Acton-Boxborough Regional School District Management’s Discussion and Analysis June 30, 2024
Financial Analysis of the Governmental Funds
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds . The focus of the District’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the year. As of the end of the current year, governmental funds reported combined ending fund balances of $8.5 million of which $5.3 million relates to the general fund, a $2.7 million deficit relates to the Douglas & Gates elementary school construction fund, and $6.0 million relates to the nonmajor funds. Cumulatively, there was a decrease of $4.4 million from the prior year. The decrease is comprised of a $537,000 decrease in the general fund, a $2.4 million decrease in the Douglas & Gates elementary school construction fund and a $1.5 million decrease in the nonmajor funds. The general fund is the chief operating fund. At the end of the current year, unassigned fund balance of the general fund was $2.1 million while total fund balance equaled $5.3 million. Restricted fund balance totaled $665,000 and relates to the capital stabilization fund. Assignments of fund balance for encumbrances and subsequent years’ expenditures totaled $776,000 and $1.7 million, respectively. As a measure of the general fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 2% of total general fund expenditures. The Douglas & Gates elementary school construction fund is used to account for the construction of the new Douglas & Gates elementary school. At the end of the current year, the fund balance was in a deficit position of $2.7 million. Current year activity includes $1.1 million in capital grants from the Massachusetts School Building Authority (MSBA), which has committed to funding 49.70% of eligible construction costs. Capital expenditures totaled $3.5 million during 2024.
General Fund Budgetary Highlights
Member communities are apportioned an assessment to fund the District’s budgeted operating, transportation, construction, capital, and debt service costs. The method of determining a community’s assessment is based on the regional agreement and uses a three-year average of pupil enrollment, unless otherwise defined in the regional agreement. The District’s budget is not approved until both member communities vote on it favorably.
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