SBE Rule 6A-1.009, Florida Administrative Code, requires financial statements be submitted to the Board at least monthly.

The reports are in order and are certified as correct by the Superintendent and the Finance Department.

Please consider the following items when reviewing the financial statements:

Capital Projects Funds - expenditures exceed revenue by $9.155 million. This is due to the District’s aggressive construction schedule. All expenditures are in compliance with the District’s capital plan. [Reference: Combined Statement of Revenues and Expenditures (page 2) and Statement of Revenues, Expenditures, and Changes in Fund Balance (page 9)]

Food Service Fund - expenditures exceed revenue by $122,078. The District did not receive the January Federal reimbursement for the National School Lunch and Breakfast programs by month-end closing. Historically, there is approximately a one-month lag in receiving the reimbursement. [Reference: Combined Statement of Revenues and Expenditures (page 2) and Statement of Revenues, Expenditures, and Changes in Fund Balance (page 12)]

Internal Service Funds - revenue is deficient to expenses by $4 million. The health insurance is deficient by approximately $3.2 million and the Property Casualty fund is deficient by approximately $800,000. The Property and Casualty Fund deficiency is because other funds have not submitted the premium income to support this program. This revenue will occur before the end of the year. The health insurance deficit is due to claims expense incurred in July and August with revenue recognized for only the 12-month staff. This is a normal occurrence.  [Reference: Combined Statement of Revenues and Expenditures (page 2) and Statement of Revenues, Expenditures, and Changes in Fund Balance (page 18)]

The Superintendent recommends approval of the Monthly Financial Statements for January 2007.

Motion and approval of the Monthly Financial Statements for January 2007.

Finance Department

DH

03/12/07