AG 2007 10 15 - Laserfiche WebLink

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Finance Department October 15, 2007 To: Board of County Commissioners From: Pamela S. Dubois Subject: Kannapolis City School Lottery Distribution As of today, four quarterly Lottery distributions have been made to North Carolina LEA's (Local Education Agencies). The Kannapolis City School LEA is located in both Cabarrus County and Rowan County. The North Carolina Department of Public Instruction issues a Lottery Distribution Calculation Summary Report. Each LEA is listed on this report along with each quarter's distribution. For your review, I have enclosed the latest report. As you will note, Kannapolis City LEA is listed twice. It is listed once for Cabarrus County and again for Rowan County. According to the report, $432,830 has been allocated to Kannapolis City Schools-Cabarrus County and $131,080 has been allocated to Kannapolis City Schools- Rowan County. Allocated Lottery funds are placed into a State of North Carolina Disbursing account only after an Application has been approved by the School Board, the County Commissioners, and by the State. After reviewing the Department of Public Instruction's (DPI) Current Fiscal Year Report, it has been determined that the Kannapolis City Schools- Rowan County allocations have been co- mingled with the Kannapolis City Schools-Cabarrus County allocations. Per discussion with Ken Phelps, DPI School Planning Consultant, the states software will not allow the breakout of the Rowan County portion and the Cabarrus County portion of the Kannapolis City School allocation. Each time Rowan County and the Kannapolis City Schools submit an application to DPI the approved funds will be placed in the Cabarrus County disbursing account. Interest earnings on these funds are also being co-mingled. The Finance Department has created spreadsheets to maintain the separation of Kannapolis City Schools-Rowan County and Kannapolis City Schools- Cabarrus County monies. Earned interest is being allocated based on Lottery ADM. Cabarrus County will be the caretaker of both the Kannapolis City Schools-Rowan County and the Kannapolis City Schools-Cabarrus County funds. We will be writing checks drawn on the State of North Carolina bank account in Cabarrus County's name. Each time that an application for Rowan County or Cabarrus County is approved by the State of North Carolina, we will be preparing a budget amendment to increase the revenue and expenditures in the State Public School Building Capital Fund. This procedure is for accounting purposes only. Because the state has placed all of the funds in the Cabarrus County account, we must record the revenue and corresponding expenditure. The first budget amendment for Kannapolis City Schools-Rowan County is enclosed for your approval. Since this administrative pass-through process will continue in the future, we request that future budget amendments necessary to transfer funds to Rowan County be approved by the County Manager without further Board of Commissioner action. Finance Department - ~ ~~ P.O. Box 707 • Concord, North Carolina 28026-0707 • 704-920-2704 • www.cabarruscounty.us The Cents of amerfcan MM W NCNTH C0.~LINR