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 15 th .  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 1 st 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 GENERAL FUND State & Federal LCFF Sources: Local Resources: Sources: • General purpose • Parcel Tax dollars • Casino Funds • Formula to calculate • Lottery – Both • Foundation “Target” level of Unrestricted and • Donations funding Restricted • Pass Through • Base funding per • Title I Budgets (Athletics, grade level x Avg. • Title II Daily Attendance Year Book, etc.) • Title III • Formula includes • Perkins additional funding • Child Nutrition for low income • After School Ed & students, foster Safety (ASES) youth and English • Special Education 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 General operating costs includes Insurance, utilities, Expenses repairs, contract services, internet, telephones Capital Outlay Capital includes equipment . Maintenance or repairs over $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% over the last three years

• STRS and PERS rate increases have continued to have a significant impact on the district’s finances 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 – 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

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Summary of Special Education Expenditures 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% Please note: total expenditures do not include Medi-Cal Reimbursement or Special Education Transportation Costs

Special Education Costs Increased by $1,928,986 or 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?