Presented by Robert A. Marical Chief Business Official September - - PowerPoint PPT Presentation

Presented by Robert A. Marical Chief Business Official September 17, 2019

• The “Unaudited Actuals” is the final state financial report and is for

2018-19 is for fiscal year end reporting as of June 30, 2019.

• It is not based on budgeted amounts, but on actual revenues received and actual

expenses incurred.

• What’s in the State Report:

 For each district fund, a listing of Revenue and Expenditures for 2018-19 Actuals and 2019-20 Adopted Budget.  General Fund separated by Unrestricted and Restricted dollars.  Average Daily Attendance report.  ASSET Form – Schedule of Capital Assets  CAT Form – Breakdown of all Restricted or Categorical funding.  CEA Form – Checks to see if district is spending at least 60% on classroom compensation.  ESMOE – Every Student Succeeds Act Maintenance of Effort  DEBT Form – Schedule of Long Term Debt  GANN Form – calculation for the District’s GANN Limit  Indirect Cost Worksheet  Lottery Report  LCFF – Local Control Funding Formula Calculations  Program Cost Report – Factors and Allocations  Summary of Interfund Activities  Technical Review Checklists – verifies a variety of areas, including verifying correct account coding and ensure data is complete.

• The District is required to submit the Unaudited

Actuals to the County Office of Education by September 15th.

• The Auditors will conduct their final phase of the

audit during the week of October 28, 2019.

• A draft copy of the audit will be available in

December.

• The final audit report will be presented to the

Board of Trustees in January 2020.

• 2018-19 Fiscal Year has proven to be a fiscally

challenging year

• The 1st Interim report in December indicated

significant deficit spending and the multi-year projections (MYP) showed we would not meet minimum reserve level requirements in 2020-21 which resulted in a “Qualified” budget

• A budget committee that included various

stakeholders was convened and worked together to develop a fiscal recovery plan

• The plan primarily focused on 2019-20 and with

many of the 2018-19 spending obligations already in place we still worked to curtail spending in 2018-19

• At Budget Adoption in June, the estimated

actuals for 2018-19 indicated a net decrease in the fund balance (deficit) of -$1,050,856

• $1,065,441 Unrestricted
• +$14,585 Restricted
• The Unaudited Actuals show a total deficit of
• $414,496.30
• $730,351 Unrestricted
• +$315,855 Restricted
• While the deficit at Unaudited Actuals was

less that estimated at adoption, the bottom line is that we still spent down the unrestricted reserve by -$730,351

LCFF Sources $ 52,432,838 Federal Revenue $ 2,473,904 State Revenues $ 8,054,031 Local Revenue $ 7,092,852 Transfers In $ 600,000 Total Revenue $ 70,653,625

CRPUSD Revenue Sources

• Lottery – Both

Unrestricted and Restricted

• Title I
• Title II
• Title III
• Perkins
• Child Nutrition
• After School Ed &

Safety (ASES)

• Special Education
• Parcel Tax
• Casino Funds
• Foundation
• Donations
• Pass Through

Budgets (Athletics, Year Book, etc.)

GENERAL FUND

State & Federal Sources: Local Resources: LCFF Sources:

• General purpose

dollars

• Formula to calculate

“Target” level of funding

• Base funding per

grade level x Avg. Daily Attendance

• Formula includes

additional funding for low income students, foster youth and English language learners

• STRS On-Behalf
• STRS On-Behalf: Starting in 2014-15 GASB 68 resulting in a new requirements

for the District to include estimated share of state’s STRS liability on our books and report on our financial statements

• These entries are recorded as State Revenues and Employee Benefit categories

(STRS cost) in our books. These are not actual costs incurred

• The result will be an substantial increase to both state revenues and

expenditure categories but will net to zero and not impact the fund balance

• At 2018-19 Adopted Budget the district had budgeted $1,826,086 for estimated

STRS On-Behalf

• Recent legislation expanded on on-behalf to include PERS and also to include

state contributions that were paid on behalf of school employers. Based on this amount on-behalf amounts increased to $4,260,675 for 2018-19

• While this is not a cost borne by the general fund it does have the appearance

that both state revenues and employee increased substantially.

$$ Change % Change LCFF Sources 2,721,109 $ 5.5% Federal Revenue 3,550 $ 0.1% State Revenue ** 307,487 $ 8.8% Local Revenue (133,894) $

• 1.9%

Transfers In 79,000 $ 15.2% TOTAL 2,977,252 $ 4.7%

** Excludes STRS/PERS On-Behalf Revenue

Revenues have increased by 10.1% the last three years

Certificated Salaries $ 26,096,064 Classified Salaries $ 7,566,196 Benefits $ 21,929,543 Materials & Supplies $ 1,722,123 Services & Contracts $ 13,343,852 Capital Outlay $ 13,467 Other Outgo/Transfer Out $ 396,876

TOTAL EXPENDITURES $ 71,068,121

** Salaries + Benefits = 78% of Total General Fund Expenditures

CRPUSD Expenditures Categories

Certificated Salaries Credentialed Staff: Includes Teachers, Librarians, Nurses, Counselors, Psychologists, Principals, Superintendent Classified Salaries Non-Credentialed Staff: Office staff, Custodians, Managers, Supervisors, CBO Employee Benefits Salary driven benefit costs: Includes State Teachers Retirement (STRS), Public Employee Retirement (PERS), Workers Compensation, SUI, Social Security, Health benefit costs Books and Supplies Includes textbooks, computers, magazines, gas & oil Services and Other Operating Expenses General operating costs includes Insurance, utilities, repairs, contract services, internet, telephones Capital Outlay Capital includes equipment . Maintenance or repairs

• ver $5,000

Transfer Out/Other Outgo Transfers out include transfers to other funds (Example: Cafeteria Fund) or transfers to other agencies

Category $$ Change % Change Certificated Salaries 1,145,853 $ 4.6% Classified Salaries 492,413 $ 7.0% Employee Benefits ** 1,122,057 $ 6.8% Books & Supplies 78,248 $ 4.8% Service & Operating Exp 978,918 $ 7.9% Capital Outlay (199,710) $

• 93.7%

Other Outgo/Transfers (629,182) $

• 61.3%

TOTAL 2,988,597 $ 4.7%

**Excludes STRS/PERS ON-Behalf Costs

Expenditures have increased by 11.3%

• ver the last three years

• STRS and PERS rate increases have

continued to have a significant impact on the district’s finances

– Totals do not include STRS/PERS On-Behalf

• Health and Welfare costs also increased

substantially

2017-18 2018-19 Change Certifcated H/W 6,606,491.92 $ 6,826,097.63 $ 219,605.71 $ Classified H/W 2,973,324.63 $ 3,274,340.59 $ 301,015.96 $ Total 9,579,816.55 $ 10,100,438.22 $ 520,621.67 $

2017-18 2018-19 Change STRS Costs 3,537,964.93 $ 4,147,843.22 $ 609,878.29 $ PERS Costs 1,002,572.76 $ 1,306,134.31 $ 303,561.55 $ Total 4,540,537.69 $ 5,453,977.53 $ 913,439.84 $

Please note: total expenditures do not include Medi-Cal Reimbursement or Special Education Transportation Costs

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Res

Actuals Actuals Actuals Actuals Actuals Actuals

3310 IDEA ( Federal Spec Education) 1,012,618 $ 1,056,945 $ 1,001,024 $ 974,889 $ 896,905 $ 1,110,640 $ 3312 Federal Preschool 126,503 $ 56,738 $ 48,736 $ 39,555 $ 39,341 $ 51,155 $ 3327 Federal Sp Ed Mental Heatlh 237,880 $ 144,357 $ 122,252 $ 108,072 $ 86,446 $ 223,122 $ 6500 AB 602 Funding 8,779,216 $ 7,138,691 $ 11,021,846 $ 10,258,507 $ 11,322,227 $ 12,745,682 $ 6512 State Sp Ed Mental Health 1,012,979 $ 638,591 $ 313,073 $ 463,358 $ 440,374 $ 583,679 $ Total Expenditures 11,169,196 $ 9,035,321 $ 12,506,931 $ 11,844,381 $ 12,785,292 $ 14,714,278 $

Change $$

• (2,133,874)

$ 3,471,609 $ (662,550) $ 940,911 $ 1,928,985 $ Change %

• 23.6%

38.4%

• 5.6%

7.9% 15.1% Summary of Special Education Expenditures

Special Education Costs Increased by $1,928,986

• r 15.1%

What is in the Fund Balance?

In the 2018-19 Adopted Budget, Estimated Actuals column, the ending balance is estimated and updated after the books are closed. At that point we know the true ending balance.

The Adopted Budget estimated balance was $1,835,945 The actual ending balance is $2,472,304.25 which as expected increased from the Adopted Budget estimate.

Components of the Ending Balance include:

 Non-Spendable: $ 278,904.94

 Includes Revolving Cash, Prepaid Expenses

 Restricted Reserves: $ 861,132.06  Assigned Balances: $ 1,332,267.25

 Includes Designated Carryovers, Instructional Materials Reserve, Budget Stabilization Reserve

• Questions?