1. 2013-2014 Unaudited Actuals Ramona Unified School District Board Meeting August 26, 2014

2. Importance of End-of-Year Close  Staff has reported on the importance of the unaudited actuals  The ONLY time during the year when an accurate picture of any District’s finances can be seen  Shows the picture on one specific day -- June 30th  All revenues and expenses are accounted for  All other times are predictions of the finances  However, with the current fiscal crisis, end-of-year close is a piece of information which helps to determine the finances for future years

3. Review of 2013-2014  Local Control Funding Formula  Gone are the 40 years of Revenue Limits and categorical programs  The formula for the current year's funding was in constant "flux" all year long, with the final numbers being certified in July  RUSD's final LCFF revenue was higher than budgeted in June  Local Control Achievement Plan  A new way get input to help to determine the spending priority for a district

4. Review of 2013-2014  Employee concessions  Employee share of costs for health care  Furlough days, decreasing student contact days to 175  The switch to Anthem Blue Shield for medical insurance which resulted in savings for the current year and for savings in the future  Funding for Common Core  Dollars for the implementation to be spent over a two year window

5. 2013-2014 Unaudited Actuals  Total Revenues$46,937,789.41  Total Expenses/Transfers$45,001,601.61  Difference$ 1,936,187.80  Shows both unrestricted side and restricted side of the financial picture

6. Final 2013-2014 Outcome  Beginning Balance $ 5,992,299.71  Ending Balance$ 7,928,487.51  Unrestricted Ending Balance$ 6,211,779.51  Restricted Ending Balance$ 1,716,708.00

7. Components of Ending Balance Unrestricted  Revolving Cash/Prepaid Exp. $ 29,773.04  ROP$ 194,522.00  Donations (including outdoor ed)$ 253,122.00  School & Library (SLIP)$ 181,931.00  Site/Department Carryover$ 934,561.96  Remaining Balance$4,617,869.51  Total$6,211,779.51

8. Components of Ending Balance Restricted  Common Core $ 751,442.80  Lottery Inst. Materials$ 361,741.81  Economic Impact Aid$ 166,635.14  Medi-Cal Billing Option$ 205,515.27  California Clean Energy Act$ 130,000.00  Remaining Balance$ 101,372.98  Total$1,716,708.00

9. Strong Ending Balance  Deficit spending did not occur  Both the unrestricted and the restricted ending balances finished higher than anticipated  The higher revenue from LCFF, and from donations to school sites  Decrease of expenses from budgets such as Property and Liability Insurance, communications, and site and department spending  Because of these factors, the ending balance did not decrease, but rather increased

10. Changes to 2014-2015 Budget  The stronger ending balance (undesignated amount) will ensure fiscal health for 2014-2015 and begin the process for a positive 2015-2016 fiscal year  The funding to be received for RUSD's portion of the $400 million State budget appropriation for mandated costs reimbursements will need to be incorporated into the 2014-2015 budget  The balances from 2013-2014 for both the restricted and the unrestricted budgets need to be incorporated into the 2014-2015 budget  New final rates for health insurance as well as the outcome of open enrollment will need to be updated

11. Two Lingering Issues  Ramona Unified's financial picture has a better outlook than in previous years  However, two issues will need to be overcome to ensure fiscal stability  Declining Enrollment  The early 2014-2015 enrollment counts show promise of a slowing of the decline  The debt created by the Certificate of Participations  A successful passage of measure "Q " will pay off the COPs

12. Other Funds  Fund 17 Special Reserve Fund  Revenues (interest)$ 5,166.29  Expenses (transfers out)$ 0.00  Cafeteria Fund  Revenues $1,864,584.02  Expenses$1,791,350.78

13. Other Funds  Self Insurance Fund  Revenues$ 699,814.15  Expenses$ 630,797.56  Developer Fees  Revenues $ 437,628.19  Expenses $ 1,491,700.23

14. Conclusion  The era of Deficit Spending appears to be coming to an end  State revenues remain strong  Declining enrollment and increasing COP payments continue to put a drag on our finances and will hurt the long range fiscal outlook  Proposition Q can provide the long lasting fiscal stability