1. 2016-17 Unaudited Actuals Report
Azusa Unified School District
Prepared by:
Marc Bommarito
Assistant Superintendent, Business Services
&
Meghna Bulsara
Director of Fiscal Services

2. Purpose
In accordance with Education Code 41200, Azusa Unified School District must file the Board-approved unaudited actuals with the Los Angeles County Office of Education by September 15, 2017.
The unaudited actuals present the financial position and results of operations of Azusa Unified School District for the fiscal year.
The unaudited actuals are audited by our external independent auditor. The audit report is presented to the Board by December 15, 2017.

3. Timeline of Major Financial Reports
Estimated Actuals
& Budget & MYP
1st Interim and MYP
Estimated Actuals
& Budget & MYP
June 20, 2017
Sept 5, 2017
Dec 12, 2017
By Mar 6, 2018
By June 30, 2018
2nd Interim and MYP
Unaudited Actuals

4. 2016-17 Unaudited Actuals Ending Fund Balances History
Unrestricted & Restricted combined for Gen Fund
Restricted funds from to be allocated by first Interim.

5. Comparison of Estimated Budget to Actuals
Unaudited Actuals
Comparison of Estimated Budget to Actuals
Restricted Program Balance $4,134,180
Prop 39 funds
Educator Effectiveness Grant
Special Ed: Mental Health
College Readiness Block Grant
Unrestricted Balance $1,922,569
Utilities costs reductions
Contracted services reductions
Reduction in materials and supplies

6. 2016-17 Unaudited Actuals Revisions to 2017-18 Budget Revenue
One time funding increase to $1.2 mil.
Increase in E-Rate for $137k
Reduction in LCFF funding by $100k
Expenditures
LACOE’s BEST Software for $100k
Increase in Special Ed Contribution of $599k for MOE requirement
One time funding basis - $147/ ADA for P ADA

7. 2016-17 Unaudited Actuals General Fund – Deficit Spending and Reserves
Summary of Reserves
Fund 01 - Beginning Balance
$7,345,273
$13,681,481
$12,705,230
$6,772,196
$4,029,118
Unrestricted - Surplus / (Deficit)
$6,336,208
($976,251)
($5,933,033)
($2,743,078)
($65,837)
Fund 01 - Ending Balance
$3,963,281
Assigned
$797,725
$735,375
Projected for Declining Enrollment
$9,685,013
$8,547,260
$2,650,062 $0
3 % Required Reserve
$3,198,743
$3,422,596
$3,386,760
$2,071,610
$1,459,531
Fund 17 Special Reserve
$3,454,516
$3,469,298
$3,477,516
$3,500,516
$3,505,016
Total Available Reserve
$16,338,272
$15,439,154
$9,514,338
$5,572,125
$4,964,546
Total Reserve
15.32%
13.53%
8.43%
5.08%
4.61%
Unrestricted Gen Fund only
It would have been 6.66% in with $2million it is still 8.43%

8. 2016-17 Unaudited Actuals Other Funds
Beginning Balance
Revenues &
Other Sources
Expenditures &
Other Uses
Change in
Fund Balance
Ending Balance
Fund 11 - Adult Education Fund
$361,932.04
$1,957,393.64
$1,468,033.31
$489,360.33
$851,292.37
Fund 12 - Child Development Fund
$0.00
$995,345.39
$982,948.70
$12,396.69
Fund 13 - Cafeteria Fund
$1,632,806.93
$5,917,631.06
$6,503,361.10
$(585,730.04)
$1,047,076.89
Fund 14 - Deferred Maintenance Fund
$2,134,704.78
$892,251.58
$873,152.11
$19,099.47
$2,153,804.25
Fund 17 - Special Reserve Fund
$3,431,515.94
$37,782.51
$3,469,298.45
Fund 21 - Building Fund
$24,158,689.91
$211,295.04
$8,749,832.55
$(8,538,537.51)
$15,620,152.40
Fund 25 - Capital Facilities Fund
$201,213.87
$555,210.25
$171,442.01
$383,768.24
$584,982.11
Fund 51 - Bond Interest Redemption
$6,763,939.00
$6,571,739.00
$192,200.00
$5,726,574.00
Fund 53 - Tax Override Fund
$11,263.44
$124.01
$11,387.45
Fund 67 - Self-Insurance Fund
$411,695.18
$1,745,384.93
$1,552,601.17
$192,783.76
$604,478.94

9. Other Funds – Special Revenue Funds
Fund 11 - Adult Education Fund: This fund is used to account separately for federal, state, and local revenues that are restricted or committed for adult education programs. Fund 13 - Cafeteria Special Revenue Fund: This fund is used to account separately for federal, state, and local resources to operate the food service program (Education Code Sections and 38093). New Minimum Wage Laws will need to be addressed.

10. Other Funds – Special Revenue Funds (continued)
Fund 14 - Deferred Maintenance Fund: This fund is used to account separately for revenues that are restricted or committed for deferred maintenance purposes (Education Code Section 17582). Fund 17 - Special Reserve Fund: This fund is used primarily to provide for the accumulation of general fund moneys for general operating purposes (Education Code Section 42840).

11. Other Funds – Capital Projects Funds
Fund 21 - Building Fund: This fund exists primarily to account separately for proceeds from the sale of bonds (Education Code Section 15146). Fund 25 - Capital Facilities Fund: This fund is used primarily to account separately for moneys received from developer fees (Education Code Sections 17620–17626). Fund 51 - Bond Interest and Redemption Fund: This fund is used for the repayment of bonds issued for the LEA (Education Code Sections 15125–15262).

12. Other Funds – Proprietary Funds
Fund 67 - Self-Insurance Fund: Self-insurance funds are used to separate moneys received for self- insurance activities from other operating funds of an LEA.

13. Enrollment Trends

14. Enrollment – Grades TK through 12 2002-03 through 2018-19

15. Birth Data in Zip Code 91702
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total
# of Births
1,188
1170
1137
1130
1065
1141
1110
1132
1073
1066
982
878
912
856
# Change
-18
-33 -7
-65 76
-31 22
-59
-84
-104 34
-56
-332
% Change
-1.5%
-2.8%
-0.6%
-5.8%
7.1%
-2.7%
2.0%
-5.2%
-0.7%
-7.9%
-10.6%
3.9%
-6.1%
-27.9%
Based on current enrollment trends (previous slide), enrollment is projected to decline in the two subsequent fiscal years.
Enrollment is likely to continue to decline for years to come.
Until the number of births from mothers in zip code increase, enrollment will likely continue to decline for years to come.
District of Choice and changes to other laws could have an impact on enrollment.
This is not factored into the 2-year enrollment projection.

16. Enrollment Changes from the Adopted Budget
Projected Enrollment
Actual
Current
Projected
Adopted Budget 17-18
8,617
8,479
8,332
8,239
Current 17-18
8,744
8,264
7,946
7,653
Difference
127
-215
-386
-586
Loss from Prior Year
-184
-480
-318
-293

17. LCFF Funding Based on Current Enrollment Local Control Funding Formula
Factor
Enrollment
8,744
8,479
8,332
8,239
ADA
8,383
8,103
8,029
7,873
Funded ADA
8,623
8,384
8,154
8,057
Funding per ADA
$10,076
$10,337
$10,694
$10,968
Total LCFF Funding at Adopted Budget
$86,670,984
$86,767,227
$87,552,232
$88,733,434
Total LCFF Funding (Current)
$86,885,951
$86,803,982
$86,149,592
$85,893,348
Difference
$214,967
$36,755
$-1,402,640
$-2,840,086
During years , , , and , AUSD enjoyed a per student revenue growth that exceeded the rate of decline in student enrollment – thus LCFF revenues grew during these years.

18. Pension Cost STRS and PERS – Pension Cost Increases
Actuals
Budget
Projected
Projected
STRS Rate
12.58%
14.43%
16.28%
18.13%
% Point Increase
1.85%
STRS Cost*
$6,157,965
$6,722,300
$7,824,225
$8,503,143
PERS
Actuals
Budget
Projected
Projected
PERS Rate
13.888%
15.531%
18.10%
20.80%
% Point Increase
2.041%
1.612%
2.57%
2.70%
PERS Cost*
$1,752,895
$2,568,598
$3,086,520
$3,392,324
Total Cumulative Increase from
Even with a 4%+ Reduction for Salaries 
$1,380,038
$2,999,885
$3,984,607
While revenues are decreasing (from declining enrollment and low COLA), personnel and operating costs are increasing.
STRS and PERS pension costs are increasing rapidly.
By (three years away), AUSD will be paying $11.90 million in STRS and PERS if we don’t change staffing levels – approximately $4.0 million more than paid in

19. After Current Enrollment
District’s Reserve Analysis
 Reserves
At Adoption
$16,338,272
$13,439,452
$7,431,084
$5,572,125
$4,964,546
15.32%
11.80%
6.66%
3.62%
3.61%
At Unaudited Actuals
$15,439,154
$9,514,338
13.53%
8.43%
5.08%
4.61%
After Current Enrollment
$4,169,485
$721,821
3.80%
0.67%

20. Looking Ahead 1 – Dec 12, 2017 – First Interim Financial Report
2 – March 6, 2018 – Second Interim Financial Report
3 – By June 30, 2018: Budget Adoption and MYP (through )
With a Fiscal Stabilization Plan, AUSD will meet its 3% reserves.

21. Closing Remarks & Questions
Declining Enrollment
Deficit Spending
Commence Planning to Maintain Fiscal Solvency and Maximum Services to our Students and Community
Questions