2012-13 FIRST INTERIM FINANCIAL REPORTNUVIEW UNIONDecember 12, 2012 - Board Meeting Update

Interim Reporting

California Education Code requires each district to file interim reports twice in the fiscal year.

The first interim report covers the district’s financial and budgetary status for the period ending October 31.

All budgetary information is annual, forecasting through June 30, 2013. Based on current law. Assumes appropriated funds are spent as

planned.

Components of the Interim Report Actual and Projected Financial and

Budgetary Data Standards and Criteria Actual and Projected Cash Flows Multi-Year Financial Projections District Certification

Changes in Enrollment/ADA

Adopted InterimChang

e

Enrollment 1,688 1,652 (36)

Average Daily Attendance (ADA)

1,593 1,593 -

Funded ADA 1,593 1,593 -

Nuview Bridge ADA

490 487 (3)

Numbers exclude external charter schools and county ADA

Significant Changes in Budgetary Data

Unrestricted Revenues

Adopted InterimChang

e

Revenue Limit(Unemployment Insurance)

$8,034,632

$8,020,664

$(13,968)

Federal Revenue 0 0 -

State Revenue(Mandate Block Grant/CSR)

1,201,966 1,238,345 36,379

Local Revenue(Donations)

187,122 187,924 802

Significant Changes in Budgetary Data

Restricted Revenues

Adopted InterimChang

e

Revenue Limit $72,600 $72,600 $-

Federal Revenue(Special Ed/Carryover)

682,100 654,811(27,289

)

State Revenue(ASES/Mental Health/Lottery)

947,517 950,689 3,172

Local Revenue(SELPA/Bus Lease/Trans Contract)

947,864 1,076,065 128,201

Significant Changes in Budgetary Data

Unrestricted Expenditures

Adopted InterimChang

e

Salaries and Benefits (Restore Mgmt FDs/Position Adjust)

$7,911,776

$8,013,052

$101,276

Books and Supplies(Carryover/PE Equip/Donations)

280,286 306,645 26,359

Operating Expenses(TRAN Costs)

780,625 821,769 41,144

Capital Outlay 0 0 -

Significant Changes in Budgetary Data

Restricted Expenditures

Adopted InterimChang

e

Salaries and Benefits(Position Adjust)

$1,698,764

$1,765,115

$66,351

Books and Supplies(Special Ed/Lottery/Carryover)

561,913 483,309(78,60

4)

Operating Expenses(Maintenance/ASES)

956,5301,079,09

6122,56

6

Capital Outlay 0 0 -

Significant Changes in Budgetary Data

Deficit Spending (6/30/13)

Adopted Interim Change

Unrestricted $157,323 $27,247$(130,07

6)

Restricted (104,037) (124,957) (20,920)

Significant Changes in Budgetary Data

Ending Fund Balance (6/30/13)

Adopted(Jun

2012)

Operating

(Oct 2012)

Interim(Dec 2012)

UnrestrictedRevolving CashReserve for Econ UncertaintiesRestricted CarryoverMid-Year Trigger Cut ($441)Unassigned/Unappropriated

$1,393,868

7,000360,616116,056709,882200,314

$1,406,014

7,000381,48526,209

709,882281,437

$1,345,007

7,000368,956

1210

968,930

Restricted 483,929 571,674 735,595

Cash Flow

Current inter-year deferrals (year-to-year) reflect state’s partial buy-down ($2.1B) tied to Proposition 30 passage.

Intra-year deferrals (within year) increase between now and June due to Proposition 30 anticipated revenues.

June balances are critical due to continued inter-year deferrals.

No internal cash resources available outside the General Fund.

Nuview Bridge, Child Development, and Cafeteria Fund likely to require continued General Fund cash flow support.

Proposition 30 Impacts Cash Flow

Updated Multi-Year Projections

Combined General FundFlat Funded, 20:1 Ratio

2012-13

30:1

2013-14

20:1

2014-15

20:1

Deficit Spending (97,710)(604,34

1)(762,85

5)

Restricted Fund Balance

735,595 714,576 693,556

Unrestricted Fund Balance

1,345,007

761,686 19,851

3% Reserve Requirement

368,956 391,289 396,045

Shortfall in Fund Balance

0 0(374,89

8)

Updated Multi-Year Projections

Combined General FundFlat Funded, 30:1 Ratio

2012-13

30:1

2013-14

30:1

2014-15

30:1

Deficit Spending (97,710) (67,756)(226,27

0)

Restricted Fund Balance

735,595 714,576 693,556

Unrestricted Fund Balance

1,345,007

1,299,269

1,094,019

3% Reserve Requirement

368,956 363,111 367,866

Shortfall in Fund Balance

0 0 0

State Budget Stabilized, Not Restored Proposition 30 and 39’s success set the stage

for a stable short-term state budget, with year-over-year surpluses possible in the next three to five years. The volatility of California’s revenue system has been enhanced, not minimized.

Similar to the state, the district will be challenged to balance restoring cuts with program growth, resulting from potential funding level increases.

Cash will continue to need to be supplemented with external borrowing depending on how much of “new” state funds are used to pay-down payment deferrals.

Ongoing Revenue Limit Cuts Remain

Certification of Financial ConditionRecommend Positive Certification

Positive Certification: “…based upon current projections this district will meet its financial obligations for the current fiscal year and two subsequent fiscal years.”

Qualified Certification: “…based upon current projections this district may not meet its financial obligations for the current fiscal year or two subsequent fiscal year.”

Negative Certification: “…based upon current projections this district will be unable to meet its financial obligations for the remainder of the current fiscal year or the subsequent fiscal year.”