1 | P a g e
Santa Paula Unified School District
First Interim Report for 2013-14
Executive Summary
Board of Trustees
Christina Urias
Diana Ponce-Gomez
Michelle Kolbeck
Kelsey Stewart
Chris Wilson
Administration
Mr. Alfonso Gamino, Superintendent
Donna Rose, Assistant Superintendent of Business
Robin Freeman, Assistant Superintendent of Educational Services
December 12, 2013
2 | P a g e
Introduction
The First Interim Report is the first mandated review of the District’s budget since its adoption
in June 2013. Required by AB 1200, it reports the District’s financial position through the first
reporting period, which ends October 31 of each fiscal year. After reviewing the Interim
Report, AB 1200 requires that the Board of Trustees certify the District’s financial position to
the State in one of three ways:
A Positive Certification, stating that the District will be able to meet its financial obligations for the current fiscal year and two subsequent fiscal years, or
A Qualified Certification, stating that the District may not meet its financial obligations for current fiscal year and two subsequent fiscal years, or
A Negative Certification, stating that the District will be unable to meet its financial obligations for the remainder of the current fiscal year or for the subsequent fiscal years based upon current projections (not meeting reserves in the current year or negative fund balance in any year).
The county office of Education (COE) reviews all interim reports. If the district has certified the
interim report as positive, the COE can change the certification to qualified or negative if it
determines that it is not the appropriate certification. If the district has certified the interim
report as qualified or negative, the COE must provide a report to the State Controller’s Office
(SCO) and the state Superintendent of Public Instruction within 30 days from the time the
district submits the interim report to the COE.
For this First Interim reporting period Staff is requesting the Board approve a Positive
Certification.
Ending Fund Balance
The District is projected to have a positive ending fund balance for the 2013-14 fiscal year.
Ending Fund Balance
Adopted 1st Interim Difference
Budget
Beginning Balance 9,129,509 11,599,739 2,470,230
Revenues 44,477,052 48,991,377 4,514,325
Expenditures 42,869,848 46,966,524 4,096,676
Ending Fund Balance 10,736,713 13,624,592 2,887,879
Ending fund reservations have been listed in the financial report to reflect that negotiations are
still continuing for the 2013-14 year, and salary tables reflecting unification have not yet been
completed, ($1,200,00). A reservation has also been made to reflect the LCFF GAP funding for
2013-14 ($2,277,786) will be received in July 2014, and will be incorporated into the 2014-15.
3 | P a g e
Budget Calendar for 2013-14: Key dates for the Fiscal Year 2013-14 reporting are:
June 2013 Board Adopts the FY 2013-14 Budget
July Business Office Staff work on closing the Prior Fiscal Year
August Close Prior Year and produce the Unaudited Actuals report
September By the 15th: Board review and approval of the Unaudited Actuals for Prior
Year
October 31st Cutoff date for the First Interim Reporting Period for Current Year
November Audit Firm audits prior year
December 15th Audit of prior year completed and submitted to COE by Audit firm.
First Interim Report completed and approved by the Board
January Governor releases State Budget Proposal for the next fiscal year
Second Interim Cut-off is January 31st
February Budget planning for next Fiscal year underway
March By the 15th Board review and approval of the Second Interim
Report for FY 2013-14
Local Control Accountability Plan (LCAP) Guidelines public
Budget Planning for 2014-15 continues, Board Updates
April Period 2 reporting of ADA (this report will determine state funding
for Local Control Accounting Formula for 2013-14)
LCAP development
Budget Planning for 2014-15 continues, Board Updates
May Governor will release the May revise report for the Proposed
Budget for 2014-15
Budget Planning for 2014-15 continues, Board Updates
LCAP: 1st Public Hearing
June 2nd Public Hearing on LCAP
Public Hearing and Board Adoption of 2014-15 budget
4 | P a g e
Financial Report Information
The District’s Budget and Accounting format are based on the California School Accounting
Manual (CSAM) and utilize the Standardized Account Code Structure (SACS). The Escape
financial system (contracted and maintained by VCOE) is the system the District uses for the
budget and accounting functions. The District’s financial records are organized and operated on
a fund basis, based on Governmental Accounting Standards. A fund is defined as a self-
balancing set of accounts recording cash and other financial resources, together with all related
liabilities and residual equities or balances and changes therein, which are segregated for the
purpose of carrying on specific activities or attaining certain objectives in accordance with
special regulations, restrictions or limitation.
In fiscal year 2013-14 there are eight funds in the District accounting system. The District’s
funds include:
General Fund (Fund 010)
Cafeteria Fund (Fund 130)
Deferred Maintenance Fund (Fund 140)
Building Fund (Fund 210)
Capital Facilities Fund (Fund 250)
County School Facilities Fund (Fund 350)
Special Reserve Fund for Capital Outlay (Fund 401)
Bond Interest and Redemption Fund (Fund 510)
GENERAL FUND (Fund 010): This is the chief operating fund for the District. It is used to
account for the ordinary operations of the District. All transactions except for those required or
permitted by law to be in another fund are accounted for in this fund. In the General Fund,
there are Restricted and Unrestricted financial activities.
General Fund Unrestricted: Used to account for those projects and activities that are
funded without restrictions on the use of the funds
General Fund Restricted: Used to account for projects and activities that are funded by
external revenue sources that are legally restricted or restricted by the donor for specific
purposes only.
5 | P a g e
General Fund Revenues: Total Revenues are $48,991,377. This is an overall increase from
the Adopted Budget Revenue estimate of $4,514,325, due to the impact of the new funding
formula (LCFF), increase in enrollment in 2013-14, common core funding, and carryover funds
from restricted programs unspent in the prior year.
General fund revenues are categorized as Revenue Limit (Starting 2013-14 will be the LCFF
Funding model), Federal Revenue, Other State programs, and Local Revenue.
Adopted Budget First Interim Difference
LCFF/ Revenue Limit 29,361,606$ 38,114,066$ 8,752,460$
Federal Revenue 3,144,051$ 3,784,283$ 640,232$
Other State Revenue 9,108,521$ 4,107,284$ (5,001,237)$
Other Local Revenue 2,862,874$ 2,985,744$ 122,870$
Total Revenues 44,477,052$ 48,991,377$ 4,514,325$
78%
8%
8%6%
First Interim 2013-14 Revenues by Source
LCFF/ Revenue Limit Federal Revenue Other State Revenue Other Local Revenue
6 | P a g e
Local Control Funding Formula:
The First Interim report reflects the calculation including the first year Gap funding towards the
Local Control Funding Formula (LCFF). The local Control funding formula for 2013-14 results in
additional funds that the District will receive over the “Base” year of 2012-13. The official
funding will not be known until after the Period 2 Attendance Reporting is completed and
certified by the State in May 2014. The funding “gap” will be fully funded in July 2014 for the
2013/14 year. Budget planning for 2014-15 will be based on the gap funding estimated for the
2013-14 fiscal year.
Local Control Funding Formula TARGET Calculation:
The LCFF will be implemented over a period of many years (current target is eight years). In
2013/14 the District is expected to be funded at 11.78% of the difference between the Base
year funding (2012/13 is the base year) and the fully funded target that will be achieved when
the formula is fully implemented. The funding model uses grade span base funding, add in
supplemental and concentration grants for students that fall in the categories of Low Income,
English language learners, Foster and Homeless. The funding target (funding in 2020/21 if fully
implemented) has been estimated using current ADA statistics and an unduplicated count of
eligible students (for the supplemental and concentration grants) of 84.99%:
CALCULATE LCFF TARGET
COLA 1.570%
Unduplicated as % of Enrollment 84.99% 84.99% 2013/14
ADA Base Gr Span Supp Concen TARGET
Grades K-3 1,761.23 6,952 723 1,305 1,151 17,843,007
Grades 4-6 1,173.17 7,056 1,199 1,058 10,925,743
Grades 7-8 727.47 7,266 1,235 1,090 6,977,130
Grades 9-12 1,614.73 8,419 219 1,468 1,295 18,409,537
Subtract NSS - - - -
NSS Allowance - -
TOTAL BASE 5,276.60 39,402,140 1,626,994 6,973,880 6,152,402 54,155,416
Targeted Instructional Improvement 1,009,055
Transportation 57,944
LOCAL CONTROL FORMULA FUNDING (LCFF) TARGET 55,222,415
7 | P a g e
The transition funding for 2013/14 is estimated by calculating the difference between the base
year (2012/13) and the target, then using the 2013/14 funding rate of 11.78% of the “gap”:
The transitional funding, or “Gap” funding for 2013-14 is estimated at $2,277,786, which is
$407 per ADA change over the prior year funding:
Other Revenue Changes:
Federal Revenue:
Federal Revenues have increased from the Adopted Budget by $640,232 due to carryover for
Title I, Title II, and Title III.
State Revenue:
Other State Revenue has been reduced overall by $5,001,237. Most state categorical
(restricted programs) have now been rolled into the Local Control Funding Formula. Increases
have been recorded in Lottery funding due to increased enrollment, carryover in Partnership
Academies, and the Common Core Funding.
Other Local Revenues:
Other Local Revenues have increased by $122,870. $106,347 was received by the District from
the SELPA as unspent funds. This funding will be used to support a new Special Day Class at
Santa Paula High School. The remaining increase is in the Donations account.
CALCULATE LCFF TRANSITION FUNDING
2013/14LOCAL CONTROL FUNDING FORMULA TARGET 55,222,415
TRANSITION BASE FUNDING 35,886,369
Difference or GAP 19,336,046
Multiply difference by funding rate 11.78% 2,277,786
ECONOMIC RECOVERY PAYMENT -
LCFF Entitlement before held harmless provision 38,164,156
NSS Held harmless -
LCFF Entitlement (before COE transfer, Choice & Charter Supplemental) 38,164,156
LCFF Entitlement per ADA2012-13 2013-14 2014-15 2015-16
ADA 5,169.00 5,276.60 5,276.10 5,184.98
Estimated LCFF Sources per ADA 6,826.15$ 7,232.72$ 7,797.64$ 8,390.90$
Net Change per ADA 406.58$ 564.91$ 593.26$
Net Percent Change 5.96% 7.81% 7.61%
8 | P a g e
General Fund Expenditure Changes:
EXPENDITURES Adopted Budget 1st Interim Difference
Certificated Salaries 19,813,564 20,288,383 -474,819 Classified Salaries 6,223,199 6,458,053 -234,854 Employee Benefits 9,022,282 9,629,122 -606,840 Books and Supplies 2,000,480 3,919,007 -1,918,527 Services, Other Operating 4,990,546 5,575,987 -585,441 Capital Outlay 10,000 93,610 -83,610 Other Outgo 941,687 941,687 0 Direct Support/Indirect Costs -131,910 -131,910 0
Interfund Transfer (Fund 140) 0 192,585 -192,585
Total Expenditures 42,869,848 46,966,524 -4,096,676
Certificated Salaries:
Increased to fund additional Elementary PE Teacher, Middle School Teacher, High School Special Education Teacher, High School Counselor, Special Education Preschool Teacher approved since budget adoption
Increases due to budgeting of carryover dollars for categorical programs for enrichment programs and staff development
Classified Salaries:
Increased to fund additional positions including two High School Locker Room Attendants and two Technology support positions
Increases due to limited term assignments
Increases due to budgeting of categorical carryover dollars for instructional assistants and clerical extra duty
Benefits:
Increased due to budgeting of additional Certificated and Classified positions
Increased due to budgeting of 100% Health and Welfare benefit costs thru December
Books and Supplies:
Increase due to the budgeting of carryover dollars
Increase due to budgeting for Common Core expenditures
Services, Other Operating:
Increase due to the budgeting of carryover dollars
Increase due to budgeting for Common Core expenditures
9 | P a g e
Capital Outlay:
Increase for Network Infrastructure needs due to Common Core
Increased due to site purchase of Success Maker Software program
Interfund Transfer
Budgeted a transfer into the Deferred Maintenance Fund for 2013-14
Multi-Year Projection
Multi-year projections are a required component of interim reports to demonstrate that the
District will meet its financial obligations in the current and subsequent two years. The multi-
year projection is also an indication of the District’s ability to maintain required reserves. The
District is projected to meet its financial obligations and will have sufficient reserves.
Multi-year Assumptions:
The projections use assumptions published by School Services of California, and recommended
by the Ventura County Office of Education for the development of revenue and expenditure
projections. This year, the LCFF/Revenue limit projections use a calculator developed by the
Business Assistant Superintendents of California (BASC) and is being updated by the Fiscal Crisis
Management and Assistance Team (FCMAT).
Factors:
Cola and Gap Funding Rate
Enrollment
P2 ADA by Grade Span:
2013/14 2014/15 2015/16
COLA 1.57% 1.87% 1.99%
GAP Funding rate 11.78% 16.49% 18.69%
ENROLLMENT AND UNDUPLICATED COUNT
Enrollment
Unduplicated
Count
Unduplicated
%
2013-14 5,477 4,655 85.0% 1 yr average
2014-15 5,394 4,585 85.0% 2 yr average
2015-16 5,400 4,590 85.0% 3 yr average
ADA ADA to use: 2012-13 2013-14 2014-15 2015-16
Grades K-3 1,822.97 1,730.44 1,720.32 1,668.48
Grades 4-6 1,130.54 1,152.66 1,137.60 1,164.48
Grades 7-8 645.36 714.75 650.88 659.52
Grades 9-12 1,569.50 1,572.25 1,563.70 1,586.50
Ungraded HH, SDC P-2 / Annual 92.00 92.00 92.00
P-2
(Annual for SDC
ext. year)
10 | P a g e
Local Control Funding Formula Multi-Year Projection:
2012-13 2013-14 2014-15 2015-16
GAP funding - current year -$ 2,277,786$ 2,979,936$ 2,966,156$
py LCFF gap funding * cy ADA -$ -$ 2,277,570$ 5,166,712$
2012-13 Categoricals as adjusted 6,364,289$ 6,364,289$ 6,364,289$ 6,364,289$
2012-13 Base entitlement 28,920,067$ 29,522,080$ 29,519,283$ 29,009,496$
Total General Purpose Funding 35,284,356$ 38,164,156$ 41,141,079$ 43,506,653$
Calculator tab: Recap total LCFF 35,284,356$ 38,164,156$ 41,141,079$ 43,506,653$
P2 ADA 5,168.37 5,262.10 5,164.50 5,170.98
LOCAL CONTROL FUNDING FORMULA
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2012-13 2013-14 2014-15 2015-16
2012-13 Base entitlement 2012-13 Categoricals as adjusted
py LCFF gap funding * cy ADA GAP funding - current year
11 | P a g e
2012-13 2013-14 2014-15 2015-16
ADA 5,169.00 5,276.60 5,276.10 5,184.98
Estimated LCFF Sources per ADA 6,826.15$ 7,232.72$ 7,797.64$ 8,390.90$
Net Change per ADA 406.58$ 564.91$ 593.26$
Net Percent Change 5.96% 7.81% 7.61%
LCFF Entitlement per ADA
$5,000
$5,500
$6,000
$6,500
$7,000
$7,500
$8,000
$8,500
$9,000
2012-13 2013-14 2014-15 2015-16
Estimated LCFF Sources per ADA Entitlement per ADA
12 | P a g e
Multi-Year Projection:
The multi-year projection incorporates the above assumptions about cola, ADA, LCFF. The LCFF
spending is shown as budgeted and spent in the year after it is scheduled to be earned by the
District. The projection uses the BASC Calculator assumptions of growth in the LCFF funding
model. Although negotiations for 13/14 are not settled (2013-14 includes an assignment for
salary adjustments of $1,200,000 in the ending fund balance), the $1,200,000 has been
incorporated into the adjustment of the 2014/15 and 2015/16 salary expenditure assumptions
in addition to Step and Column movement. The other major adjustment is the potential loss of
QIEA funding in 2014/15.
2013-14 First Interim Multi-Year Projection
Santa Paula Unified School District
Year: 2013-2014 2014-15 2015-16
Funded ADA 5276 5276 5,185
Estimated LCFF/ ADA $7,233 $7,798 $8,391
REVENUES
Revenue Limit Sources 38,114,066 41,141,079
43,506,653
Federal Revenues 3,784,283 3,117,008 3,155,438
Other State Revenues 4,107,284 2,048,863 2,048,714
Other Local Revenues 2,985,744 2,911,287 2,911,287
Total Revenues 48,991,377 49,218,237 51,622,092
EXPENDITURES
Certificated Salaries 20,288,383 21,389,657 21,662,457
Classified Salaries 6,458,053 6,936,555 6,979,101
Employee Benefits 9,629,122 10,695,885 11,057,285
Books and Supplies 3,919,007 2,609,062 2,058,211
Services, Other Operating 5,575,987 4,198,587 4,857,548
Capital Outlay 93,610 33,351 15,000
Other Outgo 941,687 941,687 941,687
Direct Support/Indirect Costs -131,910 -132,676 -177,850
Other Financing,Transfers Out Def. Maint. 192,585 193,000 194,000
Other Adjustments: LCFF/LCAP 2,277,786 2,979,936
Total Expenditures 46,966,524 49,142,894 50,567,375
Increase/Decrease in Fund Balance 2,024,853 75,343 1,054,717
Beginning Fund Balance 11,599,739 13,624,592 13,699,935
Ending Balance 13,624,592 13,699,935 14,754,652
Non-spendable (Inventory and Prepaids) 6,500 6,500 6,500
Reserve for Economic Uncertainties 1,408,996 1,501,800 1,536,607
Unassigned 7,678,514 8,666,420 9,706,235
Assigned (includes LCFF PY) 3,929,190 3,525,215 3,505,310
Restricted 601,392 0 0
13 | P a g e
Other Funds:
Cafeteria Fund (Fund 130): This fund is used to account separately for Federal, State and local
resources to operate the Food Services operations. Budgeted Revenue is $2,652,035,
Expenditures $2,823,194. The projected ending fund balance is $145,721.
Deferred Maintenance Fund (Fund 140): This fund is used to account for the District’s
contribution to deferred maintenance projects. The State used to also contribute a portion, but
under LCFF this contribution will be rolled into the new calculation for Revenue. Projects that
are typically funded from Fund 140 would be longer term maintenance and upgrades to paint,
plumbing, electrical, and roofing for example. The projected ending fund balance is $770,138.
Building Funds (Fund 210/211): This fund is also known as the Bond Fund. This fund accounts
for the proceeds from the sale of Bonds and may not be used for purposes other than those for
which the bonds were issued. Bonds issued for the High School must also be accounted for
separately from bonds issued for elementary or middle school. The projected ending fund
balances are:
Fund 210: Former Elementary District funds: $1,697,497
Fund 211/212: High School District: $1,323,098
Capital Facility Fund (Fund 250): This fund is also known as Developer Fees fund, and is used to
accumulate monies received from fees levied on developers or other agencies as a condition of
approving development. The interest earned in this fund is restricted to this fund. The
expenditures are restricted to the purposes specified in agreements with the developer or
specified in Government Code. The Long Range Facilities Master Plan will be funded with
Developer fees, as well as potential building modifications or additions (such as computer labs).
The projected ending balance is $1,808,104.
County School Facilities Fund (Fund 350): This fund accounts for state apportionments for
facilities projects. The beginning balance is due to modernization money from the High School
District, and budgeted revenue in this fund is for the anticipated funding from the
Overcrowding Relief Grant ($4,996,600) which is partially funding the Science and Technology
Building Project on Santa Paula High School campus. The projected ending fund balance is
$1,132,704.
Special Reserve Fund for Capital Outlay Projects (Fund 401): This fund exists for the
accumulation of funds for capital outlay purposes. The beginning balance of $5,780,064 is from
the High School District. Capital projects as approved by the Board will be funded from fund
401, such as the District Office renovations. The projected ending fund balance is $5,619,176.
14 | P a g e
Bond Interest Redemption Fund (Funds 510,511,512): This fund is controlled by the County
Office of Education and is used for the repayment of bonds issued for the District. According to
Education Code 15234 any money remaining in this account after payment of all bonds and
coupons payable from the fund, or any money in excess of an amount sufficient to pay all
unpaid bonds and coupons payable, shall be transferred to the general fund upon order of the
county auditor.
Summary
Since the 2008-09 school year there have been unprecedented funding reductions to California
public schools, and to the Santa Paula School Districts. Santa Paula Unified is now faced with
the promise of funding increases, but this is coupled with the uncertainty in the form of the
future of the Local Control Funding Formula state funding commitments, and the emerging
Local Control Accountability Plan (LCAP) requirements. The District has formed a committee of
stakeholders, including but not limited to Administrators, Certificated staff, Classified Staff,
Parents, Community members, students, English language learners, and Board members, to
discuss the development of plans to use the additional resources. The District must continue to
engage this discussion, bring ideas and plans to the public in a variety of forms, including public
hearings. Maintaining fiscal solvency, while we work towards meeting the District and State
priorities will be outlined in the LCAP as it is developed.
Risk is associated with the implementation of the Local Control Funding Formula, in the fact
that future funding is not written into current law. The budgets for 2014/15 and 2015/16
should take this into account, by using the prior funding in the next budget year, and keeping
one year of LCFF in reserve as the plan is implemented in future years, until full funding is
achieved.