The Honorable the Members of the Board of Regents

Executive Summary

Issue for Discussion

The November 2008 Fiscal Report is presented for review, discussion and acceptance.

Since the last Report we have amended the Department’s plan and procedures for complying with Division of the Budget Bulletins B-1178 dated April 21, 2008 and B-1184 dated November 4, 2008.

The Department’s already strong spending controls only needed to be adjusted slightly to prohibit advertising costs and introduce the requirement, under B-1184, that State funded travel to Washington, D.C. receive prior approval.

However, until further notice, Budget Bulletin B-1184 now requires Division of the Budget and Office of the Director of State Operations prior approval of certain contract and procurement activities.  A Department team rapidly developed an automated system to collect, transmit and track the hundreds of transactions that will require outside prior approval.

Reason(s) for Consideration

              Update on Department State Operations expenditure and revenue projections.

Proposed Handling

              Review, discussion and acceptance.

Procedural History

The November report reflects actual expenditures through the first eight months the 2008-2009 State fiscal year and projected expenditures through the lapse period ending June 30, 2009.

Background Information

• All Funds - Spending controls have been tightened to reflect the 3.35 percent reduction included in the Department’s Financial Management Plan for 2008-2009 and the additional 7 percent mid-year spending reduction.
• General Fund – All of our general fund accounts are in structural balance with the exception of the Tenured Teacher Hearing account.
• Special Revenue – Our revenue accounts are in structural balance (allowing for normal reimbursement delays and the planned use of prior year balances) with the exception of the Cultural Education Account due to declining revenues and increased reliance on the account by other State agencies. After expending prior year funds, the Archives Partnership Trust (APT) will use sufficient revenue from the APT endowment, pursuant to Chapter 399 of the Laws of 1998, to maintain structural balance.
• Federal Accounts – Our federal accounts are in structural balance.

              Our Budget Coordination staff and I will continue to closely monitor each of these accounts and work with program office fiscal staff and the Deputies to ensure structural balance. 

Recommendation

I recommend that the Board of Regents accept the November 2008 State Education Department Fiscal Report as presented.

Timetable for Implementation

              N/A

Attachments