HUUSD Director of Finance Board Report for the March 21, 2018 Meeting Updated current year Financials – General Fund See attached summary of the FY2018 general fund projections years to date including detail of all expense accounts by function as of February 28, 2018. The general fund contribution to fund balance estimated for FY2018 at this time is $194,386 (or 0.5%). FY2017 Audits and option to have auditor attend board meeting As you are aware the FY2017 audits for all member districts were completed last fall and are posted on the HUUSD website. I wanted to make you aware that the principal of our current financial audit firm, Ron Smith, is available to attend a board meeting. The presentation and discussion with the auditor can be scheduled as a board agenda item where he would present an overview of the audits and answer questions from members of the board regarding the audit or the school district’s financial management. Should the board desire the auditor attend a board meeting, please let me know and I will arrange it. Accounting Consolidation Project at June 30, 2017 - Establishment of HUUSD Beginning Balances - All Funds Once the FY2017 member school districts audits were completed we entered into an agreement with RHR Smith to provide an accounting crosswalk for all ending FY2017 school district account balances into the beginning HUUSD account balances. The consolidation work has been more than anticipated given some of the technical accounting challenges. We just received the final work product from RHR Smith last week, which was delayed from the original due date of mid-January. With this completed product I can work with the fiscal services staff to establish the beginning HUUSD balances in the HUUSD accounting books and records. The cost for contracting for this work was set at $5,000 and remains unchanged despite the unanticipated complications. The March 31, 2018 financial report will include a financial update for all funds. HRA implementation- DataPath Contract to be added to 3/21 Board Agenda for Action As you may have heard the Third Party Administrator Future Planning Associates (FPA) who we chose as our HRA third party administrator for HUUSD employees, has experienced circumstances that made it difficult to administer the plans and will no longer provide services as of May 31st. We are working closely with our employees during this time as payments to providers have been delayed and employees need to coordinate claims between BC/BS and the HRA. VEHI has recommend, as this is a mid-calendar year transition, that we contract with to Data Path as an HRA administrator of May 1st. VEHI counsel has vetted the DataPath Agreement attached which must be approved no later than March 28th. DataPath’s costs are the same at FPA, $3.70 per employee per month. I recommend HUUSD contract with DataPath for HRA administration for the remainder of 2018 and will be suggesting a committee to recommend an administrator for 2019.

Director of Finance Board Report for the March 21, 2018 Meeting   

Transportation Agreement-On 3/21 Board Agenda for Action As presented to the board previously, in accordance with See Title 16, section 559(e)(7), the transportation contract with First Student, Inc. which commenced July 1, 2015 and is ending on June 30, 2018, can be renewed for additional year(s) as long as the rate increase does not exceed the allowable amount, currently 2.8% per year. Nothing in the agreement extension prohibits eliminating, or changing routes, as needed and the agreement can be terminated with 60 days written notice by either party. The cost for 20 am and 20 pm bus routes, plus 1 daily late route is: 2018-2019 $1,135,848.51 (which is approximately $160/day per route) 2019-2020 $1,167,652.27

Field and athletic and co-curricular trips are billed out at: 2018-2019 $1.80/mile and $22.62 per driver hour 2019-2020 $1.85/mile and $23.25 per driver hour The agreement also includes the cost of special education transportation and the daily vocational route to the Central Vermont Vocational school in Barre. Daily transportation expense is reimbursed by the AOE as a transportation grant, included in general fund revenue, at approximately 43% of the actual cost two years in arrears. Central Office Lease Renewal-On 3/21 Board Agenda for Action The central office lease expires on June 30, 2018. The current central office is for 3,000 square feet for the three years commencing July 1, 2015 and ending June 30, 2018, the annual lease cost has been $35,688 or $11.90/square foot, including all utilities. We have negotiated a two year lease extension through June 30, 2020 with the M5 Leasing Company LLC at $38,250 annually, or $12.75/square including all utilities. If HUUSD wishes to renew the lease beyond two years, the renewal lease requires a 90 day notice of the intention to renew for a minimum of 3 months at a rate to be determined. The renewal represents an increase of 7.2% from FY2016 to FY2020, or an average annual increase of 1.4% over the 5 years. The lease cost per square foot is competitive for the area; especially given all utilities are included in the rate. Lastly, the work of the fiscal services team is often invisible. In order to provide further information about the work we do, below are some other items to note that we are currently involved in:

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Director of Finance Board Report for the March 21, 2018 Meeting   

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Special education Monitoring-In January HUUSD received notice we were selected by the AOE for a fiscal monitoring of special education expenses for this fiscal year. Donarae and I are providing the AOE with the multiple items requested. Completing the renewal application for property, casualty and workers compensation insurance purchased through the multi line VSBIT program which we participate in with 52 other VT supervisory unions and school districts. Implementing Tyler Content Management System (TCM); a tool to allow us to move towards a paperless financial management system. Completing the 2017 ACA reporting to the IRS for HUUSD and former school districts.

I will provide a bond timeline document shortly as requested. Please feel free to contact me with questions at 802-583-7948 or [email protected]

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Harwood Unified Union School District‐ Financial Status at a Glance February 28, 2018 Dues & Other 1%

Summary Of FY2018 General Fund

Total General Fund Revenue FY2015 Fund Balance to use in FY2017 Total General Fund Revenue & Fund Balance

2018 2018 Budget Projections $  35,760,354 $  36,087,790 $        533,959 $        533,959 $  36,294,313 $  36,621,749 0.9%

Employee Salaries Employee Benefits Contracted Services Purchased Property Services ‐ Services to operate/maintain 

$  19,827,925 $  19,634,132 $     7,628,411 $    6,735,004 $     2,533,144 $    2,649,599

building and grounds

$        770,613 $        911,103

Other Purchased Services ‐ Bus Transportation, Insurance,  Advertising, Out of District SpEd tuition Supplies & Materials Equipment Dues & Other Debt Principal & Interest Transfer to Maintenance Reserve Fund Transfer to Food Service Fund Total General Fund Expenditures

$  36,294,313 $  36,427,363

0.4%

$        194,386

0.5%

Beginning Fund Balance, July 1, 2017

$                ‐

Additions to the Maintenance Reserve Pending   Interest Income

$        533,959 $                ‐

Maintenance Reserve Expense

$                ‐

Maintenance Reserve Fund Balance January 2018

$        533,959

Purchased Property  Services 2% Contracted Services 7%

Employee Benefits 19%

$     2,975,056 $    1,446,098 $        652,548 $        459,418 $        389,346 $        533,959 $          41,100

Long Term Maintenance Reserve Fund

Other Purchased  Services  8%

Equipment 2%

Employee Salaries 54%

$     2,168,997 $     1,469,858 $        522,909 $        433,450 $        363,947 $        533,959 $          41,100

FY2018 Projected Contribution to General Fund Balance

Supplies & Materials 4%

Transfer to  Maintenance Reserve  Debt  Principal  Fund Transfer to Food  2% & Interest Service Fund 1% 0%

FY2018 General Fund Expenditures

Harwood Unified Union School District Fiscal Year: General Ledger - General Fund Operating Expenses by Function FUND / FUNCTION

FY18 Budget FY18 Adj Budget

2017-2018

Year To Date

From Date:7/1/2017

To Date:2/28/2018

Encumbrance Budget Balance

0010 - GENERAL FUND 1100 - Regular Education 1101 - ELL - English Language Learning 1102 - Art

$7,732,018.00

$4,252,662.64

$2,957,131.42

$522,223.94

$82,406.02

$32,771.52

$8,082.05

$0.00

$24,689.47

$615,720.73

$582,754.11

$314,647.63

$242,327.87

$25,778.61

1104 - YATST

$7,600.00

$14,645.76

$6,000.00

$604.76

$8,041.00

1105 - English

$1,133,660.76

$946,445.15

$548,446.87

$390,198.99

$7,799.29

1106 - Foreign Language

$676,636.69

$686,398.24

$377,278.09

$291,572.56

$17,547.59

1108 - Physical Education

$556,639.64

$542,241.98

$290,787.83

$235,951.93

$15,502.22

1109 - Health Education

$108,463.39

$29,448.23

$15,457.11

$11,080.39

$2,910.73

1110 - Technology Education

$292,847.71

$289,653.58

$160,634.60

$118,019.06

$10,999.92

$1,052,290.62

$997,993.76

$555,303.03

$427,583.56

$15,107.17

1112 - Music

$705,912.39

$692,342.92

$393,119.71

$283,125.28

$16,097.93

1113 - Sustainability-Science

$881,359.05

$889,798.91

$537,632.35

$313,789.89

$38,376.67

1115 - Social Studies

$748,094.13

$716,302.65

$394,274.42

$314,704.91

$7,323.32

1150 - HUB

$121,931.67

$111,406.32

$63,204.78

$42,069.22

$6,132.32

1151 - Community Learning Center

$195,560.68

$191,646.13

$107,757.96

$78,731.69

$5,156.48

1155 - Next Step

$178,820.15

$168,965.10

$90,660.72

$75,352.26

$2,952.12

1157 - Drivers Education

$132,084.71

$126,582.93

$60,936.75

$45,635.98

$20,010.20

1200 - Special Education

$4,926,212.91

$5,344,053.75

$3,037,282.40

$2,105,390.58

$201,380.77

1300 - Vocational

$214,847.00

$214,847.00

$70,495.74

$0.00

$144,351.26

1400 - Extra Curricular

$674,254.40

$650,062.85

$377,631.30

$100,701.08

$171,730.47

2100 - Student Support Services

$393,097.49

$334,150.59

$192,092.55

$129,842.87

$12,215.17

2120 - Guidance

$706,816.30

$677,706.90

$376,829.85

$285,340.78

$15,536.27

2130 - School Nurse

$436,731.57

$490,887.78

$257,268.83

$208,114.76

$25,504.19

1111 - Math

2135 - Health Education

$104,466.75

$96,726.48

$50,930.00

$41,053.09

$4,743.39

$1,627,782.24

$1,609,793.08

$1,013,657.16

$528,456.15

$67,679.77

$763,359.29

$758,751.26

$407,830.30

$326,349.68

$24,571.28

2160 - Occupational Therapy

$66,145.00

$71,500.00

$14,549.22

$0.00

$56,950.78

2190 - Physcial Therapy

$41,905.00

$45,298.50

$13,245.50

$10,932.00

$21,121.00 $11,024.56

2140 - Psychlogical Services 2150 - Special Education - Speech

2210 - School Based Inservice 2220 - Library/Media 2223 - Technology 2229 - Technology Integration 2310 - Board of Education 2313 - School Board Treasurer 2321 - Central Office 2400 - School Administration Printed:

$7,925,053.74

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$13,750.00

$16,237.00

$5,212.44

$0.00

$622,246.97

$609,833.88

$350,464.37

$233,340.20

$26,029.31

$1,021,093.33

$1,084,392.55

$680,941.48

$254,984.46

$148,466.61

$56,891.89

$55,911.13

$30,852.91

$24,855.78

$202.44

$139,495.35

$147,303.10

$95,093.15

$609.63

$51,600.32

$3,280.00

$4,332.68

$4,332.68

$0.00

$0.00

$691,885.06

$720,478.01

$513,167.39

$179,339.29

$27,971.33

$1,978,291.39

$2,110,232.87

$1,342,238.86

$664,771.35

$103,222.66

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Harwood Unified Union School District Fiscal Year: General Ledger - General Fund Operating Expenses by Function FUND / FUNCTION 2400 - School Administration

FY18 Budget FY18 Adj Budget $1,978,291.39 $2,110,232.87

2420 - Central Office Special Education

$163,821.20

2500 - Short Term Debt

2017-2018

Year To Date $1,342,238.86

$167,362.29

$107,756.66

From Date:7/1/2017

To Date:2/28/2018

Encumbrance Budget Balance $664,771.35 $103,222.66 $55,578.06

$4,027.57

$94,200.00

$91,773.00

($150.68)

$0.00

$91,923.68

$493,493.22

$514,694.84

$352,699.65

$154,318.03

$7,677.16

$39,700.00

$24,003.50

$21,399.50

$0.00

$2,604.00

2600 - Operations & Maintenance

$2,866,391.69

$2,960,690.72

$1,910,070.77

$737,414.58

$313,205.37

2700 - Transportation

$1,450,653.00

$1,578,946.05

$976,496.91

$567,015.42

$35,433.72

$0.00

$3,703.43

$3,703.43

$0.00

$0.00

$39,500.00

$40,140.66

$28,861.49

$4,374.18

$6,904.99

$3,854.67

$4,341.79

$2,112.59

$1,245.56

$983.64

2510 - Central Office Fiscal Services 2526 - Financial Audit

2710 - Homeless Student Transportation 2720 - Field Trips 2750 - Food Service Transportation of Meals 3100 - Food Service

$111,100.00

$70,000.00

$2,675.43

$0.00

$67,324.57

5100 - Long Term Debt Service

$600,006.41

$602,733.57

$529,339.16

$0.00

$73,394.41

$0.00

$41,100.00

$55.49

$0.00

$41,044.51

5300 - Transfer to Food Service Fund 5400 - Transfer to Maintenance Reserve Fund 0010 - GENERAL FUND Total: Grand Total:

$533,959.00

$533,959.00

$0.00

$0.00

$533,959.00

$36,294,313.21

$36,427,363.55

$20,946,023.07

$12,441,907.30

$3,039,433.18

$36,294,313.21

$36,427,363.55

$20,946,023.07

$12,441,907.30

$3,039,433.18

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