Every student. every classroom. every day. 2007-2008 1 st Interim Financial Report Wednesday,...

every student. every classroom. every day.

2007-2008 1st InterimFinancial Report

Wednesday, December 12, 2007

every student. every classroom. every day. 2

Financial Leadership Team

• Vince Matthews – State Administrator

• Leon Glaster – Chief Financial Officer

• Roberta Saddler – Interim Controller

• Jason Willis – Budget Director


Financial Support Team

• Sandra Anderson-Knox – Financial Services Manager

• Waly Ndiaye – Financial Accountant II

• Quyen Nyo – Financial Accountant II

• Azeb Legesse – Financial Accountant I

• Minh Co – Financial Accountant I

• Michael Ezeh – Financial Accountant I

• David Lewis – Financial Accountant I

• Adan Hernandez – Accounting Technician, Receivables Billing


Financial Support Team

• Roxanne Dunn – Financial Services Associate II

• Linda Wu – Financial Services Associate II

• Katema Slocum – Financial Services Associate II

• Diane O’Hara – Financial Services Associate I

• Keisha Smith – Financial Services Associate I

• Marla Williams – Financial Services Associate I


Agenda

• OUSD Enrollment Trends

• General Fund Overview

• California’s Economic & Fiscal Outlook

• 1st Interim Financial Overview

• Towards Fiscal Sustainability

• Audit Findings / Cash Flow


OUSD Enrollment Trends

OUSD 49,866 47,233 44,295 41,355 39,694 38,044 38,852

Charter 2,088 2,710 3,917 6,137 7,228 7,611 7,512

OUSD Prior Yr Change

n/a (2,633) (2,938) (2,940) (1,661) (1,650) (842)


General Fund Overview ($ in ,000s)

Unrestricted Restricted Total

Beginning Fund Balance $18,276K $30,560K $49,286K

Revenue Limit $205,661K $11,462K $217,123K

Other Revenue $48,901K $181,744K $230,645K

Total Revenue $254,562K $193,206K $447,768K

Salary & Benefits $194,944K $126,495K $321,439K

Books & Supplies $8,476K $44,411K $52,887K

Services & Operating $27,412K $62,473K $89,885K

Outlay, Outgo, and Transfers $23,228K $(15,793K) $7,435K

Total Expenditures $254,680K $217,586K $472,266K

Net Increase/(Decrease) $(121K) $(24,381K) $(24,499K)

Ending Fund Balance $18,158K $6,179K $24,337K


Budgeted Deficit as of 2007-08 Budget Adoption (June 2007)

$(1,446K)

Revenue Additions/Restatements $5,883K

Budget Budget Increases $(6,955K)

Budget Reductions $2,210K

Transfer, Outgo, and Finance Changes $429K

Budgeted Deficit as of 1st Interim (December 2007)

$(121K)

General Fund ReviewExplanation of Major Changes to Unrestricted



Budget Increases Amount

Funding for schools due to increased enrollment over projected

$4,521,234

Support for Custodial Services to meet district goals $873,000

Risk Management legal and insurance costs $685,910

Additional equipment (custodial supplies) $325,000

Building and maintenance services $266,855

Parent and community engagement/Communication expenses

$146,262

Re-established Board of Education expenses $136,600

TOTAL $6,954,861



Revenue Additions/Restatements Amount

Revenue Limit $4,917,000

AT&T reimbursement for overcharge $223,000

Chabot Science recognized revenue $743,000

Interest restatement $1,057,000

TOTAL $5,883,000

Budget Reductions Amount

KIPP Oak Bridge school closing $947,000

Central Office salary and benefit savings $762,898

Transfer of self-insurance expense from Risk Mgmt to Facilities

$500,000

TOTAL $2,209,898


California’s Economic & Fiscal Outlook

Economy Projected to Slow into 2008– Housing industry downturn due to sub-

prime market collapse and pricing corrections

– Continued increase in fuel prices (oil may break $100/barrel in coming months)

–Weakening dollar compared to other currencies

– Consumer spending expected to slow by almost one-third next year to 2.0% from 2.9% in 2007

Source: California Legislative Analyst’s Office, 2007, “California’s Fiscal Outlook: LAO Projections, 2008-09 through 2010-11”.


1st Interim Financial Overview ($ in ,000s)

Adult Education

Child Developme

nt

Nutrition Services

Special Reserves

Beginning Fund Balance

$6,020K $1,987K $1,222K $31,221K

Revenue $15,940K $23,806K $14,465K $1,208K

Expenditure/Source & Use

$16,674K $23,936K $15,687K $3,303K

Increase/ (Decrease)

$(734K) $(130K) $(1,222K) $(2,095K)

Ending Fund Balance

$5,286K $1,857K $0K $29,126K


State Lease/

Purchase

Deferred Maintenanc

e

CapitalFacilities

Bond Fund


$3,611K $5,828K $9,266K $168,262K

Revenue $130K $2,140K $5,369K $2,600K

Expenditure/Source-Use

$0K $7,966K $3,544K $138,167K


$130K $(5,826K) $1,825K $(135,567K)

Ending Fund Balance

$3,741K $2K $1,825K $32,695K

1st Interim Financial Overview (cont.) ($ in ,000s)


State Facility

Bond Interest

Tax Override

Self Insuranc

e


$7,583K $15,885K $0 $7,409K

Revenue $1,090K $11,541K $26K $18,947K

Expenditure/Source-Use

$0 $23,245K $4K $15,510K


$1,090K $(11,703K) $22K $3,437K

Ending Fund Balance

$8,673K $4,182K $22K $10,846K

1st Interim Financial Overview (cont.) ($ in ,000s)


UnrestrictedGeneral Fund

1st Interim 2008-09Projected

2009-10Projected


$18,276K $18,158K $18,771K

Revenues $254,562K $256,994K $259,205K

Expenses $254,680K $256,384K $258,878K

Net Increase/ (Decrease)

$(121K) $610K $327K

Ending Fund Balance

$18,158K $18,771K $19,097K

Towards Fiscal SustainabilityUnrestricted Gen’l Fund Budget Projections ($ in

000’s)


Restricted (Categorical)

1st Interim 2008-09Projected

2009-10Projected


$30,560K $6,180K $6,844K

Revenues $193,206K $202,048K $199,804K

Expenses $244,101K $201,384K $199,967K

Net Increase/ (Decrease)

$(24,380K) $664K $107K

Ending Fund Balance

$6,180K $6,844K $6,951K

Towards Fiscal SustainabilityRestricted Gen’l Fund Budget Projections ($ in

000’s)


Towards Fiscal Sustainability

Despite our progress towards a balanced budget in 2007-08, we must continue to implement strategies to achieve and maintain financial solvency. Some of these include:

– Hiring control process on Central Office positions funded from General Purpose dollars;

– Full funding to cover substitute teachers at school sites;– Change in Custodial Services model to increase quality

and efficiency;– Implement and maintain cost control of consultants

through guidelines and ranges for hourly charge released this fall.


Parcel Tax Impact

• 2007-08 is the last allocation year for current parcel tax (Measure E): $20,000,000

• In February 2008 Measure G will be brought before voters.


Audit Findings Update ($ in 000’s)

Audit Year Questioned Costs

Resolved Questioned Costs

Resolution In-Progress

Potential Audit Liability

2002-03 33,562,272 32,608,147 300,000 654,125

2003-04 7,457,075 6,570,046 571,041 315,988

2004-05 8,768,884 -0- 8,768,884 TBD

2005-06 2,950,727 -0- 2,950,727 TBD

2006-07 Audit to Start in January 2008

-0- TBD TBD

Totals 52,738,958 39,178,193 TBD TBD


Cash Flow Analysis

Actual Cash Balance

July 2007 August 2007

September 2007

October 2007

November 2007

Beginning Cash

54,050,827

31,231,404

31,732,961

21,886,559

62,797,907

Total Receipts

131,965

12,002,807

19,636,455

77,684,756

5,055,811

Total Disbursements

(10,591,998)

(13,367,625)

(34,689,625)

(39,044,886)

(36,940,530)

A/R & A/P Net(12,359,39

0)

1,866,375

5,206,768

2,271,478

(1,221,707

)

Ending Cash 31,231,404

31,732,961

21,886,559

62,797,907

32,134,295

Every student. every classroom. every day. 2007-2008 1 st Interim Financial Report Wednesday,...

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