1. Centralia School District 2013-14 Unaudited Actuals
Board of Trustees Meeting
September 23, 2014

2. Background
The District is required by law to close its financial books for by September 15, 2014.
After closing the financial books, the financial statements must be sent to the Orange County Department of Education (OCDE) for review.
After reviewed, OCDE forwards the financial statements to the California Department of Education.

3. Background
Individual financial reports are prepared for all of the District’s funds.
The financial reports present the revenues, expenses, assets, liabilities and fund balances.
The Budget has NOT been updated.
The Budget will be updated with the First Interim Report in December 2014.

4. General Fund Financial Report
The General Fund consists of two types of funding:
Unrestricted – resources allocated to the District and spent at the discretion of the District; and
Restricted – resources allocated to the District with specific expenditure restrictions.
The combination of the unrestricted and restricted resources is called the Combined General Fund.

5. Unrestricted General Fund – Revenues
Unrestricted revenues were approximately $162,100 higher than estimated actuals. The primary factors for this increase was due to the following:
There was a decrease in the final P2 ADA, which is used to calculate the majority of the District’s funding.
There was an increase in the Unrestricted Lottery funding received.
There was an additional increase in a rebate received for the E-Rate program.

6. Restricted General Fund – Revenues
Restricted revenues were approximately $89,200 higher than estimated actuals. The primary factors for this increase was due to the following:
Unspent federal revenues were deferred. This decreases revenues and will increase revenues.
There was an increase in the Restricted Lottery funding received.
The District received a rebate for health & welfare insurance.

7. Combined General Fund – Revenues
The net change in Combined General Fund total revenues from the Estimated Actuals is an increase of $251,383 (or 0.69%).
$36,039,973
Estimated Actuals
$36,291,356
Unaudited Actuals
$251,383
Variance

8. General Fund – Expenditures
Unrestricted expenditures were approximately $724,890 higher than estimated actuals.
This increase was the result of accounting changes required by LCFF, as well as increases in health and welfare costs.
Restricted expenditures were approximately $433,553 higher than estimated actuals.
This increase was the result of accounting changes required by LCFF, higher health and welfare costs, and increase in transportation and special education programs.

9. Combined General Fund – Expenditures
The net change in Combined General Fund total expenditures from the Estimated Actuals is an increase of $1,158,443 (or 3.24%).
$35,706,956
Estimated Actuals
$36,865,399
Unaudited Actuals
$1,158,443
Variance

10. Combined General Fund – Fund Balance
Description
Unaudited Actuals
Beginning Fund Balance – July 1, 2013
$9,339,058
Net Change in Fund Balance
(1,678,892)
Ending Fund Balance – June 30, 2014
$8,765,011
Revolving Cash & Inventory
$86,967
Restricted
2,040,417
Assigned
415,562
Minimum Reserve
1,105,963
Unassigned
5,116,102

11. General Fund – Reserves
The District finished with a combined General Fund reserve of $7.9 million (or 22.9%).
The Combined Reserve is comprised of the Reserve for Economic Uncertainties and the Unassigned Fund Balance.
The District finished with a combined General Fund reserve of $6.2 million (or 16.9%).
This represents a $1.7 million decrease from the Combined General Fund reserve.

12. Impact on
While the District finished with a reserve higher than the statutory minimum reserve, the District must be mindful of its pattern of deficit spending.
In the last two fiscal years ( and ), the District’s combined General Fund reserves have decreased more than $2.3 million.

13. To maintain our fiscal health …
The District must carefully monitor the budget and cash flow on a regular basis.
The District must maintain our pattern of judicious spending in an effort to maximize resources available for instruction.
The District must improve the student attendance rate.
The District must closely monitor its Contributions for Restricted Programs.

14. Questions?