First Interim

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Presented to the Scool Board on December 14, 2011.

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First Interim

  1. 1. Devin Vodicka, EdDDecember 14, 2011FIRST INTERIM
  2. 2. Background First Interim report prepared in addition to unaudited actuals and annual budget. Represents district financial condition through October 31, 2011 Reviewed by Governing Board, County Superintendent, Superintendent of Public Instruction, and State Controller Purpose is to ensure awareness regarding current and future financial obligations
  3. 3. Current Information District is able to meet projected financial obligations in the current year Expenditure reductions are necessary in order to meet obligations in subsequent years Determinations are made based on best known information and projections from trusted sources
  4. 4. Assumptions and “Trigger”Reductions Complete list of assumptions provided under separate cover Per AB 114, no midyear “trigger” reductions are included in current budget projections Department of Finance reports on December 15 Governor’s Proposal for 2012-13 in January
  5. 5. Budget Process June 8, 2011: Budget Assumptions June 22, 2011: Annual Budget and Expenditure Reduction Resolution July 27: 45 Day Budget Revisions September 14, 2011: Unaudited Actuals October 12, 2011: Expenditure Priorities and Class-Size Waiver November 9, 2011: Expenditure Reductions
  6. 6. 2011-2012 Overview
  7. 7. 2012-2013 Overview
  8. 8. Projected ExpenditureComparison$45,000,000.00$40,000,000.00$35,000,000.00$30,000,000.00$25,000,000.00$20,000,000.00$15,000,000.00$10,000,000.00 $5,000,000.00 $- Services/ Certificated Classified Employee Books & Other Oper. Salaries Salaries Benefits Supplies Expenditures 2011-2012 $39,815,854.0 $11,239,941.0 $17,577,495.0 $2,976,306.00 $10,895,969.0 2012-2013 $39,146,000.0 $10,981,365.0 $18,144,774.0 $2,305,918.00 $10,684,208.0
  9. 9. Necessary Expenditure Reductions Current Projections Financial Balance 2013 $84,000,000.00 $84,000,000.00 $82,000,000.00 $82,000,000.00 $80,000,000.00 $80,000,000.00 $78,000,000.00 $78,000,000.00Axis Title Axis Title $76,000,000.00 $76,000,000.00 $74,000,000.00 $74,000,000.00 $72,000,000.00 $72,000,000.00 $70,000,000.00 $70,000,000.00 $68,000,000.00 $68,000,000.00 $66,000,000.00 $66,000,000.00 2011-2012 2012-2013 2011-2012 2012-2013 Total Revenue $73,159,292.00 $71,744,955.00 Total Revenue $73,159,292.00 $71,744,955.00 Total Expenses $83,063,700.00 $81,792,443.00 Total Expenses $83,063,700.00 $73,961,468.00
  10. 10. Deficit Spending Projected expenditures in 2011-12 now exceed projected revenue by $9,904,408 Significant reserve from prior year is being used to fulfill current year obligations Deficit spending trend is unsustainable
  11. 11. Good News, Bad News Good News:  As a result of expenditure reductions and fiscal prudence, the projected deficit for 2012-2013 has reduced from $11.3 million (June) to $7.8 million Bad News:  Projected deficit for 2013-14 remains at $12.1 million due to combination of ongoing deficit spending (which results in declining reserves), projected increased expenses and projected decreasing revenues
  12. 12. Financial Implications Combination of deficit spending and projected reduction in reserves creates a condition where we can not claim that we can meet obligations in subsequent years. As a result, we are self-certifying the CUSD as “qualified” in our submission to San Diego County Office of Education
  13. 13. Recommendation It is respectfully recommended that the Board of Trustees approve submission of the interim financial report as of October 31, 2011, including “Qualified” certification

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