+ 2018-19 UNAUDITED ACTUALS FINANCIAL REPORT Dawnalyn - - PowerPoint PPT Presentation

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2018-19 UNAUDITED ACTUALS FINANCIAL REPORT

Dawnalyn Murakawa-Leopard, EdD, Deputy Superintendent

September 4, 2019

Ma Manhattan Beach ch Unified Sch chool District ct 325 325 S. Peck Avenue Ma Manhattan Beach ch, CA 90266 Ph Phon

• ne: (310) 318-7345,

7345, x590 5900

2018-19 REVENUE

Unaudited Actuals – 09/04/19

3

Es Estim imated ed Actua uals ls

(2 (2019-20 20 Ad Adopted Bu Budget)

Un Unaudited Ac Actuals Di Difference % % Change LCFF Sources $54,782,295 $54,712,051 ($70,244)

• 0.13%

Federal Revenue $2,100,883 $2,117,463 $16,580 0.79% Other State Revenue $9,828,205 $11,268,668 $1,440,463 14.66% Other Local Revenue $17,499,500 $17,609,162 $109,662 0.63% Total Revenue $84,210,883 $85,707,344 $1,496,461 1.78%

REVENUE CHANGES

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n The largest change is due to recent information that Districts

must record the State’s contribution to CalPERS on behalf of employees as both revenue to the District and an expense of the District. This results in an increase of $782,744.

n Similarly, due to salary increases, the State’s CalSTRS On-

Behalf contribution increased by $468,206

n Other changes include:

n $328,095 in increased local revenue in the form of a workers’

compensation rebate from ASCIP

n $160,957 in increased state lottery revenue

Unaudited Actuals – 09/04/19

REVENUE CHANGES

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n Other changes include:

n $78,552 in increased local revenue to offset the facilities-related

costs of running the SELPA Regionalized Program for DHH program

n $37,735 in increased local revenue for interest n $36,643 in increased local revenue for facility rentals n $25,516 in increased local revenue for targeted donations n $277,521 in decreased revenue for special education n $133,382 in decreased revenue, reflecting revenue that will be

received in 2019-20, for the State Low Performing Student Block Grant

n $80,829 in decreased revenue for unpaid amounts under Measure

MB

n $70,244 in decreased LCFF revenue due to prior year adjustments

Unaudited Actuals – 09/04/19

MEASURE MB

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n On June 5, 2018, Manhattan Beach voters approved Measure

MB, providing for an annual tax of $225 per parcel to provide stable, reliable revenue for District schools.

n The 2018-19 assessment includes 13,091 eligible parcels, of

which 1,888 have qualified for exemptions (1,884 exemptions for senior citizens, and 4 exemptions for SSI/SSDI recipients), creating a 14.4% exemption rate.

n The remaining parcels were anticipated to result in

$2,473,200 in revenue to the District, assuming a 100% rate of

• payment. In actuality, revenue in the amount of $2,391,921

has been collected to date.

n This revenue will remain stable for six years, through 2023-24,

and will allow the District to avoid anticipated reductions in the immediate future.

Unaudited Actuals – 09/04/19

2018-19 EXPENSE

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Es Estim imated ed Actua uals ls

(2 (2019-20 20 Ad Adopted Bu Budget)

Un Unaudited Ac Actuals Di Difference % % Ch Change Certificated $35,267,437 $35,513,032 $245,595 0.70% Classified $13,791,503 $14,181,603 $390,100 2.83% Benefits $20,457,774 $21,689,553 $1,231,779 6.02% Supplies $2,932,116 $2,490,285 ($441,831)

• 15.07%

Services $14,261,159 $13,685,758 ($575,401)

• 4.03%

Capital Outlay $765,335 $384,612 ($380,723)

• 49.75%

Other Outgo $495,948 $700,309 $204,361 41.21% Indirect ($102,000) ($86,209) $15,791 15.48% Total $87,869,272 $88,558,943 $689,671 0.78%

Unaudited Actuals – 09/04/19

EXPENSE CHANGES

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Changes to expense include:

n $782,744 in additional costs for CalPERS on-behalf payments

n $468,206 in additional costs for CalSTRS on-behalf payment

adjustments

n $223,377 in increased costs for special education n $197,744 in increased certificated costs resulting from salary

adjustments

n $340,890 in reduced state grant program costs (Low Performing

Students, College Readiness, Classified Professional Development)

n $314,445 in reduced expenditures for maintenance n $224,732 in reduced expenditures for instructional materials,

technology, conferences, and legal fees

n $83,813 in reduced expenditures for Fund 06 and MBEF

Unaudited Actuals – 09/04/19

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MULTI-YEAR PROJECTION ADOPTED BUDGET

(as of 6/20/19)

eliminates escrow ($2.4M); REU dropped to 3% in 2019-20 equivalent of 62 (42.5+19.5) positions eliminated 2018-19 2019-20 2020-21 2021-22 Beg Balance

$11,149,419 $7,491,030 $3,719,171 $2,824,410

Revenues

$84,210,883 $82,017,677 $82,841,579 $83,660,135

Expenses

$87,869,272 $85,789,536 $83,736,340 $83,537,302

Net Inc/(Dec)

($3,658,389) ($3,771,859) ($874,761) $122,833

Ending Bal

$7,491,030 $3,597,822 $2,581,712 $2,583,195

Undesignated Ending Bal.

$774,453 $676,290 $282,319 $411,123

Unaudited Actuals – 09/04/19

MYP CHANGES

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Unaudited Actuals – 09/04/19

A number of changes have been incorporated into the District’s 2019-20 budget and into its Multi Year Projection. These include:

n $833,120 added to the 2019-20 beginning fund balance as a result

• f year-end close and unaudited actual totals

n $782,744 added to both revenue and expense to describe the

State’s On-Behalf contributions to CalPERS

n $646,200 in additional one-time (2019-20) revenue for preschool

special education services. At the 45 day budget revision this was listed as restricted funding; per recent guidance this has now been identified as unrestricted funding.

n $820,124 in ongoing reduced expenditures for special education

and utility services

MYP CHANGES – STRS/PERS

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Unaudited Actuals – 09/04/19

CalPERS

CalSTRS

Prior Projection Adopted Current Prior Projection Adopted Current 2014-15

11.771% 8.880%

2015-16

11.847% 10.730%

2016-17

13.888% 12.580%

2017-18

15.532% 14.430%

2018-19

18.062% 16.280%

2019-20

20.733% 20.733% 19.721% 18.13% 16.700% 17.100%

2020-21

23.600% 23.600% 22.700% 19.10% 18.100% 18.400%

2021-22

24.900% 24.900% 24.600% 18.40% 17.800% 18.100%

2022-23

25.700% 25.700% 25.400% 18.40% 17.800% 18.100%

2023-24

26.400% 26.400% 26.100% 18.40% 17.800% 18.100%

2024-25

26.600% 26.600% 26.300% 18.40% 17.800% 18.100%

2025-26

26.500% 26.500% 26.200% 18.40% 17.800% 18.100% (CalPERS board adjusts rates based on actuarial projections; CalSTRS rates are set by law but rates may change in order to exhaust unfunded liability by 2045-46)

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MULTI-YEAR PROJECTION UNAUDITED ACTUALS

eliminates escrow ($2.4M); REU dropped to 3% in 2020-21 equivalent of 45 (22.5+22.5) positions eliminated 2018-19 2019-20 2020-21 2021-22 Beg Balance

$11,149,419 $8,324,150 $6,032,330 $3,549,751

Revenues

$85,707,344 $83,454,138 $83,631,840 $84,450,396

Expenses

$88,558,943 $85,745,959 $84,114,419 $85,420,075

Net Inc/(Dec)

($2,851,599) ($2,291,821) ($2,482,579) ($969,679)

Ending Bal

$8,324,150 $6,032,330 $3,549,751 $2,580,072

Undesignated Ending Bal.

$1,276,290 $1,314,974 $959,801 $10,952

Unaudited Actuals – 09/04/19

HISTORICAL CHANGE

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Ad Adopted Bud Budget et Un Unaudited Ac Actuals Di Difference % % of f Bud Budget et 2018-19 ($145,480) ($2,851,599) ($2,706,119)

• 3.51%

2017-18 ($3,303,012) ($2,300,560) $1,002,452 1.36% 2016-17 ($3,339,507) ($75,426) $3,264,081 4.44% 2015-16 ($683,646) $79,099 $762,745 1.11% 2014-15 ($3,211,807) ($1,402,406) $1,809,401 2.88% 2013-14 ($2,977,006) $1,127,733 $4,104,739 7.16% 2012-13 ($5,682,446) ($2,956,203) $2,726,243 4.70% 2011-12 ($2,176,236) ($1,078,135) $1,098,101 2.08% 2010-11 ($982,431) $3,590,769 $4,573,200 8.96% 2009-10 ($1,803,202) $1,625,988 $3,429,190 6.79% 10 Year Average Difference $1,967,287 3.60% 5 Year Average Difference $748,279 1.26%

Unaudited Actuals – 09/04/19

PROJECTED SURPLUS/DEFICIT

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2018-19 2019-20 2020-21 2021-22

Surplus/(Deficit) – no “swing” ($2,851,599) ($3,771,859) ($2,482,579) ($969,679) Surplus/(Deficit) – 1.26% “swing” ($2,694,653) ($1,411,834) $88,682

Unaudited Actuals – 09/04/19

A consistent 1.26% swing would allow:

n Elimination of escrow in 2020-21 instead of 2019-20 n Elimination of the equivalent of 26.5 (12+14.5) positions instead of 45 n Maintenance of 5% REU until 2021-22, when it would drop to 3%

NEXT STEPS

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n Continue to track and analyze changes in revenue and

expense between Budget Adoption and Unaudited Actuals

n Monitor expenditures and budgetary needs carefully n Continue to encourage fiscal restraint n Be mindful of restraints on revenue:

n COLA only increases to the LCFF n Declining enrollment n 6-year life span of Measure MB

n Complete the planned Special Education program review and

consider any resulting recommendations

n Review all budgets to identify ongoing and deferred needs

Unaudited Actuals – 09/04/19

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2018-19 UNAUDITED ACTUALS FINANCIAL REPORT

Dawnalyn Murakawa-Leopard, EdD, Deputy Superintendent

September 4, 2019

Ma Manhattan Beach ch Unified Sch chool District ct 325 325 S. Peck Avenue Ma Manhattan Beach ch, CA 90266 Ph Phon

• ne: (310) 318-7345,

7345, x590 5900