Presentation on theme: "Adelanto Elementary School District Fiscal Review Presented by: Anthony Bridges, Deputy Executive Officer Diane Branham, Fiscal Intervention Specialist."— Presentation transcript:
Adelanto Elementary School District Fiscal Review Presented by: Anthony Bridges, Deputy Executive Officer Diane Branham, Fiscal Intervention Specialist
Fiscal Crisis & Management Assistance Team FCMAT was established by legislation in accordance with Assembly Bill 1200 in 1992 as a service to assist local educational agencies in complying with fiscal accountability standards. FCMAT provides both management assistance and fiscal crisis intervention. FCMAT is an independent, state funded agency. The Kern County Superintendent of Schools serves as the administrative agent.
Scope of Work Review the Business Division’s processes and procedures and make recommendations to improve efficiency and productivity. Identify, analyze, and provide recommendations for changes, if necessary, for leadership positions reporting to Business Services. Utilize FCMAT’s Budget Explorer multiyear forecasting software to analyze the proposed budget assumptions, reductions, and the fiscal impact to the general fund for the current and two subsequent fiscal years.
Multiyear Financial Projections Required by AB 1200 and AB 2756 Part of the adoption budget and interim reports Produce accurately and timely with most current fiscal information available Projection of revenues and expenditures for the current and two subsequent fiscal years Financial “Snapshot” District’s primary objectives Achieve and sustain a balanced budget Improve academic achievement Maintain local governance
Multiyear Financial Projections FCMAT Projection Incorporates changes made at second interim Includes February 2009 amended State Budget Act Does not include additional budget reductions proposed in the Governor’s May Revise Does not include federal stimulus funding
Multiyear Financial Projections General Fund Unrestricted Resources Only Base YearYear 1Year 2 Description2008-092009-102010-11 Total Revenues$45,788,795$44,242,638$44,544,553 Total Expenditures43,304,47443,938,01245,024,254 Interfund Transfers In2,076,000 Contributions-6,371,294-7,094,195-7,150,702 Net Increase (Decrease) in Fund Balance-1,810,973-4,713,569-5,554,403 Fund Balance: Beginning Balance4,750,7412,939,768-1,773,801 Total Ending Balance2,939,768-1,773,801-7,328,204 Components of Ending Fund Balance: Revolving Cash60,000 Stores96,242 3% Reserve Requirement1,850,7691,834,3661,876,005 Undesignated/Unappropriated$932,757 Negative Shortfall -$3,764,409-$9,360,451 Rounding used in all calculations
Multiyear Financial Projections General Fund Unrestricted Resources Only Base YearYear 1Year 2Year 3 Description2008-092009-102010-112011-12 Total Revenues$45,788,795$44,242,638$44,544,553$45,214,494 Total Expenditures43,304,47443,938,01245,024,25445,757,235 Interfund Transfers In2,076,000 0 Contributions-6,371,294-7,094,195-7,150,702-7,536,195 Net Increase (Decrease) in Fund Balance-1,810,973-4,713,569-5,554,403-8,078,936 Fund Balance: Beginning Balance4,750,7412,939,768-1,773,801-7,328,204 Total Ending Balance2,939,768-1,773,801-7,328,204-15,407,140 Components of Ending Fund Balance: Revolving Cash60,000 Stores96,242 3% Reserve Requirement1,850,7691,834,3661,876,0051,910,679 Undesignated/Unappropriated$932,757 Negative Shortfall -$3,764,409-$9,360,451-$17,474,061 Rounding used in all calculations
Multiyear Financial Projections The district should: Begin preparing immediately for a period of fiscal instability. Adopt a budget and multiyear projections that eliminate deficit spending and meet reserve requirements in the budget and projection years. Develop staffing formulas for all positions and ensure that ratios are: Within employee contract guidelines Meet students’ needs Agree with approved goals and objectives Maintain fiscal solvency
Multiyear Financial Projections The district should: Review contributions to restricted programs and ensure that all restricted programs are self-sustaining, except special education and home-to-school transportation. Review its RDA agreements and determine if these funds may be used for the routine restricted maintenance and/or the deferred maintenance contributions. Review estimated enrollment and ADA calculations to ensure that they are accurate and conservative.
Multiyear Financial Projections The district should: Consult with legal counsel and its independent auditors to determine whether it should abandon plans for implementing a kindergarten program for four- year-olds. Immediately review and analyze the impacts of home foreclosures on its enrollment. Ensure that current and future enrollment projections have an increased focus on the effect of foreclosures and residential housing starts.
Multiyear Financial Projections The district should: Ensure that its governing board immediately begins making decisions to address any conditions in the district that are indicators of fiscal distress. Ensure that multiyear financial projections are accurate and up to date.
Staffing The district should: Fill the assistant superintendent of business services position with a permanent, full-time employee. Position should be comparable to other cabinet-level positions Position should report directly to the superintendent