Committee of the Whole Report ESPLOST Finance Reporting

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Agenda Item

a. E-SPLOST / Finance Reporting ~ Updated 11.21.2024

Summary: Presented by: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations and
Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
Contact: Presented by Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations and
Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
Capital Programs & Reporting
       Operations Division
        Committee of the Whole
             11.11.2024
Cash vs Accrual Accounting
• Cash accounting
    o Records revenue when money is received and expenses when money is paid out. Cash accounting focuses on cash
      flow and doesn't record payables and receivables.
    o Commonly used by small businesses.
• Accrual accounting
    o Records revenue when it's earned and expenses when they're incurred. Accrual accounting focuses on the action that
       results in earning revenue or incurring an expense. It does record payables and receivables
    o Used by larger businesses and corporations.
• Modified accrual accounting
    • Modified accrual accounting is a bookkeeping method that combines cash basis and accrual basis accounting.
    • It's commonly used by government agencies to measure the flow of current financial resources.
    • Does not include long term debt, capital assets, pension activity and also treats property taxes differently.
 DCSD Cash vs Accrual
                        General        Monthly      Quarterly      Annual       Annual Fund
                        Ledger         Board        SPLOST         Government   Statements
                                       Reports                     Wide &
                                                                   Annual
                                                                   SPLOST
(R) Property Taxes      Cash           Cash         N/A            Accrual      Modified Accrual
(R) Sales Taxes         Accrual*       Accrual*     Accrual*       Accrual      Modified Accrual
(R) QBE                 Accrual        Accrual      N/A            Accrual      Modified Accrual
(R) Other Revenue       Cash           Cash         N/A            Accrual      Modified Accrual



(E) Payroll S&B         Cash           Cash         Cash           Accrual      Modified Accrual
(E) Accounts Payable    Cash/Accrual   Cash/Accrual Cash/Accrual   Accrual      Modified Accrual
(E) Contracts Payable   Cash           Cash         Cash           Accrual      Modified Accrual
DCSD Year End Process
                                                                                 September 30
                                                                                 • Accrue to 6/30
                                                             August 31             • Contracts
                                                             • Accrue to 6/30:     • AP
                                         July 31               • Contracts         • Other
                                         • Accrue to 6/30:     • AP
                    July 5th               • Contracts
                    • Quarterly SPLOST     • AP
June 30               report
• Fiscal year end
  Year      Referendum    Project      Our approach
                                      For each project for S5 and S6, as of 6/30/24 -
                         Project 1      1. the original estimated cost,
                 I
                         Project 2      2. the current estimated cost if it is not the original estimated cost,
                         Project 3      3. amounts expended in prior fiscal years,
                II
                         Project 4      4. amounts expended in the most recently completed fiscal year,
                         Project 5      5. any excess proceeds which have not been expended for a project or
SPLOST VI       III
                         Project 6
                                           purpose,

                         Project 7
                                        6. estimated completion date,
                IV
                         Project 8
                                        7. the actual completion cost of a project completed during the most
                                           recently completed fiscal year.
                         Project 9
                V                       Crosswalked each project to specific referendum roman numeral,
                         Project 10
                                        summarized and compiled the annual SPLOST report.
E-SPLOST V and E-SPLOST VI Program Activity
(Fiscal Year ending June 30, 2024)
A. For each project for S5 and S6, as of 6/30/24 -
    1.    the original estimated cost,
    2.    the current estimated cost if it is not the original estimated cost,
    3.    amounts expended in prior fiscal years,
    4.    amounts expended in the most recently completed fiscal year,
    5.    any excess proceeds which have not been expended for a project or purpose,
    6.    estimated completion date,
    7.    the actual completion cost of a project completed during the most recently completed fiscal year.
B. Difference between 2 (Current Estimated Cost) and balance remaining in SPLOST funds on a project by project basis, both S5 an d S6.
C. Accounting (all “ins and outs”, with balance as of 6/30/24) of Program Contingency for incomplete projects
    1. Status
    2. Timeline for Completion.


                                                       Please see attached report:
                                                          • Annual E-SPLOST Report (6.30.2024)
                                                          • E-SPLOST V Project List
                                                          • E-SPLOST VI Project List
                                                          • E-SPLOST VI Active Projects
E-SPLOST V and E-SPLOST                         B. Difference between 2 (Current Estimated Cost) and balance remaining in SPLOST funds on a project by project
VI Program Activity cont’d                         basis, both S5 and S6.
                                                C. Accounting (all “ins and outs”, with balance as of 6/30/24) of Program Contingency for incomplete projects
                                                    1. Status
                                                    2. Timeline for Completion.




E. Do we have enough? If not, what is the plan?
  The plan shared at the May 2024 Board Meeting estimated a plan cost that was achievable
    • E-SPLOST V - savings from completed or cancelled projects were/are consolidated into program
       contingency and then reallocated to remaining E-SPLOST V projects. This would not be enough for all E-
       SPLOST V Projects (primarily Cross Keys HS Additions and Modernization Project)
    • E-SPLOST VI – Savings from cancelled or completed E-SPLOST VI projects (Cross Keys MS, Fire Sprinklers,
       etc.) would be applied to Cross Keys HS Additions and Modernization Project.
  With the exception of the E-SPLOST VI Druid Hills HS Modernization Project, current estimates suggest the
  cost plan is on track. As stated previously, it is anticipated the Druid Hills HS Modernization Project will
  require additional capital funds.

F. What is the plan for communication to the BoE and Public – reports should be timely/accurate
   and if E. applies, what is the plan.
  This plan has been communicated to the BOE and Public since April 2024. While the information is
  embedded in the Quarterly Status Reports, Operations is developing a separate section to report on the
  progress of this plan and projects are completed or secured under contract.
ESSER Capital Improvement Projects
(Fiscal Year ending June 30,2024)
A. Schedule of ESSER Capital Improvement Projects (“ESSER CIP projects,) as of
   6/30/24 -
     1.        the original estimated cost,
     2.        the current estimated cost if it is not the original estimated cost,
     3.        amounts expended in prior fiscal years,
     4.        amounts expended in the most recently completed fiscal year,
     5.        any excess proceeds which have not been expended for a project or purpose,
     6.        estimated completion date,
     7.        the actual completion cost of a project completed during the most recently
               completed fiscal year Difference between 2 (Current Estimated Cost) and
               balance remaining in SPLOST funds on a project by project basis, both S5 and
               S6.
B. Difference between 2 (Current Estimated Cost) and balance remaining in SPLOST
   funds on a project by project basis for ESSER project.
C.   Schedule or Accounting of $30m drawdown from DCSD Reserves (CIP Fund.)
D.   For incomplete projects
          1.               Status
          2.               Timeline for Completion


                                                     Please see attached report:
                                                         • Local Capital Program Fund Report
                                                         • Local Capital Projects Fund Projects (10.2024)
ESSER CIP Cont’d



E. Do we have enough? If not, what is the plan?

    No. ESSER is a time-restricted reimbursement program to address pandemic challenges across
    the School District. There was not enough time nor available funds to complete many of the
    desired Capital Improvement Projects. While the facility needs will continue to exist, planned
    projects are currently being assessed and funded as part of the overall Capital Improvement
    Program. These projects will be funded through future E-SPLOST or other Local Capital Program
    Funds.

F. What is the plan for communication to the BoE and Public – reports should be
   timely/accurate and if E. applies, what is the plan.

    Operations has transformed its traditional E-SPLOST Quarterly Status reports to a Capital
    Improvement Program Quarterly Status Reports. This will report will include not only E-SPLOST
    funded projects but also projects funded through a Local Capital Program Fund.
Druid Hills High School
      Modernization Project
    Druid Hills High School
    Modernization Project

•         Scenario 1 – Modernization Proposal
      •      As presented - estimate $80 Million - $100 million


•         Scenario 2 – Modernization and Classroom Addition (15 classrooms)
      •      Cost estimates $105 million - $120 Million

•         Scenario 3 – Relocating to an Alternate Site
      •      3A – Swap locations - estimate $125 million
      •      3B – Relocate/Rebuild” Druid Hills HS - estimate $200 million depending on site
New MS/HS at Sequoyah
       CTAE Programming
New MS/HS at Sequoyah Site
CTAE Spaces:
High School (meets specifications)                                     Middle School (meets specifications)

•   Early Childhood Education                                          • Business and Computer Science
•   Construction Lab                                                   • Engineering Technology
•   Engineering Technology                                             • Family & Consumer Science
•   Media Broadcast
•   Business & Computer Science
•   JROTC (x2, including range)
                                                                           • Orange spaces are currently
•   Culinary Arts Lab
                                                                             programmed to be CTAE
•   Family & Consumer Science multi-purpose
    (could be used as serving/café for culinary, or fashion design).       • Purple spaces could potentially house
                                                                             future CTAE programs.
➢ Orange spaces are currently
  programmed to be CTAE

➢ Purple spaces could potentially
  house future CTAE programs.
➢ Orange spaces are currently
  programmed to be CTAE

➢ Purple spaces could potentially
  house future CTAE programs.
➢ Orange spaces are currently
  programmed to be CTAE

➢ Purple spaces could
  potentially house future
  CTAE programs.
➢ Orange spaces are currently
  programmed to be CTAE

➢ Purple spaces could potentially
  house future CTAE programs.
➢ Orange spaces are currently
  programmed to be CTAE

➢ Purple spaces could potentially
  house future CTAE programs.
➢ Orange spaces are currently
  programmed to be CTAE

➢ Purple spaces could potentially
  house future CTAE programs.
…Questions


Thank you!