of FCPS’ governmental funds and highlights key revenue and expenditure information that occurred during the fiscal year. Total revenues for FCPS’ governmental activities were $3,402.1 million in FY 2021, representing an increase of $114.9 million, or 3.5 percent, over fiscal year (FY) 2020. The primary source of revenue for FCPS comes from Fairfax County, which in turn derives the majority of its revenue from real and personal property taxes. The increase is primarily due to $49.3 million received from the CARES Act and ESSER, $29.3 million increase of Basic Aid, and $21.7 million increase of state sales tax revenues. The charts below present the revenues by sources for the last three fiscal years. 2021 $3.40 B FAIRFAX COUNTY $2,143.3 M 63.0% PROGRAM REVENUES $683.4 M 20.1% STATE UNRESTRICTED GRANTS AND CONTRIBUTIONS $557.7 M 16.4% FEDERAL UNRESTRICTED GRANTS AND CONTRIBUTIONS $14.2 M 0.4% ALL OTHER REVENUES $3.5 M 0.1% 2020 $3.29 B FAIRFAX COUNTY $2,136.0 M 65.0% PROGRAM REVENUES $636.1 M 19.3% STATE UNRESTRICTED GRANTS AND CONTRIBUTIONS $506.7 M 15.4% FEDERAL UNRESTRICTED GRANTS AND CONTRIBUTIONS $5.9 M 0.2% ALL OTHER REVENUES $2.5 M 0.1% 2019 $3.20 B FAIRFAX COUNTY $2,051.6 M 64.1% PROGRAM REVENUES $642.0 M 20.0% STATE UNRESTRICTED GRANTS AND CONTRIBUTIONS $499.7 M 15.6% FEDERAL UNRESTRICTED GRANTS AND CONTRIBUTIONS $6.0 M 0.2% B = BILLION M= MILLION ALL OTHER REVENUES $2.5 M 0.1% FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 6 FINANCIAL HIGHLIGHTS EXPENSES BY PROGRAM The total program expenses of FCPS’ governmental activities for FY 2021 were $3,320.8 million, representing an increase of $50.3 million or 1.5 percent over FY 2020. The increase is primarily due to increases from pension and Other Postemployment Benefits (OPEB) expenses as a result of plan changes and actuarial assumption change. As the chart indicates, regular education is FCPS’ largest program. Regular education includes activities and programs conducted during the regular instructional day for students in grades K-12. Special education, FCPS’ second largest program, includes activities for students with special needs. Such activities include programs specifically designed to overcome disabilities, alternative education, Head Start, and preschool programs. The charts below present the total expenses of each of FCPS’ programs for the last three fiscal years. 2021 REGULAR EDUCATION $1,999.8 M $3.32 B SPECIAL EDUCATION $598.8 M ALL OTHER INSTN PRGMS $218.8 M STUDENT TRANSPORTATION $138.0 M ADMIN AND GENL SUPPORT $159.8 M FACILITIES MANAGEMENT $116.3 M ALL OTHER PROGRAMS $89.3 M 2020 REGULAR EDUCATION $1,973.1 M $3.27 B SPECIAL EDUCATION $582.2 M ALL OTHER INSTN PRGMS $213.9 M STUDENT TRANSPORTATION $155.1 M ADMIN AND GENL SUPPORT $143.8 M FACILITIES MANAGEMENT $114.7 M ALL OTHER PROGRAMS $87.7 M 2019 REGULAR EDUCATION $1,794.7 M $2.98 B SPECIAL EDUCATION $522.7 M ALL OTHER INSTN PRGMS $201.3 M STUDENT TRANSPORTATION $146.6 M ADMIN AND GENL SUPPORT $123.3 M FACILITIES MANAGEMENT $103.0 M ALL OTHER PROGRAMS $86.6 M B = BILLION M= MILLION FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 7 INITIATIVES TECHNOLOGY Achieving high academic standards increasingly involves integrating technology into the classroom. FCPSOn was established to meet the FCPS Strategic Plan’s goal to provide one electronic device per student and to create systemic strategies and standards for technology use by teachers and students to improve student engagement and learning. FCPSOn provides students with equitable access to meaningful learning experiences using a variety of technology tools. Teachers are able to personalize student learning and ensure that each student has access to an active and inspiring learning environment in which they can develop and apply their Portrait of a Graduate skills as communicators, collaborators, ethical and global citizens, creative and critical thinkers, and goal oriented and resilient individuals. The pandemic brought unprecedented challenges to FCPS. All instruction was done virtually for the majority of the 2020-2021 school year. Beginning in Spring 2021, hybrid learning instruction was introduced to bring back students gradually and safely into classroom setting. In support of the FCPS Distance Learning Plan, laptops were distributed to all students, and MiFi devices were distributed to students in need. The pandemic further demonstrates that technology connectivity and infrastructure are vital for distance learning to ensure that instructional supports for students are not disrupted. FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 8 - --- INITIATIVES PLANNED CAPITAL PROJECTS WITH ESTIMATED COST FCPS operates and maintains 221 schools and administrative centers. An annual Capital Projects budget is prepared, which allocates funds for new construction, facilities renovations, expansions, and improvement projects. Funding for capital improvement projects is currently limited by a $180 million yearly cap on General Obligation Bond sales. The School Board and Fairfax County Board of Supervisors have formed a committee to study ways to solve the long renovation cycle of our schools due to the limited capital funding available. The FY 2022–26 five-year capital requirement totals approximately $1.1 billion or roughly $220 million per year. $360 million approved by county voters in the 2019 School Bond Referendum allows the construction of one new elementary school, the relocation of one modular addition, construction of three high school additions, and renovations of five elementary schools and two middle schools. The bond also included funding for the planning of one new elementary school and the renovations of five elementary schools. The unfunded balance of the five-year requirement will be addressed by the bond referendum from the fall of 2021. Capital Projects Summary FY 2022 26 UNDER CONSTRUCTION IN PLANNING ELEMENTARY SCHOOL 4 Renovations 2 New Constructions 6 Renovations MIDDLE SCHOOL 3 Renovations --- HIGH SCHOOL 1 Renovation 3 Additions 1 Renovation FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 9 TRENDS AVERAGE TEACHER SALARY TRENDS FCPS supports the Premier Workforce goal which includes compensation increases for teachers, classroom instructional assistants, school-based administrators, as well as administrative and support staff. Beginning in FY 2018, FCPS devoted $29.0 million for salary scale enhancements for teachers, classroom instructional support, and schedule H employees. Additional salary schedule enhancements were approved in FY 2019, FY 2021 2020, and FY 2021. Due to economic constraints, FCPS’ ability to enhance salaries to optimum levels remains a challenge. The FY 2022 Approved Budget includes a 2.0 percent compensation adjustment for all employees, the third-year investment of a three-year implementation plan to bring instructional assistants to 50 percent of the bachelor’s teacher salary scale, and pay parity for elementary school principals and assistant principals. LOUDOUN COUNTY $66,213 FAIRFAX COUNTY $70,813 ALEXANDRIA CITY $76,096 MONTGOMERY COUNTY $77,887 ARLINGTON COUNTY $79,055 LOUDOUN COUNTY $70,913 FAIRFAX COUNTY $79,236 ALEXANDRIA CITY $80,690 ARLINGTON COUNTY $82,395 MONTGOMERY COUNTY $83,215 LOUDOUN COUNTY $67,241 FAIRFAX COUNTY $72,734 ALEXANDRIA CITY $77,005 ARLINGTON COUNTY $80,082 MONTGOMERY COUNTY $81,791 LOUDOUN COUNTY $68,694 FAIRFAX COUNTY $75,657 ALEXANDRIA CITY $78,461 ARLINGTON COUNTY $81,042 MONTGOMERY COUNTY $82,809 LOUDOUN COUNTY $75,426 FAIRFAX COUNTY $78,298 ALEXANDRIA CITY $79,220 ARLINGTON COUNTY $81,773 MONTGOMERY COUNTY $85,391 2020 2019 2018 2017 FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 10 187,474 TRENDS STUDENT ENROLLMENT GROWTH FCPS closely monitors the student enrollment growth to ensure current and future facility space is available. The projected student enrollment for fiscal year 2022 is 188,799 students. Student enrollment projections are based on the County and school trends including: net County migration, size difference of exiting 12th grade and entering kindergarten populations, County birthrates, new school programs, housing development patterns, and economic conditions. FCPS experienced slower growth in recent years due to smaller entering kindergarten cohorts which have led to a five- year forecast that projects contracted membership growth. Student Enrollment NU M B E R OF ST UD E N T S 192,000 190,000 186,000 184,000 182,000 180,000 178,000 176,000 174,000 172,000 170,000 183,895 185,914 185,979 188,403 188,355 179,748 188,799 2014 2015 2016 2017 2018 SCHOOL YEAR 2019 2020 2021 2022 Projected Actual Student Enrollment Student Enrollment Trend 188,000 187,484 FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 11 TRENDS COST PER PUPIL Cost-per-pupil calculations provide an overall view of the cost of all programs that can be used to compare how school systems spend their funds. It includes both the direct as well as the indirect costs of programs. A systemwide FCPS Cost Per Pupil cost per pupil, which includes general and special education but excludes Audit and Community Education, is computed using the methodology agreed on by the Washington Area Boards of Education (WABE). FY 2021 $16,505 FY 2020 $16,043 FY 2019 $15,293 FY 2018 $14,767 FY 2017 $14,432 The table below compares the FY 2021 cost per pupil for local jurisdictions. FCPS maintained its ranking in the middle of other school districts in the metropolitan area with a cost per pupil of $16,505. FCPS Cost Per Pupil by School Division LOUDOUN COUNTY $15,214 FAIRFAX COUNTY $16,505 MONTGOMERY COUNTY $16,759 ALEXANDRIA CITY $18,147 ARLINGTON COUNTY $19,581 FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 12 TRENDS FOOD AND NUTRITION FCPS Food and Nutrition Services (FNS) operates a year-round nationally recognized community nutrition program that is financially self-supporting. The primary goal of FNS is to support students’ health, wellness, and readiness to learn while embracing the school system and its stakeholders. FNS offers a variety of healthy food choices, strives to exceed established government regulations, and proudly serves more than 140,000 customers daily during a normal school year. During school closures, FNS provided free meals to all students and families through emergency meal distribution at meal kit sites and offered Grab and Go meals. As FCPS returned to in-person learning, FNS continued to provide free meals to all students regardless of federal free and reduced-price meals (FRM) eligibility under the US Department of Agriculture’s (USDA) Summer Food Service Program and Community Eligibility Provision. Percentage of Free and Reduced-Price Lunches Compared to Total Student Lunches Served Daily* FY 2020 51.2% FY 2019 49.8% FY 2018 51.2% FY 2017 49.8% 81,137 41,566 80,473 40,051 80,374 41,184 80,660 40,163 Total Lunches Served Free and Reduced-Price Lunches Served *Due to the COVID-19 pandemic in fiscal year 2021, meals were distributed to the community for school age children at no cost. FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 13 TRENDS INSTRUCTIONAL STAFFING Over the years, there have been significant student enrollment, eligibility for FRM, the adjustments in school-based staffing. number and level of students receiving English Positions assigned to a school are determined for Speakers of Other Languages (ESOL) by formulas approved by the School Board. services, and the number and level of special School-based staffing will vary depending on education services provided. FCPS Average Class Size 2021 2020 2019 2018 2017 22.4 24.6 25.8 21.2 24.9 25.8 22.9 25.1 26.0 22.6 25.1 25.9 21.7 24.9 25.9 Elementary Middle Secondary/High FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 14 FAIRFAX COUNTY PUBLIC SCHOOLS | 2021 POPULAR ANNUAL FINANCIAL REPORT | 15 Popular Annual Financial Report Fairfax County Public Schools 8115 Gatehouse Road Falls Church, VA 22042