Regular Meeting (Budget Report)

**Executive Summary**

**Financial Performance Overview:** The Township of Kasson’s Profit & Loss statement for April through December 2024 reveals a total income of $169,398.14 against a budget of $535,919.00, resulting in a negative variance of -$366,520.86. Total expenses reached $202,970.81, with a budget of $494,744.00, yielding a negative variance of -$291,773.19. The net ordinary income showed a deficit of -$33,572.67 compared to a budgeted surplus of $41,175.00, leading to a negative variance of -$74,747.67. The document also includes “Other Income/Expense” which further contributes to the overall financial position. The document uses accrual basis accounting.

**Revenue and Expense Analysis:** Revenue accounts underperformed against the budget, most notably in areas like taxes, state shared revenue, and transfers, leading to a substantial negative variance. The expense categories, which include Township Board, Supervisor, Clerk, and others, reveal a mixed picture. Some departments show favorable variances due to lower spending than budgeted. The largest variance exists with the Township Board capital outlay and transfers out.

**Fire Department Finances:** The Fire Department, under “Other Income/Expense,” shows income from “Delinquent Fire” and fire millage which has a significant variance. Expenses for the Fire Department, particularly operating costs and capital outlay, also contribute to the financial results. Overall net income reflects a substantial deficit primarily driven by revenue shortfalls and expense overruns.

**Key Financial Metrics:** The document provides a percentage of budget for each line item, facilitating a comparative analysis of actual performance against the budget. The financial report’s net income for the period is negative, highlighting the challenges the Township faces in aligning revenue with expenses and achieving budgetary targets.