Plumas Lake Elementary School District 2010-11 Unaudited Actuals September 15,2011 Presented by Ajit Kang

Agenda

     Executive Summary     Unaudited Actuals Enrollment data Revenue Limit assumptions Tier III flexibility    ARRA funding Ed Jobs funding Reserves Revenues, Expenditures and Changes in Fund Balance    General Fund Cafeteria Account Deferred Maintenance    Capital Facilities Fund Capital Project Fund Debt Service Fund Gann Limit Schedule of Long-Term Liabilities Looking Ahead

Executive Summary



Unaudited Actuals

    Financial data reflecting district’s fiscal status at the end of the 2010-11 school year  Revenues and expenditures for the entire year as reported by the district prior to the annual audit Must be approved by the Governing Board by September 15 Submitted to the California Department of Education by local county office of education by October 15 Independent auditors validate the numbers and present audit report to Board in December

Unaudited Actuals (cont.)

Forms in report:

     Revenue, expenditures, and fund balances for the following funds:      FORM 01 – General Fund FORM 13 – Cafeteria Fund FORM 14 – Deferred Maintenance FORM 25 – Capital Facilities Fund FORM 52 – Debt Service Fund Form A – Average Daily Attendance (ADA) for P2, Annual and Revenue Limit calculations Form CA – Summary of data and district certification Form CAT – Revenues and expenditures for categorical programs Form CEA – Current Expense Formula/Minimum Classroom Compensation

Unaudited Actuals (cont.)

Forms in report (cont):

         Form DEBT – Schedule of Long-Term Liabilities Form GANN – Calculates appropriations subject to GANN Limit Form ICR – Calculates a proposed indirect costs rate for federal and state programs for 2012-13 Form L – Report of annual lottery fund expenditures Form NCMOE – Calculation to ensure we are using funds to provide services in addition to regular services (NCLB requirements) Forms PCR and PCRAF – automatically calculate total program costs in Fund 01 in a standardized manner.

Form RL – Revenue Limit Calculation Form SIAA – Summary of Interfund Activities (transfers between funds) Form TRAN – Summary of Home-To-School Transportation

Enrollment Data

  Enrollment – 2010-11 California Basic Educational Data System (CBEDS)  K-8: 1027 (1.8% decline from prior year) Average Daily Attendance (ADA) – 2010-11 Principal Apportionment (P2)  994.54 (2.67% decline from prior year) 1050 1000 950 900 850 2006-07 2007-08 2008-09 2009-10 2010-11 CBEDS P2

Statutory COLA

2006-07 Unaudited Actuals

5.92%

2007-08 Unaudited Actuals

4.53%

2008-09 Unaudited Actuals

5.66%

2009-10 Unaudited Actuals

4.25%

2010-11 Unaudited Actuals

(0.39%)

2011-12 BUDGET

2.24% Base RL Deficit Factor Funded RL Other RL Adjustments $5,791.36

$5,791.36

P2 ADA (District K:8) ADA used for RL (incl county Sp Ed ADA) 918.86

$6,032.36

$6,032.36

972.84

$6,347.36

7.844% 0.92156

$5,849.47

(3.85%) ($252.99) per ADA 931.83

978.79

$6,597.36

18.355% 0.81645

$5,386.41

1015.24

1021.86

$6,573.36

17.963% 0.82037

$5,392.59

987.65

1022.13

$6,710.36

19.754% 0.80246

$5,384.80

994.54

8000

Deficit Factor

25 20 15 10 5 0 2006-07 2007-08 2008-09 2009-10 2010-11 Revenue Limit Funding 2011-12 6000 4000 2000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Deficit Factor Base RL Funded RL

Flexibility – Categorical Programs

  Education Code Section 42605 allows complete flexibility in the use of funds appropriated in the state budget for fiscal years 2008-09 through 2014-15 for numerous programs and can be used for any educational purpose.

  Categorical programs subject to Tier III flexibility  Administrative Training - $8,713   Art & Music Block Grant - $15,133 CAHSEE - $800     California Peer Assistance & Review - $5,150 Community Based English Tutoring - $4,479 Gifted and Talented Education - $73,645 Instructional Material Realignment Program - $56,976        Math & Reading Professional Development - $6,014 Math & Reading Professional Development EL - $3,007 Professional Development Grant - $11,601 School Library Improvement Grant - $10,440 School Safety - $7,992 Supplemental Hourly Programs - $24,287 Targeted Instructional Improvement - $4,434 Deferred Maintenance State Apportionment  Apportionment of $33,581 subject to Tier III flexibility until 2014-15  Transferred to Routine Restricted Maintenance .

Routine Restricted Maintenance – flexibility to decrease contribution from three percent to one percent (approximately $30K savings).



ARRA Funding

American Recovery and Reinvestment Act (ARRA)  State Fiscal Stabilization Funding (SFSF) – intended to offset reductions to state general purpose and categorical funding and was revised on July 22, 2011:  State general purpose funding:     K:8 - $359,065 (original $293,424) Charter - $4,708 (original $3,396) Categorical funding:  $44,420 (original $50,715) Entire entitlement $424,107 ($347,535 received in 08-09 school year and balance in 2010-11)  Funded certificated teacher salaries  2009-10 - $211,545    2010-11 - $212,562 Special Education funding $163,705  2008-09 school year used $81,846 for para salaries Balance ($83,188) used in 2009-10 for para salaries

Education Jobs Fund Program



Entitlement $222,813



Can be used for site expenditures only



2010-11 Expenditures - $79,270



Funding was used for the following:

     Restore three day furloughs for site staff Two part-time PE teachers - Rio and Cobblestone Literacy Coach – shared by three sites Part-time Library Clerk Part-time Office Clerk at Rio

Reserves

     

Economic Uncertainty – Five percent Minimum Classroom Compensation - Funding set aside to close deficiency Certificates of Participation (COP)



Obligation of General Fund if insufficient funds available in Fund 25 for debt service payment



Reserve for COP debt service payment Reserve for Charter ADA issue (pending appeal) Reserve for Wheatland MOU Reserve for possible mid-year cuts

Fund 01: 2010-11 Revenue Sources

Revenue Source Revenue Limit Sources Estimated Actuals Total Restricted and Unrestricted Unaudited Actuals Total Restricted and Unrestricted Variance

$6,025,098 $5,995,687 (0.49%)

Federal Sources State Sources Other Local Revenue Interfund Transfers In Total Revenue

$327,728 $941,385 $584,936 $25,800 $7,904,497 $325,841 $971,428 $595,432 $20,734 $7,909,122 (0.58%) 3.2% 1.8% (19.6%) Lottery, Tier III programs Rec’d one-time $ from YCOE; Worker’s Comp Adj, Nextel E Rate CFD Admin Costs – transfer from Fund 52 0.06%

2010-11 Revenue Sources

State Revenue 12% Local Revenue 8% Revenue Limit Federal Revenue State Revenue Local Revenue Federal Revenue 4% Revenue Limit 76%

Fund 01: 2010-11 Expenditures

Object Code 1000-Certificated Salaries 2000-Classified Salaries 3000-Benefits 4000-Materials and Supplies 5000-Services & Operating Expenditures 6000-Capital Outlay 7000-Other Outgo, Transfers of Indirect/Direct Support Costs Total Expenditures Net Increase (Decrease) in Fund balance Beginning Fund Balance

Estimated Actuals Total Restricted and Unrestricted $3,217,857

Unaudited Actuals Total Restricted and Unrestricted

$ 3,202,632 $1,151,333 $ 1,131,525 $1,521,191 $474,468 $ 1,485,180 $ 453,567 Variance -0.47% -1.72% -2.37% -4.41% $1,166,962 $ 1,067,056 -8.6% 0 0 0% Vacant teacher positions Vacant custodial position and para sub time and facilities extra time Statutory benefits associated with above salaries plus HDV and Unemp savings Site savings - $10K; FMOT - $8K Savings in Sp Ed, CFD Admin contracted services, operations and communications $ 215,140 $ 7,746,951 $ 157,546 $ 2,599,040 $ 2,756,586 $ 201,022 $ 7,540,582 $ 368,139 $ 2,599,040 -5.7% -2.65% Savings in Sp Ed Excess Program Costs

Ending Fund Balance

$ 2,967,179

Contributions to Restricted Programs

Revenue Source

State and Federal Aid Fees Total Revenue 0

Routine Restricted Maintenance Special Ed

$458,164 $458,164

Transportation Special Ed SD/OI Transportation

$25,440 $25,440 $23,450 $13,310 $36,760 Total Expenditures $195,248 Contributions from unrestricted resources $195,248 $1,008,434 $66,876 $550,270 $41,436 $92,697 $55,937

Expenditures by Category

Other Outgo 3% Capital Outlay 0% Services & Operating Expenses 14% Transfers Out 0% Books and Supplies Benefits 20% 6% Classified Salaries 13% Certificated Salaries 35% Certificated Salaries Management Salaries Classified Salaries Management Salaries 9% Benefits Books and Supplies Services & Operating Expenses Capital Outlay Other Outgo Transfers Out

Current Expense Formula/Minimum Classroom Compensation

 Education Code, Section 41372 requires elementary school districts to expend at least 60 percent of their current cost of education for classroom teachers and aides, plus associated benefits.

 District is 2.13% below the minimum  Deficiency amount is $141,539.40

 Options available to the District   Request waiver from county office of education Set aside funding to correct deficiency

Components of Ending Balance

Revenues Expenditures $7,909,122 $7,540,982 Net Increase/Decrease Ending Fund Balance $ 368,140 $2,967,179 Reserved for Economic Uncertainty $ 376,012 Revolving Cash and Prepaids $ 11,873 COP Debt Service Payment $ 475,475 Charter ADA $ 186,511 Revenue Limit Reductions $ 328,198 Wheatland High Agreement $ 295,000 Minimum Classroom Compensation Deficiency $ 141,539 Lottery Unrestricted $ 126,523 Restricted Programs (EIA, RMA, Lottery Prop 20 ) $ 21,426 Available for Budget Shortfalls $1,004,622

Fund 13: Cafeteria Fund

Category 2010-11 Estimated Actuals 2010-11 Unaudited Actuals Revenue Federal Revenue State Revenue Local Revenue Total Revenue Expenditures Classified Salaries Benefits Materials and supplies Services and operating expenses $ 254,000 $ 20,000 $ 150,500 $ 424,500 $ 142,549 BA $519 $ 52,087 BA ($519) $ 201,562 $ 6,713 BA $151 $ 245,685 $ 21,593 $ 142,562 $ 409,840 $ 143,067 $ 51,020 $ 201,415 $ 5,873 $ 17,890 $ 17,821 Transfer of Indirect/Direct Support Costs Interfund Transfer In Total Expenditures Net Increase/(Decrease) in Fund balance Beginning Fund Balance Ending Fund Balance $ 420,801 $ 3,699 $ 25,926 $ 29,625 $ 0 $ 419,196 ($ 9,356) $ 25,926 $ 16,570 Variance (3.3%) 7.96% (5.27%) (3.45%) 0.36% -2.05% -0.07% -12.5% -0.39% Less participation in lunch program $840 savings in all categories Based on actual expenses -0.38%

Fund 14: Deferred Maintenance

Category 2010-11 Estimated Actuals 2010-11 Unaudited Actuals Variance Revenue Other State Revenue Local Revenue Total Revenue Expenditures Materials and supplies $ 2,030 $ 2,030 $ 15,376 $ 0 $ 1,708 $ 1,708 $ 15,376 (15.7%) 0 Interest earnings Services and operating expenses $ 14,624 $ 0 (100%) $ budgeted for emergencies Total Expenditures Excess (deficiency) of Revenues over expenditures before other financing sources and uses Other financing Sources/Uses Net Increase (decrease) in Fund Balance Beginning Fund Balance Ending Fund Balance $ 30,000 $ (27,970) $ 15,376 $ (13,668) 0 $ (27,970) $ 0 $ (13,668) $112,374 $ 84,404 $112,374 $ 98,705 (48.7%)

Fund 25: Capital Facilities Fund

Category 2010-11 Estimated Actuals Revenue Local Revenue Total Revenue Expenditures Materials and supplies Services and operating expenses $ 227,370 BA - $8,930 $ 227,370 Capital Outlay Other outgo (debt service principal and interest) Excess (deficiency) of Revenues over expenditures before other financing sources and uses Interfund Transfers In Net Increase (decrease) in Fund Balance Beginning Fund Balance Ending Fund Balance Cash with fiscal agent $ 61,400 BA - $20,977 $ 13,500 BA – ($13,500) $ 476,065 $ (323,595) $ 121,865 $ (201,730) $ 759,224 $ 557,494 2010-11 Unaudited Actuals $ 235,159 $ 235,159 $ $ 82,377 $ $ 476,065 $ (323,283) $ 115,000 $ (208,283) $ 759,224 $ 550,942 $ 477,223

Fund 52: Debt Service Fund for Blended Component Units

Category 2010-11 Estimated Actuals 2010-11 Unaudited Actuals Revenue Local Revenue Total Revenue Expenditures Other outgo (debt service principal and interest) $ 668,021 $ 668,021 $ 681,603 $ 681,603 $ 525,089 BA - $40 $ 142,932 $ 525,129 Excess (Deficiency) of Revenues over expenditures before other financing sources and uses Other financing sources/uses Net Increase (decrease) in fund balance Beginning Fund Balance Ending Fund Balance Cash with fiscal agent $ 147,665 ($ 4,733) $1,205,080 $1,200,347 $ 156,475 $ 135,734 $ 20,741 $1,205,080 $1,225,821 $ 465,907

Schedule of Long-Term Liabilities

Unaudited balance July 1, 2010 Audit Adj Certificates of Participation Payable

$ 6,820,000

Other General Long-Term Debt – CFD #1 and CFD #2

$ 8,310,000

Governmental activities long-term liabilities

$ 15,130,000

Audited Balance July 1, 2010

$ 6,820,000 $ 8,310,000 $ 15,130,000

Increases Decreases Ending Balance June 30, 2011

$ 130,000

Amounts Due Within One Year

$ 6,690,000 $ 475,475 $ 120,000 $ 8,190,000 $ 520,088 $ 250,000 $ 14,880,000 $ 995,563

GANN Limit

Approve Resolution 2011-5 – Resolution for Adopting the Gann Limit for 2011-12  State Constitution requires school agencies to perform Gann Limit calculations   Education Code sections 1629 and 42132 specify that governing boards of districts shall adopt a resolution to identify their estimated appropriations limits for the current year and their actual appropriations limit for the preceding year  Calculation is included in the Unaudited Actuals and data is extracted from the General Ledger –  Uses two factors to yield the change in our Gann Limit – Statewide factor for per capital personal income change and P2 ADA Calculations identify how much state aid counts toward our Gann Limit so the State of California knows how much state aid counts toward their Gann Limit   2010-11 Appropriations subject to limit - $6,440,518 2011-12 Estimated appropriations subject to limit - $6,883,272

Looking ahead

        State passed 2011-12 budget in July District adopted budget prior to July 1   State assumptions (COLA, deficit factor) did not change Other assumptions that may require budget revisions at First Interim    Salary adjustments for any negotiated and ratified bargaining unit contracts ADA – currently budgeted at 2010-11 P2 data Add any categorical carryovers Still weak outlook for economy/possible mid-year cuts?

Cash deferrals continue Enrollment as of 9/12/11- 1072:    Cobblestone: 286 Rio: 471  Riverside: 315 CBEDS last October – 1027  First day of school, August 2011 – 1063 Education Jobs Fund – no funding after this year First Interim decisions    What ADA numbers do we use for Revenue Limit calculations?

Do we want to set aside monies for salaries funded with Education Jobs Fund?

Do we want to set aside funds in reserves for salary increases? Fund 25 – Will we receive sufficient developer impact fees to cover COP debt service payment? KB Homes has pulled three permits this year.

QUESTIONS?