School district financial risk analysisDecember 2020

District

Demographic information

Less common revenues

County: Yuma County
Operational peer group (FY 2020): 6
Legislative district(s): 4 and 13
FY 2019 FY 2020
Students attending: 215 206
Number of Schools: 1 1
FY 2020
Desegregation
0
Federal impact aid
0
Small school adjustment
0
Voter-approved budget overrides
0
Total less common revenues per pupil
0

Analysis results

Summary of risks identified:

The District’s weighted student count has declined 13 percent since fiscal year (FY) 2017, reducing its student-count-generated revenues and budget limits. By not cutting spending below available revenues (i.e., negative operating margin), the District incurred a deficit General Fund balance of just over $925,000 by June 30, 2020. The District also overspent its operating budget limit in FYs 2018 and 2019 by over $128,000 and $258,000, respectively. The District reduced its budgetary overspending in FY 2020 to approximately $90,000. On average since FY 2017, the District redirected 50 percent of its capital monies to operational spending, including 29 percent in FY 2021, to lessen the operating budget overspending. Those redirected monies contributed to the District overspending its capital budget limit each year since FY 2018.

District response:

FY 2020 General Fund data

As indicated in your report Antelope Union High School District has a negative fund balance. This increase from the prior year has been caused by the refund of Property taxes to the solar plant that sits across Yuma and Maricopa counties. The Solar plant petitioned for and was awarded the refund. This affected some of the schools in Yuma County. Our portion was approximately $650,000. As a result of that, our fund balance was affected negatively. For this Fiscal year which is FY2020-2021 our tax rate has been increased by the county to cover the negative balance associated with the solar plant. We anticipate a significant improvement in fund balance by year end.

FY 2020 Operating and Capital budget Limit Reserve

Additionally, AUHSD has been working with School finance to adjust our expenses to decrease the overspending from previous years. That has impacted our spending for FY 19-20 and FY 20-21, We anticipate being back on track at the end of this fiscal year. It is also expected that some of our pandemic related expenses will be expensed via grants that are being identified. Additional monitoring and diligence on the part of the district to control expenses is being conducted.

Student count

The enrollment of the school has declined since FY 2017 from around 230 to 197, including a drop of 8 students in FY 2021 with the COVID pandemic as parents have elected to relocate temporarily or keep their children out of school. Our expectation is that when the current issues are resolved, we expect our enrollment to exceed 200.

Change in weighted student count
-3.6% -13.0%
(1-year) (4-year)
Fiscal year Group A WSC
2021 320
2020 332
2019 347
2018 332
2017 368
Operating budget limit reserve
65.1% -100.0%
(1-year change) (3-year change)
Fiscal year Balance
2020 ($90,184)
2019 ($258,480)
2018 ($128,282)
2017 $715
Capital budget limit reserve
57.2% -100.0%
(1-year change) (3-year change)
Fiscal year Balance
2020 ($7,757)
2019 ($18,115)
2018 ($3,579)
2017 $1,686
General Fund operating reserve ratio
-40.0% -17.5%
FY 2020 unaudited 2019 audited
Fiscal year Balance Expenditures
2020 unaudited ($925,501) $2,314,614
2019 audited ($450,714) $2,571,110
General Fund operating margin ratio
-27.1% -7.5%
FY 2020 unaudited 2019 audited
Fiscal year Revenue Expenditures
2020 unaudited $1,820,440 $2,314,614
2019 audited $2,392,709 $2,571,110
General Fund change in fund balance
-100.0% -65.5%
FY 2019 to FY 2020 unaudited 2018 to 2019 audited
Fiscal year Change amount
2019 to 2020 unaudited ($464,174)
2018 to 2019 audited ($178,401)
Capital monies redirected to operations
29.3% 49.7%
(FY 2021) (5-year average)
Fiscal Year Capital monies Amount redirected
2021 $141,051 $41,300
2020 $159,685 $76,389
2019 $147,976 $97,976
2018 $106,326 $29,867
2017 $102,200 $78,579
Small school budget limit adjustment

N/A - District is too large to be eligible for adjustment.

Fiscal year Adjustment
2021 $0
2020 $0
2019 $0
2018 $0
2017 $0
Frozen tax rate

District's primary property tax rate is not frozen.

Receivership

District is not in receivership.