First Interim Budget Report Vineland School District ( December 15, - - PowerPoint PPT Presentation

First Interim Budget Report

Vineland School District (December 15, 2014)

• Dr. Matthew W

. Ross Superintendent Griselda Aceves Supervisor of Business Services

First Interim Budget Report (2014-2015)

PURPOSE

California Education Code Section 42130 requires all public school districts to annually file at least two interim financial reports with their local county superintendent of schools and the California Department of Education. The First Interim Budget Report covers the financial and budgetary status of each school district for the period July 1, 2013 to October 31, 2013. Interim reports serve as “snapshots” of the district’s financial condition at a particular point in time. Multiyear budgets are highly dependent upon projected state funding, which in-turn is dependent upon the health of the state economy and sufficient collection of property, income and sales taxes. As a result, interim budget reports are anchored on projections provided by the county and state as well as local expenditure decisions. The Governing Board of each district must certify whether their budget is able to meet their financial obligations for the remainder of the current fiscal year and two subsequent years. Certifications are positive, qualified, or negative. A positive certification means the district will be able to meet its financial obligations for the current year and two subsequent years. Qualified certification means the district may not meet its financial obligations, while negative certification indicates the district will not meet its fiscal obligations.

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First Interim Budget Report (2014-2015)

DISCLAIMER

The following is based on the most recent fiscal information and is subject to change. Any changes will be recast in the Second Interim Budget Report in March.

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First Interim Budget Report (2014-2015)

TOPICS

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• Apportionment Summary
• Cash Flow Summary
• Summary of All Funds
• Multi-Year Projection
• Budget Challenges
• Budget Assumptions (Revenues)
• Budget Assumptions (Expenditures)
• Contributions to Restricted Programs
• Fiscal Health Risk Analysis
• Certification Recommendation

First Interim Budget Report (2014-2015)

BUDGET PROCESS and TIMELINES

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Budget Adoption

• Public Hearing- No later than June 30
• Adoption- No later than June 30
• Public Hearing- No later than 45 days of the Governor

signing the Budget Act (August) if the District makes any revisions to the budget revenues and expenditures Unaudited Actual

• Prior year financial reports
• Adoption- No later than September 15

Appropriations Limit (Gann Limit)

• Adoption- No later than September 30

Audited Actual

• Prior year financial reports
• Certification- No later than December 15

First Interim Budget Report

• Period covered: July 1- October 31
• Certification- No later than December 15

Second Interim Budget Report

• Period covered: July 1- January 31
• Certification- No later than March 15

Cash Flow Summary

First Interim Budget Report (2014-2015)

CASH FLOW SUMMARY

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Jul Aug Sep Oct Nov Dec Jan Beginning Cash $469,682 $1,285,514 $1,313,906 $1,568,057 $1,566,445 $1,197,224 $1,504,411 Receipts $1,360,575 $436,408 $904,054 $548,873 $537,705 $877,392 $449,312 Disbursements $544,743 $408,016 $649,903 $550,485 $906,926 $570,205 $512,391 Net Cash Flow $815,832 $28,392 $254,151 ($1,612) ($369,221) $307,187 ($63,079) Ending Cash $1,285,514 $1,313,906 $1,568,057 $1,566,445 $1,197,224 $1,504,411 $1,441,332 Feb Mar Apr May Jun Accruals Total Beginning Cash $1,441,332 $868,133 $1,108,034 $987,092 $798,468 $1,042,450 $469,682 Receipts $438,620 $817,737 $530,587 $277,426 $1,554,440 $0 $8,733,129 Disbursements $1,011,819 $577,836 $651,529 $466,050 $1,310,458 $0 $8,160,361 Net Cash Flow ($573,199) $239,901 ($120,942) ($188,624) $243,982 $0 $572,768 Ending Cash $868,133 $1,108,034 $987,092 $798,468 $1,042,450 $1,042,450 $1,042,450

Note 1: Actual (July-October) Note 2: Projected (November-June)

Summary of All Funds

First Interim Budget Report (2014-2015)

SUMMARY OF ALL FUNDS

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Beginning Fund Balance Projected Revenues/ Transfers In Projected Expenditures/ Transfers Out Projected Ending Fund Balance

General Fund $735,162 $7,588,628 $7,896,188 $427,602 Fund 01- Unrestricted Fund $407,165 $5,798,837 $5,778,401 $427,602 Fund 01- Restricted Fund $327,996 $1,789,791 $2,117,787 $0 Capital Funds $1,930,009 $0 $250,000 $1,680,009 Fund 14 – Deferred Maintenance Fund $410,961 $0 $250,000 $160,961 Fund 21 - Building Fund $1,445,560 $0 $0 $1,445,560 Fund 25 – Capital Facilities Fund $27,408 $0 $0 $27,408 Fund 35 - County School Facilities Fund $14,752 $0 $0 $14,752 Fund 40 – Special Reserve Fund for Capital Outlay $31,328 $0 $0 $31,328 Other Funds $1,159,920 $579,065 $677,930 $1,061,055 Fund 13 – Cafeteria Fund $661,421 $579,065 $579,065 $661,421 Fund 17- Special Reserve Fund for Other Than Capital Outlay Projects $315,000 $0 $0 $315,000 Fund 20 - Special Reserve Fund for Post Employment Benefits $183,499 $0 $98,865 $84,634 Fund 77 - Impounds $0 $0 $0 $0 Total Funds $3,825,091 $8,167,693 $8,824,118 $3,168,666

Multi-Y ear Projection

(Ending Fund Balance)

First Interim Budget Report (2014-2015)

MULTI-YEAR PROJECTION

(Ending Fund Balance)

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Unrestricted/Restricted Funds (Fund 01) Adopted Budget Approved Operating Budget Projected Year Totals Projected Budget (Year 2) Projected Budget (Year 3) Beginning Fund Balance $796,516 $796,516 $735,162 $427,601 $427,601 Audit Adjustments $0 $0 $0 $0 $0 Other Restatements $0 $0 $0 $0 $0 Adjusted Beginning Fund Balance $796,516 $796,516 $735,162 $427,601 $427,601 Revenue/Other Financing Sources $7,540,519 $7,540,519 $7,588,628 $7,963,396 $8,438,905 Expenditures/Other Outgo $7,377,723 $7,377,723 $7,629,699 $7,750,896 $8,099,840 Surplus/Deficit $162,796 $162,796 ($41,071) $212,500 $339,065 Other Financing Sources/Uses $0 ($430,888) ($266,488) ($212,501) ($339,065) Interfund Transfer $0 ($430,888) ($266,488) ($212,501) ($339,065) Other Sources/Uses $0 $0 $0 $0 $0 Contributions $0 $0 $0 $0 $0 Increase/Decrease in Fund Balance $162,796 ($268,092) ($307,559) $0 $0 Ending Fund Balance $959,312 $528,424 $427,603 $427,600 $427,601

First Interim Budget Report (2014-2015)

MULTI-YEAR PROJECTION

(Components of the Ending Fund Balance)

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Unrestricted/Restricted Funds (Fund 01) Adopted Budget Approved Operating Budget Projected Year Totals Projected Budget (Year 2) Projected Budget (Year 3) Non-spendable Fund Balance $2,000 $2,000 $2,000 $2,000 $2,000 Restricted Fund Balance $83,683 $83,683 $0 $0 $0 Committed Fund Balance $0 $0 $0 $0 $0 Stabilization Arrangements $0 $0 $0 $0 $0 Other Commitments $0 $0 $0 $0 $0 Assigned Fund Balance $0 $0 $109,754 $107,066 $88,046 Unassigned Fund Balance $503,716 $503,755 $315,848 $318,536 $337,556 Reserve for Economic Uncertainties $503,716 $503,755 $315,848 $318,536 $337,556 Unassigned/Unappropriated $0 $0 $0 $0 $0

First Interim Budget Report (2014-2015)

MULTI-YEAR PROJECTION

(Ending Fund Balance)

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Unrestricted Funds (Fund 01) Adopted Budget Approved Operating Budget Projected Year Totals Projected Budget (Year 2) Projected Budget (Year 3) Beginning Fund Balance $407,165 $407,165 $407,165 $427,602 $427,602 Audit Adjustments $0 $0 $0 $0 $0 Other Restatements $0 $0 $0 $0 $0 Adjusted Beginning Fund Balance $407,165 $407,165 $407,165 $427,602 $427,602 Revenue/Other Financing Sources $6,140,996 $6,140,996 $6,197,276 $6,565,698 $7,034,869 Expenditures/Other Outgo $5,077,869 $5,077,869 $5,511,912 $5,954,758 $6,297,364 Surplus/Deficit $1,063,128 $1,063,128 $685,364 $610,940 $737,504 Other Financing Sources ($594,662) ($1,025,550) ($664,928) ($610,940) ($737,504) Interfund Transfer $0 ($430,888) ($266,488) ($212,501) ($339,065) Other Sources/Uses $0 $0 $0 $0 $0 Contributions ($594,662) ($594,662) ($398,439) ($398,439) ($398,439) Increase/Decrease in Fund Balance $468,466 $37,578 $20,436 $0 $0 Ending Fund Balance $875,631 $444,743 $427,602 $427,602 $427,602

First Interim Budget Report (2014-2015)

MULTI-YEAR PROJECTION

(Ending Fund Balance)

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Restricted Funds (Fund 01) Adopted Budget Approved Operating Budget Projected Year Totals Projected Budget (Year 2) Projected Budget (Year 3) Beginning Fund Balance $389,351 $389,351 $327,996 $0 $0 Audit Adjustments $0 $0 $0 $0 $0 Other Restatements $0 $0 $0 $0 $0 Adjusted Beginning Fund Balance $389,351 $389,351 $327,996 $0 $0 Revenue/Other Financing Sources $1,399,523 $1,399,523 $1,391,351 $1,397,698 $1,404,037 Expenditures/Other Outgo $2,299,854 $2,299,854 $2,117,787 $1,796,138 $1,802,476 Surplus/Deficit ($900,331) ($900,331) ($726,436) ($398,439) ($398,439) Other Financing Sources $594,662 $594,662 $398,439 $398,439 $398,439 Interfund Transfer $0 $0 $0 $0 $0 Other Sources/Uses $0 $0 $0 $0 $0 Contributions $594,662 $594,662 $398,439 $398,439 $398,439 Increase/Decrease in Fund Balance ($305,669) ($305,669) ($327,997) $0 $0 Ending Fund Balance $83,682 $83,682 $0 $0 $0

First Interim Budget Report (2014-2015)

MULTI-YEAR PROJECTION

(Ending Fund Balance)

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Reserve Summary Adopted Budget Approved Operating Budget Projected Year Totals Projected Budget (Year 2) Projected Budget (Year 3) Total Expenditures $7,377,723 $7,377,723 $7,896,188 $7,963,396 $8,438,905 Total Available Reserves ($)- Fund 01 $503,716 $503,716 $315,848 $318,536 $337,556 Total Available Reserves ($)- Fund 17 $0 $0 $0 $0 $0 Total Available Reserve (%) 6.83% 6.83% 4.00% 4.00% 4.00% Reserve Standard ($) $295,109 $295,109 $315,848 $318,536 $337,556 Reserve Standard (%) 4.0% 4.0% 4.0% 4.0% 4.0% Difference $208,607 $208,607 $0 $0 $0 Components of the Reserve Stabilization Arrangements $0 $0 $0 $0 $0 Reserve for Economic Uncertainties $503,716 $503,716 $315,848 $318,536 $337,556 Unassigned/Unappropriated $0 $0 $0 $0 $0 Negative EFB in Restricted Resources $0 $0 $0 $0 $0

Budget Assumptions

(Revenues)

First Interim Budget Report (2014-2015)

REVENUES

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Revenues By Funding Source (Fund 01) Adopted Budget Approved Operating Budget Actuals to Date (October 31) Projected Year Totals Difference State Revenue $5,977,758 $5,977,758 $1,606,030 $6,024,198 $46,440 Federal Revenue $670,433 $670,433 $226,549 $763,945 $93,512 Other State Revenue $504,802 $504,802 $202,511 $412,958 ($91,844) Other Local Revenue $387,526 $387,526 $70,321 $387,526 $0 Total Revenues $7,540,519 $7,540,519 $2,105,411 $7,588,627 $48,108

First Interim Budget Report (2014-2015)

STATE REVENUE

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Revenues By Funding Source (Fund 01) Adopted Budget Approved Operating Budget Actuals to Date (October 31) Projected Year Totals Difference Principal Apportionment- State Aide $4,735,920 $4,735,920 $1,320,838 $4,605,898 ($130,022) Education Protection Account (EPA) $706,341 $706,341 $214,369 $852,803 $146,462 Homeowners' Exemptions $4,456 $4,456 $0 $4,456 $0 County and District Taxes- Secured Roll $529,800 $529,800 $14,904 $559,800 $30,000 County and District Taxes- Unsecured Roll $45,986 $45,986 $45,862 $45,986 $0 Prior Years' Taxes $5,084 $5,084 ($60) $5,084 $0 Supplemental Taxes $20,680 $20,680 $9,765 $20,680 $0 Education Revenue Augmentation Fund ($70,509) ($70,509) $0 ($70,509) $0 Penalties and Interest- Delinquent Taxes $0 $0 $352 $0 $0 Total Revenues $5,977,758 $5,977,758 $1,606,030 $6,024,198 $46,440

First Interim Budget Report (2014-2015)

FEDERAL REVENUE

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Revenues By Funding Source (Fund 01) Adopted Budget Approved Operating Budget Actuals to Date (October 31) Projected Year Totals Difference Special Education Entitlement $91,485 $91,485 $0 $118,572 $27,087 Special Education Discretionary Grant $0 $0 $9,421 $9,421 $9,421 Interagency Contracts Between LEAs $0 $0 $0 $0 $0 Title I, Part A, Basic Grant $449,007 $449,007 $112,295 $450,094 $1,087 Title II, Part A, Teacher Quality $52,672 $52,672 $13,707 $52,672 $0 Title III, Immigrant Education $0 $0 $10,700 $10,700 $10,700 Title III, Limited English Proficient $41,247 $41,247 $40,085 $47,497 $6,250 Med-Cal Billing Option $20,735 $20,735 $0 $20,735 $0 Other Federal Revenue $15,287 $15,287 $40,340 $54,254 $38,967 Total Revenues $670,433 $670,433 $226,549 $763,945 $93,512

First Interim Budget Report (2014-2015)

OTHER STATE REVENUE

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Revenues By Funding Source (Fund 01) Adopted Budget Approved Operating Budget Actuals to Date (October 31) Projected Year Totals Difference All Other State Apportionments $106,477 $106,477 $0 $0 ($106,477) Mandated Cost Reimbursements $20,323 $20,323 $0 $21,322 $999 Lottery $115,502 $115,502 $28,839 $128,848 $13,346 After School Education and Safety $262,500 $262,500 $170,625 $262,500 $0 All Other State Revenue $0 $0 $3,047 $288 $288 Total Revenues $504,802 $504,802 $202,511 $412,958 ($91,844)

First Interim Budget Report (2014-2015)

OTHER LOCAL REVENUE

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Revenues By Funding Source (Fund 01) Adopted Budget Approved Operating Budget Actuals to Date (October 31) Projected Year Totals Difference Leases and Rentals $20,000 $20,000 $0 $20,000 $0 Interest $5,950 $5,950 $1,086 $5,950 $0 All Other Fees and Contracts $0 $0 $0 $0 $0 All Other Local Revenue $24,000 $24,000 $1,354 $24,000 $0 Transfers of Apportionment (SELPA) $337,576 $337,576 $67,881 $337,576 $0 Total Revenues $387,526 $387,526 $70,321 $387,526 $0

Budget Assumptions

(Expenditures)

First Interim Budget Report (2014-2015)

EXPENDITURES

(By Object Classification)

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Expenditures By Object Classification (Fund 01) Adopted Budget Approved Operating Budget Actuals to Date (October 31) Projected Year Totals Difference Certificated Salaries $3,010,367 $3,010,367 $888,331 $3,100,678 $90,311 Classified Salaries $891,725 $891,725 $231,934 $927,345 $35,620 Employee Benefits $1,556,408 $1,556,408 $464,798 $1,557,860 $1,452 Books and Supplies $719,481 $719,481 $78,265 $797,553 $78,072 Services and Other Operating Expenditures $826,677 $826,677 $188,416 $828,071 $1,394 Capital Outlay $1,579 $1,579 $0 $1,579 $0 Other Outgo $371,485 $371,485 $28,091 $416,613 $45,128 Total Expenditures $7,377,722 $7,377,722 $1,879,835 $7,629,699 $251,978

First Interim Budget Report (2014-2015)

CONTRIBUTIONS TO RESTRICTED PROGRAMS

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Expenditures By Object Classification (Fund 01) Adopted Budget Approved Operating Budget Actuals to Date (October 31) Projected Year Totals Difference

Special Education $305,935 $305,935 $0 $305,935 $0 Special Education Transportation $92,504 $92,504 $0 $92,504 $0 Total Expenditures $398,439 $398,439 $0 $398,439 $0

Fiscal Health Risk Analysis

(FCMAT)

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Deficit Spending)

26 Yes No Is the district avoiding deficit spending in the current year? X Is the district avoiding deficit spending in the two subsequent fiscal years? X Has the district controlled deficit spending over the past two fiscal years? X Is the issue of deficit spending addressed by fund balance, ongoing revenues, or expenditure reductions? (Has the board approved a plan to eliminate deficit spending?) X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Fund Balance)

27 Yes No Is the district’s fund balance at or consistently above the recommended reserve for economic uncertainty? X Is the fund balance stable or increasing due to ongoing revenues and/or expenditure reductions? X Does the fund balance include any designated reserves for unfunded liabilities or one time costs above the recommended reserve level? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Reserve for Economic Uncertainty)

28 Yes No Is the district able to maintain its reserve for economic uncertainty in the current and two subsequent years based on current revenue and expenditure trends? X Does the district have additional reserves in Fund 17, Special Reserve for Non Capital Projects? X If not, is there a plan to restore the reserve for economic uncertainties in the district’s multiyear financial projection? N/A N/A

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Enrollment and Attendance)

29 Yes No Has the district’s enrollment been increasing or stable for multiple years? X Is the district’s enrollment projection updated at least semiannually? X Are staffing adjustments for certificated and classified employee groups consistent with the enrollment trends? X Does the district analyze enrollment and average daily attendance (ADA) data? X Does the district track historical data to establish future trends between P-1 and P-2 for projection purposes? X Do school sites maintain an accurate record of daily enrollment and attendance that is reconciled monthly? X Has the district implemented any attendance programs to increase ADA? X Have approved charter schools had little or no impact on the district’s student enrollment? X Does the district have a board policy that attempts to reduce the effect that transfers out of the district have on the district’s enrollment? X Did the district certify its CALPADS Fall 1 submission by the required deadline? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Debt)

30 Yes No Does the district have a recent actuarial study and a plan to set funds aside for unfunded liabilities? X Does the district maintain low levels of non-voter approved debt (suc as COPs, bridge financing, BASN, RANS, and others)? X Is the district conforming to GASB 68 requirements by recognizing and reporting its proportionate share of net liability for pension programs? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Cash Monitoring)

31 Yes No Can the district manage its cash flow in all funds without interfund borrowing? X Is the district repaying the funds within the statutory period in accordance with Education Code section 42603? X Does the district forecast its cash receipts and disbursements and verify them at least monthly to ensure that cash flow needs are known with plenty of notice? X Does the district have a plan to address short-term cash flow needs? X Are cash balances reconciled to bank statements monthly? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Bargaining Agreement)

32 Yes No Has the district settled the total cost of the bargaining agreements at or under COLA during the current and past three years? N/A N/A Did the district conduct a pre-settlement analysis including multi-year projections, identifying an ongoing revenue sources or expenditure reductions to support the agreement, as well as the long-term effects on the district? N/A N/A Did the district correctly identify the related costs above the COLA, (i e statutory benefits, step and column)? N/A N/A Did the district address budget reductions necessary to sustain the total compensation increase including a board-adopted plan? N/A N/A Did the superintendent and CBO certify the agreement prior to ratification? N/A N/A Is the governing board’s action consistent with the superintendent’s/CBO’s certification? N/A N/A Did the district meet the public disclosure requirements, including disclosure of the costs associated with a tentative collective bargaining agreement, before it becomes binding on the district? N/A N/A

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(General Fund)

33 Yes No Is the percentage of the district’s general fund unrestricted budget allocated to salaries and benefits at or under the statewide average? X Is the district making sure that only ongoing restricted dollars pay for permanent staff? X Does the budget include reductions in expenditures proportionate to one-time revenue sources, such as parcel taxes, that will terminate in the current or two subsequent fiscal years? N/A N/A Does the district ensure that parcel tax is not paying for ongoing expenditures? N/A N/A Is the district ensuring that litigation and/or settlements are minimized? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Enchroachment)

34 Yes No Is the district aware of the contributions to restricted programs in the current year? (Identify cost, programs and funds) X Does the district have a reasonable plan to address increased encroachment trends? X Does the district manage encroachment from other funds, including the cafeteria fund? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Management Information Systems)

35 Yes No Is the district’s financial data accurate and timely? X Are the mandatory county and state reports filed in a timely manner? X Are key fiscal reports, including those on personnel, payroll, and budget, accessible, timely, readily available, and understandable? X Is the district on the same financial system as the county? X If the district is on a separate financial system, is there an automated interface with the financial system maintained by the county? N/A N/A Is the district able to accurately identify students who are eligible for free and reduced-priced meals, English learners, and foster youth, in accordance with Local Control Funding Formula (LCFF) and Local Control Accountability Plan (LCAP) requirements? X Is the district able to collect, assess, and report student data in the California Pupil Achievement Data System (CALPADS)? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Position Control and Human Resources)

36 Yes No Does the district maintain a reliable position control system that tracks personnel allocations and expenditures? X Is position control integrated with payroll and financial system? X Does the district control unauthorized hiring? X Is the district able to control overstaffing? X Are the appropriate levels of internal controls (i.e., checks and balances) in place between the business and personnel departments to prevent fraudulent activity? X Is position control reconciled against the budget during the fiscal year? X Does the district offer or ensure that staff attend professional development regarding financial management and budget? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Budget Development and Adoption)

37 Yes No Is the budget calendar used that contains statutory due dates and the major budget development milestones? X Are there clear processes and policies in place to analyze resources and allocations to ensure that they align with strategic planning objectives and that the budget reflects the district’s priorities and the LCAP? X Is the LCFF correctly calculated and understood? X Are projections for ADA, enrollment, revenue, and unduplicated pupil count accurate and reasonable? X Is the district decreasing deficit spending and maintaining adequate reserves and fund balance when compared with the prior year? X Has the district ensured that the LCAP is incorporated in the budget? X Is the budget developed using a zero-based method, rather than being a rollover budget? X Does the budget development process include input from staff, adminisrtators, board and community, as well as the budget advisory committee (if there is one)? X Are the LCAP and the budget adopted within statutory timelines established by Education Code Section42103, and are the documents filed with the count ty superintendent of schools no later than five days after adoption, or by July 1, whichever occurs first? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Multiyear Projections)

38 Yes No Has the district developed multiyear projections that have reasonable assumptions? X Are projected fund balance reserves disclosed and based on the most reasonable and accurate information available? X At a minimum, are multi-year projections compiled at budget adoption and at the time of interim reports? X For the purpose of calculating multiyear projections, is the district using the latest LCFF gap closure percentage that shows the amount of funding necessary to maintain purchasing power for the LCFF statewide? X Is the LCFF target for each year recalculated based on the grade span ADA, and then compared to the adjusted prior year funding, so that the funding gap would then be reduced by the funding gap percentage for the given year? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Budget Monitoring and Updates)

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Yes No Are budget assumptions updated throughout the year as updated information becomes available? X Are actual revenue and expenses in line with the most current budget? X Are budget revisions completed in a timely manner? X Does the district openly discuss the impact of budget revisions at the board level? X Does the district abide by Education Code Section 42127(i)(4) by informing the board of education and the public, within 45 days of enactment of the state budget, of any changes in the state budget that would affect the adopted budget? N/A N/A Are budget revisions made or confirmed by the board at the same time the collective bargaining agreement is ratified? N/A N/A Has the district’s long term debt decreased from the prior fiscal year? X Are contributions to restricted programs controlled and monitored? X Has the district identified the repayment sources for long term debt or non voter-approved debt (e.g., certificates of participation, capital leases)? X Does the district’s financial system have a hard coded warning regarding insufficient funds for requisitions and purchase

• rders?

X Does the district encumber salaries and benefits? X Are the balance sheet accounts in the general ledger reconciled regularly? X Does the district complete and file its interim budget reports within the statutory deadlines established by Education Code Section 42310 and following, in a format or on forms prescribed by the Superintendent of Public Instruction (SPI), and ensure that they re based on standards and criteria for fiscal stability? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Retiree Health Benefits)

40 Yes No Has the district completed an actuarial valuation to determine the unfunded liability under GASB 45 requirements? X Does the district have a plan for addressing the retiree benefits liabilities? X Has the district conducted a re-enrollment process to identify eligible retirees? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Leadership/Stability)

41 Yes No Does the district have a superintendent and/or chief business official that has been with the district more than two years? X Does the governing board adopt and revise understandable and timely policies and support the administration to ensure implementation? X Does the superintendent adopt and revise understandable and timely administrative regulations and ensure that adopted policies and approved administrative regulations are communicated to the staff and are followed? X Does the governing board refrain from micromanaging district administration and staff? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Charter Schools)

42 Yes No Has the district identified a specific employee or department to be responsible for oversight

• f the charter?

N/A N/A Has the charter school submitted the required financial reports? N/A N/A Has the charter school commissioned an independent audit? N/A N/A Does the audit reflect findings that will not impact the fiscal certification of the authorizing agency? N/A N/A Is the district monitoring and reporting the current status to the board to ensure that an informed decision can be made regarding the reauthorization of the charter? N/A N/A

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Audit Reports)

43 Yes No Does the district implement appropriate measures to discourage and detect fraud? X Did the district receive an audit report without material findings? X Can the audit findings be addressed without impacting the district’s fiscal health? X Has the independent audit report been completed and presented within the statutory time line? X Are audit findings and recommendations reviewed with the board? X Did the audit report meet both GAAP and GASB standards? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(Facilities)

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Yes No

Has the district passed a general obligation bond? X Has the district met the audit and reporting requirements of Proposition 39? X Is the district participating in the state’s School Facilities Program? X Does the district have sufficient personnel to properly track and account for facility-related projects? X Has the district met the reporting requirements of the Williams Act? X Is the district properly accounting for the 3% Routine Repair and Maintenance Account requirement at the time of budget adoption? X Does the district prioritize facility issues when adopting the budget? X If needed, does the district have surplus property that may be sold or used for lease revenues? X If needed, are there other potential statutory options? X

• Joint Use: Can the district enter into a joint use agreement with some entities without declaring the

property surplus and without bidding?

• Joint Occupancy: The Education Code provides for a joint venture that can authorize private

development of district property that will result in some educational use Does the district have a facilities master plan that was completed or updated in the last two years? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

(General Ledger)

45 Yes No Does the district record all financial activity for all programs accurately and in a timely manner, ensuring that work is properly supervised and reviewed? X Has the district closed the general ledger (books) within the time prescribed by the county

• ffice of education??

X Does the district follow a year-end closing schedule? X Have beginning balances in the new fiscal year been recorded correctly for each fund from the prior fiscal year? X Does the district adjust prior year accruals if the amounts actually received (A/R) or paid (A/P) are greater or less than the amounts accrued? X Does the district reconcile all payroll suspense accounts at the close of the fiscal year? X

First Interim Budget Report (2014-2015)

FISCAL HEALTH RISK ANALYSIS

46 Yes No

Deficit Spending

3 1

Fund Balance

3

Reserve for Economic Uncertainty

2

Enrollment and Attendance

8 2

Debt

2 1

Cash Monitoring

4 1

Bargaining Agreements General Fund

2 1

Enchroachment

3

Management Information Systems

5 1 Total the number of component areas in which the district’s fiscal health is not acceptable: Low: 0 – 4 Moderate: 5 – 9 High: 10 – 14 Extremely High: 15 – 17 Yes No

Position Control and Human Resources

4 3

Budget Development and Adoption

8 1

Multiyear Projections

5

Budget Monitoring and Updates

8 3

Retiree Health Benefits

1 2

Leadership/Stability

3 1

Charter Schools Internal Controls/Independent Audit Report

5 1

Facilities

5 5

General Ledger

6

Certification Recommendation

First Interim Budget Report (2014-2015)

CERTIFICATION RECOMMENDATION

Based on the best available current information and budgetary assumptions, it is recommended the Board of Trustees of the Vineland Elementary School District certify the First Interim Budget Report as POSITIVE for 2014-2015 and the two subsequent fiscal years of 2015-2016 and 2016-2017.

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