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Budget Amendment - Restricted Sales Tax Education Debt Fund
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INFORMATION CONTACT:
Beverly Liles, Finance, Director, 704-283-3675
ACTION REQUESTED:
Adopt Budget Amendment #33.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
During FY 2024 the General Funds were bifurcated to split out the Education Budgetary and Education Debt Fund. The bifurcation of funds allocated the articles of sales tax that are restricted for education capital and debt to the Education Debt Fund. These articles of sales tax were previously reported in the General Operating Fund.
The sales tax revenue that is collected throughout the fiscal year is on a three-month lag disbursement schedule from the NC Department of Revenue. The last three months of the fiscal year’s revenue are not received until July, August and September of the following fiscal year. These revenues are recorded as accounts receivable for June 30th at the end of each fiscal year. Accounts receivable balances are reported as restricted fund balance on the annual financial statements and are not available for use. During previous fiscal years this restricted revenue was in the County’s general operating fund and not part of the unassigned fund balance.
The budget amendment will transfer the previously restricted fund balance from the County’s General Fund to the Education Debt Fund to account for the restricted articles of sales tax accounts receivable balances needed in the amount of $4,075,000.
FINANCIAL IMPACT:
None - transfers are between two general funds.