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School District Cash Flow

Critical to the success of any organization is the ability to pay its bills on time. This includes both payments to employees for their services (wages and salaries) as well as payments to vendors for goods and services rendered. Although school districts establish budgets that balance projected revenues with projected expenditures, it is typically the case that the receipt of revenues does not match the timing of the planned expenditures. In fact, expenditures tend to be relatively uniform throughout the fiscal year because most school district expenditures pay for labor, which is paid on a regular basis (the one exception might be for teachers who work and are paid on a school-year basis rather than a calendar-year basis). On the other hand, revenues often are ...

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