INTERIM REPORTS: SURVIVING THE STORM

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INTERIM REPORTS SURVIVING THE STORM

• Presented by the San Bernardino County
  Superintendent of Schools-
• Business Advisory Services
• Tom Cassida
• Cynna Hinkle

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• Are you looking for a beacon to guide you through
  the

Interims?
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AGENDA

• Introductions Overview
• Adopted Budget DAT file Import-How to Stay Dry
• Validation Table Updates Survival Kit
• Criteria and Standards Look out for Twisters!
• Navigating through the Forms-Avoiding the Puddles
• Form AI, Form RLI, Data Extracts-HP to C drive,
  Form01I,
• Other Funds, Form Cash, Form MYPI, TRC
• Board Certifications
• How we can help each other
• Assumptions Checklist
• Emailing the DAT file
• We would prefer setting up district site visit
  appointment to go over any unique concerns you
  may have Call your advisor to set up a
  convenient time

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QUICK OVERVIEW FOR NEWBIES

• PURPOSE OF INTERIM REPORTS
• To state the districts ability to meet its
  financial obligations for the current and two
  subsequent fiscal years.
• To evaluate ongoing budget issues and to make
  adjustments to the operating budget to reflect
  actual activity.
• Required by E.C. 42130-42131
• Charter Schools EC 47604.33

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DUE DATES
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SACS SOFTWARE FOR INTERIMS

• The link to the SACS2009ALL software is located
  on CDE website. It is the same software used to
  complete your 2008-09 Unaudited Actuals, just GO
  TO SETUP, Preferences, and pick 1st Interim
• Charter school interim reporting forms and
  district review forms can be located on our
  website http//www.sbcss.k12.ca.us/busServe/bas_c
  harter.php

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BUDGET ASSUMPTIONS STORM ALERT

• See SSC dartboard for latest on COLA/Deficits for
  Current and next two years.
• See BASics newsletter for various rates for
  categorical programs and expected funding amounts
  for hourly programs based on the new pro-rata
  share funding model.

HAVE A PLAN!
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ASSUMPTIONS-FUTURE YEARS

• Closely review BASics newsletter and cover letter
  for State Adopted Budget
• http//www.sbcss.k12.ca.us/busServe/bas_0910budget
  .php
• SBCSS, SSC, FCMAT and other agencies are
  recommending districts budget CONSERVATIVELY for
  the future years.
• 10-11 RECOMMENDATION IS TO USE A 0 COLA with no
  change in deficit factor. SSC projects a 0.5
  COLA, but it may not happen
• Or set aside as Designated Board Reserve
• PLAN TO MEET RESERVE REQUIREMENTS FOR FUTURE
  YEARS WITHOUT STIMULUS DOLLARS. THEY MAY NOT
  COME BACK.
• REMEMBER RESERVES WERE REDUCED TO 1/3 OF
  STANDARD PERCENTAGES FOR 2009-10 ONLY. IN
  2010-11, RESERVES MUST SHOW PROGRESS TOWARD
  MEETING THE FULL PERCENTAGE, AND IN 2011-12
  RESERVES MUST BE BACK TO FULL STANDARD LEVELS.
• WORK ON GETTING BUY-IN FROM ALL CONSTITUENT
  GROUPS ON NECESSARY STEPS TO REMAINING SOLVENT

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ASSUMPTIONS
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SACS2009 BUDGET DAT FILE IMPORT PROCESS

• Again this year, you will need to import your
  2009-10 Adopted Budget DAT file (located in
  SACS2009 file in the OFFICIAL folder)
• File starts with 36 (county ID) District CDS
  number, several zeroes and ends with BS1
  (360000000BS1)
• Separate handout available with step by step
  instructions
• This step will populate the CS and Supplemental
  Forms (Form AI, Form RLI) with Adopted Budget
  data
• If you are using a different computer for the
  Interims then the Unaudited Actuals you will also
  need to IMPORT in the UA DAT file in a similar
  manner to get the final yearend data. (File is
  360000000A)
• If you are using the same computer and same
  SACS2009ALL software (just change preferences to
  1st Interim)
• The data will populate automatically

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ADOPTED BUDGET DAT FILE IMPORT
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VALIDATION TABLES
SURVIVAL KIT

• As CDE updates and adds/subtracts RS codes or
  Object codes they dont send out new software,
  but instead require districts to import in the
  new validation tables to the existing software.
• Our office will send out emails as the new
  validation tables are made available by CDE
• You can also have CDE notify you directly by
  signing up for email notifications on the CDE
  website
• http//www.cde.ca.gov/fg/ac/ac/validcodes.asp

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VALIDATION TABLES
CDE website provides step by step guide to
downloading the tables from CDE website and
updating the validation tables within the
SACS2009ALL software. Call our office for any
assistance, but update these tables as the
notices are received to stay up to date and avoid
unnecessary TRC errors.
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TIER III PROGRAMS

• The RS Codes for Tier III programs are invalid
  with the exceptions of Adult Ed (6390), Def.
  Maint (6205), CAHSEE (7055, 7056), and Instr.
  Materials (715X, 7160). Balances in these
  programs should be zeroed out by 1st Interim as
  they will be invalid as of 6/30/2010. Object
  8998 is no longer valid, use object 8997.

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ARRA Revenue/Expenditure Form

• Similar to CAT Form
• Will meet transparency requirements
• Will help to identify any unspent or under-spent
  awards

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All ARRA funds were awarded in 2008-09
No need to budget revenue, already received
Actual deposits do not include Receivables
Revenue Expenditures Ending Balance (bring
forward)
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All ARRA funds were awarded in 2008-09
Need to budget revenue, not earned until spent
Actual Deposits do not include receivables
Cash Expenditures Deferred Revenue (if
positive) or AR (if negative). Limited to Award
amount.
Award Expenditures Carryover (bring forward)
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CRITERIA AND STANDARDS

• Some Unstable Weather! Some changes due to
  State Budget
• Looks mostly at CY and 2 SFYs data
• Some historic data is brought in also from 0809
  Adopted Budget DAT file import
• Review of Cashflow
• Reviews for RRMA and DM are suspended due to
  new flexibility provisions
• Several links to ADA data, compares actual to
  Enrollment/CBEDS projections
• Reviews changes in data from Adopted Budget to
  Projected Interim Report data
• Must explain any variances above state standards
• Must do Import of Adopted Budget SACS2009 DAT
  file to populate with the required budget data.
• Does pull some 2008-09 Unaudited Actuals data for
  CS. Be sure you are using Interim software on
  same computer that you updated the 2008-09 UA
  data.

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CS CHANCE OF SHOWERS!

• 1A ADA Variance
• 1st column pulls in automatically the Adopted
  Budget data from the imported DAT file
• 2nd Column pulls in from Form RLI for CY and
  MYPI-Unrestricted Line A.1.b-Need to make sure
  data is correct
• This is looking only at REVENUE LIMIT ADA
• For declining districts, this is your Prior Year
  P-2 ADA guarantee plus CY ADA for NPS County
  ADA
• Variance depends on level of ADA reported
• 2A Enrollment Variance
• Pulls in column 1 from the Adopted Budget data in
  the imported DAT file
• 2nd Column is MANUALLY INPUT and will be used in
  Standard 3 to determine attendance ratio of
  enrollment to attendance. Be sure to remove
  Charter School enrollment.

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CS FALLING TEMPERATURES

• 3A ADA to Enrollment Ratio
• This ADA is the CY ADA reported on the P-2
  Attendance reports by the district or ESTIMATED
  to be reported.
• Does NOT include County ADA
• Does NOT mean prior year ADA even for declining
  ADA districts
• For CY, pulls in from Form AI
• For Future Years, pulls in from Form
  MYPI-combined Line F2 (be sure you have
  completed the MYPI fully)
• Compares the P2 ADA to the estimated CBEDS
  enrollment data for the actual of Seat Time of
  all pupils enrolled.
• You will need to meet the average ratio already
  reached by the district in the prior fiscal years
• Prior Fiscal years data is pulled in from Adopted
  Budget CS (DAT file) for ADA and enrollment-if
  incorrect you need to go back to that software,
  update the data in error and re-import a new DAT
  file

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CS GUSTY WINDS!

• 4A Revenue Limit
• Pulls in data from Adopted Budget in Col. 1
• 2nd column pulls in from the Fund 01, object
  8011, 8020-8089 for Current Year only
• Need to manually input just these object codes
  for the two future years (DOES NOT INCLUDE PERS
  REDUCTION 8092)
• Variance is 2 above or below based on changes
  from Adopted budget to Interims
• If you materially adjust the Revenue Limit
  calculation due to increased or decreased ADA or
  elimination of or changes in COLA used or other
  factors, please explain fully if beyond the
  variance level

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CS SEVERE WEATHER WARNING!!

• 5A. Ratio of Unrestricted Salaries/Benefits to
  Total Unrestricted GF Expenditures
• Compares prior year ratios to CY and future year
  projections to ensure district is maintaining
  same level of support
• Problems are that in CY, you probably are
  including some 1X carryovers in expenditures
  generally not related to salaries/benefits which
  can skew this ratio or you may not have settled
  yet in the current fiscal year or future years.
• Need to explain this if you receive a NOT MET
  condition for the ratio being lower- BUT NEEDS TO
  REFLECT UNRESTRICTED REASONS ONLY
• If higher, may need to research, could be for
  declining districts that you have cut out other
  types of expenditures in order to continue to
  fully fund salaries/benefits
• Standard is using or based on your State
  Required Reserve level (standard is 3, but
  fluctuates for each district)

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CS TORNADO WARNING!!

• 6A. Other Revenues/ Expenditures-COMBINED
• Bound to have NOT METs in any or all years due to
  late budget and changes to Tier III programs.
• State did not change this criteria and it is
  looking at total combined funds-Restricted AND
  Unrestricted and the variance is 5 plus or minus
  from Adopted budget
• Can explain if truly due to carryovers or late
  state budget.
• Check to ensure you are not taking any carryovers
  forward into the future years
• 7 A B. Deferred Maintenance and RRMA
• The match requirements for DM and RRMA have been
  suspended through 2012-13, so these checks has
  been inactivated for that period.

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CS ITS A TWISTER!!

• 8 AB Deficit Spending
• Changes Variance based on 1/3 of your District
  Available Reserve level and ONLY looks at
  UNRESTRICTED side
• Linked to Criteria 10C, line 7 Objects 9770
  9790 Funds 01 and 17
• If ongoing deficit spending in future years above
  the variance, must explain WHY and HOW you are
  planning to remedy in future years.

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CS HEAD FOR THE CELLAR!!

• 9 A B Fund and Cash Balances
• Extracts Ending Fund balances from Form 01I and
  MYPI-Must be POSITIVE, includes Restricted
• Extracts Ending CASH balances from Form CASH, end
  of June 10- Must be POSITIVE
• and we also validate if cash is sufficient to
  cover early part of July expenditures in the
  event funds are deferred.
• Form CASH will be more important than ever this
  year due to more and more deferrals of revenues
  to districts
• 10 A,B C Reserves
• Reserves for Economic Uncertainties must be at or
  above the state minimum levels for Unrestricted
  ending balances. Keep new in mind, but lower
  reserves are not recommended.

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CS TORNADO!!

• Supplemental Information
• Make sure you read each criteria carefully and
  explain any YES answers (S1-S4)
• Generally you answer Not Mets, but in this case
  it is YES responses that are explained
• Temporary Interfund Borrowings (S3)
• Be specific as to what funds are borrowing from
  what other funds and amounts
• Contingent Revenues (S4)
• Federal forest reserves, Impact Aid, MAA (in all
  years), Mandated Cost revenues
• Contributions (S5)
• Transfers In and Out only to cover deficits, not
  required for Meals for Needy transfer to Café
  Fund
• Manual entry is required!!!

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CS DEBT COMMITMENTS

• Long Term Commitments (S6)
• Review against June auditor report draft (Send us
  copy of draft)
• DO NOT include CFDs or OPEB, but DO include GO
  Bonds
• OPEB is included in S7A-include all details there
• DO include all details of what Fund is
  paying/object/RS, etc.
• Input what funding source is servicing this debt
• Where is expense budgeted in the district funds
• Beginning Principal balance and years remaining
• Include both Principal and Interest payments for
  current and future years in lower portion

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CS CAUTION FLYING OBJECTS

• Supplemental Information
• Unfunded Liabilities (S7A B)
• Dont forget to fully answer all questions
• Explain your retiree benefits the actuarial is
  covering in the Comment box (line 4)
• Provide amounts if actuarial done, estimates if
  not yet known. You may be due for an updated
  actuarial if older than 2 years
• Status of Labor Agreements (S8A, B, C)
• Be complete in your answers, use the text boxes
  to identify oddities that may exist or further
  explain any data
• Complete all applicable sections
• This provides us with a lot of the information we
  are no longer asking for on the Assumptions form
  as the data should exist here.
• Under H/W section, tells us about any Caps on
  employer costs
• Review this data in conjunction with Form MYP
  projections
• Must be able to reconcile this data to Form MYP

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CS STORM PATH HARD TO PREDICT

• Status of Other Funds (S9)
• If you have any funds projected to have a
  negative fund balance at year end
• Also need to complete the NEW MYP-O form for that
  fund and submit to our office
• Check all funds carefully, including District
  Accounts such as Cafeteria/Food Service CFDs to
  ensure all costs are being carefully monitored
  and programs are self-supporting
• Be sure you have done the JEs to enter Actuals to
  Date for District ACCOUNTS (Fund 93, CFDs, etc)
• Additional Fiscal Indicators
• Use comment box to explain any YES answers

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FORM AI NO SPLASHING!

• FORM AI ATTENDANCE DATA
• Record ADA information from
• Column A Original Budget - Pulls in RL ADA
  automatically from Form A in Adopted Budget after
  SACS2009 import is completed.
• Column B Board Approved Operating Budget
• any adjustment made to RL ADA, if RL was adjusted
  due to State Budget Adoption or start of school
  ADA changes
• Column C Estimated P-2 Report ADA
• ADA estimated for the P-2 Attendance reporting
  period
• Not prior year ADA actual projected P-2 for
  current year
• Column D Estimated Revenue Limit ADA
• Declining districts Use Prior Year P-2 ADA (PY
  Guarantee)
• Growth districts Use Est. P-2 ADA for CY-should
  be same as Column C
• Record Supplemental Hours Community Day School
  Additional Hours
• Take current hours to date and adjust to estimate
  for projected totals at year end
• Record Charter school ADA/Addl Hours-match to
  charter reports

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CY P-2 PROJECTION NOT PY P-2
GREATER OF PY P-2 OR CY P-2-PULLS TO FORM RLI
DIFF FROM COL A ONLY IF YOU HAVE ADJ RL 8011
PULLS FROM ADOPTED DAT
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FORM RLI Major Funding Source

• Form RLI is a summary of the components used in
  calculating the district state aid/Revenue Limit.
• Work with Patty Trevino in our office to run an
  updated calculation for your district for the
  Current and future years
• Original Budget - Pulls in automatically from
  Form RL in Adopted budget after SACS2009 budget
  DAT import completed.
• Board Approved Operating Budget-Use data
  components that match your current projected RL
  components in the Operating/Working budget
  through Oct 31st
• If no changes made since Adopted, use same data
• Projected Year Totals-Use data based on how you
  expect to end this fiscal year for the various
  components ADA, UI, PERS Reduction, taxes, etc.

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FORM RLI DETAILS, DETAILS

• The data elements you used at Adopted Budget were
  your best guess-estimates at that time, BUT now
  you have real/actual data that may increase or
  decrease that estimate
• Salaries subject to PERS Reduction (check with
  payroll for all funds)
• 13.02 less 9.709 (PERS)3.311 x 83.43
  Proration factor (16.57 buyout est.)2.7624
  PERS reduction w/Buyout-current estimate-will
  change as buyout changes
• Meals for Needy (check with Food Services on
  monthly meal reimbursements filed)
• Unemployment Insurance adjustments (check your
  payrolls object 35XX for all funds)
• County ADA updates (also update on Form AI)

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FORM RLI DETAILS, DETAILS

• Supplemental/Hourly programs The funding
  calculations for these programs have changed
  dramatically. Now based on pro-rata share of
  State total funding in 2007-08. Check with
  Patty Trevino in our office for updated funding
  levels.
• Check Property Taxes for latest estimates
• Have you reviewed your Current Year Redevelopment
  Agency Tax revenues to determine if they should
  be recorded as RL offsets in the Property Tax
  lines (43.3 object 8047 and 56.7 object 8625)?
• Project areas established/modified after Jan. 1,
  1994
• State will be recapturing funds for years prior
  to 08-09 in February based on RDA reports.
  Districts will have to work with their RDA if any
  errors exist. CBO should have received letters
  with recapture amounts.
• RDAs are currently reporting 08-09 data, so any
  08-09 RL offset received in 09-10 should be
  recorded in object 8019. State may recapture
  amounts in February of 2010 and 2011.

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RL ADA comes from Form AI, lines 7-8
.81645 Deficit factor (May require manual input)
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Update charters on current in-lieu tax
calculations and total district ADA
Moved to lower part of this form- PART OF Object
8590 now, NOT 8311 and NOT 8011
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This is the section to record revenues
received For Supplemental Hourly programs CDS
Addl hours based on pro-rata share funding
model. Please continue to report even with the
new funding model.
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OTHER RL RESOURCES

• The state has RL calculation software available
  that ties into your automated Attendance report
  process
• Revenue Software can be obtained at
  http//www.cde.ca.gov/fg/sf/rl/
• Districts import in the Attendance data file from
  the state Attendance software to calculate RL and
  pick up the key components for input into the
  Form RLI using the DATA IDs.
• Our office can also supply you with an updated RL
  calculation, just supply us with the updated data
  elements ADA, UI, PERS Reduction, Meals for
  Needy, etc.
• Contact Patty Trevino 777-0746
• We have a data collection form that can be used
  to supply the necessary updated data to our office

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DATA IMPORT EXTRACT PROCESS

• Information is imported into SACS2009ALL software
  through a file extraction process on the FIN or
  MIS financial systems.
• SRININ application sets up the data to be
  extracted
• 1st Interim parameters 07/01/2009-10/31/2009
• 2nd Interim parameters 07/01/2009-01/31/2010
• Attachment to Interim Report Submission bulletin
  gives more step by step details on this process
• If this extract is run after 10/31/09 or the
  1/31/10 cutoff, all pended and budget transfers
  (BTs) posted after these dates will appear in
  Column D of Fund 01I which is correct
• If you want a BT to be included in the Current
  Operating Budget column or a JE/CJV to be
  included in the Actuals to Date column, they MUST
  be POSTED PRIOR TO these cutoff dates
• Please DO NOT use other parameter dates after
  these end dates.
• If you need something posted prior to these
  cutoff dates-GET the batches into our office a
  minimum of 2 days prior to the cutoff date. Your
  JET mail doesnt always get to our office the
  same day you send it out, especially if your pick
  up is late in the day
• DO NOT expect to FAX batches to our office. We do
  NOT accept faxes for budget or journal
  transactions.

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Use YOUR districts CDS
Appl SRININ
Range for 2nd Interim From date 07012009 To
date 01312010
Charter Districts exclude funds 07-09
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FUND FORMS

• All districts are required to complete the Fund
  01I form
• Unrestricted, Restricted and Combined must be
  submitted, including detail
• Districts should also review the Other District
  Funds and submit applicable Fund Forms with each
  Interim Submission
• These fund forms are now brought into the
  SACS2009ALL software as part of the extract
  process and can easily be sent to us as part of
  the package
• Be sure to review these Other Fund forms to
  ensure all ending fund balances are POSITIVE.
• At Adopted budget, sometimes these Other funds
  are overstated in the estimated beginning
  balances and when the Asset and Liability Roll is
  done with UAs, it creates a negative ending
  balance in the CY Operating Budget that needs to
  be adjusted.
• Be sure to do the necessary JOURNAL ENTRIES to
  post activity to date for all district ACCOUNTS
  dated PRIOR to Cutoff date, so the activity to
  date is extracted into the SACS Other Fund Forms
  actuals to date column
• Cafeteria Fd 93 CFDs etc.

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FUND FORMS

• Adopted Budget column will prefill based on
  Adopted Budget import (SACS2009)
• Operating Budget column will pick up all BTs
  Posted from Adopted UP TO cut off date
• Projected Year Totals (Pended BTs)
• Review all resources/all funds to ensure
  expenditures are supported by current
  state/federal/local revenues, appropriations or
  carryovers.
• Review staffing at school sites to ensure class
  sizes based on current enrollments and adjust
  salaries to reflect actual staffing to date in
  previously vacant positions.
• Any new construction or grants requiring district
  matching funds should be reviewed.
• Debt should be carefully reviewed to ensure
  district has budgeted appropriately based on CY
  debt schedules.
• Review actual activity to date to ensure
  expenditures are sufficiently budgeted in
  utilities and other services (I.e. Selpa
  expenditures-Xpot, Facilities, etc. as applicable)

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THE BOTTOM LINE-ALL FUNDS

• Beginning Fund Balance, Line F.1.a.
• Column A must reflect the districts estimated
  beginning fund balance from the Adopted Budget.
• Column B must reflect the districts estimated
  beginning fund balance PLUS any increases or
  decreases from the Unaudited Actuals ending
  balances roll into the current fiscal year.
  Object 9792 and Object 9791 combined.
• For 2nd Interim, Audit Adjustments should be
  posted and reflected in line F.1b. Object 9793
  and Restatements in Object 9795.
• Get your BT batches into our office prior to
  January 31, 2010 to establish these audit
  adjustments EARLY!

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9770 9790 Unrestricted ONLY MUST equal State
Minimum Reserves of total expenditures Uses
Transfers Out RECOMMENDATIONPut State in 9770
and keep updated as all expenditures are increased
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TIME FOR A BREAK?
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CASH EBB AND FLOW

• STATE BUDGET
• The State has completely revamped the
  apportionment schedule and added more deferrals
  due to its perilous cash position.

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CASH EBB AND FLOW

• DEFERRALS
• The State continues to defer payments to school
  districts to solve its own cash problems. Here
  is a list of the current deferrals
• This could be worse by January!! Watch out for
  Deferral Tornados picking up steam!!!

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CASH FLOW TIPS

• Or the old comment, I have checks in my
  checkbook, so I must have Money! But is it
  sufficientor even accurate??
• Determines whether or not the District MAY need
  to borrow funds during the current fiscal year
  through various processes
• TRANS (Tax Revenue Anticipation Note) Generally
  outside financing
• CA (Constitutional Advance) Borrowing from San
  Bernardino County Supervisors-Generally done in
  late June or early July
• Other District Funds (Temporary only and other
  restrictions apply-Requires Board Approval and
  Actions)
• Assists the district in determining months when
  cash balances may be lower so that expenditures
  can be scheduled to be paid in different time
  frames, if possible.
• Assists the district in scheduling debt repayment
  for peak revenue periods (tax distributions-Late
  December-Late April).
• Aids district in determining whether categorical
  funding is being received timely, or if
  Unrestricted General Fund is fronting revenues,
  reducing potential interest earnings.
• We will be providing a separate workshop on Cash
  Flow and completing form CASH.

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FORM CASH

• Districts must use the Form CASH as this form now
  ties to the CS and will pull forward selected
  data
• TIPS
• Beginning Cash (ensure July 1st matches to ending
  June 30, 2009)
• Reconcile actual monthly activities to cash flow
  and update future months accordingly
• Run FCR 290 using beginning and ending month
  dates
• Remember to include the impact to cash for Out of
  State Taxes, Suspense Accounts (9564-9580)-Cash
  not actually reduced until payment made from
  suspense accounts.
• Do not record with PY accruals, use the Other
  Receipts or Other Disbursements lines
• Remember to include TRANS or CA revenues and
  anticipate when repayment will be made
• Record in Other Receipts-Non Revenue/Other
  Disbursements-Non expenditures line as activity
  happens in the 964X objects
• Anticipate potential accruals that might be made
  to reconcile actual cash activity back to
  Projected Budget and include in Accruals column
• Remember that prior year accruals have not hit
  cash until this year when receivables are
  recognized and payables are actually paid out
• Show Current year accrual activity affecting cash
  which should total to the original accrual setups
  in objects 9210-9510, 9650 object totals, DO
  NOT zero out in total column

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FORM CASH PITFALLS

• ACCRUAL Column versus AP and AR lines
• Use accrual column to ensure district has
  adjusted cash for known state funding deferrals
  (record State deferrals in accrual column)
• June state aid payment received in July
• 2009 payment in CY July under Receivables line
  (if zd out E/R)
• 2010 payment should be reflected in RL line,
  Accrual column
• Use accrual column to record final June
  salary/benefits paid out in July and accrued
  automatically.
• Review CY accruals to determine of revenues not
  generally received historically during the year,
  but earned
• Several categoricals are budgeted to be spent in
  full, however the majority of districts end up
  with carryover amounts in these programs that
  become deferred revenues or restricted ending
  fund balances
• Either show in the accrual column a reduction in
  revenues for the deferred revenues or show in the
  expenditure column as potential future year
  expenditures reducing the effect on the cash
  balance.
• Generally you wont worry about Deferred Revenues
  for CY as budget is anticipating full cash
  receipts. Deferred Revenues dont reduce cash, it
  just is an accounting entry increasing revenues
  cash in CY and decreasing cash in AP line.
• Review CY payables to determine of expenditures
  not generally paid out historically during the
  year, record in accrual column to balance back to
  projected budget, if anticipating categorical
  expenses to match revenues.

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FORM CASH PITFALLS
Looking Ahead!

• Future months
• Look at CDE cash flow document to determine when
  state/federal funds are anticipated-
• DO NOT just divide out budget equally for
  remaining months
• Look at payrolls and when stipends are paid and
  increase expense outgo for those months
• Look at debt and/or lease payments and record in
  appropriate months
• Only objects you can really equally distribute
  out somewhat evenly are for possibly utilities
  or supplies.
• Payrolls will generally be about the same once
  you have fully staffed, only fluctuations should
  be for extra duty and substitute costs which are
  hard to anticipate
• Keep your eye on the BIG PICTURE and make sure
  salaries/benefits, debt/lease, capital outlay
  items are projected out, then you can balance out
  each month with the other object codes
• Review Prior Year Expenditure trends and use
  historical averages for routine expenditures.

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1stthrough Oct 2nd through Jan
7/ 1 Beginning Cash-9110
SACS2009ALL
in
out
Must reconcile with FCR 290 Object 9110 as of
month end for each month
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Anticipated 2009-10 Accruals
2009-10
SACS2009ALL
Reconcile to Projected Budget
June 2010 state aid deferral
TRANS/CA are Other Receipts
Suspense Acct Object 9564- 9580 balances are
Other/Non-Expend
These are 2008-09 Accruals in 9210-9510, 9650
objects
Final Ending Cash-9110
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FUTURE YEAR PROJECTIONS

• Districts are required to submit multiyear
  (current and two subsequent fiscal years)
  projections for their General Fund.
• Which have been reviewed by the District
  Governing Board as part of the Interim
  Certification process.
• The FORM MYPI must be submitted in Unrestricted,
  Restricted and Combined formats per the state
  instruction manual.
• Districts who also prepare an internal MYP on an
  Excel spreadsheet prior to input to Form MYPI,
  should also email that file to their Business
  Advisor for more details and less phone calls
  during our review process.
• Also submit a spreadsheet file or calculation
  showing how the district is calculating their
  future years RL so that we can see the data
  elements being utilized as the Form MYP combines
  several key elements together. This can also be
  emailed to the Advisor.

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FORM MYPI TIPS

• Revenue Limit components, including ADA are to be
  input on the Unrestricted report.
• Have supporting backup calculations for your
  revenue limit components, dont just apply the
  state COLA to the current year calculations as
  several components dont receive COLA adjs (Meals
  for Needy, UI, PERS Reduction, etc.)
• Break down ADA for District, County, Charter
  components, remember that Hourly programs are no
  longer included in the 8011 part of the
  calculations
• Restricted Revenue Limit transfer to Special
  Education should be reflected on the Restricted
  MYP I on line A.1.f. as a positive amount and on
  line A.1.f. of the Unrestricted MYP I as a
  negative amount.
• This also applies to Community Day School ADA
  transfers to RS 2430 (Mandatory Expelled)

ANTICIPATE THE FUTURE!
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FORM MYPI TIPS

• Unrestricted fund contributions to Restricted
  categorical programs (Objects 8980) should be
  reflected on line A.5. As a negative on the
  Unrestricted Form and a positive on the
  Restricted form, with a total of zero on the
  Combined form (for example Transportation
  encroachment, Special Ed encroachment, etc.)
• NOTE If you find a total exists on the combined
  form, review the separate Restricted/Unrestricted
  pages to ensure you have input correct data
• If ADA increases, we expect to see CE salaries
  increasing, including Benefit costs
• If changing class sizes, indicate in narrative or
  assumptions
• Or if changing CSR options. Indicate in narrative
  or assumptions
• Use the Other line under CE or CL for staffing
  changes and include details in assumptions or
  narrative so we can easily track
• avoiding unnecessary phone calls to clarify.

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UNRESTRICTED TAB
RL ADA on this line includes County ADA and will
pull into CS 1A column 2
0 COLA 10/11
If ADA increasing, Growth in CE salaries should
be equivalent
.81645
RL trf to CDS or SE, negative in
Unrestricted positive in Restricted
This is where your contributions to Restricted
programs would be input as negative amts in
Unrestricted, positive in Restricted, Combined
ZERO
Step/col, Growth positions should be noted in
future years consistent with ADA projections
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(No Transcript)
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Use Line B.1.d. B.2.d. to Record staffing
changes Due to decline/growth
Dont forget to include step/column for ALL
positions (B.1.b B.2.b) including on Restricted
programs
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MUST RECONCILE TO REVENUE LIMIT TOTAL
CALCULATIONS FOR ALL YEARS! Provide copies of
detailed calculations
Contributions should net to ZERO (unless doing
interfund)
Indirects to Restricted should net to Zero
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FORM MYPI FUND BALANCES

• District must manually complete bottom of page 1
  of the Unrestricted MYPI which lists the Fund
  Balance and Components of Fund Balance (Line
  D.3.a-d) (Must also include components if using
  district spreadsheet)
• Object 9710-9740-Reserves for Stores, Revolving
  Cash, Fiscal Agent, or any Restricted Reserves
  (9740)
• Object 9770 Designated for Economic
  UncertaintiesState Reserve
• Object 9775, 9780-Board Designated Reserves in
  Total (provide breakdown in Assumptions/Narrative)
  
• Object 9790 Unappropriated Reserves
• All of these reserves must be POSITIVE!
• Automatically pulls over to page 2 the 9770 and
  9790 Unrestricted Reserves
• On Page 2, Line E.2.a.Include any reserves in
  Fund 17 being used to support State minimum
  reserve in all fiscal years.
• Provide details showing how Fund 17 is
  maintaining these reserve amounts if increasing
  from CY

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FORM MYPI FUND BALANCES

• On the Restricted MYPI
• ENDING FUND BALANCE MUST BE EITHER ZERO OR
  POSITIVE
• If you encounter a negative ending balance in the
  subsequent fiscal years, the district must make a
  decision to reduce expenditures OR increase
  contributions from Unrestricted GF to cover
  additional anticipated encroachment. DO NOT LEAVE
  AS A NEGATIVE ENDING FUND BALANCE!
• On Lines D.3. a-d, you can designate these
  balances as 9740 Reserves or 9780 Board
  designated reserves, as appropriate
• Combined MYPI
• Page 2 pulls in details from Unrestricted and
  Restricted
• NEED TO REMEMBER TO INPUT ESTIMATED P-2
  ATTENDANCE REPORT ADA ON LINE F.2.
• State Form now is highlighted in RED to remind
  you to input
• Does not include County ADA
• THIS IS NOT PRIOR YEAR P-2 ADA EVEN IF IN DECLINE
• This is the ADA that pulls into CS 3B. Column 1
  and is compared to the Enrollment reported to
  determine ADA ratio to Enrollment
• Need to be able to compare Actual ADA for Current
  Year (Seat Time) to pupils enrolled for Current
  Year to determine the actual ratio of pupils
  attending to pupils enrolled in the current year.

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Ending Fund balances must be POSITIVE for both
Restricted Unrestricted Forms!!
Reserves input here, pull into available reserves
Manually input Fund 17 Data
Assumptions can be listed here or in Board
Narrative or on our COE assumptions Form
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Requires Manual Input of ADA. This pulls into CS
3.B. Column 1. This is ACTUAL P-2 Attendance ADA
NOT PY Guarantee ADA-Does not include COE ADA
If NO, provide a Fiscal Recovery Plan document
showing how district will increase Reserves in CY
and 2 SFYs
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ASSUMPTIONS/NARRATIVES

• Districts must provide our office with a listing
  of Assumptions used in the Projected Year Totals
  and the Multi-Year Projections
• Attachment B-1 is provided as a tool
• District can use other formats as long as all
  pertinent data from Attachment B-1 is included
• COLA projected for revenues
• Salary Step/Column increases and/or Projected
  Staffing Changes
• Benefit Cap Increases or if not capped, projected
  increases
• One-time and Ongoing increases in Supplies,
  Services and Equipment-Can also explain in CS if
  over state variance.
• Additional or increased Debt Payments-if not
  listed in CS Multiyear commitments section
• Send us all board narratives, it helps us better
  understand your plan of action.

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BOARD CERTIFICATION

• Detailed Governing Board Certification Positive,
  Qualified, or Negative Choices based on
• Positive Ending Fund and Cash Balances in all
  funds
• Meet State Reserve for Economic Uncertainties
  in Unrestricted Fund 01 and Fund 17
• Collective Bargaining and Debt Disclosures
• Key Fiscal Indicators
• Multiyear Financial Projections
• Districts ability to meet its ongoing financial
  obligations in the current and TWO subsequent
  fiscal years
• Pulls in Met or Not Met and Yes or No Fiscal
  indicators from the CS-You need to be able to
  explain to your board any Not Mets or YES
  answers. These are not always bad actions!

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Qualified or Negative Certification?

• Districts filing Qualified or Negative
  Certifications must submit 2 additional copies of
  all reports, narratives, and assumptions-copies
  are sent to CDE
• BAS will work with district to determine level of
  COE involvement in securing a fiscal plan of
  action to address why the Qualified or Negative
  certification was necessary and has the option of
  invoking other actions (EC 42131(b), EC
  42127.6(a))
• Third Interim reports are required for all
  districts that file Qualified or Negative 2nd
  Interim certifications or were reclassified as
  Qualified or Negative by the COE (EC 42131(e))
• Third Interims are due on or before June 1,
  including projections to June 30 (EC 42128)
• COEs are required to report to the State and
  District Governing Board, a summary of all
  actions taken in regards to Qualified or Negative
  Certifications at year end (AB 139).

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TRCs The Early Bird catches the worm!

• Technical Review Checklists TRC
• Run for Operating, Projected, Actuals
• RUN EARLY OFTEN - PRIOR TO REPORT CUTOFF DATES
  TO AVOID HAVING WARNING ERRORS YOU CANNOT FIX
  AND WILL HAVE TO EXPLAIN TO YOUR BOARD
• Send in TRC JE or BTs early to BAS/DFS to ensure
  they will be input
• This will assist you in finding any SACS coding
  problems to fix prior to YEAR END.
• Fully explain any warning exceptions and FIX any
  Fatal errors PRIOR TO submitting to our office.
• All WARNING errors that CAN be corrected, MUST be
  corrected and not just explained.
• Generally, the only WARNING error that can be
  explained are negative entries resulting from
  prior year accrual adjustments, all other must be
  fixed.
• Run the TRC before taking the reports to your
  governing Board in the event you have to make a
  correction that will affect the outcome of the
  reports by object code.

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TRC TIPS

• In the event the correction was made after the
  interim date cutoffs of 10/31 or 1/31
• Please note in your explanation, the date and
  batch number of the correction fixing the error.
• If a fatal error and cannot put in electronic
  explanation-just write the above information on
  printed TRC sent to us.
• Do not change date of SACS extract to pick up the
  corrected batch-this will distort other
  information we have to validate from the
  financial system for data integrity.
• Remember that the codes listed in the TRC are
  SACS rollup codes and may not be the same codes
  as in the Financial system (i.e.. RS codes for
  Fund 30/35 sub funds roll up to 1 RS code in
  SACS)
• Call us if you are having trouble finding what is
  causing the TRC error.

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TIP Run TRC for EXCEPTIONS ONLY while trying to
find errors-smaller list to review
Run TRC for Board Approved, Projected Actuals
to Date only (print all and send with other
funds/supplementals/CS)
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INTERIM REPORT FOLLOWUP

• Our office has a series of additional technical
  checks performed to validate the data you have
  provided.
• Using the Assumptions and the DAT file provided
  by the district and Financial System checks
• Advisors will review and communicate any ongoing
  concerns to the district staff via Formal letters
  to CBO, Supt, Board President
• All letters are first EMAILED to the CBO for
  review prior to finalizing in order to validate
  key data elements, not to necessarily change
  wording
• Emails/phone calls may also be made to check on
  minor concerns and/or clarify information
  provided.
• Please have District Staff involved in this
  process available after the submission dates of
  12/15 and 3/15 to answer any questions that may
  arise.
• This is why early submission can be helpful
• to everyone!
• Please dont hesitate to call us EARLY with any
  concerns or questions regarding this process!

Help us understand your plan
ALL 909-777-0761 Jean 909-777-0744 Cynna
909-777-0745 Tom 909-777-0752
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WHAT TO SEND TO WHOM?

• Exported Official (preferred) Interim DAT file to
  BAS, Attn Jesus Holguin (USE EMAIL ATTACHMENT)
• Jesus_Holguin_at_sbcss.k12.ca.us
• Use Interim Checklist provided (Yes, we do need
  Hard copies also!)
• Send total packet to Lupe Saldivar in BAS
• Original Signed Certification page (Can come in
  later, but send in full PRINTED packet early so
  we can start review process)
• All Fund forms
• Unrestricted/Restricted/Combined General Ledger
• All other district Funds, including detail pages
• All Supplemental Forms in software - Form AI,
  RLI, MYPI, CASH, including TRCs for Projected,
  Actuals, Board
• Detailed Assumptions - Subsequent 2 FY
  ADA/enrollment, RL Calculations, FTEs/Staffing
  changes, one time adjustments, etc.
• If you think we might question something, include
  backup or a narrative to explain or we WILL
  PROBABLY BE CALLING.
• Include PowerPoint Presentation materials or
  other Board presentation materials

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ANY MORE QUESTIONS??

• Please let us know what you liked and did not
  like in our presentation
• Let us know if you need any further assistance
  from BAS staff

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ARE YOU READY TO ENJOY THE EXPERIENCE?
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YOU SURVIVED THE STORM!
Please leave completed evaluations on the table!