every student. every classroom. every day.
2007-2008 1st InterimFinancial Report
Wednesday, December 12, 2007
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Financial Leadership Team
• Vince Matthews – State Administrator
• Leon Glaster – Chief Financial Officer
• Roberta Saddler – Interim Controller
• Jason Willis – Budget Director
every student. every classroom. every day. 3
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
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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
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Agenda
• OUSD Enrollment Trends
• General Fund Overview
• California’s Economic & Fiscal Outlook
• 1st Interim Financial Overview
• Towards Fiscal Sustainability
• Audit Findings / Cash Flow
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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)
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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
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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
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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
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General Fund ReviewExplanation of Major Changes to Unrestricted
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
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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 $100/barrel in coming months)
–Weakening dollar compared to other currencies
– Consumer spending expected to slow by almost one-third next year to 2.0% from 2.9% in 2007
Source: California Legislative Analyst’s Office, 2007, “California’s Fiscal Outlook: LAO Projections, 2008-09 through 2010-11”.
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1st Interim Financial Overview ($ 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
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State Lease/
Purchase
Deferred Maintenanc
e
CapitalFacilities
Bond Fund
Beginning Fund Balance
$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
Increase/ (Decrease)
$130K $(5,826K) $1,825K $(135,567K)
Ending Fund Balance
$3,741K $2K $1,825K $32,695K
1st Interim Financial Overview (cont.) ($ in ,000s)
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State Facility
Bond Interest
Tax Override
Self Insuranc
e
Beginning Fund Balance
$7,583K $15,885K $0 $7,409K
Revenue $1,090K $11,541K $26K $18,947K
Expenditure/Source-Use
$0 $23,245K $4K $15,510K
Increase/ (Decrease)
$1,090K $(11,703K) $22K $3,437K
Ending Fund Balance
$8,673K $4,182K $22K $10,846K
1st Interim Financial Overview (cont.) ($ in ,000s)
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UnrestrictedGeneral Fund
1st Interim 2008-09Projected
2009-10Projected
Beginning Fund Balance
$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)
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Restricted (Categorical)
1st Interim 2008-09Projected
2009-10Projected
Beginning Fund Balance
$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)
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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.
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Parcel Tax Impact
• 2007-08 is the last allocation year for current parcel tax (Measure E): $20,000,000
• In February 2008 Measure G will be brought before voters.
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Audit Findings Update ($ 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
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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