Financial Statement Review and Analysis August 2023

Financial Statements for the Month Ending August 31, 2023 1

Monthly Financial Reports The Board is provided the following reports on a monthly basis: Financial Statements Controller s Report EBE Report Travel Report Change Order Report This presentation will focus on the key financial indicators and cash and investment information from the monthly financial statements 2

Review of Revenues and Expenditures 3

Key Financial Indicators August 2023 12 MONTH ROLL-FORWARD ACTUAL 8/31/2022 ACTUAL 8/31/2023 VARIANCE % VARIANCE TOTAL FUND BALANCE, GENERAL FUND (010) 147,880,575 217,936,637 70,056,061 47.37% TOTAL CASH AND INVESTMENTS 233,318,724 260,218,516 26,899,792 11.53% TOTAL GENERAL FUND ENCUMBRANCES 18,521,794 51,431,562 32,909,768 177.68% YEAR TO DATE BUDGET TO ACTUAL COMPARISON ACTUAL 8/31/2022 ACTUAL 8/31/2023 VARIANCE % VARIANCE TOTAL GENERAL FUND REVENUES 432,407,985 485,089,091 52,681,106 12.18% TOTAL GENERAL FUND EXPENDITURES 375,297,683 350,705,471 (24,592,211) -6.55% OPERATING SURPLUS (DEFICIT) 57,110,302 134,383,619 77,273,318 135.31% = Positive indicator = Negative indicator 4

Financial Statement Highlights 8 MONTH ROLLFORWARD FOR THE GENERAL FUND: During the 8 month period ending August 31, 2023, total General Fund balance increased by $134.6 million to $217.9 million. For the same period in 2022, the fund balance increased by $57.1 million to $147.9 million. This fund balance has two major components: Total funds available for future spending are $161.3 million and total funds committed for specific uses are $56.6 million. GENERAL FUND: Actual 2023 revenues as a whole were $52.7 million or 12.18% greater than 2022 revenues Actual 2022 expenditures as a whole were $24.6 million or 6.55% less than 2022 5

Financial Statement Highlights REVENUES: State Sources: The District s State revenue sources are $53.2 million or 36.72% greater than 2022. Basic Instructional subsidy increased by $26.7 million or 27.56%. This difference largely due to timing of recording the subsidy on the general ledger. Local Sources: Collections of the Earned Income Tax continue to outpace the 2022 collections by $4.75 million or 5.60%, indicating that a positive outlook on employment in the City. 2023 Real Estate Tax collections are $4.8 million or 2.57% lower than 2022 collections. EXPENDITURES: Salary expenditures continue to decline, decreasing by $5.3 million or 4.34% compared to 2022. Please note that retroactive payments for settled union contracts were made in 2022 Charter School payments continue to increase showing a growth of $12.5 million or 18.47% over 2022 costs. 6

Year to Date Comparison 485,089,091 450,000,000 432,407,985 400,000,000 375,297,683 350,705,471 350,000,000 300,000,000 233,318,724 250,000,000 200,000,000 142,880,575 134,383,620 150,000,000 100,000,000 57,110,302 50,000,000 - Revenues Expenditures (Deficit)/Surplus Fund Balance 8/31/2022 8/31/2023 7

Year to Date Comparison for Local Revenues 200,000,000 186,166,005 181,376,703 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 89,513,273 84,763,938 80,000,000 60,000,000 40,000,000 13,350,048 20,000,000 8,989,272 - Earned Income Tax Real Estate Tax Real Estate Transfer Tax 8/31/2022 8/31/2023 8

Year to Date Comparison for State Revenues 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - (20,000,000) Basic Ed Subsidy 96,730,642.26 123,410,323.68 Special Ed Subdsidy 20,253,901.42 20,863,523.64 Social Security 2,697,022.15 5,482,284.11 Retirement 14,054,642.90 13,803,513.31 Transportation (906,104.66) 8,183,212.66 8/31/2022 8/31/2023 9

Year to Date Comparison for Expenditures 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - Salaries 118,005,025.15 123,353,623.96 Benefits 79,244,854.60 76,529,668.20 Special Education 20,253,901.42 20,863,523.64 Transportation 21,682,183.88 20,194,389.77 Charter Schools 67,764,408.08 80,281,822.12 Tax Appeals 2,852,424.49 1,717,463.06 8/31/2022 8/31/2023 10

The increase in charter expenditures is projected to account for 85% of our 2024 deficit Charter School payments continue to increase showing a growth of $12.5 million or 18.47% over 2022 costs. The adopted 2023 budget for charter expenditures is $120.9 million The final 2022 charter school expenditures were $123.8 million Final 2023 expenditures are projected at $138.6 million 2024 expenditures are projected to be $144.7 million An increase of $23.9 million over the 2023 budget Accounting for 85% of our projected deficit for 2024 ($28 million) 11

We need to drastically decrease expenditures in 2024 Actual Adopted Actual Projected Projected Year Ended 2024 Projected Year Ended 2025 Year Ended 2021 Year Ended 2022 Year Ended 2022 Year Ended 2023 Total Revenues $633,263,128 $638,751,328 $652,954,802 $669,347,383 $683,416,226 $703,204,079 Total Expenditures $638,337,948 $665,753,162 $656,174,842 $670,173,387 $711,444,244 $730,387,012 Beginning Balance Operating Surplus/(Deficit) Ending Fund Balance Less Projected Reservations Less Committed Fund Balance Less Assigned Fund Balance Unassigned Fund Balance % Budgeted Expenditures $91,701,905 ($5,074,821) $86,627,084 ($4,131,698) $86,627,084 ($27,001,834) $59,625,250 ($2,500,000) $86,627,084 ($3,220,039) $83,407,045 ($2,500,000) $83,407,045 ($826,004) $82,581,041 ($2,500,000) $82,581,041 ($28,028,018) $54,553,023 ($2,500,000) $54,553,023 ($27,182,932) $27,370,091 ($2,500,000) $0 $0 $0 $0 $0 $0 (27,001,834) $55,493,552 8.69% (16,448,232) $40,677,018 6.11% (16,448,232) $64,458,813 9.82% (28,028,018) $52,053,023 7.77% ($27,182,932) $24,870,091 ($34,197,340) ($9,327,249) -1.28% 3.50% Minimum Fund Balance per Board Policy #721 $31,916,897 $33,287,658 $32,808,742 $33,508,669 $35,572,212 $36,519,351 Compliance with Fund Balance Policy Yes Yes Yes Yes No No Funds needed to comply with Fund Balance Policy ($23,576,654) ($7,389,360) ($31,650,071) ($18,544,353) $10,702,122 $45,846,600 12

Cash and Investments 13

Cash Balances as of August 31, 2023 Based on the Districts unaudited financial statements as of August 31, 2023: Total cash balance in checking accounts is $165.6 million This balance is net of outstanding accounts payable checks The current market value of investments is $90.7 million Total of cash and investments is $260.2 million 14

2023 Cash Balances by Month 190,000,000 170,000,000 150,000,000 130,000,000 110,000,000 90,000,000 70,000,000 50,000,000 30,000,000 January February March April May June July August Cash Balance 39,659,297.65 171,575,428.19 178,886,414.18 184,097,383.57 137,722,006.65 191,060,256.34 110,628,699.82 165,628,155.97 15

Investment Overview Types of investments include but are not limited to: Time Money Investments that are longer than 30 days such as certificates of deposits (CDs) Repurchase Money Investments that are shorter than 30 days such as pooled investment trusts and liquid asset funds including PA INVEST, PA School District Liquid Assets Fund, and PA Local Government Investment Trust The start of 2023 market value was $90.3 million Current market value is over $90.7 million Over a $2.5 million in interest/dividends earned to date 16

Investments Performance Beginning Market Value 22,171,275.52 13,773,100.10 36,150,010.17 257,339.90 6,702,533.72 79,054,259.41 Redemption/Sales/ Maturites (16,890,539.15) (6,131,043.79) 52,373.81 (22,969,209.13) Closing Market Value 22,835,164.36 17,217,273.30 31,904,538.96 264,340.63 6,968,650.32 79,189,967.57 YTD Repurchase/Time Money Investments PA Treasurer's INVEST Program for Local Governments PA Local Government Investment Trust (PLGIT) PLGIT Bond Funds Federated Investors (as of July 31, 2023) PA School District Liquid Assest Fund Purchases/Deposits 693,888.84 20,826,712.35 1,107,836.61 213,742.78 22,849,181.31 Dividends/Income 720,002.89 447,266.31 1,107,836.31 213,742.78 2,495,849.02 - 7,000.73 - 7,000.73 Standalone CD's First Commonwealth First National Bank Maturity Date 5/17/2024 9/11/2023 Yield 4.80% 0.05% Principal 5,229,151.40 1,047,418.14 6,276,569.54 Anticipated Interest 188,421.37 Maturity Value 5,417,572.77 1,047,941.85 6,465,514.62 523.71 188,945.08 Beginning Market Value 4,996,302.83 Ending Market Value 5,048,006.05 Portfolio Product FNB Wealth Management Interest/Dividends Changes in Value 15,110.50 36,592.72 17

Questions? 18