1. every student. every classroom. every day. 2006-07 Statements of Unaudited Actuals Year End Closing Leon Glaster, CFO Pauline Follansbee, Controller Dr. Kimberly Statham, State Administrator Board of Education Meeting September 12, 2007

2. every student. every classroom. every day. 2 Terrie Williams – Executive Officer of Finance Roberta Sadler - Financial Accountant II Waly Ndiaye - Financial Accountant II Adan Hernandez - Accounting Technician- Receivables Billing Quyen Nyo – Financial Accountant I Azeb Legesse – Financial Accountant I Minh Co – Financial Accountant I Michael Ezeh – Financial Accountant I David Lewis - Financial Accountant I Tina Regueiferos – Executive Assistant to CFO Acknowledgement of Financial Services Staff

3. every student. every classroom. every day. 3 Year End Closing Milestones The year end closing process was organized, integrated and streamlined to ensure accuracy. All accounts were audited, reconciled and validated. Districts books were closed on time. [Special thanks to Pauline Follansbee & staff for working weekends the last month]

4. every student. every classroom. every day. 4 Unrestricted General Fund Category2006-07 Estimated Actuals at June Adoption Budget 2006-07 Unaudited Actuals Difference Beginning Fund Balance $ 10,025,528$ 9,651,088($ 374,440) Total Revenues $ 266,104,896$ 268,198,595$ 2,093,699 Total Expenditures & Transfers $ 263,705,965$ 260,630,969($ 3,074,996) Net Increase (Decrease) $ 2,398,931$ 7,567,626$ 5,168,695 Ending Fund Balance $ 12,424,459$ 17,218,714$ 4,794,255

5. every student. every classroom. every day. 5 Unrestricted General Fund Estimated vs. Actual CategoryChangeAnalysis Beginning Fund Balance ($ 374,440) Restatement of prior year revenue Total Revenues $ 2,093,699 Revenue limit reduction – ($489,234) State revenue reduction - ($81,250) Interest income increase - $2,654,472 Total Expenditures & Transfers ($ 3,074,996) Increases – Payroll - $251,442; Indirect cost -$2,514,751; Transfers - $722,828 Decreases - School site under exp. - ($1,655,861); Central site under expenditure - ($4,081,364); Other - ($19,005) Net Increase (Decrease) $ 5,168,695 Fund balance increase – restructuring of reserves: Economic uncertainty - $9.2 mil. Measure E - $2 mil. Mandated costs - $1,022,061 Audit findings - $4,996,653 Ending Fund Balance $ 4,794,255 Savings account increase

6. every student. every classroom. every day. 6 Audit Findings Update Audit YearQuestioned Costs Resolved Questioned Costs Resolution In- Progress Potential Audit Liability 2002-03 $ 33,562,272$ 30,300,359$ 2,307,788 (waiver hearing scheduled) $ 354,125 2003-04 $ 7,522,824 2004-05 $ 8,768,884$ 7,918,947$ 849,937 2005-06 $ 12,722,739 TOTALS $62,576,719$ 30,300,359$ 30,472,298$ 1,204,062

7. every student. every classroom. every day. 7 Restricted (Categorical) General Fund Category2006-07 Estimated Actuals at June- 07 Adoption Budget 2006-07 Unaudited Actuals Difference Beginning Fund Balance $ 17,691,619$ 18,039,787$ 348,168 Total Revenues $ 199,103,536$ 172,160,921($ 26,942,615) Total Expenditures & Transfers $ 205,826,777$ 164,155,262($ 41,671,515) Net Increase (Decrease) ($ 6,723,241)$ 8,005,659$ 14,728,900 Ending Fund Balance $ 10,968,378$ 26,045,446$ 15,077,068

8. every student. every classroom. every day. 8 Nutrition Services Fund Category2006-07 Estimated Actuals at June- 07 Adoption Budget 2006-07 Unaudited Actuals Difference Beginning Fund Balance $ 462,142$ 647,672$ 185,531 Total Revenues $ 14,672,430$ 14,605,359($ 22,071) Total Expenditures & Transfers $ 14,919,426$ 14,110,976($ 804,450) Net Increase (Decrease) ($ 246,996)$ 494,383$ 741,379 Ending Fund Balance $ 215,146$ 1,142,055$ 926,910

9. every student. every classroom. every day. 9 Nutrition Services Fund Nutrition Services Nutritional Content and Revenue Enhancement Plan: Breakfast Expansion Program High School Meal Improvement Plan Go-Green Program Vending Pilot Program Financial Reporting System Upgrade Catering Program Cost to Implement and operate these programs is $253,000 with an expected Return-On-Investment to include - greater nutritional value for the students of OUSD and over $1 million dollars in increased annual revenues

10. every student. every classroom. every day. 10 Adult Education Category2006-07 Estimated Actuals at June -07 Adoption Budget 2006-07 Unaudited Actuals Difference Beginning Fund Balance $ 5,440,192$ 5,665,707$ 225,515 Total Revenues $ 15,169,691$ 14,656,244($ 513,447) Total Expenditures & Transfers $ 16,485,575$ 14,301,554$ 2,184,021 Net Increase (Decrease) ($ 1,315,884)$ 354,690$ 1,670,574 Ending Fund Balance $ 4,124,308$ 6,020,397$ 1,896,089

11. every student. every classroom. every day. 11 Child Development Fund Category2006-07 Estimate Actuals at June -07 Adoption Budget 2006-07 Unaudited Actuals Difference Beginning Fund Balance $ 874,453 $0 Total Revenues $ 25,974,096$ 22,023,835($ 3,950,261) Total Expenditures & Transfers $ 25,675,443$ 20,910,371$ 4,550,312 Net Increase (Decrease) $ 298,653$ 1,113,464$ 814,811 Ending Fund Balance $ 1,173,106$ 1,987,917$ 814,811

12. every student. every classroom. every day. 12 Other Funds Balances Special Reserve, Non Capital Projects –Budget Estimate: $31,994,604 –Year End Balance: $31,220,782 Building Fund –Budget Estimate: $150,135,930 –Year End Balance: $173,261,540 Deferred Maintenance Fund –Budget Estimate: $0 –Year End Balance: $6,151,749

13. every student. every classroom. every day. 13 Other Funds Balances County Schools Facilities Fund –Budget Estimate: $3,099,156 –Year End Balance: $8,844,846 Capital Facilities Fund –Budget Estimate: $6,676,851 –Year End Balance: $7,530,989 Self Insurance Fund –Budget Estimate: $7,522,721 –Year End Balance: $7,409,315

14. every student. every classroom. every day. 14 Custodian Historical Trends Year / Category 2004-052005-062006-072007-08 Salaries & Fringe $ 13,571,101$ 12,746,507$ 12,873,354$ 15,296,167 Supplies $ 521,434$ 599,358$ 645,900$ 686,020 Services $ 181,945$ 261,313$ 182,302$ 240,956 FTE 236232216242 Enrollment 44,92541,35539,69438,221 (10-day count)

15. every student. every classroom. every day. 15 THANK YOU QUESTIONS