Financial Statement Narrative
For the Ten Months Ending July 31, 2015
Capital Area Community Action Agency
As of July31, 2015, we are 83% through the fiscal year and, as a benchmark, we would expect the year-to-date actual expenses to be approximately 83% of the annual budget. At month end, the Year to Date Actual Revenue and Expenses are 79%and 80% of their respective budgets.
Our overall year to date net income is $5,400.
In-kind revenue for Federal purposes was $4,061 or 4% of the goal of $97,610 required for Federal match purposes for the 3 month grant endingSeptember 30th.
Expenditure Variances and Explanations
The Statement of Revenue and Expenses tracks year-to-date progress by budget line item. Actual revenues and expenses are compared to the original budget for each budget line item by amount and percentage. Some budget line items may be below or above the expected percentage at any given point in the year. This can be caused by something as innocuous as the revenue or expense occurring unevenly at different points of time during the year, such as a one-time insurance payment. In other words, one twelfth of every budget item is not necessarily paid each month. Therefore, when there is a significant variance, the following explanations are provided. It is important to note that, while a specific line item may be over budget, the overall Agency budget should not be over budget. Adjustments are often made at the end of a grant or fiscal year to ensure that all budgets are balanced.
Unemployment Comp – This is due to high turnover among Head Start teachers.
Workers Compensation – This is due to a higher than expected number of incidents. The COO is arranging safety training for staff.
Staff Screenings –are over budget due to an increase in hiring and in volunteers. This expense occurs on an as needed basis.
Office, Program, Medical/Dental and Classroom Supplies - Thesecategories are over budget due to a number of purchases made at the beginning of the Head Start school year. Funds from Kitchen supplies will be used to cover a portion of the overages. The items that were purchased in these categories are purchased at the beginning of the year and are expected to be used over the entire school year.
Contractual Services –most of this overage is a result ofour contract with Franklin County School Board. This previously would have been charged to a number of different areas including salaries for teachers, cooks and bus drivers, utilities, insurance, building maintenance and repair, etc. The rest is due to the fees associated with e-rebates, which were not contemplated in the original budget, but which are paid completely from the e-rebate revenues.
Communications - This is over budget due to upgrades made at the beginning of the fiscal year which were one-time expenses.
Vehicle Expense – The increase in vehicle expense is offset by a decrease in expected expenses in Travel-in-Area. This is due to increased use of the agency vehicles which results in a reduction of mileage reimbursements.
Technology –is over-budgetdue to the website redesign, which was not in the original budget. Any overage is expected to be covered from equipment and other categories.
Special Events – This is over due to both the expenditures incurred for Pigfest and for the Head Start 50th anniversary celebration.
Training/Meetings/Workshops – This is over budget; however, these expenses are not incurred evenly throughout the year. Budget in other categories, such as equipment, if conserved for the remainder of the fiscal year, will be used to cover the overage.
Interest Expense – Due to the Letter of Credit being paid off last year, no interest expense was contemplated for this fiscal year.
Bank Service Charges – Due to increased bank activity (i.e, writing more checks, receiving more EFTs), these charges are slightly higher than budgeted.
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