MEMORANDUM


   

November 14, 2013

 

To:     Members of the Comprehensive Financial Monitoring Task Force

From:   John Wall  

Re:       FY2013 Close - October Financial Status Report

The year-end FY2013 Financial Status Report is now available for viewing, Financial Status Report, printing October FSR or downloading in Excel format.

   The Department is pleased to report that it closed FY2013 with a total agency-wide surplus of $2.5 million against the final modified budget.  Earlier in the fiscal year, the Department faced severe budget reductions originating from two diverse sources:  a City PEG target of ($127m) as reflected in the November Plan and a State-imposed budget loss directly attributable to the lack of a teacher evaluation system.   In spite of these severe obstacles, the Department was able to avoid direct cuts to school budgets and was able to end the fiscal year in alignment with budgeted resources.

   Since the release of the May FSR, there have been several key updates to the Department’s operating budget, including the Executive and Adopted Financial Plans and subsequent closing modifications.  On an overall basis, the net change to the operating budget from the May FSR resulted in an increase of $2 million across all funding sources. 

  The summary below includes major funding sources affected by the Financial Plans and the closing process.  Please note that revenue adjustments from the Executive Budget were reflected in the May FSR but are reiterated below for reconciliation purposes.

FY2013 Operating Budget - Major Adjustments (excludes I/C) 

a.       City – Reduction of City funds totaling ($13.6) million;

b.      State – Net State reductions of ($99.2) million;

c.       Federal – Net decrease in Federal revenues of ($13.1) million;

d.      Other Categorical – Increases of $126.9 million of which $101.9m is associated with Pollution Remediation Obligations (GASB 49.)  This adjustment was reflected in the DOE’s expense and revenue accounts during the FY2013 closing process.  Additional details regarding this stipulation may be found on the following link: 

 

http://schools.nyc.gov/offices/d_chanc_oper/budget/dbor/fsr/October/PDF/Oct_2009_FSR/10GASB_Manual.pdf

 

The next FSR, scheduled to be released in early December, will include a summary of the November Financial Plan.  

Thank you.

  

     c:

Dennis M. Walcott
Chancellor’s Senior Staff
Division of Budget Operations and Review (DBOR)

 
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