Fisher Building- 14'" Floor
Phone: (313) 870-3772
3011 W. Grand Boulevard
Fax: (313) 870-3726
Detroit, Ml 48202-2710
www.detroitk/2.org
April 15, 2015
SUBMITTED VIA E-MAIL
Hon. Kevin Clinton
Michael Flanagan
Treasurer
Superintendent of Public Instruction
State of Michigan
Michigan Department of Education
430 W. Allegan St.
608 W. Allegan St.
Lansing, Ml 48933
P .0. Box 30008
Lansing, Ml 48909
Dear Mr. Clinton and Mr. Flanagan:
Enclosed for your consideration is the Detroit Public Schools General Fund, Second Quarter
Interim Financial Report as required by Section 9(5) of the Local Financial Stability and Choice
Act (Michigan Public Act 436 of 2012 (PA 436)).
The report covers the six-months ended
December 31, 2014.
cc: Delores Brown
Tom Saxton
Jeanet Kulcsar
State Representatives
State Senators
Hon. Brian Banks
Hon. Coleman Young, II
Hon. Alberta Talabi
Hon. Bert Johnson
Hon. Wendell Byrd
Hon. Morris W. Hood, Ill
Hon. Rose Mary Robinson
Hon. Virgil Smith
Hon. Fred Durhal, Ill
Hon. David Knezek
Hon. Stephanie Chang
Hon. LaTanya Garrett
Hon. Sherry Gay-Dagnogo
Hon. Harvey Santana
Hon. Leslie Love
General Fund
Second Quarter Interim Financial Report
For the Six Months Ended December 31, 2014
Section 9 (5) Report
'30/15
DETROIT PUBLIC SCHOOLS
Interim Financial Report
General F und
For the six months ended December 31, 2014
Section 9 (5) Report
Table of Contents
•
Summary Level - Statement of Revenues, Expenditures and Changes in Fund Balance
Page
1
The summary level reports revenues & expenditures at a high level; the focus is on total
revenues, expenditures and revenues over (under) expenditures
•
Detail Level - Statement of Revenues
2-4
This statement reports revenue at a more detailed level
•
Detail Level - Statement of Expenditures by Function
5
This statement reports expenditures at a more detailed level by function
•
Detail Level - Statement of Expenditures by Object Level
6
This statement reports expenditures at a more detailed level by object level
•
General Fund Estimated Cash Flow - FY 2015 and FY 2016
Footnotes
7-8
9-14
This includes explanations for materially Year-To-Date budget variances
Comparative Graphs
Bar graphs that compare YTD Budget to YTD Actual for each major Revenue and
Expenditure Category
'30/15
15-24
DETROIT PUBLIC SCHOOLS
Statement of Revenue, Expenditures and Changes in Fund Balances
for the six months ended December 31, 2014
Section 9 (5) Report
(Note
(Note A)
B)
Variance Positive
Original
Budget
Current
Budget
%Variance
YTD Budget
YTDActual
(Negative) to
Positive
12/31/2014
12/31/2014
YTD Budget
(Negative)
SUMMARY
Revenues
44,348,862
37,807,134 $
(6,541,728)
(14.75%)
105,874,608 $
102,812,747 $
State sources
359,205,791
361,293,154
174,762,366
192,406,816
17,644,450
10.10%
Federal sources
156,156,530
169,167,740
59,282,684
75,331,307
16,048,623
27 . 07%
45,477,054
45,477,053
17,806,118
12,016,723
666,713,983
678,750,694
296,200,030
317,561,980
21,361,950
Instruction
319,100,683
329,957,339
126,916,039
145,559,007
(18,642,968)
(14.69%)
Support services
306,035,049
301,247,821
137,064,162
150,651,408
(13,587,246)
(9.91%)
3,709,231
4,543,169
1,674,347
1,490,641
183,706
10.97%
53,005,586
53,005,586
26,502,793
26,502,693
100
0.00%
681,850,549
688,753,915
292,157,341
324,203,749
Local sources
$
lnterdistrict sources
Total revenues
$
(5,789,395)
(32.51%)
7.21%
Expenditures
Community service
Debt service
Total expenditures
Revenues over (under) expenditures
(32,046,408)
(10.97%)
(10,684,458)
(160.87%)
(15,136,566)
(10,003,221)
4,042,689
(6,641,769)
14,100,000
12,836,172
2,569,230
5,520,945
2,951,715
875,551
14,631
860,920
114 .89%
{100.00%)
1,693,679
5,506,314
3,812,635
100.00%
(6,871,824)
605.20%
Other Financing Sources {Uses)
Other sources
(2,343,156)
Other uses
16,443,156
Total other financing sources (uses}
1,306,590
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
$
8:
The difference between the
14,962,032
4,958,811 $
(127,054,182)
(169,460,307)
(125,747,S92) $
(164,501,496)
Note A: The current budget represents the Original Budget plus BudgetAmendment
Note
(2 ,125,860 )
YTD Actual and YTD Budget are
5,736,368 $
(1,135,456) $
*
1 {August 13, 2014) and BudgetAmendment 2 (
December 15, 2014).
explained on the detail Statement of Revenue and Expeditures Reports.
The beginning fund balance represents the actual ending fund balance( deficit) per the Dstrict's FY 2014Audited Financial Statements.
/30/2015
Page 1
DETROIT PUBLIC SCHOOLS
Statement of Revenue
General Fund
For the six months ended December 31, 2014
Section 9 (5) Report
Variance Positive
(Negative) to
%Variance
Original
Current
YTD Budget
YTD Actual
YTD Budget
Positive
Budget
Budget
12/31/2014
12/31/2014
Budget
(Negative)
Notes
REVENUE DETAil
LOCAL SOURCES
Property tax revenue
Tuition non resident
$
77,459,247
108,480
$
71,780,508
131,650
$
35,890,254
12,365
$
29,797,026 $
34,331
(6,093,228)
177.65%
(38.11%)
Earnings on investment
31,892
31,892
20,284
12,553
(7,731)
Income from real property
64,080
64,080
14,411
44,975
30,564
11,593,043
11,593,043
5,737,277
2,126,607
(3,610,670)
3,619,508
4,012,393
912,442
4,507,454
3,595,012
Community services activities
Rent from school property
(16.98%)
21,966
A
212.09%
(62.93%)
A
(100.00%)
A
255,000
255,000
47,982
115,710
12,389,458
14,263,518
1,383,222
958,050
203,563
100,937
353,900
477,100
229,688
210,428
105,874,608
102,812,747
44,348,862
37,807,134
State school aid
251,490,368
250,230,794
125,115,396
132,880,470
7,765,074
6.21%
B
State restricted
70,732,470
71,233,164
35,616,582
45,648,538
10,031,956
28.17%
8
Section 31A- program
1,118,002
17.39%
B
CommunitY. use
Miscellaneous revenue
Classroom Technology Readiness
Private donations
Total Local sources
67,728
141.15%
(425,172)
(30.74%)
(100,937)
(100.00%)
(19,260)
(8.39%)
(6,541,728)
(14.75%)
STATE SOURCES
19,833,953
20,600,667
6,428,385
7,546,387
Comprehensive school health
80,000
80,000
39,098
37,262
(1,836)
(4.69%)
Great start readiness program
16,994,000
18,430,370
7,209,324
6,199,610
(1,009,714)
(14.01%)
29,480
Small Schools 21st Century
State Restricted Math Science
Detroit math & science centers
75,000
HRTTP HIV 2013 YR 2
37,270
50,000
25,002
100.00%
26,928
26,928
100.00%
25,007
(12,263)
(32.90%)
573
(24,429)
(97.71%)
Adolescent n Schoof Health
10,147
10,147
100.00%
Section 41 Bilingual instruct
2,414
2,414
100.00%
Wayne County Early On Program
104,200
46,830
(46,830)
(100.00%)
Technology Readiness Infrastructure
488,959
244,479
(244,479)
(100.00%)
361,293,154
174,762,366
Total State sources
10/15
75,000
29,4 80
359,20S,791
Page 2
192,406,816
17,644,450
10.10%
8
DETROIT PUBLIC SCHOOLS
Statement of Revenue
General Fund
For the six months ended December 31, 2014
Section 9 (5) Report
Variance Positive
(Negative) to
%Variance
Original
Current
YTD Budget
YTD Actual
YTD Budget
Positive
Budget
Budget
12/31/2014
12/31/2014
Budget
(Negative}
Notes
REVENUE DETAIL
FEDERAL SOURCES
14,992,080
35.99%
Title I Part A
120,066,638
56,643,851
23,345
123,638,532
23,345
41,651,771
Title I Part C
10,343
1,381
(8,962)
3,000,819
3,000,819
1,354,433
641,573
(712,860)
(52.63%)
60,000
60,000
(30,000)
(100.00%)
766,321
766,321
30,000
325,812
47,809
47,809
CTE Perkins Title II
Adult Ed & Family literacy
Title Ill Limited English Proficiency
Title Ill Immigrant Students
SIG 11 Federal thru State
Title 1 Part D - Intervention
144,886
English literacy and Civics Ed
Title II Part A- Regular Teacher
IDEA Flowthrough Attic
207,145
24,979
5,577
IDEA Preschool
28.74%
8,000,000
2,501,077
144,886
57,882
126,473
68,591
118.50%
5,186
5,186
100.00%
1,936,306
811,224
(758,033)
(23.26%)
72.10%
2,700,000
2,700,000
1,125,082
5,000
5,000
2,000
16,451,385
16,734,904
6,291,272
7,910,882
475,000
475,000
188,270
152,038
(36,232)
(19.24%)
9,439,709
413,035
9,439,709
3,311,375
3,198,317
(113,058)
0.00%
(3.41%)
413,035
158,145
189,811
31,666
(2,000)
1,619,610
Title VII- Indian Education
IDEA Flowthrough- Regular
63.58%
19,402
3,259,110
Title 1 School Wide Planning
21st Century Cohort
532,957
Head Start
450,000
705,797
WJA ABE AND GED Prep Services
School Climate Transformation
185,215
331,397
59,695
253,924
59,695
68,709
(331,397)
26,994
(100.00%)
25.74%
20.02%
2,562,583
2,562,583
981,175
1,125,863
144,688
156,156,530
169,167,740
59,282,684
75,331,307
16,048,623
27.07%
Charter Schools -Serv Provided
3,303,574
3,303,573
1,513,412
349,786
WCRESA-Follow That Child
1,441,716
1,441,716
40,731,764
IDEA Center Program (CPE)/Act
Total Federal sources
26,994
c
100.00%
100.00%
(100.00%)
100.00%
14.75%
Wayne County Early On Program
c
(86.65%)
INTERDISTRICT SOURCES
WCRESA ACT 18
40,731,764
16,292,706
30/15
11,611,939
54,998
45,477,054
45,477,053
(76.89%)
0 00%
(28.73%)
D
.
Transportation Revenue- Other Schools
Totallnterdistrict sources
(1,163,626)
17,806,118
Page 3
12,016,723
(4,680,767)
54,998
(5,789,395)
100.00%
(32.51%)
D
DETROIT PUBLIC SCHOOLS
Statement of Revenue
General Fund
For the six months ended December 31, 2014
Section 9 (5) Report
Variance Positive
(Negative} to
%Variance
Original
Current
YTD Budget
VTDActual
YTD Budget
Positive
Budget
Budget
12/31/2014
12/31/2014
Budget
{Negative)
Notes
REVENUE DETAIL
OTHER SOURCES
Sale of real estate
11,600,000
Sale of equipment
100,000
Transfer In
Total Other sources
Total Revenues and Other Sources
$
1,369,230
10,436,172
2,400,000
1,200,000
1,070,445
14,100,000
12,836,172
2,569,230
5,520,945
$
691,586,866
$
298,769,260
Page4
10/15
225.04%
0.00%
2,400,000
680,813,983
3,081,270
4.450,500
$
323,082,925
(129,555)
$
(10.80%)
2,951,715
114.89%
24,313,665
8.14%
E
DETROIT PUBLIC SCHOOLS
Statement of Expenditures by Function
General Fund
For the six months ended December 31,
Section
9 (5)
2014
Report
Variance Postive
(Negative) to
%Variance
Original
Current
YTDBudget
YTDActual
YTDBudget
Postive
Budget
Budget
12/31/2014
12/31/2014
Budget
(Negative)
Notes
FUNCTION LEVEL EXPENDITURES
INSTRUCTION
Elementary Programs (111,114, 118)
$
127,238,722
$
122,873,684
$
49,586,637
$
60,503,921
$
(10,917,284)
{22.02%)
Middle School Programs {112)
14,089,716
13,904,759
5,450,838
5,548,616
(97,778)
(1.79%)
High School & Summer Programs (113,119)
50,663,316
56,114,213
18,672,595
21,724,833
(3,052,238)
(16.35%)
Special Education (122)
75,006,884
75,496,115
30,584,966
34,162,451
(3,577,485)
(11.70%)
Compensatory Education (125)
46,686,705
57,651,567
20,993,150
21,151,610
(158,460)
(0.75%)
Career and Technical Education (127)
3,405,138
1,708,954
683,582
1,487,357
(803,775)
(117.58%)
Adult/Continuing Education- Basic (120, 13x)
2,010,202
2,208,047
944,271
980,219
(35,948)
(3.81%)
319,100,683
329,957,339
126,916,039
145,559,007
(18,642,968)
(14.69%)
Total Instruction
F
SUPPORTING SERVICES
Pupil {21x)
60,122,328
60,363,229
24,861,116
23,304,771
1,556,345
6.26%
G
Instructional Support (22x)
58,557,176
61,130,797
24,422,875
28,946,056
(4,523,181)
{18.52%)
G
(502,375)
(16.21%)
6,830,748
6,344,968
3,098,747
3,601,122
School Administration (24x)
35,279,744
37,076,845
17,840,859
16,503,802
Business {25x)
12,828,933
12,525,701
6,390,197
6,685,337
(295,140)
(4.62%)
General Administration {23x)
1,337,057
7.49%
G
Maintenance & Operations (261)
78,049,928
68,763,249
33,312,515
45,644,248
(12,331,733)
(37.02%)
Transportation (27x)
26,910,502
26,453,052
13,013,636
14,223,586
(1,209,950)
(9.30%)
G
Central Support Services (28x)
26,474,558
27,006,034
13,332,244
11,137,439
2,194,805
16.46%
G
981,132
1,583,946
791,973
605,047
186,926
23.60%
306,035,049
301,247,821
137,064,162
150,651,408
School Activities {29x)
Total Supporting Services
COMMUNITY SERVICES
(3xx)
DEBT SERVICE (5xx)
TOTAL GENERAL OPERATING EXPENDITURES
(13,587,246!
(9.91%)
3,709,231
4,543,169
1,674,347
1,490,641
183,706
10.97%
53,005,586
53,005,586
26,502,793
26,502,693
100
0.00%
681,850,549
688,753,915
292,157,341
324,203..749
455,346
227,673
14,631
(32,046,408)
(10.97%)
OTHER FINANCING USES
Major Projects/Facility lmprov (4xx)
Prior Year ADJ Material (49100)
Total Other Financing Uses
TOTAL EXPENDITURES
213,042
93.57%
647,878
100.00%
860,920
(100.00%)
(2,343,156)
Outgoing transfers (6xx)
(2,343,156)
$
679,507,393 $
0.00%
(2,581,206)
647,878
(2,125,860)
875,551
686,628,055
$
293,032,892 $
Page 5
/30/15
G
14,631
324,218,380 $
(31,185,488)
(10.64%)
DETROIT PUBLIC SCHOOLS
Statement of Expenditures by Object Level
General Fund
for the six months ended December
31, 2014
Section 9 (5) Report
Variance Postive
(Negative) to
%Variance
Original
Current
YTDBudget
YTDActual
YTD Budget
Postive
Budget
Budget
12/31/2014
12/31/2014
Budget
{Negative)
Notes
OBJECT LEVEL EXPENDITURES
Personnel (Sxxxxx & Gxxxxx)
$
463,048,713
$
466,108,433
$
$
(24,214,706)
(12.76%)
(917,645)
(1.54%)
8,308,239
9,005,426
(697,187)
(8.39%)
1,064,114
1,004,304
59,810
59,398,740
213,986,195
133,478,692
18,547,708
20,090,720
971,425
2,308,616
Utilities
24,326,230
10,226,230
5,112,101
10,763,060
Other
54,950,962
54.415,364
29,378,209
29,143,010
Supplies & Textbooks
Equipment & Capital
TOTAl EXPENDITURES
./30/15
$
679,507,393 $
686,628,055
$
$
60,316,385
189,771,489
117,662,355
Purchased Services
293,032,892
Page 6
$
324,218,380
(5,650,959)
235,199
$
(31,185,488)
5.62%
(110.54%)
0 80%
.
(10.64%)
H
DETROIT PUBLIC SCHOOLS
General Fund Estimated Cash Flow (In Thousands)
July 2014 �June 2015
Beginning Balance
(Actual)
(Actual)
(Actual)
(Attual)
(Actual)
(Actual)
'"'
August
September
October
November
Detember
January
February
March
April
M•v
June
TOTAL
$19,854
512,254
i37,103
$42,990
$19,246
$21,663
$20,321
$14,780
37,781
31,175
27,576
28,937
28,937
28,937
28,937
28,937
28,937
5,191
2,595
3,G63
3,Q63
3,063
3,063
3,063
3,063
29 .,.,,
6,531
29,190
2,167
3,303
25,000
15,000
5,000
20,000
141,362
(23,710)
2;T/7
(18,914)
15,523
(544)
15,634
(4,560)
18,841
(13,229)
12,822
(10,928)
9,180
(14,445)
9,180
(2,889)
9,180
23,887
41,862
$85,719
$25,495
$12,917
29,763
29,897
1,528
"'
,,.
27,707
7,050
18,271
(3,159)
20,277
41,440
(�
$2S,49S
Cash fu;q:ipr<
State Aid
MPSERS UAAL Rate Stabili2.atio
Property Taxes
Property Tax rranfer to other t'unds
Grants
(2,587)
13,259
(302)
9,180
329,813
(95,267)
153,623
State Aid Note J>roteeds
2014 State
A•<.! Note DrAw
107,189
Other Receipts
2,900
2.900
2,900
2,900
2,900
2.900
2,900
2,900
2,900
2,900
29,001
'"'
3,436
1,054
270
3,630
4,872
3,737
2,611
2,773
2,874
8,975
3,352
38,268
Deposits
7
w
57
"
"
"
w
Deposits · DPS
1,003
1,372
"'
1,286
505
269
221
'"
1,631
"5
"'
9,213
5
u
7,390
000
"
no
323
33
330
WCRESA -Net Act
18
f'unds
Food Serv•ce-Rcimbursemcn!
Interest
Gp•tal A;set Sales
1,807
Miscellaneous
"
EAA Receipts
Total Available Funds
8,659
499
3,996
{3,428)
"'
Outreach Medicaid
Total cash Receipts
"'
1,388
1,388
1,388
'"
'"
8,997
1,003
1,003
1,003
1,003
1,003
5,014
'"
6,376
129
129
l28
247
'"
"'
323
'"
8,017
53,616
136,601
14,717
87,839
84,596
59,039
43,102
64,109
51,538
51,852
57,478
68,956
773,443
79,111
149,518
10(),435
107,693
96,851
96,142
86,()92
83,355
73,:W1
72,174
72,257
68,956
798,938
Ca:;h Disbursements
(24,444)
(23,800)
(19,113)
(25,027)
(21,373)
(20,208)
(27,973)
(21,191)
(20,856)
(21,192)
(24,6S5)
(20,856)
FICA
(2,064)
(1,543)
(1,437)
(2,670)
(1,760)
(1',71 1)
(1,697)
(1,750)
(1,750)
(1,750)
(2,625)
(1,750)
Retirement
(2,371)
(2,313)
(6,816)
(10,643)
(8,404)
MPSERS UAAL Rate Stablllzation
(1,575)
(1,528)
Payroll
Past Due Retirement Payments
(5,191)
(6,366)
(22,507)
{30,547)
(1,530)
(22,306)
(270,688)
(3,426)
(3,1)63)
(3,063)
(3,1)63)
(3,063)
(3,063)
(28,564)
(28,673)
Non-Payroll Expenditures
Fringe Benefits
Fringe Benefits-Wired
Account Payable
(1,459)
(788)
(614)
(1,315)
(991)
(923)
(1,183)
(924)
(924)
(924)
(1,270)
(924)
(417)
(4,649)
(8,049)
(9,124)
(92)
(3,699)
(8,745)
(8,958)
(4,911)
(4,911)
(4,915)
(4,923)
(63,394)
(11,231)
(5,149)
(9,257)
(21,733)
(14,652)
(12,197)
(17.508)
(12,399)
(14,312)
(13,850)
(21,411)
(15,515)
(169,215)
(10,459)
(10,885)
3,181
6,274
11,312
7,724
11,161
12,515
52,168
(2,868)
(2,805)
(2,000)
(2,387)
(2,937)
(1,676)
(30,073)
(667)
(667)
(667)
(2,097)
Additional Ac;J;Ount Payable
(21,344)
Deferred Accounts P�yable
Food service Transfer
(1.500)
(3,500)
(1,000)
(1,050)
(12,238)
(5,850)
Other Finoncing Uses
(500)
Adult Education
(500)
2014 St-.>tc Aid Cost of Issuance
set Aside Payments on Debt
2012 Bonds-
Prmcipal
2012 Bonds- lnteresr
2011 Bonds· Principal
2011 Bonds - Interest
2013 Notes. Pm•c•pal
2013
Notes · Interest
2014
Notes- Jlrinctp·•l
2014
Notes· Interest
Toral Set-Aside Jl�yments
(19,650)
(1,533)
(881)
(2,036)
(2,036)
(2.036)
(2,036)
(2,036)
(2,036)
(2.036)
05"
05"
05"
(557)
(557)
(557)
05"
(557)
(4,-l-58)
(2,914)
(2,914)
(2,914)
(2,914)
(2,914)
(2,914)
(2,914)
(2,914)
(23,311)
(1,118)
(1,118)
(1,118)
(1,118)
(1,118)
(1,118)
(1,118)
(1,118)
(16,290)
(8,947)
(39,250)
(2,414)
(9,750)
(9,750)
(9,750)
(15,250)
(22,100)
(66,600)
(21,\33)
(20,531)
(6,626)
(6,626)
(6,626)
(6,626)
(16,376)
(16,376)
(16,376)
(21,876)
{"",100)
(161,269)
Total Cash Disbursements
(66,194)
(63,799)
(80,582)
(95,438)
(59,748)
(53,152)
(66,846)
(61,692)
(52,880)
(57,394)
(72,257)
(58,959)
(788,941)
Ending Balance
$12,917
$85,719
$19,854
$12,254
$37,103
$42,990
$19,246
$21,663
$20,321
$14,780
44,279
(45,473)
(94,935)
(70,086)
(64,199)
(87,943)
(75,776)
(67,368)
(63,159)
(62,689)
(30,592)
{30,592)
(446(
{13,712)
(39,652)
(42,170)
(42,170)
Balance without Note Proceeds
Balance without Deferred APs
'30/15
(19,600)
(2,036)
(3,667)
$12,917
$85,719
$19,854
$12,254
$37,103
$42,990
Page 7
$16,065
$12,208
(�
$9,997
$9,997
DETROIT PUBLIC SCHOOLS
General Fund Estimated Cash Flow (In Thousands)
July 2015 -June 2016
August
July
Beginning Balance
$9,997
$6,374
29,754
1,492
September
November
October
December
February
January
March
M•y
April
June
TOTAL
$4,430
$2,466
$2,614
$3,781
$820
$3,6CW
$4,196
$514
$949
$9,997
29,754
28,421
21!,421
28,421
28,421
28,421
28,421
28,421
2M,421
28,421
315,2%
1,492
1,421
1,421
1,421
1,421
1,421
1,421
1,421
1,421
1,421
15,771
2,261
293
527
2,348
11,025
1,889
2,820
5,951
9,908
51,485
8,846
14,189
14,189
14,189
10,992
13,389
11,141
16,664
20,099
162,558
$54,782
Gash Rrcrinrs
State Aid
MPSERS UAAL Rate Stabilizatio
14,464
Property Taxes
Property Tu tmnfcr 10 other Funds
11>,421
Grants
16,458
5,980
State Aid Note Proceeds
2015 Stat" Aid Note
107,000
Proceeds
107,000
Other Receipts
WCRESA -Nd Act
2,900
4,073
4,073
4,073
4,073
4,073
4,073
4,073
4,073
5,246
40,732
1,893
1,975
"'
1,695
5,684
6,903
1,509
5,111
5,273
2,874
8,975
3,352
45,990
'"
604
409
3,4.J.6
2,497
SBO
1,148
2,066
3,531
574
1,768
696
17,904
0
0
0
0
0
0
0
18 Funds
Food Service--Reimbursement
Deposits - DPS
Interest
0
Capnal Ass.:t Sales
Miscellaneous
Outreach Medicaid
1,023
319
159
1,388
1,388
1,388
1,388
1,388
1,388
1.388
1,388
1,388
13,991
836
836
836
836
'36
836
836
836
836
'"
836
836
10,029
66,469
158,440
11,030
52,386
58,802
58,338
55,333
65,333
60,221
53,548
69,496
71,?.67
780,763
76,466
164,814
65,812
56,817
61,268
60,951
59,115
66,152
63,825
57,744
70,010
EAA Receipts
Total Cash Receipts
Total Available Funds
790,760
(26,264)
(19,822)
(19,822)
(23,290)
(19,822)
(19,822)
(26,264)
(19,8.22)
(19,822)
(19,822)
(23,290)
(19,822)
FICA
(1,516)
(1,684)
(1,684)
(2,526)
{1,684)
(1,684)
(1,684)
(1,684)
(1,684)
(1,684)
(2,526)
(1,684}
(21,724)
Retirement
(2,091)
(40,836)
(2,0:}8)
(7,711)
(7,711)
(7,711)
(15,421)
(7,711)
(7,711)
(7,711)
(7,711)
(7,711)
(122,071)
MPSERS UAAL Rate Stabilization
(3,063)
(1,492)
{1,492)
(1,421)
(1,421)
(1,421)
(1,421)
(1,421)
(1,421)
(14,571)
Past Due Retirement Payments
(2,038)
(16,175)
(25,173)
(448)
'"'"
(4,923)
(448)
(448)
(4,923)
{4,923)
'"'"
(4,923)
(10,336)
l'ayroll
(7,133)
(2S7,681)
(50,S18)
Non-Payroll Expenditures
F"ringe Benefits
Fringe Benefits-Wired
Account Payable
(4.923)
(18,613}
Additional Account Payable
Deferred Accounts Payable
Food Service Transfer
18,613
(7,650)
{1,916)
(360)
(21,240)
(28,491)
25,000
(5,161)
32,401
(1,952)
(1,695)
(448)
{4,923)
(17,634)
(44.
{4,923)
{9,542)
'"'"
(4,923)
(44 .
(4,923)
'"'"
(4,923)
(11,662)
(14,312}
10,000
(5,111 )
(448)
(448)
(5,371)
{4,923}
(S9,077)
(8,225)
(4,923)
(14,88!)
(18,515)
(j.S1,320)
14,312
8,225
14,881
(5,273)
(2,874)
(8,975)
9,542
10,000
{5,684)
(6,903)
(1,509)
(24,110)
133,432
{3,352}
(52,894)
Capital Leases
Adult Education
(642)
2014 Stllte Aid Cost of 1Sl>uancc
(642)
Set Aside Payments on Debt
2012 Bonds-
Pnncipal
(2,036)
(2,036)
(2,036)
(2,036)
(2,036)
(2,036)
(2,06)
(2,036)
2012 Bonds -Interest
(557)
(557)
(557)
(557)
(557)
(557)
(557)
(557)
(2,914)
(2,914)
(2,914)
(4,4S8)
(2,914)
(2,914)
(2,914)
(2,914)
(2,914)
(1,118)
(1,118)
(1,118)
(23,311)
(1,118)
2011 Bonds- Principal
2011 Bonds- Interest
2014 Notes
· Principal
2014 Notes·
(22,100)
(19,100)
(1,118)
(1,118)
(1,118)
(1,118)
(13,143)
(13,143)
(13,143)
(13,143)
(16,290)
(8,947)
(13,143)
(2,995)
!ntcn:st
(2,995)
2015 Notes- Principal
2015 Notes -Interest
Total Set-Astdc Payments
Total Cash Disbursements
Ending Balance
Balance without Note Proceeds
Balance without Deferred APs
(106,914)
(22,100)
(22,095)
(1>,626)
(6,626)
(6,626)
(6,626)
(19,769)
(19,769)
(19,769)
(19,769)
(13,143)
(162,915)
(70,092}
(110,032)
(61,381)
(S4,351)
(58,654)
{57,170)
(58,295)
(62,549)
(59,629)
(57,230)
(69,062)
(71,018)
(789,463)
$6,374
$54,782
$4,430
$2,466
$2,614
$3,781
i3,604
$4,196
$1,297
$1,297
(12,115)
(41:1,612)
(98,963)
(100,9"..8)
(100,780)
(99,612)
(102,574)
(86,647)
(102,804)
(93,343)
(79,766)
(66,274)
{66,274)
(39,182)
(73,548)
(73,400)
(82,232)
(8S,194)
(92,410)
(106,130)
{118,036)
(132,483)
(132,134)
{132,134)
(12,239)
$36,169
130/15
PageS
$820
$514
$949
-------------------------Detroit Public Schools
Notes to Second Quarter Interim Financial Report (Continued)
For the six months ended December 31, 2014
Note (1)
Summary of Significant Accounting Policies
The accounting policies of the Detroit Public Schools (the School District) conform to accounting principles
generally accepted in the United States of America (GAAP) as applicable to governmental units. The following is
a summary of the significant accounting policies used by the School 1
Reporting Entity
incorporated in 1842, is
The School District of the City of Detroit (commonly known as "DE�tro>it
provisions of the State of
a statutory public body created by the State of Michigan, and functions
miles, and is located
Michigan's Public Act 451. The District encompasses an area of approximately
within the City of Detroit, Wayne County, Michigan. Although the corporate
of the District are
coterminous with the corporate boundaries of the City of Detroit, the District is a tot.ali\1 se11arate governmental
unit.
Detroit Public Schools is the largest
employers in Detroit, employing 6,535, �m1n1n1
Michigan. The District is one of the largest
eqllivalent:s) as of June 30, 2014.
emergency continued to exist for the
On May 16, 2011, Governor Rick Snyder
for the District, pursuant to Public
District and appointed Roy S. Roberts to
the District pursuant to Public Act 4 until August
Act 4. Mr. Roberts served as Emergency
2012 when ��pUc Act 4 was suspended by voter
n for a referendum and temporarily replaced by
Mr. Roberts to serve as an Emergency
PublicA�ti�f:i)·� iH�Ai.Jg,ust 2012, Governor Snyder
Fina�Etil;rvtangeriat'ffj�; , �jstrict under Public Act 72 ring the suspension period and after Public Act 4
was r��:9!9 ? ed by votef'f�J�t r, �ndum effective November 6, 2012); and in March 28, 2013, reappointed
:
Mr. Rolief;fs:;ls
the Emergefte�:Manager for the District when a subsequently enacted Public Act 436 of
2012 ("Pub'tia��.t 436") took''l!' eft. On July 15, 2013, Governor Snyder appointed Jack Martin to a one
year term to ��l:l!'
e,as Emerge��i
Manager for the District to replace Roy Roberts who retired as EM on
'-i<'-\C'_:-0
?:c0\'i
that same date. 'Under Public �t;'t 436, the EM is prescribed all power and authority over all financial,
operational and ac�,d��J� ma;t��f;�'bf the District as is necessary to address the financial emergency of the
District, subject to certiii�'litfl.l{�tions enumerated in Public Act 436. Notwithstanding any agreed upon
expiration date, the EM s�l:\ie's' at the pleasure of the Governor and the Governor has the authority to
remove the EM with or without cause at any time he may determine. The EM may also be removed by
impeachment and conviction by the State Legislature. On January 13, 2015, Governor Snyder appointed
Darnell Earley as Emergency Manager to succeed Jack Martin who's term ended January 15, 2015.
ff
Page 9
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-----
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------
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--
----------
--
-----
Detroit Public Schools
Notes to Second Quarter Interim Financial Report (Continued)
For the six months ended December 31, 2014
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenue is recognized as soon as it is both measurable and
available. Revenue is considered to be available if it is collected within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the School District considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are
ng. However, debt service expenditures, as well
recorded when a liability is incurred, as under accrual
as expenditures related to compensated absences
. I
and judgments (such as self insurance,
contingencies), are recorded only when payment is
int••re1st associated with the current fiscal
Property taxes, unrestricted State Aid, intergovern
'""'"i"•rl as revenue of the current fiscal
period are all considered to be susceptible to accrual
period. All other revenue items are considered to be avauao
cash is received by the School District.
General Fund
The General Fund is the School District's primary operating fund. It iil'r:i!unt< for all financial resources of the
to be accounted for in
School District, except
separate sub funds withi
.. The School District maintains
n and special education. The
General Fund includes
22
Page 10
Detroit Public Schools
Notes to Second Quarter Interim Financial Report (Continued)
For the six months ended December 31, 2014
Note (2)
District's Strategic Direction
We are actively working to address the District issues through our 2013-2017 Strategic Plan, "The
Neighborhood-Centered, Quality Schools," available online at http://detroitk12.org/strategicplanning.
1.
Broaden Services to address students needs
2.
Support parents and families
3.
Offer broad/high quality programs
4.
Improved customer services
5.
Create safe learning environments
6.
Transform central and school based operations to serve customers
7.
Improve technology
8.
Minimize the impacts of change
9.
Foster school-based leadership
10. Celebrate and promote success
11. Ensure fiscal stability
12. Enhanced attendance and discipline
implementation efforts is included in the FY 2014
��t�hi!lancial RepoWliJg and District's Operations Management
In July 2014, The Diim¢�,iJ11plement��jts new upgrade to PeopleSoft Financials 9.2 which brings significant
,
enhancements to the Dis(rl !;t:s finag�� J management and reporting system. The District is now in its post
implementation phase whidi'i� (l�.�I�i��'in improving the interim financial reporting process.
Note (3)
lnt
'
• ' ' " ' "--0'-
-,-c-d,
---�;�E'l':"Ti��,,
-;-\F1;'F
Note (4)
Monthly Financial Statements
The financial statements presented reflect data from the District's General Ledger for the six months ended
December 31, 2014.
Page 11
-----------
-
-----
-----
------
------
--------
-----------
--
----------
--
-----
Detroit Public Schools
Notes to Second Quarter Interim Financial Report (Continued)
For the six months ended December 31, 2014
Note (5)
Variance Explanations- Function level
Variance explanations for the Function level are provided for financial items which have a variance of over$1
million (Refer to page 3):
Reference
Description
local sources
Explanation
Key
This variance is primarily attributed to the_folloVo!i!Jg,revenue:
I.
II.
"''��;1!1:?_-/
Property Taxes- Property Tax actual1!�y�hue is based on the taxable
:R�'<!>-":_
value times 18 mils minus the 5 Jt��Itl'I�!M , chargeback liability. The
current budget is based on prio'rlY,�r Pro��f:l:,}'. Tax Revenue
'�i'i;&_'-i\\,
-,:,>>:;rn-.
(Medicaid RE!ifij�,�p ement Funding)
- Medicaid Revenue is currently budgeted at S'iil\S.,Million. Based
on actual Medicaid receipts, it is estimated that'�'f��rue will be
t�nce is the
consistent with Fiscal Year 2014 $
( 4.2 million). This V�'i''>JN{-:.'If,,.
receiving$9 million in excess Medic1i'J9§funding
result of
million in FY 2012 and$ 4.9 million in FY 2013).
State began deducting funds towards
liability. It is recommended that the
adjusted in Budget
Community Services Activities
.·
Ill.
.
Tn"""'rights were sold for $3.7
This revenue is not reflected in the
million in August 2014
that the budget be appropriately
current budget. It is
adjusted in Budget Am,enljffie:Qt;;#3.
primarily attributed to the following revenue:
State
IQQ!L.8i!W��;rjfj� Actual State revenue is based on
2014 State Aid Financial Status Report. The budget
'reflect this current projection. This creates a significant
restricted State Revenue since Section 147s MPSERS
ihilii7�t·inn is being accrued monthly based on a projected
and the current budget for UAAl is $16.5 million. It is
rpr·nrr1m1>nrled that the budget be appropriately adjusted in Budget
Amendment #3.
-
II.
A
Revenue for Section 31A (Grants) is based on actual
expenditures incurred. Actual expenditures incurred exceeded the
budget allocated for the six months ended. This is a timing
difference.
Section 31A -
Page 12
B
Detroit Public Schools
Notes to Second Quarter Interim Financial Report (Continued)
For the six months ended December 31, 2014
Reference
Description
Key
Explanation
Great Start Readiness Program - Revenue for the Great Start
Ill.
Readiness
Program
incurred.
Actual
(Grants)
is
expenditures
based
on
incurred
actual expenditures
exceeded
the
budget
allocated for the six months ended. This is a timing difference.
Federal sources
This variance is primarily attributed to the Title I Part A Grant. and Title II A
grants. The actuals includes revenues recognized from both the
2015 Grants. The budget includes
lnterdistrict
sources
2014
c
and
2015 grant funds.
This variance is primarily
D
revenue is based on
I.
billings and receipts for
rmation Technology, and
The budget assumes a
Security services provided to
significant
increase
previous
in
years
due
to
a new campaign to
Information Technology
market District services.
It is rPr,,m,
�� ;��ely adjusted in Budget Amend
H
- Actual WCRESA Act
18
that the budget be
revenue is recorded net of
nts per Wayne County RESA's payment schedule.
WCRESA Revenue is recorded at Gross.
It is
budget be appropriately adjusted in Budget
Other sources
This variance is
sold for
$3.7 million
...
"
i
to Sale of Real Estate. Real Estate Property was
2014 (FY 2015). This revenue
E
is not reflected
in the current budget. :�i�i're1:onnmen1jed that the budget be appropriately
adjusted in Budget Amendment #3.
Instruction
This variance is primarily attributed to the actuals for the Title I A and Title II
F
A grants reflecting expenditures for both 2014 and 2015 Grants. The budget
includes only the
Support services
2015 grant funds.
This variance is primarily attributed to the following functional categories:
1.
Pupil and Instructional Support- Actuals for the Title I A and Title II
2014
2015 grant funds.
A grants reflect expenditures for both
budget includes only the
II.
and
2015
Grants. The
School Administration- Actual expenditures incurred were less than
budget allocated for the six months ended due to decreased
personnel costs.
Page 13
G
----------- --
-----
-----------
-------
--------- ------------
--
---------- ---
-----
Detroit Public Schools
Notes to Second Quarter Interim Financial Report (Continued)
For the six months ended December 31, 2014
Reference
Description
Key
Explanation
Ill.
TransQortation -
IV.
Central SUQQOrt Services -
Actual expenditures incurred were greater than
budget allocated for the six months ended due to additional
transportation costs from prior year initiatives.
Actual expenditures incurred were less
than budget allocated for the six months'i!o' ded due to the timing of
vendor payments for Information Te9t{��J�� y purchased services.
<��%1�(�::_:
�l$ci'ef!�ct. accrued expenditures to
date. The budget includes �·:,:�12 mi!i'iQ)), PLD (Public Lighting
Department) credit from the City of Detr6lt';<;This credit towards
electrical service billings is in exchange for 7i"'IJ��, properties being
transferred to the City of Detroit. This credit has nbfbeen applied.
Maintenance & 0Qerations- At;t\l
v.
_-,,_-
',>�\,
of Revenues and Expenditures.
Note (6)
Variance Explanations- Object Level
Variance expl�p�tillri�:·fgr:ttw Object Level are provided f/\'rA;,,�
million (Refei:'ti:>'page 8):
··
--':::�-;.":·-�-.
Description
· •.·
;
'
-
Personnel (Salary
and Benefits )
'
,,y
..
items which have a variance of over $1
.
.
) . .
;
Reference
Explanation
ttiisyariance isJ)rimarily attributed to the actuals for Title I A and Title II A
g;ahi:�> \eflectiJigi'expenditures recognized from the both 2014 and 2015
Grants:••rg,�,.p.9�$'et includes only the 2015 grant funds.
Key
H
. '--,_,--�
Utilities
Actuals refiekt accrued expenditures to date. The budget includes a $12
million PLD (Public Lighting Department) credit from the City of Detroit. This
credit towards electrical service billings is in exchange for 77 DPS properties
being transferred to the City of Detroit. This credit has not been applied.
Page
14
I
Detroit Public Schools
General Fund
Second Quarter Interim Finanical Report
For the six months ended December 31, 2014
$50
Local Sources
$45
$40
$35
"'
$30
c:
.£!
�
$25
$20
$15
$10
$5
$0
Other
Property tax revenue
Page 15
Total Local sources
Detroit Public Schools
General Fund
Second Quarter Interim Finanical Report
For the six months ended December 31, 2014
$250
State Sources
$200
�
$150
-�
:?!
$100
$50
$0
I
I
"YTD Budget
12/31/2014
��
YTD Actual
12/31/2014
State school aid
State restricted
Section 31A- program
Other
Total State sources
$125,115,396
$35,616,582
$6,428,385
$7,602,003
$174,762,366
$132,880,470
$45,648,538
$7,546,387
$6,331,421
$192,406,816
1/30/15
Page 16
I
I
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the six months ended December 31, 2014
$80
-·
Federal Sources
$70
$60
$50
"'
s:::
.5!
$40
::i:
$30
$20
$10
$0
Title I
1/30/15
Title II
Title Ill
Page 17
IDEA
Other
Total Federal
sources
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the six months ended December 31, 2014
lnterdistrict Sources
$20
$18
$16
$14
"'
$12
s::
.5!
2
$10
$8
$6
$4
$2
$0
Charter Schools -Serv
Provided
Ill YTD Budget
12/31/2014
i YTDActual
12/31/2014
WCRESA Follow that child
and
WCRESA ACT 18
Transportation Revenue Other Schools
Total lnterdistrict sources
$1,513,412
$16,292,706
$-
$17,806,118
$349,786
$11,611,939
$S4,998
$12,016,723
1/30/15
Page 18
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the six months ended December 31, 2014
$4
Other Sources
$3
"'
r:::
.S!
$2
$1
$0
Sale of real estate, equipment & Transp
Transfer In
Revenue
1/30/15
Page
19
Total Other sources
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the six months ended December 31, 2014
Total Revenue & Other Sources
$325
$320
$315
$310
"'
s:::
$305
.2
2:
$300
$295
$290
$285
1/30/15
Page
20
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the six months ended December 31, 2014
$160
$140
Instruction
$120
$100
"'
s::
.!2
$80
�
$60
$40
$20
$0
'
j
Budget
12/31/2014
1111 YTD
Actual
12/31/2014
"' YTD
1/30/15
I
Elementary
Programs
MiddleSchool
Programs
HighSchool
$49,586,637
$5,450,838
$60,503,921
$5,548,616
Special Education
Compensatory
Education
CTC/ Adult/
ContinuingEd.
Total Instruction
$18,672,595
$30,584,966
$20,993,150
$1,627,853
$126,916,039
$21,724,833
$34,162,451
$21,151,610
$2,467,576
$145,559,007
Page 21
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the six months ended December 31, 2014
$160
Supporting Services
$140
$120
$100
"'
s:::
.!2
$80
�
$60
$40
$20
$0
Pupil/
Instructional
Support
lllll YTD Budget
12/31/2014
: ffi:l
YTD Actual
12/31/2014
General I
School Admin.
Business
Maint.&
Operations
Transp.
Central Support
Security I Other
Total
Services&
FacilitiesI
Supporting
School Activities
lmprov
Services
$-
$137,064,162
$-
$150,651,408
$49,283,991
$20,939,606
$6,390,197
$33,312,515
$13,013,636
$14,124,217
$52,250,827
$20,104,924
$6,685,337
$45,644,248
$14,223,586
$11,742,486
1/30/15
Page 22
L
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the six months ended December 31, 2014
Community and Debt Services
$30
$25
$20
"'
c
.5!
$15
�
$10
$5
.....
$0
Community Services
Debt Services
1/30/15
Page 23
I
Detroit Public Schools
General Fund
Second Quarter Interim Financial Report
For the five months ended December 31, 2014
Total General Operating Expenditures
$330
$320
$310
"'
c
.2
$300
·-
::i!:
$290
$280
$270
Page 24