Board of Education Presentation 2016 17 Unaudited Actuals Business - - PowerPoint PPT Presentation

Board of Education Presentation 2016‐17 Unaudited Actuals Business Services

October 18, 2017

Presentation Items

1. Education Code Requirement 2. 2016‐17 County School Service Fund (CSSF) (Fund 01)

• Revenues
• Expenditures
• Unrestricted and Restricted Graphs
• Components of Ending Fund Balance

3. Summary of Funds

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• Santa Clara County Office of Education’s 2016‐17 Unaudited Actuals

Financial Report provides actual revenues, expenditures, ending fund balances, and reserves for the period July 1, 2016 through June 30, 2017.

• Education Code 1628 states:

On or before October 15 of each year, the county superintendent of schools of each county office shall prepare and file, in a format prescribed by the Superintendent of Public Instruction, an annual statement of all receipts and expenditures of the county office for the preceding fiscal year and shall file the statement, along with the statement received pursuant to subdivision (b) of Section 42100, with the Superintendent of Public Instruction

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Education Code Requirement

2016‐17 Year‐end Close County School Service Fund (Fund 01) – Revenues

Sub‐Funds 800 to 990

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County School Service Fund: Unrestricted Revenues

County School Service Fund (CSSF) revenue categories, amounts and percentages for the unrestricted funds are shown below.

Unrestricted Revenue Amount % Amount % Amount % LCFF Sources 52,834,371 $ 89.00% 59,177,717 $ 87.53% 60,354,028 $ 82.74% Federal Revenue ‐ 0.00% ‐ 0.00% 72,260 0.10% Other State Revenue 680,877 1.15% 1,014,040 1.50% 1,017,268 1.39% Other Local Revenue 7,648,484 12.88% 9,522,182 14.08% 13,342,543 18.29% Transfers In 25,000 0.04% 1,628,783 2.41% 1,603,783 2.20% Contributions (1,822,313) ‐3.07% (3,730,006) ‐5.52% (3,443,856) ‐4.72% Total 59,366,419 $ 100.00% 67,612,716 $ 100.00% 72,946,026 $ 100.00% 2016‐17 County School Service Fund Adopted Budget 2nd Interim Unaudited Actual

Contributing factors affecting growth in Revenue: 1) LCFF increases due to property tax increases (Note all excess is remitted and does not provide greater spending ability) 2) Other Local Revenue increases mainly due to Redevelopment dollars

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County School Service Fund: Restricted Revenues

County School Service Fund (CSSF) revenue categories, amounts and percentages for the restricted funds are shown below.

Restricted Revenue Amount % Amount % Amount % LCFF Sources 68,360,095 $ 43.57% 69,882,808 $ 41.39% 76,946,022 $ 46.46% Federal Revenue 43,601,410 27.79% 52,655,430 31.19% 45,245,810 27.32% Other State Revenue 13,560,226 8.64% 10,712,905 6.35% 10,255,800 6.19% Other Local Revenue 29,568,112 18.84% 31,844,031 18.86% 29,736,707 17.95% Transfers In ‐ 0.00% ‐ 0.00% ‐ 0.00% Contributions 1,822,313 1.16% 3,730,006 2.21% 3,443,856 2.08% Total 156,912,156 $ 100.00% 168,825,180 $ 100.00% 165,628,195 $ 100.00% 2016‐17 County School Service Fund Adopted Budget 2nd Interim Unaudited Actual

Contributing factor towards growth in Restricted Revenues: 3) LCFF increase is due to Property tax increase allocation for special education

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2016-17 County Sc hool Se r vic e F und: Unr e str ic te d and R e str ic te d R e ve nue s

LCFF $137,300,050 57% Federal Revenue $45,318,071 19% Other State Revenue $11,273,068 5% Other Local Revenue $43,079,249 18% Transfer In $1,603,783 1% 7

Total Revenues & Transfer In $238,574,221

2016‐17 Year End Close County School Service Fund (Fund 01) – Expenditures

Sub-F unds 800 to 990

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County School Service Fund: Unrestricted Expenditures

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County School Service Fund (CSSF) expenditure categories, amounts and percentages for the unrestricted funds are shown.

Unrestricted Expenditures

Amount % Amount %

Amount % Certificated Salaries 9,832,866 $ 11.13% 9,977,013 $ 11.10% 9,582,137 $ 13.56% Classified Salaries 22,261,550 25.19% 24,496,080 27.24% 23,687,465 33.51% Employee Benefits 12,888,492 14.58% 13,576,237 15.10% 13,842,266 19.59% Subtotal Salaries and Benefits 44,982,908 50.90% 48,049,330 53.44% 47,111,868 66.66% Books and Supplies 3,958,605 4.48% 3,528,971 3.92% 1,410,620 2.00% Services and Other Operating Expenditures 15,271,409 17.28% 16,755,722 18.63% 9,483,030 13.42% Capital Outlay 15,562,186 17.61% 13,747,849 15.29% 2,607,950 3.69% Other Outgo 19,965,317 22.59% 20,294,075 22.57% 19,312,972 27.33% Direct Support/Indirect Cost (11,438,961) ‐12.94% (12,726,998) ‐14.15% (11,162,468) ‐15.79% Subtotal Other Expenditures 43,318,556 49.02% 41,599,619 46.26% 21,652,104 30.64% Transfers Out 71,925 0.08% 273,801 0.30% 1,909,684 2.70% Total Unrestricted Expenditures 88,373,389 $ 100.00% 89,922,750 $ 100.00% 70,673,656 $ 100.00% 2016‐17 County School Service Fund

Adopted Budget 2nd Interim Unaudited Actual Contributing factors in changes to expenditures: 1) Growth in Salaries and Benefits 2) Decreases in Services, other expenditures and Capital Outlay (reallocated in the multiyear forecast) 3) Increase in transfer out (e.g. main portion for a change in the accounting treatment of debt service of COPS moved to fund 560) 1 2 3

County School Service Fund: Restricted Expenditures

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County School Service Fund (CSSF) expenditure categories, amounts and percentages for the restricted funds are shown.

Restricted Expenditures

Amount % Amount %

Amount % Certificated Salaries 39,691,802 $ 24.95% 42,725,851 $ 23.55% 41,071,070 $ 25.36% Classified Salaries 34,838,889 21.89% 36,961,359 20.36% 36,903,733 22.78% Employee Benefits 38,499,137 24.19% 39,516,594 21.77% 37,534,023 23.17% Subtotal Salaries and Benefits 113,029,828 71.03% 119,203,804 65.68% 115,508,826 71.31% Books and Supplies 4,217,117 2.65% 8,147,825 4.49% 2,105,698 1.30% Services and Other Operating Expenditures 27,423,810 17.24% 33,470,017 18.44% 27,559,127 17.02% Capital Outlay 117,840 0.07% 3,722,632 2.05% 858,155 0.53% Other Outgo 1,912,828 1.20% 3,307,141 1.82% 3,732,745 2.30% Direct Support/Indirect Cost 10,824,942 6.80% 12,047,019 6.64% 10,596,292 6.54% Subtotal Other Expenditures 44,496,537 27.96% 60,694,634 33.44% 44,852,017 27.69% Transfers Out 1,605,813 1.01% 1,605,813 0.88% 1,609,669 1.00% Total Restricted Expenditures 159,132,178 $ 100.00% 181,504,251 $ 100.00% 161,970,512 $ 100.00%

Adopted Budget 2nd Interim Unaudited Actual

2016‐17 County School Service Fund

Contributing factors in expenditures changes: 4) Growth in salaries and benefits 5) Decrease in books and supplies 6) Increase in other outgo

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The following table provides the Santa Clara County Office of Education’s 2016‐ 17 County School Service Fund expenditures of $232.6M. 75.57% of these funds are for Salaries & Benefits.

2016‐17 County School Service Fund Total Expenditures

Expenditures Category Unaudited Actuals % of Total Certificated Salaries $50,653,207 21.77% Classified Salaries 60,591,198 26.05% Employee Benefits 51,376,288 22.08% Sub‐total Salaries & Benefits 162,620,693 69.90% Books/Supplies 3,516,318 1.51% Services/Capital Outlay 40,508,263 17.41% Other Outgo/ Interfund Transfer‐out 25,998,893 11.18% Total Expenditures $232,644,167 100.00% Back‐out Return of Excess Property Tax (17,459,375) Total Expenditures exclude Return of Excess Property Tax $215,184,792 % of Salaries & Benefit over Total Expenditures exclude Return of Excess Property Tax 75.57%

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The following pie chart provides the breakdown of expenditures, excluding the return of prior year excess property tax at $215.1M ($232.6M ‐ $17.5M).

2016‐17 County School Service Fund Unrestricted and Restricted Expenditures

Certificated Salaries 23.54% Classified Salaries 28.16% Employee Benefits 23.88% Books & Supplies 1.63% Services & Other Operating Expenditures 17.21% Captial Outlay 1.61% Other Outgo / Interfund Transfer Out 3.97%

% Total of Salaries & Benefits = 75.57%

Total Expenditures & Transfer Out $232,644,167

County School Service Fund Components of Ending Fund Balances (EFB)

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Estimated Unaudited 2017‐18 2018‐19 2019‐20 Actuals Actuals Adopted Budget Projected Budget Projected Budget Nonspendable: Revolving Cash 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ Stores 142,278 110,778 142,278 142,278 142,278 Prepaid Expenditures ‐ 134 ‐ ‐ ‐ All Others 3,296,575 ‐ ‐ ‐ ‐ Restricted: 10,677,388 17,536,319 11,363,481 11,099,569 10,805,256 Assigned: Redevelopment Funds (RDA) 8,394,211 9,494,723 3,013,366 283,505 708,505 Board Approved Legal 176,000 176,000 176,000 176,000 176,000 Deferred Maintenance (FMP) 3,768,224 4,333,424 3,077,563 3,077,563 3,077,563 Facilities 10,515,584 10,067,177 6,470,026 6,128,026 3,386,026 Technology Services 9,607,123 9,606,173 7,107,123 7,107,123 7,107,123 Vacation Liability 2,439,556 2,439,557 1,000,000 1,000,000 1,000,000 Cafeteria Profit Sharing 100,954 104,201 100,954 100,954 100,954 ROP/JPA MOU (2017‐18) ‐ 926,799 ‐ ‐ ‐ 2016‐17 Excess Taxes 20,933,077 22,139,593 24,615,408 24,615,408 24,615,408 Carryover of Unspent Funds 681,709 611,800 ‐ ‐ ‐ First 5 Carryover ‐ 80,794 ‐ ‐ ‐ Educare Carryover ‐ 161,995 ‐ ‐ ‐ Total Assignments 56,616,438 60,142,236 45,560,440 42,488,579 40,171,579 Unassigned/Unappropriated: Reserve for Economic Uncertainties 9,331,471 9,305,767 10,058,269 10,062,427 10,066,517 Undesignated/Unappropriated 1,958,712 2,702,390 917,089 56,754 17,217 Total Unassigned 11,290,183 12,008,157 10,975,358 10,119,181 10,083,734 Total Ending Fund Balance $82,047,862 $89,822,624 $68,066,557 $63,874,607 $61,227,847

Summary of Funds

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Below is a list of funds SCCOE oversees. Each fund has a specific reporting purpose. The fund balances for the funds are listed below.

Fund # Fund Name Beginning Balance July 1, 2016 Revenues & Transfers In Expenditures & Transfers Out Ending Balance 010 County School Service Fund (CSSF) * 83,892,570 $ 238,574,221 $ 232,644,167 $ 89,822,624 $ 100 Special Education Pass‐Through Fund ‐ 43,808,388 43,808,388 ‐ 120 Child development Fund 155,484 8,397,533 8,505,951 47,066 130 Cafeteria Special Revenue Fund 25,091 1,900,088 1,920,318 4,861 350 County School Facilities Fund 369,325 (48,537) ‐ 320,788 560 Debt Service Fund 10,176 970,924 981,100 ‐ 67x Self‐Insurance Fund ** 6,663,018 13,505,495 12,875,399 7,293,114

**This fund consists of sub‐funds – Workers’ Compensation $2,090,502, OPEB $3,928,112, Dental $680,566, Vision $288,610

& Short‐term Disability Insurance $305,324.

* This fund consists of Sub‐Funds 800 – 990.