EDEN CENTRAL RESERVES BLUEPRINT TO DEVELOPING A RESERVE PLAN AND - - PowerPoint PPT Presentation

EDEN CENTRAL RESERVES

BLUEPRINT TO DEVELOPING A RESERVE PLAN AND LONG TERM FINANCIAL PLANNING

PLANNED DISCUSSION

• LONG TERM FINANCIAL PLANNING
• CURRENT RESERVES
• RESERVES TO FACILITATE LONG TERM FINANCIAL PLANNING
• PROCESS UTILIZED FOR DEVELOPING RESERVE PLAN

LONG TERM FINANCIAL PLANNING - DEFINITION

Long-T erm Financial Plan. An investment plan or strategy with a term of usually longer than one year. A long-term financial plan involves more uncertainty than anything short- term because, typically, market trends are more easily predictable in the short term. Long-T erm Financial Planning. ... Long-term financial planning works best as part of an

• verall strategic plan. Financial forecasting is the process of projecting revenues and

expenditures over a long-term period, using assumptions about economic conditions, future spending scenarios, and other salient variables.

www.gfoa.org/long-term-financial-planning

OVERVIEW REASON FOR RESERVES

• SAVINGS FOR FISCAL STABILITY
• ALLOWS DISTRICTS TO SUSTAIN PROGRAM DURING PERIODS OF ECONOMIC

DECLINE

• OFFSETS LOCAL SHARE OF MAJOR PURCHASES
• BUSES, CAPTIAL IMPROVEMENTS, TECHNOLOGY, ETC.
• IMPROVE BOND RATINGS

PURPOSE OF EXISTING RESERVES

• SAVE FOR FUTURE PLANNED EXENDITURES
• CAPITAL RESERVE
• BUILDING
• EQUIPMENT/BUSES
• EMPLOYEE BENEFIT ACCRUED LIABILITY
• RETIREMENT CONTRIBUTION (ERS ONLY)

PURPOSE OF EXISTING RESERVES CONT’D

• SAVE FOR FUTURE UNPLANNED EXENDITURES
• UNEMPLOYMENT INSURANCE RESERVE
• REPAIR RESERVE

CURRENT RESERVES AVAILABLE TO AID IN BUDGETING – REQUIRING BOARD AUTHORIZATION TO UTILIZE

RESERVE

• UNEMPLOYMENT INSURANCE

RESERVE

• RETIREMENT CONTRIBUTION
• EMPLOYEE ACCURED BENEFIT

LIABILITY

PURPOSE

• T
• cover cost of reimbursement for NYS

Unemployment expenses

• T
• cover the cost of Employee Retirement

System (support staff)

• Pay accrued benefits due employees upon

separation of service for vacation and sick leave

CURRENT RESERVES FOR PLANNED EXPENDITURES (REQUIRING VOTER AUTHORIZATION TO UTILIZE)

RESERVE

• REPAIR RESERVE
• CAPITAL RESERVE
• VEHICLE RESERVE

PURPOSE

• Repairs to capital equipment or improvements

that are not recurring routinely. Public hearing is required before board approval if not repaying in two (2) years.

• To pay costs of items that bonds may be issued

for

• To purchase new buses and equipment

PROCESS FOR DEVELOPING AND ADOPTING FORMAL RESERVE PLAN

ACTION

• DETERMINE BOARD RISK TOLERANCE
• PROPOSE NEW RESERVES
• DEVELOP RESERVE PLAN
• REVIEW RESERVE PLAN
• ADOPT RESERVE PLAN

PERFORMED BY

• DIRECTOR OF FINANCE-

SUPERINTENDENT – AUDIT COMMITTEE

• DIRECTOR OF FINANCE-SUPERINTENDENT
• DIRECTOR OF FINANCE
• SUPERINTENDENT
• AUDIT COMMITTEE
• BOARD OF EDUCATION

QUESTIONS?????