Volume I, Issue 2: Finance

Financial News For the last several years the Finance Department has produced newsletters periodically throughout the year and have distributed them via email and posted them to our website. The Fall 2019 Newsletter is now available and it will be the last one produced in this fashion. Going forward we will bring you financial news and updates via this electronic newsletter. We believe this will be a very effective manner of distributing information in a timely fashion. In this edition you will find year-end figures for fiscal year 2019 and year-to-date figures for fiscal year 2020. As always, we appreciate your interest in the financial news from Frederick County! Visit our Finance pages on the website at: www.fcva.us/finance Cheryl B. Shiffler, Finance Director

Final Figures for the Fiscal Year Ended June 30, 2019

The FY 2019 year end figures were presented to the Finance Committee and reported revenues in excess of expenditures in the amount of $5.6 million. The actual revenue exceeded projections by $6.2 million and the county had unspent budgeted expenditures in the amount of $6.9 million. Currently, these numbers are unaudited, and staff anticipates any changes to be minimal. The county ended the fiscal year with $6.9 million in unspent, budgeted expenditures. The image shows a side-by-side comparison of budgeted and actual expenditures and revenues for FY 2019.

FY 2019 YEAR END REVENUE: WHERE DOES IT COME FROM?

FY 2019 YEAR END EXPENDITURES: WHERE DOES IT GO?

FY 2020 Unassigned Fund Balance as of September 30, 2019

Fund Balance is the excess dollars of what the County owns (assets) and what the County owes (liabilities). Fund Balance is a critical factor in financial planning and budgeting. It provides funds for unforeseen expenses or emergencies and reduces the need for short-term borrowing for operations and cash flows. The Government Finance Officers Association (GFOA) recommends that unassigned fund balance be maintained at no less than two months of regular operating revenues or regular operating expenditures and states that it “is essential that governments maintain adequate levels of fund balance to mitigate current and future risks and to ensure stable tax rates.” For Frederick County’s general fund, that equates to approximately $32.9 million or 16.7% of the total general fund operating revenues for FY 2020.  As of September 30th, the County’s fund balance is above the recommendation at 22.4% ($44.2 million).

FY 2020 Year-to-Date

September 30, 2019 was the end of the first quarter of fiscal year (FY) 2020. With 25% of the year complete, the General Fund revenues are at 10% of appropriated revenue, which is very typical for this time of year due to the cyclical receipts of most revenues. The County’s largest revenue source is property taxes that are due in December and June each year. Actual expenditures are at 28% of yearly appropriated expenditures.

Board of Supervisors Meeting Calendar Job Openings Recycling GIS Parks and Rec

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