Purchasing/Finance

Greg Minnich, Coordinator

 

Cooperative Purchasing 

Cooperative Purchasing evolves to meet the changing needs of the county boards of education. Whether the focus is commodity purchases, service contracts, assistance with contract negotiations, or market research, RESA 6 strives to assist the counties in their purchasing needs. Over the years, RESA 6 has facilitated purchasing efforts in the following areas: 

 

Financial Services 

Facilitating financial arrangements that assist the counties in offering unique programs has become a major function of the finance department of RESA 6. RESA 6 responds to various RESA 6 Advisory Board requests, business official requests, education staff request, and community requests to facilitate the implementation of unique programs. Over the years, RESA 6 has facilitated financial arrangements in the following areas: 

 

  • Instructional Supplies
  • Custodial Supplies
  • Dental/Optical Administration
  • Environmental Consulting Services
  • Mercury Bulb Recycling Services
  • Copiers
  • Chemical Removal Services
  • Copy and Computer Paper
  • Pest Control Services
  • Fixed Asset Inventory System
  • E-Rate Consulting Services
  • Natural Gas Purchasing
  • 403B Third Party Administration
  • Food Purchasing
  • Handle on Science Program
  • Energy Management Services
  • Carol M. White Physical Education Grant
  • 21st Century Program Site Assistants
  • GASB Training Services
  • GED Scholarships
  • Autism Consulting Services
  • Various Job Training Programs
  • E-Rate Technology Services
  • Grant Writing Services
  • Crisis Prevention Training Services

 

 

Financial Statement

 

The following chart shows RESA 6’s revenues for fiscal year ended June 30, 2011 by source:

 

 

Charges for Services make up the bulk of RESA 6 revenues at 59.27%.The majority of these funds reflect CountyBoard of Education payments for RESA 6 services.RESA 6 has historically had the majority of revenues made up of charges for services to County Boards of Education. 

It should be noted that the contribution of State Aid to RESA 6 operations has been decreasing both in absolute terms and in percentage terms.

In FY2009 State Aid made up 11.54% of revenue dropping to 9.38% in FY2010 and has further decreased to 9.08% in FY2011. 

 

The following chart compares FY2011 revenues to FY2010 revenues: 

  FY2011 FY2010 Net  
  Governmental Governmental Change Percent
  Activities Activities Comparison Change
         
Charges for Services 2,719,214.52   2,762,297.85 (43,083.33) (1.56)%
Operating Grants & Contributions 1,451,912.59 1,335,708.31 116,204.28 8.70%
Unrestricted State Aid  416,457.00 424,122.00 (7,665.00) (1.81)%
         
Total  4,587,584.11 4,522,128.16  64,455.95 1.45%

 

 

 

Revenue Discussion:

RESA 6 is designed to provide services to the county boards of education within the region. RESA 6 revenues reflect this service orientation in that the bulk of revenues are charges for services. The primary increase of revenues over the previous fiscal year is in the area of operating grants and contributions. A significant increase in ABE and SPOKES activities both in personnel services and materials significantly contributed to the 8.7% increase in this area of revenue. 

 

The decrease in Charges for Services is immaterial. 

 

It should also be noted that the lack of adequate State Aid is extremely problematic due to the increased base costs during the same time period, and RESA 6 has had to utilize reserves in FY2009, FY2010, and FY2011 to fund the mandated core operations of RESA 6. And has now reached the point where those reserves have been consumed.  

 

Expenses

 

The following chart shows RESA 6’s expenditures for fiscal year ended June 30, 2011 by function:

Supporting services makes up the bulk of RESA 6 expenses at 63%, and reflect the support service orientation of the Agency.

 

RESA 6 primarily functions to support County Board of Education activities, and the expenditure distribution is in alignment with that purpose with 100% devoted to support services and instruction.  

 

The following chart compares FY2011 expenses to FY2010 expenses: 

  FY2011 FY2010 Net  
  Governmental Governmental Change Percent
  Activities Activities Comparison Change
         
Instruction 1,723,442.26 1,545,396.50 178,045.76 11.52%
Total Supporting Services 2,966,518.01 3,040,815.78 (74,297.77) (2.44)%
         
Total 4,689,960.27 4,586,212.28 103,747.99 2.26%

  

Expense Discussion:

RESA 6 is designed to provide services to the county boards of education within the region. RESA 6 expenses reflect this service orientation in that all of expenses are in Support Service and Instruction. The primary dollar increase in expenses over the previous fiscal year is in the area of Instruction. This increase is attributable to expansion of Adult Basic Education Services. The decrease in Total Supporting Services is immaterial and reflects minor adjustments in the make up of personnel.