2007-2008 1st Interim
Financial Report
Wednesday, December 12, 2007
every student. every classroom. every day.
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.
2
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
every student. every classroom. every day.
3
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
every student. every classroom. every day.
4
Agenda
• OUSD Enrollment Trends
• General Fund Overview
• California’s Economic & Fiscal Outlook
• 1st Interim Financial Overview
• Towards Fiscal Sustainability
• Audit Findings / Cash Flow
every student. every classroom. every day.
5
OUSD Enrollment Trends
55,000
Charter enrolled
OUSD enrolled
50,000
45,000
40,000
35,000
30,000
25,000
20,000
2002-03
OUSD
Charter
OUSD Prior
Yr Change
2003-04
2004-05
2005-06
2006-07
2007-08
Projected
2007-08
Actual
49,866
47,233
44,295
41,355
39,694
38,044
38,852
2,088
2,710
3,917
6,137
7,228
7,611
7,512
n/a
(2,633)
(2,938)
(2,940)
(1,661)
(1,650)
(842)
every student. every classroom. every day.
6
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
$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
$254,680K
$217,586K
$472,266K
$(121K)
$(24,381K)
$(24,499K)
$18,158K
$6,179K
$24,337K
Total Revenue
Total Expenditures
Net Increase/(Decrease)
Ending Fund Balance
every student. every classroom. every day.
7
General Fund Review
Explanation of Major Changes to Unrestricted
Budgeted Deficit as of 2007-08 Budget
Adoption (June 2007)
Revenue
Additions/Restatements
Budget
Budget Increases
$(1,446K)
$5,883K
$(6,955K)
Budget Reductions
$2,210K
Transfer, Outgo, and Finance Changes
$429K
Budgeted Deficit as of 1st Interim
(December 2007)
$(121K)
every student. every classroom. every day.
8
General Fund Review
Explanation 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
every student. every classroom. every day.
9
General Fund Review
Explanation of Major Changes to Unrestricted
Revenue Additions/Restatements
Revenue Limit
Amount
$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
every student. every classroom. every day.
10
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
$100/barrel in coming months)
– Weakening dollar compared to other currencies
– Consumer spending expected to slow by almost
one-third next year to 2.0% from 2.9% in 2007
Source: California Legislative Analyst’s Office, 2007, “California’s Fiscal Outlook: LAO Projections, 2008-09
through 2010-11”.
every student. every classroom. every day.
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1st Interim Financial Overview
($ in ,000s)
Adult
Child
Education Development
Beginning
Fund Balance
Nutrition
Services
Special
Reserves
$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
$29,126K
every student. every classroom. every day.
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1st Interim Financial Overview (cont.)
($ in ,000s)
Beginning
Fund Balance
Revenue
Expenditure/
Source-Use
Increase/
(Decrease)
Ending Fund
Balance
State Lease/
Purchase
Deferred
Maintenance
Capital
Facilities
Bond Fund
$3,611K
$5,828K
$9,266K
$168,262K
$130K
$2,140K
$5,369K
$2,600K
$0K
$7,966K
$3,544K
$138,167K
$130K
$(5,826K)
$1,825K
$(135,567K)
$3,741K
$2K
$1,825K
$32,695K
every student. every classroom. every day.
13
1st Interim Financial Overview (cont.)
($ in ,000s)
State
Facility
Bond
Interest
Tax
Override
Self
Insurance
Beginning
Fund Balance
$7,583K
$15,885K
$0
$7,409K
Revenue
$1,090K
$11,541K
$26K
$18,947K
$0
$23,245K
$4K
$15,510K
Increase/
(Decrease)
$1,090K
$(11,703K)
$22K
$3,437K
Ending Fund
Balance
$8,673K
$4,182K
$22K
$10,846K
Expenditure/
Source-Use
every student. every classroom. every day.
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Towards Fiscal Sustainability
Unrestricted Gen’l Fund Budget Projections ($ in 000’s)
Unrestricted
General Fund
1st Interim
2008-09
Projected
2009-10
Projected
$18,276K
$18,158K
$18,771K
Revenues
$254,562K
$256,994K
$259,205K
Expenses
$254,680K
$256,384K
$258,878K
$(121K)
$610K
$327K
$18,158K
$18,771K
$19,097K
Beginning Fund
Balance
Net Increase/
(Decrease)
Ending Fund
Balance
every student. every classroom. every day.
15
Towards Fiscal Sustainability
Restricted Gen’l Fund Budget Projections ($ in 000’s)
Restricted
(Categorical)
1st Interim
2008-09
Projected
2009-10
Projected
$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
$6,180K
$6,844K
$6,951K
Beginning Fund
Balance
Ending Fund
Balance
every student. every classroom. every day.
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Towards Fiscal Sustainability
Despite our progress towards a balanced budget in 200708, 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.
every student. every classroom. every day.
17
Parcel Tax Impact
• 2007-08 is the last allocation year for current parcel
tax (Measure E): $20,000,000
• In February 2008 Measure G will be brought before
voters.
every student. every classroom. every day.
18
Audit Findings Update
($ in 000’s)
Audit Year
Questioned Resolved
Resolution Potential
Costs
Questioned In-Progress Audit
Costs
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
every student. every classroom. every day.
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Cash Flow Analysis
Actual Cash
Balance
Beginning Cash
Total Receipts
Total
Disbursements
A/R & A/P Net
Ending Cash
July 2007
August
2007
September
2007
October
2007
November
2007
54,050,827
31,231,404
31,732,961
21,886,559
62,797,907
131,965
12,002,807
19,636,455
77,684,756
5,055,811
(10,591,998)
(13,367,625)
(34,689,625)
(39,044,886)
(36,940,530)
(12,359,390)
1,866,375
5,206,768
2,271,478
(1,221,707)
31,231,404
31,732,961
21,886,559
62,797,907
32,134,295
every student. every classroom. every day.
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