Walnut Valley Unified School District

Board of TrusteesDecember 11, 2013

2013-14 First InterimFinancial Report

Agenda

Changes Since Adopted Budget 06/19/2013 Changes Related to Implementation of the Local

Control Funding Formula (LCFF)– 2012/13 Audited Actuals compared to 2013/14 First

Interim Report Multi-Year Projection Risks/Changes to the Budget and Projection Questions

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Changes since Adopted Budget 06/19/13Unrestricted General Fund

LCFF/Revenue Limit Sources $ 12,533,091

Other State Revenues $ (10,738,646) Other Local Revenues $ 646,869

Total Revenues $ 2,441,314

Salaries and Benefits $ 1,831,993 Supplies and Services $ 477,045 Capital Outlay $ 6,000 Indirect Costs $ 71,675

Total Expenditures $ 2,386,713

Other Sources/Uses and $(274,346)Contributions

Unrestricted GF Balance $(219,745)

Transfer of state categorical programs into the LCFF. Transportation and TIIG from restricted resources to LCFF “add-on”

Other local revenues increased due to transportation fees and tuition fees

Increase to salaries and benefits as a result of transfer of restricted programs

Other Sources/Uses - $500,000 to Deferred Maintenance Fund, offset by $(225,654) in contributions to restricted programs

Fund balance decreased $219,745– Increase to reserve for economic

uncertainties $103,881 (at 3% level)– Other adjustments – Stores $(40,920),

Prepaid Expenditures $17,839, Other Commitments $(300,545)

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Changes Related to the Implementation of LCFFUnrestricted General Fund

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2012-13 Unaudited

Actuals

2013-14 First Interim Report

Difference Explanation

LCFF/Revenue Limit 74,594,230 91,066,850 16,472,620 LCFF with Categorical and GAP funding

Federal Revenue 9,884 10,000 116

Other State Revenue 13,404,687 2,574,080 (10,830,607) Categorical programs rolled into LCFF

Other Local Revenue 1,077,688 1,552,086 474,398

Total Revenues 89,086,490 95,203,016 6,116,526

Salaries and Benefits 77,966,650 80,982,994 3,016,344 Categorical programs rolled into LCFF

Supplies and Services 7,071,360 8,098,235 1,026,875

Capital Outlay 111,702 40,390 (71,312)

Other Outgo 1,808,683 1,650,585 (158,098)

Total Expenditures 86,958,395 90,772,204 3,813,809

Other Financing Sources/Uses

(4,808,037) (4,857,814) (49,777)

Net Increase/Decrease

(2,679,942) (427,002) 2,252,940

Includes:$10,939,292 Categorical$737,693 Transportation Add On$920,357 TIIG$3,591,786 LCFF Growth (GAP)

Changes since Adopted Budget 06/28/11Unrestricted General Fund

Improving 2013/14 Ending Balance– Potential increase in ADA through P2– Appropriation review – Expenditure savings First Interim

to Second Interim 01/31/14– Staffing Review (Sections)– Alignment of programs under the LCAP– Additional funds in Governor’s January Budget Proposal

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Multi-Year ProjectionsBudget Year +2 (2013-14 through 2015-16)

Includes– Revenue calculations under LCFF with GAP

funding 2013-14 $3,606,678 2014-15 $4,815,535 2015-16 $5,002,900

– ADA Projections: 2013-14 14,329 2014-15 14,329 2015-16 14,329

– Step and column increases

– Adjustments to expenditures to reflect one-time items, utility increases and CPI

– Adjustments for the estimated cost of collective bargaining agreements through 2014-15

4 furlough days in 13-14 and 14-15 4 furlough days back on schedule in 15-16

– Reductions in the amount of $700,000 in 2014-15 (on-going pursuant to Fiscal Stabilization Plan)

– $700,000 transfer in from Building Fund (Fund 21) in support of Routine Restricted Maintenance Fund (RRMF) eliminated in 2015-16

– DEU in budget and projection years meets the recommended minimum reserve amount (3%)

– LCFF GAP funding reserved in 2014-15 and 2015-16

– Projecting positive fund balances in each of the projection years

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Multi-Year ProjectionsBudget Year +2 (2013-14 through 2015-16)

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Adopted Budget 2013-14 2014-15 2015-16

Beginning Fund Balance $9,305,368 $8,878,366 $12,267,159

Total Revenues $112,933,660 $114,817,001 $119,119,901

Total Expenditures $113,360,662 $111,428,208 $114,248,146

Net Increase/Decrease in Fund Balance(Structural Deficit)

$(427,002) $3,388,793 $4,871,755

Ending Fund Balance $8,878,366 $12,267,159 $17,138,914

Required Components of Ending Fund Balance

$5,607,154 $5,549,180 $5,633,778

Ending Fund Balance(Committed)

$3,271,212 $6,717,979 $11,505,136

Combined General Fund

Risks/Changes to the Budget and Projection

The Governor’s proposal is just that – a proposal. Until the legislature acts, there are no guarantees

The budget is based on optimistic projections of state revenues– The state is not always the most reliable source of funding– Adequate reserves are absolutely necessary– The state recommended minimum Reserve for Economic Uncertainties is a MINIMUM, most

districts need more Declining enrollment Volatile economic times Student data collections are more important than ever; CALPADS, CBEDS

– Counts feed into the supplemental and concentration factors of the LCFF

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Questions?

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2013-14 First Interim Report.pptAuthor: Jeanette UllrichTitle: Assistant Superintendent, Business ServicesWalnut Valley Unified School District