Gravenstein Union Elementary School District 2020-21 Unaudited Actuals Overview

2020-21 UNAUDITED ACTUALS PRESENTED TO THE BOARD OF TRUSTEES ON SEPTEMBER 14, 2021 1

Key Information for 2020-21 Unaudited Actuals Deficit spending: -$588,481. The Adopted Budget projected a deficit of -$3,714,742 for the 2020-21 Unaudited Actuals. Reserve Assignments of $4,120,000 met 43% of the $1,253,733 Restricted Ending Fund Balance is tied to earmarked COVID funded programs Final Basic Aid Supplemental allocation: $2,161,347 2

FUND 01 GENERAL FUND The General Fund is the main operating fund of the District s financial activities. It is used to account for the ordinary operations of the District. All transactions except those accounted for in other special designation funds are accounted for in this fund. Beginning Fund Balance: $ 9,268,645.81 Ending Fund Balance: $ 8,680,164.67 Change: -$588,481.14 3

$311,220 Dollars per ADA Total Amount $1,247,899 LCFF Sources $ 12,123.92 $ 8,933,391 Federal Revenue $ 600.06 $ 442,145 $442,145 State Revenue $ 1,693.58 $ 1,247,899 $8,933,391 Local Revenue $ 422.37 $ 311,220 TOTAL REVENUES $ 14,839.93 $ 10,934,654 Transfers In & Others $ 1,885.08 $ 1,389,000 Total Resources $ 16,725.01 $ 12,323,654 4 LCFF Sources Federal Revenue State Revenue Local Revenue Final ADA: 736.84, 740.33 projected for 2021-22

Dollars per ADA Total Amount Expenditures $3,279,942 $4,632,448 Certificated Salaries $ 6,286.91 $ 4,632,448 $ 8,191,946 Classified Salaries $ 1,660.12 $ 1,223,246 Employee Benefits $ 3,170.64 $ 2,336,253 $28,231 Books and Supplies $ 741.97 $ 546,710 $865,306 Services and Other Op Ex $ 1,174.35 $ 865,306 Capital Outlay $ 38.31 $ 28,231 $546,710 Other Outgo - excluding transfers $ - $ - $1,223,246 $2,336,253 Other Outgo - transfers $ - $ - TOTAL EXPENDITURES $ 13,072.30 $ 9,632,193 Certificated Salaries Classified Salaries Employee Benefits Books and Supplies Transfers Out & Other $ 4,451.36 $ 3,279,942 Services and Other Op Ex Capital Outlay Transfers Out & Other Total Uses $ 17,523.66 $ 12,912,135 5 Note: Transfers out includes contributions to Fund 12 (Child Development) & Fund 13 (Cafeteria), which were used to cover Salaries & Benefits housed in those funds.

DEFICIT SPENDING SIX YEAR FINANCIAL ANALYSIS OF THE GENERAL FUND Gravenstein Union Elementary School District Report of General Fund Activities Deficit spending: When District Expenditures outpace Revenue allocations. 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 1. Significant contributions to Fund 12: Child Development ($118k), and Fund 13: Cafeteria Fund ($47k) 2. Staffing costs 1. Additional Classified support staff on temporary status to support COVID protocols 2. COLA not keeping up with the increases in STRS & PERS 3. Transfer to Fund 40 for capital improvement projects Unaudited Actuals Adopted Budget 2020-21 Unaudited Actuals Actuals Actuals Actuals Projection Total Revenues, transfer-in/sources $9,413,849 $10,284,836 $11,690,855 $12,323,654 $9,870,049 $8,469,625 Total Expenditures, transfer-out/uses $9,299,629 $9,615,857 $11,106,681 $12,912,135 $11,256,614 $10,301,138 Excess (deficiency) Beginning Fund Balance audit adjustment 114,220 668,979 584,174 (588,481) (1,386,565) (1,831,513) 8,030,186 8,144,406 8,813,385 (128,913) 9,268,645 444,267 536,850 9,268,645 8,680,164 7,293,599 Ending Fund Balance 8,144,406 371,985 515,598 8,813,385 384,634 526,261 8,680,164 412,160 541,013 7,293,599 412,045 547,013 5,462,086 397,633 Not Available Reserve for economic uncertainty Fund 17, ending fund balance Enrollment P2 ADA 729 708 763 728 768 734 753 734 772 740 772 740 6 Total Expenditures per ADA (less trfs out & uses) $ 10,191 $ 11,859 $ 13,013 $ 13,117 $ 13,475 $ 13,854 Total Revenue Limit Per ADA $ 10,766 $ 11,545 $ 12,022 $ 12,165 $ 9,680 $ 9,895

RESERVE ASSIGNMENTS, FUND 01 2020-21 Unaudited Actuals Components of Ending Fund Balances Nonspendable Revolving Cash Stores Prepaid Expenditures All Others Restricted Committed Stabilization Arrangements Other Commitments Assigned $ $ $ $ 1,253,733 $ 1,000 - 2,270 - $ $ - - Assigned Amounts Total $4,120,0000 Other Assignments Textbook Adoptions $ $ $ $ 1,500,000 $ 2,000,000 $ - 350,000 250,000 110,000 Facilities Master Plan Approved Projects STRS/PERS Increase Reserve for Enrichments Lesser of 2M or 30% Rainy Day Reserve Unassigned/Unappropriated Reserve for Economic Uncertainties Unassigned/Unappropriated 7 $ $ 412,160 2,801,002

RESERVE ASSIGNMENTS, FUND 01 + FUND 17 Unrestricted Reserves General Fund Ending Fund Balance Fund 17 (Special Reserve) Ending Fund Balance Available Reserves (General Fund + Fund 17) Minimum Required Reserve of 4% Year Assignments Unassigned + Fund 17 2021-22 $ 8,680,165 $ 541,013 $ 9,221,178 4,120,000 $ $ 412,160 $ 2,801,002 3,432,015 The function of Fund 17 is to account for and accumulate the district s required minimum Required Reserve for Economic Uncertainty (REU). While Fund 17 is authorized by statute, it does not meet the Generally Accepted Accounting Principals (GAAP) definition of a special revenue fund. Meaning, it functions effectively as an extension of the general fund and should be considered as such. Thus, when reviewing the district s Unrestricted Reserves, it is important to also include Fund 17 to understand the full picture of the District s ending financial position. 8

FUND 12: CHILD DEVELOPMENT The Child Development Fund was established to separately account for the proceeds from specific revenue sources, which by law, are restricted to the financing of preschool and afterschool programs. Revenue come solely from the Beyond the Bell Tuition Fees. Expenditures can be for salary and benefits for staff running the Child Development program, administrative costs charged, child development activities such as materials and supplies, facilities and or repair. Beginning Fund Balance: $ 139,496.72 Ending Fund Balance: Change: $ 413.01 -$139,083.71 Note: Beyond the Bell was not running during the 2020-21 school year, but Staff remained on full salary. In total, the program ran a -$257,460 deficit, and required a $118,376 contribution from the general fund to remain solvent. 9

FUND 13: CAFETERIA The Cafeteria Special Revenue Fund is used to account separately for federal, state and local resources used to operate the food service program. The principal revenues in this fund are from Child Nutrition Program reimbursements (Federal and State), food service sales, and interest earned on the fund. Expenditures can be for salary and benefits for staff running the Cafeteria program, administrative costs charged, cafeteria activities such as food, materials and supplies, facilities and or repair. Beginning Fund Balance $ 4,415.04 Ending Fund Balance Change: $ 217.74 -$4,197.30 Note: The primary revenue source comes from meal reimbursements. With school closed for the majority of the year, reimbursements were 90% less than previous years, but staffing expenses remained intact. The program ran a -$51,892 deficit, and required a $47,395 contribution to remain solvent. 10

FUND 14: DEFERRED MAINTENANCE This fund is used to account separately for revenues that are restricted or committed for deferred maintenance purposes. Revenue sources include transfers from LCFF allocations, transfers from the general fund, and interest earned. Expenditures included the Gravenstein parking lot repaving, and tree removal. Beginning Fund Balance: $ 22,654.04 Ending Fund Balance: $ 48,496.93 Change: $ 25,842.89 11

FUND 17: SPECIAL RESERVE OTHER THAN CAPITAL OUTLAY This fund is used as a reserve for the State required minimum required reserve of 5% for capital improvement projects. This is a special fund in which funds can only be accumulated or transferred to another fund. There can be no expenditures from this fund. The only income is through interest earned. The balance in this fund is available to cover unexpected costs, like Special Education and Transportation, which arise at short notice. Beginning Fund Balance: $ 536,850.31 Ending Fund Balance: $ 541,013.25 Change: $ 4,162.94 12

FUND 20: OTHER POSTEMPLOYMENT BENEFITS The Special Reserve Fund for Postemployment Benefits (OPEB) may be used to separately account for the amounts the District has earmarked for the future cost of retiree benefits, but has set in an irrevocably trust. All Revenue is currently derived from interest. Per the current GASB 75 Actuarial summery, the District s Net OPEB Liability is risked at $895,020. Beginning Fund Balance: $ 844,181.85 Ending Fund Balance: $ 855,104.21 Change: $ 10,922.36 13

FUND 25: CAPITAL OUTLAY This fund is used to account separately for monies received from developer fees, both commercial and residential, collected at the time building permits are issued, and interest. Beginning Fund Balance: $ 142,993.29 Ending Fund Balance: $ 155,503.40 Change: $ 12,510.11 14

FUND 35: COUNTY SCHOOLS FACILITIES FUND The County School Facilities Fund is established by to receive apportionments from the State for new school facility construction and or school modernization projects. This fund has a small residual balance from previous State projects. Currently, the District has applied for school modernization funds, expected allocation date is spring 2023. These funds will be used for future modernization projects per the Facilities Master Plan. Beginning Fund Balance: $ 6.58 Ending Fund Balance: $ 6.63 Change: 15 $ 0.05

FUND 40: SPECIAL RESERVE FOR CAPITAL FACILITIES The Special Reserve for Capital Outlay exists primarily to provide for the accumulation of General Fund monies set aside for large Capital projects as outlined in the Facilities Master Plan. The District made a significant contribution of $1,700,000 in the 2020-21 fiscal year to fund the upcoming Hillcrest Heat Mitigation Project and District Office Relocation Project slated to take place during the summer of July 2021. Beginning Fund Balance: $ 379,070.02 Ending Fund Balance: $ 1,796,880.53 Change: $ 1,417,810.51 16

FUND 51: BOND INTEREST AND REDEMPTION FUND The Bond Interest and Redemption Fund exists as a holding account for the collection of payments made by property owners for bond payments. This account is held at the County Treasury and the District receives an accounting from the County for our annual reporting. Revenue is derived from interest only. Beginning Fund Balance: $ 403,708.12 Ending Fund Balance: $ 412,888.78 Change: $ 9,108.66 17

SUPPLEMENTARY FORMS Supplementary Forms are a requirement at the Unaudited Actuals reporting period. Below is a brief description of the intent of each Form. Form A: Attendance shows the final ADA for the 2020-21 school year as well as what is projected at the Adopted Budget From Asset shows how the District s large assets (Land, Buildings, and Equipment) are depreciating according to the Auditors actuarial tables. Form CEA: Current Expense Formula/Minimum Classroom Compensation calculation showing the District spent the minimum requirement of 68.68% of all of its expenditures on salaries and benefits. Form Debt shows the District s general obligation Bond payments, principal and interest. Form ESMOE: Every Student Succeeds Act Maintenance of Effort Expenditures calculation showing the District spent at least as much as the previous year on students. Form ICR: Indirect Cost Rate a calculation of the District s Indirect Cost Rate it can charge programs for administrative fees Form L: Lottery detail accounting of how the District spent its unrestricted and restricted Lottery allocation Form PCR: Program Cost Report shows the distribution of how the District spent money between the different education program types (regular education, special education, independent study, etc.) Form PCRF: Program Cost Report Schedule of Allocation Factors designation of ETE per education program type Form SIAA: Summery of Interfund Activities List of the transfers made between the Districts various funds Form TRC: Technical Review Checks shows the accurate reporting of SACS documents. 18

Questions? 19