Adelanto Elementary School DistrictFiscal Review

• Presented by:Anthony Bridges, Deputy Executive OfficerDiane Branham, Fiscal Intervention Specialist

Fiscal Crisis & ManagementAssistance 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.

Findings&

Recommendations

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 ProjectionsGeneral Fund

Unrestricted Resources Only

  Base Year Year 1 Year 2

Description 2008-09 2009-10 2010-11

Total Revenues $45,788,795 $44,242,638 $44,544,553

Total Expenditures 43,304,474 43,938,012 45,024,254

Interfund Transfers In 2,076,000 2,076,000 2,076,000

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 Balance 4,750,741 2,939,768 -1,773,801

Total Ending Balance 2,939,768 -1,773,801 -7,328,204

Components of Ending Fund Balance:      

Revolving Cash 60,000 60,000 60,000

Stores 96,242 96,242 96,242

3% Reserve Requirement 1,850,769 1,834,366 1,876,005

Undesignated/Unappropriated $932,757    

Negative Shortfall   -$3,764,409 -$9,360,451

Rounding used in all calculations

Multiyear Financial ProjectionsGeneral Fund

Unrestricted Resources Only

  Base Year Year 1 Year 2 Year 3

Description 2008-09 2009-10 2010-11 2011-12

Total Revenues $45,788,795 $44,242,638 $44,544,553 $45,214,494

Total Expenditures 43,304,474 43,938,012 45,024,254 45,757,235

Interfund Transfers In 2,076,000 2,076,000 2,076,000 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 Balance 4,750,741 2,939,768 -1,773,801 -7,328,204

Total Ending Balance 2,939,768 -1,773,801 -7,328,204 -15,407,140

Components of Ending Fund Balance:        

Revolving Cash 60,000 60,000 60,000 60,000

Stores 96,242 96,242 96,242 96,242

3% Reserve Requirement 1,850,769 1,834,366 1,876,005 1,910,679

Undesignated/Unappropriated $932,757      

Negative Shortfall   -$3,764,409 -$9,360,451 -$17,474,061

Rounding used in all calculations

Multiyear Financial ProjectionsThe 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 ProjectionsThe 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 ProjectionsThe 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 ProjectionsThe 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.

StaffingThe 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

Questions