Hacienda La Puente Uniﬁ ed School District -...

Joel D. MonteroChief Executive Offi cer

Hacienda La PuenteUnifi ed School District

Fiscal ReviewApril 12, 2007

FCMATJoel D. Montero, Chief Executive Officer

1300 17th Street - CITY CENTRE, Bakersfield, CA 93301-4533 . Telephone 661-636-4611 . Fax 661-636-4647422 Petaluma Blvd North, Suite. C, Petaluma, CA 94952 . Telephone: 707-775-2850 . Fax: 707-775-2854 . www.fcmat.org

Administrative Agent: Larry E. Reider - Office of Kern County Superintendent of Schools

April 12, 2007

Dr. Barbara Nakaoka, SuperintendentHacienda La Puente Unifi ed School District15959 East Gale AvenueCity of Industry, California 91716-0002

Dear Superintendent Nakaoka,

In March 2006, the Fiscal Crisis and Management Assistance Team (FCMAT) entered into an agreement for a fi scal review with the Hacienda La Puente Unifi ed School District. The request specifi ed that FCMAT would:

1. Conduct a review of the district’s 2005-06 second interim fi nancial report for all the general fund, adult education and child development funds including revenue, expenditure, and ADA/enrollment information.

2. Prepare a general fund multiyear fi nancial forecast to identify the district’s fi nancial position in 2006-07 and 2007-08 if enrollment continues to decline and no changes other than statutory COLA, step and column, and consumer price index trends are applied.

3. Determine the current level of risk to the district’s fi scal health using the FCMAT Fiscal Health Risk Analysis model.

The attached fi nal report contains the study team’s fi ndings with regard to the above areas of review. We appreciate the opportunity to serve you, and we extend our thanks to all the staff of the Hacienda La Puente Unifi ed School District.

Sincerely,

Joel D. Montero, Chief Executive Offi cerFiscal Crisis and Management Assistance Team

TABLE OF CONTENTS i

Table of Contents

Foreword ...........................................................................iii

Introduction ...................................................................... 1

Study Guidelines ............................................................... 1

Study Team ......................................................................... 2

Executive Summary ......................................................... 5

Findings and Recommendations ................................... 9Declining Enrollment and Budget Reductions ...................................................................... 9

Communication ....................................................................................................................................11

Budget Development and Oversight .......................................................................................12

Position Control and Staffi ng .......................................................................................................16

Categorical Programs and Special Education ....................................................................17

Multiyear Financial Projection......................................................................................................21

Fiscal Health Risk Analysis ........................................................................................................... 29

Appendices ......................................................................43

Hacienda La Puente Unifi ed School District

FOREWORD iii

ForewordFCMAT BackgroundThe Fiscal Crisis and Management Assistance Team (FCMAT) was created by legislation in accordance with Assembly Bill 1200 in 1992 as a service to assist local educational agencies in complying with fi scal accountability standards.

AB 1200 was established from a need to ensure that local educational agencies throughout California were adequately prepared to meet and sustain their fi nancial obligations. AB 1200 is also a statewide plan for county offi ces of education and school districts to work together on a local level to improve fi scal procedures and accountability standards. The legislation expanded the role of the county offi ce in monitoring school districts under cer-tain fi scal constraints to ensure these districts could meet their fi nancial commitments on a multiyear basis. AB 2756 provides specifi c responsibilities to FCMAT with regard to dis-tricts that have received emergency state loans. These include comprehensive assessments in fi ve major operational areas and periodic reports that identify the district’s progress on the improvement plans

Since 1992, FCMAT has been engaged to perform more than 600 reviews for local educa-tional agencies, including school districts, county offi ces of education, charter schools and community colleges. Services range from fi scal crisis intervention to management review and assistance. FCMAT also provides professional development training. The Kern County Superintendent of Schools is the administrative agent for FCMAT. The agency is guided under the leadership of Joel D. Montero, Chief Executive Offi cer, with funding derived through appropriations in the state budget and a modest fee schedule for charges to re-questing agencies.

Management Assistance ............................. 594 (94.59%)Fiscal Crisis/Emergency ................................ 34 (5.41%)

Note: Some districts had multiple studies.

Districts (7) that have received emergency loans from the state.

(Rev. 2/7/07)

Total Number of Studies ................... 628Total Number of Districts in CA .......... 982

80

70

60

50

40

30

20

10

0

Study Agreements by Fiscal Year

92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07

Projected

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INTRODUCTION 1

IntroductionThe Hacienda La Puente Unifi ed School District (HLPUSD), located in the Los Angeles County community of La Puente, serves a diversifi ed population of approximately 25,000 pre-kindergarten through twelfth grade students and 30,000 adult students living in the communities of La Puente, Hacienda Heights, and portions of Valinda and West Covina. The district also provides instructional services for one of the largest correctional pro-grams in the nation. It is comprised of four comprehensive high schools, one alternative high school, one community day school, 20 K-5 elementary schools, four K-8 schools, six middle schools, one specialized orthopedic program for special needs students, and numerous child development and preschool programs. The large adult education program operates in over 32 satellite facilities.

In spring 2006, the district contacted the Fiscal Crisis and Management Assistance Team (FCMAT) requesting a management review of the budget and budgeting process after discovering that a budget shortfall was imminent due to defi cit spending brought about mainly because of declining enrollment that had not been discovered in a timely manner.

FCMAT was initially asked to perform services related to the 2005-06 fi nancial records after approval of the study agreement. The study agreement is attached as Appendix A to this report.

The scope and objectives of this study are to:

1. Conduct a review of the district’s second interim fi nancial report for all funds including revenue, expenditure, and ADA/enrollment information.

2. Prepare a general fund multiyear fi nancial forecast to identify the district’s fi nancial position in 2006-07 and 2007-08 if enrollment continues to decline and no changes other than statutory COLA, step and column, and Consumer Price Index (CPI) trends are applied.

3. Determine the current level of risk to the district’s fi scal health using the FCMAT Fiscal Health Risk Analysis model.

The scope of the study changed slightly after FCMAT’s initial visit because the district’s data was not in a format that could be used to prepare the multiyear projection. This mat-ter will be discussed further in another section of this report.

Fiscal Crisis & Management Assistance Team

INTRODUCTION2

Study TeamThe FCMAT study team was composed of the following members:

Michele McClowry Margaret RosalesFiscal Intervention Specialist FCMAT Fiscal ConsultantFiscal Crisis and Management Kingsburg, California Assistance TeamLa Verne, California Laura Haywood Public Information SpecialistCarleen Wing Chandler Fiscal Crisis and ManagementFCMAT Fiscal Consultant Assistance TeamSan Juan Capistrano, California Bakersfi eld, California

Study GuidelinesFCMAT consultants visited the district on several occasions to conduct interviews, collect data and review documentation. This report is the result of those activities. Findings and recommendations are presented in the following sections:

• Executive Summary• Background • Findings and Recommendations

o Declining Enrollment and Budget Reductionso Communicationo Budget Development and Oversighto Position Control and Staffi ngo Categorical Programs and Special Education

• Multiyear Financial Projection• Fiscal Health Risk Analysis

FCMAT fi rst visited the district in March 2006 to begin the study. The study team was asked to prepare a multiyear projection (MYP) based on the district’s working budget as of the 2005-06 second interim report. The MYP could not be completed at that time because some of the data in the second interim report had not been updated. The MYP process re-quires uploading budget information from a mainframe computer system into a software program, assuming that all budget line items are complete and accurate. The base data was deemed incomplete when various test assumptions did not produce plausible data.

This situation was discussed with the district administration on March 22, 2006, and it was mutually decided to adjust the study agreement and postpone the preparation of the multi-year projections for a few weeks to allow the district time to review all of the budget line items in question. It should be noted that the major budget components were deemed rea-sonable; it was specifi c line item detail that, when uploaded, was found to be incomplete.


INTRODUCTION 3

During the initial visit, FCMAT also reviewed records, interviewed employees, examined numerous fi nancial reports, and gathered other pertinent information to meet the objec-tives of the study agreement. The team was able to complete an analysis of the budgeting process and make other useful observations to help the district improve operations and move forward with making the budget reductions that were necessary to remain fi scally solvent. It was decided at that March 22 meeting that FCMAT would issue a management letter describing the preliminary fi ndings and recommendations. The full text of that man-agement letter is included as Appendix B to this report. FCMAT returned to the district for the second time in June 2006. By that time the district had completed the second interim report and also issued a third interim report to inform the community, employees and the Los Angeles County Offi ce of Education (LACOE) of the current budget status and project the ending balance for 2005-06. However, the data in the mainframe computer system still could not be uploaded into the FCMAT MYP software program. Since the year was almost over, FCMAT met with the district’s admin-istration on June 14, 2006 and it was once again mutually agreed that preparing the MYP would be postponed until late August, after the 2005-06 accounting records were closed, the state-required SACS unaudited actual documents were fi nalized, and the 2006-07 budget was approved by LACOE. The 2006-07 adopted budget would then become the base year for the multiyear projections rather than the 2005-06 second interim projected budget. A second management letter was sent to the district dated July 19, 2006, sum-marizing the context of this meeting. The full text of the second management letter is in-cluded as Appendix C to this report.

FCMAT returned for the third time on August 21 and 22, 2006, just prior to the departure of the former Assistant Superintendent of Business. Once again, FCMAT found that the data in the district’s fi nancial system was not in pristine condition, but with certain as-sumptions and adjustments made by FCMAT, the MYP could be prepared. The multiyear fi nancial projection included in this report is based on the fi nancial data that was available in August 2006. A third management letter summarizing FCMAT’s progress at this point in time was issued on August 6, 2006. The full text of that letter is included as Appendix D to this report.

In January 2007, FCMAT again met with district staff to gather as much information as possible as to the current fi nancial status of the district. This information included review of the 2006-07 fi rst interim report and the 2005-06 fi nancial audit report. It was reported to FCMAT that the district recently settled negotiations at 4% for all bargaining groups, but the cost of this settlement was not included in the district’s 2006-07 fi rst interim re-port.


INTRODUCTION4


EXECUTIVE SUMMARY 5

Executive SummaryAs with nearly half of all California school districts, the Hacienda La Puente USD has experienced signifi cant declining enrollment over the past few years, forcing the district to make signifi cant budget reductions in 2005-06 and 2006-07. Enrollment and ADA must be carefully monitored monthly. Staffi ng should be adjusted as enrollment numbers change.

FCMAT was asked to review the budget development process and prepare a multiyear projection to help the board and administration determine the accuracy of the budget and the reductions necessary to remain fi scally solvent. Due to several unforeseen circum-stances related to the condition of the data in the fi nancial system, FCMAT visited the district on three different occasions between March and August 2006 to gather and pro-cess the information for the multiyear projection.

The district administration and board implemented over $3 million in cuts in 2005-06 and another $5.7 million in 2006-07. Because of these aggressive actions, the FCMAT MYP indicates that the district will adhere to the AB1200 requirements to meet its fi nancial ob-ligations in the current and two subsequent years. However, this FCMAT MYP was pre-pared prior to the district’s recent negotiations settlement of 4% with all bargaining units. FCMAT returned to the district again in January 2007 to review the 2005-06 audit report and the 2006-07 fi rst interim report, but the interim report did not include the cost of the negotiation settlement in the district-prepared multiyear projections.

FCMAT identifi ed several areas where the district could make changes to improve com-munication, keep key district stakeholders better informed, and improve overall opera-tions. Most of the employees interviewed by FCMAT expressed that they were caught completely by surprise when the administration announced that major cuts would be nec-essary.

The district should implement procedures to keep employees and the community in-formed. Regular meetings, newsletters, and the district Web site are ways to achieve this goal. Principals and department managers state that they are not involved in the budget-ing process. Continuing to utilize the budget committee, making regular board presenta-tions, discussing budget issues at management meetings, and working with managers to develop budgets for their sites will address that concern.

One of the most important budget monitoring tools is a fully integrated position control system to track and control employee salaries and benefi ts. The district’s position control system is manual and is not integrated between human resources, payroll and the budget-ing process. Budget preparation and monitoring rest almost entirely with the Director of Fiscal Services, whose workload is overwhelming. The district risks the chance of er-rors and untimely budget updates because the position control system is not totally reli-


EXECUTIVE SUMMARY6

able and most of the responsibility is assigned to one person. Staffi ng ratios should be developed and followed to ensure fairness and prevent overstaffi ng and overspending. Evaluating and monitoring the assignments of special education instructional assistants may yield some savings.

The district uses multiple software systems, the in-house Business Operating Support System (BOSS) and the LACOE PeopleSoft and human resources systems for payroll, which fl ows directly into the PeopleSoft system but not into BOSS. Agencies using mul-tiple systems must constantly reconcile the data to maintain fi nancial integrity and reli-able records. FCMAT could not verify the accuracy of the data in either system because the reports did not match. The use of multiple computer systems creates a duplication of work for the Human Resources and Business departments. The district’s Business Offi ce does not have a process for reconciling the data in the two systems until the year-end closing of the fi nancial records.

The district receives considerable categorical funding each year. There has been a his-torical pattern of carrying over a large portion of the categorical funds each year. Better planning to use the categorical funds more effectively may help ease the burden on the unrestricted general fund.

The 2005-06 year end actual fi nancial report yielded a much larger ending balance than the administration had projected in the interim reports. The board should be kept in-formed monthly of the status of the budget, especially during times when the budget is under scrutiny by the community and employee bargaining groups. The district consis-tently meets the statutory requirements of preparing and submitting the budget for adop-tion and the interim reports on time, but beginning a monthly budget revision cycle would help to project a more accurate ending balance and facilitate better planning during the budget development cycle each year.


BACKGROUND 7

Background The district’s once-large reserve balance of $25 million dwindled over several years and has been used to cover the defi ciencies between revenues and expenditures. Until the recent budget reductions were implemented, the district continued to defi cit spend even though budget adjustments were made in prior years. The defi cit spending has largely been due to declining enrollment and the district’s inability to quickly respond by adjust-ing the budget. The decline in enrollment was even greater than anticipated in 2005-06, leaving the district facing budget reductions of at least $5.7 million in 2006-07 on top of $3 million in cuts implemented in 2005-06 to retain fi scal solvency.

At the time of the initial FCMAT fi eldwork, the district was in the process of submitting a qualifi ed 2005-06 second interim report to the Los Angeles County Offi ce of Education because the board and administration had not had suffi cient time to identify or approve appropriate budget reductions before the statutory deadline to submit the second interim report. The projected ending balance for 2005-06 would barely meet the minimum 3% reserve for economic uncertainties required by the state without signifi cant budget cuts. The district’s fi nancial situation was very serious.

Employee contract negotiations were in progress during the FCMAT fi eldwork. Only the smallest bargaining unit (SEIU) had settled its contract by August 2006. The budget in-cluded an allowance to cover a 2% increase for all employees in 2005-06. Subsequent to the FCMAT fi eldwork, the district settled negotiations for 2006-07 at 4% for all bargain-ing units. It may be diffi cult for the district to explain to the public why salary increases are awarded while budget reductions are being made.


BACKGROUND8


DECLINING ENROLLMENT AND BUDGET REDUCTIONS 9

Findings and Recommendations

Declining Enrollment and Budget Reductions

As with many California school districts, Hacienda La Puente has been experiencing declining enrollment. The consequences of declining enrollment and defi cit spending must be regularly and carefully managed to avoid fi nancial insolvency. The district used excess ending reserves to balance the budget over the past several years. Using onetime ending reserves to balance the budget shortfall must cease. The administration and board have kept budget reductions as far away from the classroom as possible, but few future cuts can be made without drastically affecting student programs or amending bargain-ing agreements. With 90% of the unrestricted general fund budget devoted to employee compensation, the bargaining units and the administration must work closely to help the district avoid insolvency.

The Director of Human Resources prepares enrollment projections, which are reviewed by the Assistant Superintendent of Business. Student enrollment and the corresponding average daily attendance (ADA) are the key factors in the amount of state funding re-ceived in revenue limit funds. Enrollment levels were down more than projected, exacer-bating the budget shortfall in 2005-06. District staff must review and update enrollment projections at least three or more times per year and throughout the budget development process, and adjust staffi ng accordingly.

In the past, some budget reductions have not materialized due to subsequent decisions by the administration or Governing Board. One example is the last-minute 2005-06 change in the high school teacher staffi ng ratio from 34:1 to 33:1 that occurred just before the start of school in 2005. The budgeted savings from a teacher ratio of 34:1 were not real-ized, so onetime reserve funds were used to cover the defi cit. In the future, programs should not be added or enhanced without carefully identifying an ongoing funding source or negative impact to the budget.

FCMAT did not delve into the specifi c budget reductions being considered by the admin-istration and board of trustees, but it was noted that the district has several small elemen-tary schools with fewer than 300 students enrolled. The administrative and operational costs to maintain a small school are nearly as high as those of a larger campus. Other school districts facing critical budget defi cits have been faced with similar diffi cult deci-sions to close small schools or adjust boundaries to smooth out enrollment. The district should seriously consider closing small schools during the next budget development cycle if defi cit spending cannot be curbed.

The budget cuts and savings that were implemented in 2005-06 and 2006-07 must be accurately monitored to ensure that full implementation continues to result in expected


DECLINING ENROLLMENT AND BUDGET REDUCTIONS10

savings. The LACOE requires the district to submit a detailed, accurate budget reduction plan and multiyear projection by June 30 each year indicating that the district could meet its fi nancial obligations in the current and two subsequent years, along with its adopted budget. The 2006-07 budget was submitted on time and approved by the County Offi ce. The 2006-07 fi rst interim report was prepared and submitted to LACOE on time but did not include the cost of the 4% salary increase approved by the Governing Board.

The district has taken a proactive, responsible approach to address the budget shortfall in 2005-06 and 2006-07. The administration and board must work diligently to fi nd ways to reduce the budget when necessary with as little impact to students and employees as pos-sible. As the district faces major budget reductions in future years if enrollment continues to decline, the availability of cash to cover current expenditures may be tight. Monthly cash fl ow projections should be prepared and cash regularly reconciled to better manage cash and plan the timing of certain types of expenses.

Employee contract negotiations were in progress at the time of the FCMAT study and were recently settled for 2006-07. Making sure that all bargaining groups understand the seriousness of budget issues is of utmost importance. The district must carefully explain to the public why salary increases may be approved while budget reductions are being considered, especially if the board should discuss closing small schools in the future. Hiring and retaining the best teachers, managers, and classifi ed employees is critical to the success of the instructional goals of the district. Balancing the needs of students and employees while maintaining fi scal solvency is essential for any school district.

RecommendationsThe district should:

1. Educate the public and employees about the effect of declining enrollment on district revenues.

2. Monitor enrollment monthly.

3. Regularly discuss and address enrollment and any enrollment changes with the Governing Board.

4. Provide the board with updated budget information on the actual savings achieved compared to the amounts approved as budget reductions.

5. Consider all options if future budget reductions are imminent, including the cost of operating small schools.

6. Include all managers and principals in the budget development process.


COMMUNICATION 11

Communication

Communication may not have been suffi cient to keep key stakeholders and employees informed about the budget shortfall. Most employees stated that the budget problems caught them by surprise and they were unaware that major budget reductions were being considered. The most common complaint from staff was that communication was spo-radic or inadequate and must be improved to ensure that all parties are kept apprised of the board’s decisions during any budget reduction process.

The perception is that the budget problem may not have been real because spending on major and facility and technology project is ongoing. Employees and the public may not completely understand the difference between unrestricted general fund operating dollars and the various restricted funding sources available for construction and other specifi c programs.

Interviews with various district employees revealed a lack of understanding of the dis-trict’s budget problems and funding sources. Most employees stated that the budget prob-lems caught them by surprise and that they were unaware that major budget reductions were being considered.

The Business Department must keep the lines of communication open with its principals and department heads. Many districts use a detailed budget calendar to help managers meet key deadlines and participate in the budget development process.

Open communication, beginning budget work early, and including stakeholders in the deci-sion-making enable school districts to effectively work through diffi cult budget reduction processes. All parties should be kept informed over the next few months to ensure that the budget savings are properly calculated and incorporated into the fi nal adopted budget.


1. Find ways to improve communication throughout the district.

2. Open lines of communication with all key stakeholders, including parents, bargaining units, management and supervisory employees, and community members.

3. Consider a series of voluntary workshops, community meetings at schools, newsletters, and use of the district’s Web site to communicate with district stakeholders, especially during times when the district faces budget reductions. Develop and use a detailed calendar to help meet deadlines and keep managers informed.


BUDGET DEVELOPMENT AND OVERSIGHT12

4. Include all managers and principals in the budget development process.

5. Present facility information at board meetings to keep constituents and community members informed about funding sources and progress of construction projects.

6. Explain the restrictions on capital facilities funds and other restricted funding sources.

Budget Development and Oversight

Responsibility for developing a district’s budget generally resides with the business of-fi ce under the direction and oversight of the Chief Business Offi cer. Budget revisions, monitoring, and fi nancial reporting are usually the responsibility of the director of fi scal services, with changes submitted by budget managers throughout the district. Budget monitoring is essential to ensure that district funds are used correctly and effectively.

The Director of Fiscal services develops and monitors the district’s budget. Managing a budget as complex and intricate as that of HLPUSD is a daunting task. Five business of-fi ce employees are assigned to budget tasks, but three of them are reasonably new to their positions and have limited experience. The staff turnover and lack of experience have placed a heavy burden on the director, creating a major backlog in budget revisions. The high turnover in key personnel in 2005-06 may have kept the seriousness of the budget crisis from being adequately communicated to the board, staff and community.

The district’s multiple software systems have made budget development and monitor-ing diffi cult and time-consuming. The business offi ce must develop, manage, revise, and monitor the budget and fi nancial resources in a timely manner to retain the district’s fi scal viability. The budget should refl ect the district’s goal to provide a comprehensive instruc-tional program.

The level of student enrollment, number of sites, impact of contractual obligations, and past practices often determine the budgeting process used by a school district. A success-ful budget model establishes a level of fi nancial confi dence in the district. Throughout the process, budget managers must be provided with clear and concise procedures to follow. Budget development should begin early in the year, preferably in January after the gov-ernor proposes the budget for the upcoming fi scal year. The fi rst step in the process is to approve a budget calendar indicating the due dates that must be met to adopt the district’s budget by June 30 each year. A well-managed budget development calendar serves two purposes: It allows site and department budget managers to identify their needs for the upcoming year and it strengthens communications between the managers and the busi-ness offi ce.


BUDGET DEVELOPMENT AND OVERSIGHT 13

The district distributes an annual budget guide. However, budget managers may not al-ways be fully trained or included in budget development. This seems especially true with regard to federal and state categorical programs. Most budget managers at sites and de-partments can access their budgets online, but need more training to use the system more effectively. Budget managers need to be held accountable for budgeting accurately and not overspending their allocations. The business offi ce staff should meet with budget managers and principals at least once in the spring to discuss budget assumptions and assist in budget development, and again in the fall to review prior year carryovers.

As the district may begin considering reductions and further changes in the budget for next year, it should develop a process to fully defi ne anticipated increases or decreases in spending. Once the options are identifi ed and prioritized, a full cost analysis must be completed to determine the total savings of each. For example, when positions are cre-ated or eliminated, the cost of statutory benefi ts and health coverage must be calculated along with salaries to quantify the full dollar value of these changes. Once budget reduc-tions are approved by the board, the cuts must be implemented and monitored to ensure that the anticipated savings are realized. Proper planning and cost analysis will protect the district’s future fi nancial health.

The business staff should strive to complete any current budget adjustments quickly to facilitate the preparation of multiyear projections that will accurately verify and forecast the fi nancial condition of the district this year and in two subsequent years.

The district should continue using a budget committee. Many school districts use budget committees with members representing all employee groups and community stakeholders to review and prepare recommended budget reductions to the board. A budget committee helps communicate fi nancial information to constituents, and would enhance trust among the constituencies in the district. The district uses multiple computer systems: the in-house BOSS system and the Los Angeles County Offi ce (LACOE) PeopleSoft and Human Resources systems for pay-roll, which fl ows directly into the PeopleSoft System but not into BOSS. Agencies using multiple systems must constantly reconcile the data to maintain fi nancial integrity and reliable records. The use of multiple computer systems creates a duplication of work for the Human Resources and Business departments. The HLPUSD business offi ce does not have a process for reconciling the data in the two systems until the year-end closing of the fi nancial records.

The district does not have a reliable, ongoing budget monitoring process in place. When the study team visited the district in March, June, and August, many revenue and expen-diture accounts had not been reviewed to determine if the estimates should be adjusted


BUDGET DEVELOPMENT AND OVERSIGHT14

based on changes in enrollment or federal or state allocations. Additionally, the 2006-07 fi rst interim report indicated the same restricted carryover as the prior year, indicating that categorical spending had not been well planned.

The overwhelming workload of the Director of Fiscal Services complicates routine budget monitoring, which could mean that the district does not have a good picture of changes that may have occurred during the year. Also, the district is not able to accurately refl ect its net ending fund balance throughout the year if budgets are not kept up to date. If possible, budget revisions should be taken to the board for approval more often than just at interim reporting deadlines. Budget-to-actuals summaries should be prepared and submitted to the board as a discussion item monthly. This should make interim reports more useful and give the board a more accurate idea of the district’s fi nances. Submitting the summaries monthly also would allow the board and community to understand why variances are occurring. The summaries should be presented to the board for information, comment and direction if action is needed. When interim reports are prepared, they must include the very latest information with projections of the district’s fi nancial condition at the end of the year. Interims should be considered the nearest thing to closing the books, which means updating budgets to annual estimates and reviewing general ledger accounts to ensure that the balances refl ected are accurate and that no balances need to be cleared. Valid, thorough budget updates with projections of the district’s ending fund balance will ensure an early warning of any discrepancies between the budget projections and actual revenues or expenditures.

The district does not have a computerized integrated position control system. This issue will be discussed later in this report, but the method used currently requires manual track-ing of employee placement with step and column movement and actual health benefi t costs budgeted, assuming that every certifi cated employee may move a column on the salary schedule. This practice likely has the effect of overstating budgeted salary costs. Additionally, because of the lack of a computerized position control and budget projec-tion system, the district uses an average amount to project health benefi ts. This practice could overstate or understate the budget for health benefi t costs. When the district pre-pares the cost estimate for step and column movement of teachers, it does not prepare the net cost of retirements and resignations. This practice tends to overstate the actual annual cost of step and column movement.

The cost of salaries and benefi ts makes up approximately 90% of the district’s unre-stricted general fund budget. Unanticipated increases in these categories can quickly change the fi scal stability of a district. An integrated position control system establishes authorized positions by site or department and ensures that staffi ng levels and payroll expenditures conform to the district formulas and standards, preventing overstaffi ng and overpayments.


BUDGET DEVELOPMENT AND OVERSIGHT 15

The district does not appear to have a budget allocation policy related to replacement of furniture and equipment at schools. Interviews with school administrators revealed that schools are expected to use discretionary funds or categorical funds to replace items such as computers, classroom furniture, lunch tables, etc. This process has led to a perception of unequal distribution of resources and could violate supplanting regulations for categor-ical programs.

The district currently pays retiree health benefi ts for employees to age 65. The unrestrict-ed general fund currently pays all costs for this program regardless of the employee’s original funding source. These expenditures should be charged to the program or fund where the employee originally worked.

The 2005-06 second interim report for the adult education fund was budgeted incorrectly. Revisions submitted to the business offi ce by the Assistant Superintendent were not promptly updated. Based on FCMAT’s interview with the child development program di-rector, the second interim report for that fund also was incorrect. All operating funds such as the adult education fund, child development fund and cafeteria fund should be updated every time the general fund budget is revised, especially at interim reporting periods.


1. Review the need to maintain dual fi nancial systems.

2. Schedule training sessions on district budgets for school administrators, managers and secretaries.

3. Ensure that the Business Department reviews the budget monthly and adjusts revenue and expenditures as needed.

4. Provide assistance for the Director of Fiscal Services to ensure that all funds and budget line items are reviewed regularly.

5. Ensure that schools and departments have access to up-to-date and accurate budget information, and hold them accountable for not overspending budgets and for following established purchasing procedures.

6. Present budget changes and monthly budget summaries for the board to review, discuss and approve at a public meeting, accompanied by the rationale for any changes.

7. Continue to utilize a budget committee. Many school districts’ budget committees include members from all employee groups and community stakeholders to review and prepare recommended budget reductions for the Governing Board.

8. Carefully prepare the interim reports to include the very latest information with projections of the district’s fi nancial condition through the end of the year.


POSITION CONTROL AND STAFFING16

9. Work to establish a more accurate method to estimate annual column movement costs based upon the average actual column movement in several prior years.

10. Review the estimated health benefi t costs to actual health benefi ts costs to determine if the current budgeting method should be further refi ned.

11. Prepare step and column estimates to include new hires and the effect of retirements and resignations.

12. Charge retiree health benefi ts appropriately to all funds and categorical programs. Accomplish this by using a benefi ts account object code and charging a small percentage of retiree benefi ts against each payroll as allowed. Use these accumulated funds from all sources to pay for retiree health benefi t costs.

13. Develop a district-level budget process whereby schools sites can request funds for replacement of old, broken, vandalized or stolen furniture and equipment.

14. Identify a long-term funding plan for replacement and maintenance of the district’s signifi cant investment in technology.

15. Ensure that all fund and program budgets are updated at interim reporting periods.

Position Control and Staffi ng

One of the most critically essential budget development and monitoring tools is a posi-tion control system to monitor and authorize staffi ng, and identify employee salary and benefi t costs. A reliable position control system also is an integral part of the overall in-ternal accounting controls to ensure that only authorized positions are fi lled and salaries and benefi ts are budgeted and paid only as approved by the Governing Board. Salaries and benefi ts are approximately 90% of the district’s general fund budget. Unanticipated increases in these categories can quickly alter a district’s fi scal stability. An integrated po-sition control system establishes authorized positions by site and department and ensures that staffi ng levels and payroll expenditures conform to district formulas and standards, preventing overstaffi ng and overpayments.

The HLP position control system is not computerized or integrated with human re-sources, payroll and budget. Instead, employee tracking and budgeting for salaries and benefi ts is managed manually by the Human Resources Department and Fiscal Services. The Director of Fiscal Services uses an Excel spreadsheet based on payroll informa-tion to identify current employee salaries and benefi ts. Data in the Human Resources Department is managed using spreadsheets and by memory. Human Resources tracks and fi lls positions. Implementation and utilization of a reliable, computerized position con-trol system by human resources, budget and payroll should be a top priority. This would enable human resources and the business offi ce to jointly maintain salary and benefi t in-formation. It would only allow payroll to pay employees based on the information in the system. This separation of duties enhances internal control standards.


CATEGORICAL PROGRAMS AND SPECIAL EDUCATION 17

Staffi ng ratios must be carefully reviewed and strictly enforced. The district has reduced certifi cated staff as enrollment declined, but classifi ed positions may not have been ad-justed in a timely manner. The district’s small and large schools were reported to have similar classifi ed support staff regardless of the enrollment level. Staffi ng ratios should be reviewed and updated before the budget development cycle begins each year.

District staffi ng ratios for classifi ed staff and for certain certifi cated positions were es-tablished several years ago and have not been adjusted as enrollment has declined at a number of district schools. Interviews with school staff members revealed perceived dis-crepancies in staffi ng at schools and a perception that staffi ng allocations are not changed when enrollment changes. While many schools in the district are declining, several are growing and indicate they have not received additional staff. Involving site administrators will help to create buy-in and a transparency in the staffi ng allocation process. In creating this process, the district should look at an enrollment-based model as well as considering other unique needs and characteristics of individual schools.

Under the current HLPUSD dual computer system and lack of an integrated position con-trol module, positions are entered in payroll and then the budget is projected from payroll data. This creates an internal control weakness since there is no check and balance system that ensures that people being paid are actually fi lling budgeted and authorized positions.


1. Develop and use a computerized, integrated position control system.

2. Review and revise staffi ng allocation formulas for classifi ed staff and certain certifi cated positions to ensure fairness at all sites, whether enrollment is declining or increasing.

Categorical Programs and Special Education

The district receives considerable state and federal categorical funds that are designated by the granting agency for special projects. At the end of 2005-06, the district had over $6 million in unspent carryover categorical funds. Careful planning for the effective use of these funds may help ease the burden on the unrestricted general fund. The recent 2006-07 fi rst interim report shows that the restricted ending balance is projected to be the same as the prior year ending balance, indicating that categorical fund expenditures have not been reviewed or planned for use to provide services for students.

The study team noted that the district’s categorical (CAT) form for 2004-05 showed a restricted carryover for home-to-school transportation and special education transporta-tion. This is highly unusual since it would indicate the district incurred no encroachment


CATEGORICAL PROGRAMS AND SPECIAL EDUCATION18

for transportation in the prior year. The current year’s budget showed that only personnel costs were budgeted in the transportation resource code. Expenditures may have been in-correctly coded, causing incorrect information to be entered on state and federal reports. This could result in the district not receiving appropriate funding in future years. The dis-trict should carefully review its account code structure for accuracy and make corrections as necessary. The district should also consider refi ling certain state and federal reports if revenues and/or expenditures have been reported incorrectly.

Categorical funds are an integral part of the district budget. Categorical program develop-ment should be integrated with the district’s goals and should be used to respond to stu-dent needs that cannot be met by unrestricted expenditures. The Superintendent and cabi-net should establish procedures to ensure that categorical funds are expended effectively to meet district goals. Carryover and unearned income of categorical programs should be monitored and evaluated in the same manner as general fund unrestricted expenditures.

The district has large unexpended carryover balances in numerous categorical programs. The revenues and expenditures for these programs must be reviewed and evaluated in the same manner as unrestricted general fund revenues and expenditures. Plans need to be made to budget categorical funds the district expects to receive early in the budget development cycle. These plans must be consistent with categorical funding guidelines and restrictions. Schools should consider all funding sources when addressing key strate-gies. Restricted funds should be used fi rst since they are allocated for students in the year they are received. Whenever there is doubt about whether to use unrestricted or restricted funds for an item that can come from either source, restricted funds should be used. Reports of categorical expenditures should be prepared monthly for the Chief Academic Offi cer and Chief Business Offi cer. They should review expenditures to date and remain-ing balances and determine whether any of these funds can be redirected to reduce car-ryover and unused balances. A review of effective categorical program supervision, deliv-ery and expenditure of funds should be included in evaluating managers with responsibil-ity over these specifi c funds. The use of AB 825 categorical fl exibility provisions as well as fl exibility provisions for federal programs should be reviewed to assist in alleviating the district’s budget crisis.

Interviews with district managers and employees indicated the need for budget training and for improved budget accountability for managers and principals. Principals indicated the desire for training on the use of categorical funds and on how the district and site budgets are developed. Additionally, concerns were expressed that categorical carryover information did not reach school sites until late in the year and then was often revised several times, causing schools to continually update school site plans.

As with most districts in California, the cost of Special Education has increased signifi -cantly. It was reported that the caseloads of Special Education teachers and staff may need realignment. In small schools the teacher caseloads may be below average. Careful


CATEGORICAL PROGRAMS AND SPECIAL EDUCATION 19

review of six-hour special education instructional assistant positions indicates that chang-ing some positions to part-time could reduce costs. Additionally, the district needs to formalize a tracking system to ensure that one-on-one instructional assistants follow the student to whom they are assigned and that the position is eliminated if the student leaves the district or services are no longer required.


1. Set up a training session for school administrators and key staff members on the allowable uses of various categorical funds.

2. Carefully review for accuracy the recording and reporting of transportation program charges to avoid any loss of funding.

3. Consider refi ling certain transportation reports if revenues and/or expenditures have been reported incorrectly.

4. Allocate school site carryover to the sites no later than September 30 and work with schools to review these carryover budgets.

5. Engage the instructional department, under the direction of the Chief Academic Offi cer, to develop and monitor the district’s categorical budget. Ensure compliance by having the Chief Academic Offi cer review and approve personnel and purchase requisitions that are charged to categorical programs.

6. Ensure that the Consolidated Application is developed and reviewed against actual revenue and expenditure transactions in the fi nancial records.

7. Set priorities for the use of categorical funds. Develop plans for the use of carryover funds.

8. Evaluate the caseloads of Special Education staff and reallocate positions or duties if caseloads are below average.

9. Review six-hour Special Education instructional assistant positions to determine if some positions might be converted to part-time status.

10. Ensure that Special Education one-on-one instructional assistants follow the students to whom they are assigned.


CATEGORICAL PROGRAMS AND SPECIAL EDUCATION20


MULTIYEAR FINANCIAL PROJECTION 21

Multiyear Financial ProjectionMultiyear fi nancial projections (MYP) are an important part of the overall budget process and a major requirement of the AB1200 school district fi nancial oversight legislation. The district is required to submit multiyear projections along with the adopted budget and all interim reports. AB1200 requires school districts to be able to meet all fi nancial obliga-tions for the current and two subsequent years. FCMAT noted some inconsistencies in the district-prepared MYP at the time the 2006-07 budget was adopted. The independently prepared multiyear projections done by FCMAT in this report include certain corrections and assumptions that differ from those the district used in their original projections. The FCMAT MYP, which was prepared last fall, indicates that the district will be able to meet its obligations in the current and two subsequent years. FCMAT prepared the multiyear fi nancial projections that are in this report. An unrestrict-ed general fund summary appears at the end of this section of the report, and the detailed MYP is attached as Appendix E. After reviewing district records, interviewing employees and examining numerous fi nancial reports to gather pertinent information for the MYP, FCMAT developed certain assumptions that are identifi ed in the MYP narrative. The dis-trict has engaged in defi cit spending in the past and is likely to continue doing so even though signifi cant budget adjustments were made in 2005-06 and 2006-07 if the budget is not carefully and frequently monitored.

FCMAT’s MYP was prepared using the district’s 2006-07 adopted budget and other fi -nancial information but may contain assumptions different from other multiyear projec-tion assumptions prepared by district staff. At this time, based on the 2006-07 budget information the district provided to FCMAT, it appears that the district will comply with the AB1200 requirements of meeting its fi nancial obligations in the current and two sub-sequent years. This was determined before the 4% salary increases were awarded.

The district met the required 3% reserve for economic uncertainties and ended the 2005-06 fi scal year with unrestricted general fund reserves exceeding the projected ending fund balance on the 2005-05 third interim report by over $3 million. The unaudited actual fi -nancial statements indicated that all of the excess funds have been designated for specifi c future purposes as identifi ed in Section 5 of the Fiscal Health Risk Analysis included in this report.

In 2006-07, prior to the 4% increase, salaries and benefi ts were budgeted at approximate-ly 90% of the district’s unrestricted general fund. A cap on the cost of employee health benefi ts at $9,500 per employee was in effect at the time the FCMAT MYP was prepared. The adopted budget included projected step and column moves for both certifi cated and classifi ed employees. The ending fund balance of 2005-06 included a designation of 2% to offset a potential retroactive pay increase.


MULTIYEAR FINANCIAL PROJECTION22

In developing and implementing a multiyear projection, the district’s primary objective is to achieve and sustain a balanced budget, improve academic achievement and maintain local governance. MYPs are required by AB 1200 and AB 2756 and should be timely and contain the most current fi scal information available. These projections allow the district and its major stakeholders to predict revenues and expenditures, and to ensure that the district will be able to meet its fi nancial obligations in the current and two subsequent fi s-cal years.

The following MYP was prepared based on the district’s adopted budget as of July 1, 2006, using information provided by management at that time. Although the district is in declining enrollment, it has been proactive in planning its resources for the future and has maintained a balanced budget. At the time this MYP was prepared, negotiations had not been settled for 2006-07. FCMAT has subsequently learned that the district settled negotiations with all bargaining units at 4% for 2006-07. The district is not experiencing any signifi cant fi nancial challenges at this time but could face further budget reductions if the budget is not monitored regularly. The district’s 2006-07 fi rst interim report did not include the cost analysis of the 4% salary increases.

If a district cannot meet its fi nancial obligations for the current or two subsequent fi scal years, the county superintendent of schools must notify the governing board of the district and the Superintendent of Public Instruction if the district falls below the required reserve level. The county offi ce adheres to Education Code 42127.6 when assisting any school district in this situation.

County assistance could include assigning a fi scal expert to advise the district on fi nancial problems, conducting a study of the fi nancial and budgetary conditions of the district, or requiring the district to submit a proposal for addressing its fi scal condition. If a district does not meet the required reserve levels, the intent of the MYP is to help the county and the district formulate a plan to regain fi scal solvency and restore the required ending bal-ance.

California school districts and county offi ces use many different methods and software products to prepare reliable multiyear fi nancial projections. The FCMAT MYP was pre-pared using FCMAT’s Budget Explorer multiyear software, a Web-based forecasting tool that is available to all California school districts at no cost. The MYP was prepared using district data that was uploaded into Budget Explorer from the district’s mainframe com-puter system.

Any forecast of fi nancial data has inherent limitations, including issues such as the tim-ing of the report, subsequent negotiated settlements, unanticipated changes in enrollment trends and changing economic conditions on a state and local level. Therefore, the budget forecasting model should be viewed as a tool to assess trends based on certain criteria and assumptions, not as a prediction of exact numbers. The projection should be updated



at each interim fi nancial reporting period to maintain the most accurate data. The district should consider using Budget Explorer for future multiyear projections to provide a more detailed analysis for the board and district stakeholders to review, particularly since the 4% salary increase may have long-term fi nancial consequences that will affect future years.

FCMAT reviewed the district’s budget assumptions as of August 2006 to validate the 2006-07 adopted budget report and multiyear fi nancial projections. Budget assumptions include conservative economic factors outlined by School Services of California (SSC) in its fi nancial dartboard and fi scal information available at the California School Finance and Management 2006-07 Conference.

The following MYP represents FCMAT’s fi nancial projections as of August 2006 for the unrestricted general fund, which is where most of the district’s expenditures occur. (Please see next page.) The MYPs for the restricted and combined general fund are lo-cated in Appendix E to this report.



Notes

1, 2, 3

4

5, 6, 7

(1,276,721)(1,276,721)(1,276,721)3,302,3143,220,5361,997,600

2008-092007-082006-07Codes

General Fund

Restricted & Unrestricted Programs

REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE

Date:Time:

02/26/200710:49 AM

Hacienda La Puente Unified School District

Proj. 2Proj. 1Base YearAccountDescription

129,943,858128,130,593125,252,2348010 - 8099Revenue Limit SourcesRevenues

12,893,71412,893,71412,893,7148100 - 8299Federal Revenues36,778,53135,925,53134,827,5668300 - 8599Other State Revenues1,673,2201,673,2201,673,2208600 - 8799Other Local Revenues

181,289,323178,623,058174,646,734Total Revenues

85,189,26484,367,94783,655,2661000 - 1999Certificated SalariesExpenditures

27,080,41026,655,08826,238,1022000 - 2999Classified Salaries37,574,61036,950,59536,168,0913000 - 3999Employee Benefits8,941,9278,718,0168,401,7934000 - 4999Books and Supplies

176,710,288174,125,801171,372,413Total Expenditures4,579,0354,497,2573,274,321Excess (Deficiency) of Revenues over Expenditures

16,348,45415,959,68715,540,2805000 - 5999Services and Other Operating Expenditures1,532,8501,492,8161,451,0286000 - 6900Capital Outlay2,324,9202,263,7992,200,0007000 - 7299Other Outgo

(2,282,147)(2,282,147)(2,282,147)7300 - 7399Direct Support/Indirect Cost

0008910 - 8929Interfund Transfers InOther Financing Sources\Uses

1,276,7211,276,7211,276,7217600 - 7629Interfund Transfers Out0008930 - 8979All Other Financing Sources0007630 - 7699All Other Financing Uses0008980 - 8999Contributions

Total Other Sources\Uses

24,397,12021,176,58519,178,985

Net Increase (Decrease) in Fund Balance

Net Beginning Fund BalanceFund Balance

27,699,43424,397,12021,176,585Ending Fund Balance

50,00050,00050,000

Components of Ending Fund Balance

300,000300,000300,0006,975,5846,975,5846,975,584

0006,429,4986,517,1496,622,2325,339,6155,262,0785,179,474

000

8,604,7375,292,3092,049,295

9711Reserve for Revolving Cash9712Reserve for Stores9719Reserve for All Others

9730 - 9739General Reserve9740 - 9759Legally Restricted Balance9770 - 9774Designated for Economic Uncertainty

9700 - 9709Fund Balance Reserved

9790Undesignated/Unappropriated

0007430 - 7439Debt Service

0009780Other Designated

0009790Negative Shortfall



2006-07 Projected Ending BalancesAs noted in the following table, there are differences between the projected ending bal-ance for the budget year 2006-07 as determined by the district and the projected ending balance determined by FCMAT.

2006-07 Projected Balances as of August 2006District FCMAT

Unrestricted 15,293,536 14,554,353Restricted 6,622,232 6,622,232Total 21,915,768 21,176,585

The following will explain the unrestricted difference of ($739,183) between the district’s and FCMAT’s MYPs for the unrestricted general fund:

• FCMAT used the July 25, 2006 updated equalization aid provided by SSC to cal-culate the district’s revenue limit sources. This updated information provided an additional $10.81 per ADA and will result in an increase of $240,817 in revenue limit sources funding.

• Prior year revenue limit is not normally budgeted. Any positive or negative fi nan-cial impact of the fi nal prior year calculation is typically handled as an accrual or liability and does not impact the current year revenues. Therefore, FCMAT did not include the current budgeted amount of $680,000 in this projection, resulting in a decrease in revenue.

• FCMAT was unable to verify the source of the unrestricted federal revenue. Therefore, FCMAT’s projection does not include the $300,000 budgeted for unre-stricted federal revenues in the district’s projection.

Multiyear Forecast AssumptionsFCMAT has focused attention on the unrestricted portion of the district’s general fund budget, including the impact of increasing special education, community day school, transportation and the routine restricted maintenance calculations. The FCMAT projec-tion does not assume expending the sizeable 2005-06 restricted ending balance, because at the time of FCMAT’s fi eldwork the district had not shared specifi c plans for the use of these funds. In fact, as of the 2006-07 fi rst interim report, the district does not appear to have made specifi c decisions as to how the categorical carryover funds will be allocated or spent.

Enrollment and Average Daily AttendanceThe FCMAT study team reviewed the enrollment and average daily attendance (ADA) trends of the district for the years 2001-02 through 2005-06. The review compared the October CBEDS student enrollment count to the April P2 ADA data. Revenues earned by



the district through the revenue limit calculations are based on either the current or prior year P-2 data, whichever is higher. With the exception of an increase of 315 students in 2003-04, the district’s enrollment has been declining for a net enrollment loss of 2,041 over the previous four years. FCMAT has continued that conservative trend in its mul-tiyear projection using historical CBEDS data, cohort survival classroom progression and county birth rates to develop the attendance projection. FCMAT’s projected CBEDS and ADA are shown below. More detail as to enrollment and ADA analysis is located in Appendix E to this report.

2002 2003 2004 2005 2006 * 2007 * 2008 *CBEDS 25,184 25,499 24,955 23,241 23,037 22,736 22,297P2 ADA 23,076 23,076 22,677 22,223 21,767 21,476 21,061CBEDS/ADA % 91.6% 90.5% 90.9% 95.6% 94.5% 94.5% 94.5%

* estimated

Although the district’s ratio of enrollment to ADA in 2005-06 was within the average range for schools, the prior years’ ratio was well below the state average. Keeping kids in school for more days each year will increase the district’s revenue limit funding by increasing the number of ADA used in the calculation. At this time, the district continues to be funded on prior year P2 ADA because of declining enrollment. Improvements to the ratio will be realized in the funding for the following year at such time as the district experiences a growth in current year ADA above the prior year level. An increase of 1% in the attendance of currently enrolled students above last year’s P2 level could bring an additional $1,256,000 in revenue limit funding.

RevenuesRevenue Limit SourcesAt the time this MYP was prepared, FCMAT calculated the district’s revenue limit for 2006-07 using the most current state budget information from the July 2006 California School Finance and Management Conference and factors from the fi nal budget version 2006 SSC Dartboard. These factors include the estimated statutory COLA, elimination of the defi cit, and lottery rates for the current and projected fi scal years.

Anticipated declining enrollment numbers have affected the amount of revenues the dis-trict will receive; however, an enhanced COLA, equalization aid and a fully funded defi -cit factor mitigate the loss of revenue limit funding in the projection years. The district’s revenue limit sources are made up of a combination of state aid and local tax revenues in the calculation. FCMAT did not increase the level of district property taxes in the calcula-tion. This does not impact the total funding level, only the proportion of state aid to prop-erty taxes.



Federal RevenuesFCMAT did not include any unrestricted federal revenues in the projection because the source of any such funds could not be verifi ed.

State RevenuesFCMAT projected K-3 class size reduction revenues with COLA plus adjustments for declining enrollment. No mandated cost reimbursement funding is included in the pro-jection years. Due to uncertainty in the state funding of mandated cost reimbursements and the high rate of disallowed claims audited by the State Controller’s Offi ce, budgets should be adjusted when funds are received.

Local RevenuesNo changes were made to this revenue category.

ExpendituresCertifi cated SalariesThe FCMAT multiyear projection includes the impact of step and column salary move-ment. FCMAT did not include any increase for salary compensation in the projec-tion, as salary increases had not yet been determined through negotiations. FCMAT did reduce the number of teachers funded with unrestricted dollars by 18 in the projection year 2007-08 and seven in 2008-09 to offset the anticipated declining enrollment. The 2005-06 ending balance indicated a 2% reserve for future salary increases.

Classifi ed SalariesAs noted above, FCMAT did not include any salary increase but did include the ongoing impact of step and column movement.

Employee Benefi tsFCMAT increased statutory benefi ts in proportion to certifi cated and classifi ed salary changes in the projection years and factored a small COLA increase in employer health contributions in 2006-07 and 2007-08.

Books and SuppliesFCMAT adjusted the budget for materials and supplies using the Consumer Price Index (CPI) infl ation factor from the SSC Dartboard.

Services and Other Operating ExpendituresBudget amounts for travel and dues were not adjusted in the projection years. All other expenditures in the 5000 object series were adjusted using CPI.

Capital OutlayThe equipment budget was increased by CPI.



Direct Support/Indirect CostsIndirect costs have been adjusted based on the changes in categorical budgets in the pro-jection years.

Other Financing Sources/UsesTransfers OutThe transfer out in 2006-07 is the required contribution of ½ of 1% of the total general fund budgeted expenditures to the deferred maintenance fund.

Contributions to Restricted ProgramsUnrestricted contributions to restricted programs are for community day school, special education and the routine restricted maintenance program. FCMAT adjusted the contribu-tions according to calculated shortfalls for community day school and the special education program based on the current service delivery model. The routine restricted maintenance contribution was adjusted based on the 3% of total general fund expenditures requirement.

Net Increase/Decrease in Fund BalanceThe difference in the 2006-07 budgeted unrestricted revenues and expenditures is a posi-tive $1,997,600, taking into account the necessary contribution to restricted programs. This budgeted positive balance is a conservative amount and equates to 1.5% of the dis-trict’s unrestricted revenues.

Reserve LevelThe FCMAT projection indicates that the district will be able to meet the 3% minimum required reserve level in 2007-08 and 2008-09. However, this could change based on the impact of the 4% salary settlement and any future negotiated settlements with bargaining unit groups. The district must continue to monitor the budget carefully and accurately and address potential shortfalls in a timely manner.


1. Monitor enrollment and ADA monthly.

2. Consider using FCMAT’s free Budget Explorer software to prepare future multiyear fi nancial projections.

3. Update the MYP to refl ect the impact of the recent 4% negotiated salary settlements.

4. Update the budget as changes occur, not just at interim reporting periods.

5. Address potential budget shortfalls in a timely manner.

6. Develop a plan to effectively use the categorical carryover funds.


FISCAL HEALTH RISK ANALYSIS 29

Fiscal Health Risk AnalysisIn 2005, FCMAT developed the Fiscal Health Risk Analysis as a tool for local educa-tional agencies to evaluate the fi scal impact of trends in 18 operational and management areas. Reviewed in isolation, these areas may not independently be considered detrimen-tal to fi scal solvency. However, when evaluated as the core composite elements of the district’s fi nancial condition, these areas provide a clear checklist for establishing and maintaining fi scal solvency.

To conduct the fi scal health and risk analysis for the Hacienda La Puente Unifi ed School District, the FCMAT study team requested and reviewed a comprehensive list of fi nancial re-ports, enrollment and ADA information, as well as supplemental documents and system print-outs. The team met with the district Assistant Superintendent, Business Services and Director of Fiscal Services, and interviewed other key administrators and staff in the district.

The district has been experiencing signifi cant defi cit spending and declining enrollment over the past few years. During the 2005-06 fi scal year, the CBEDS enrollment declined by 1,714 from the prior year. FCMAT conducted a multiyear comparison of the general fund for past, current, and projected revenues, expenditures, transfers and components of the ending fund balance for fi scal years 2001-02 through the unaudited actuals for 2005-06 along with the 2006-07 adopted and fi rst interim budgets. FCMAT’s projections show en-rollment declined by about 200 in 2006-07. The enrollment decline of 200 was accounted for in the 2006-07 adopted budget and FCMAT’s multiyear projections. In periods where enrollment and ADA are fl at or declining, the district must exercise extreme caution regard-ing budgetary issues such as negotiations, staffi ng, and defi cit spending to ensure fi scal solvency. Diligent planning will enable the district to more clearly understand its fi nancial objectives and strategies to sustain fi nancial solvency. The district must continuously update the budget as new information becomes available in the district or from other funding and regulatory agencies. Although the district complies with the mandated budget revisions at the fi rst and second interim reporting periods, budget revisions should be prepared and pre-sented to the board monthly to ensure that changes and updates are known quickly and that the savings expected from budget reductions actually materialize.

The following Fiscal Health and Risk Analysis was completed by the FCMAT study team and refl ects the fi nancial status of the district as of the completion of FCMAT’s fi eldwork in August 2006. The analysis also includes an update of certain key events subsequent to the FCMAT fi eldwork, such as the results of the 2006-07 bargaining unit settlements, which will affect the district both fi scally and operationally.

The analysis focuses on the district’s unrestricted general fund, representing the revenues and expenditures related to funding sources that allow full district discretion in how mon-ies are used. The analysis contains specifi c comments and recommendations to assist the district in measuring and improving its fi nancial solvency score.


FISCAL HEALTH RISK ANALYSIS30

Fiscal Health Risk Analysis

Key Survival Questions

1. Defi cit Spending • Is this area acceptable? Yes• Is the district spending within its budget in the current year? Yes (after

implementing major budget reductions)

The district has adopted a budget for 2006-07 that includes approximately $5.7 million in budget reductions, following budget reductions implemented in 2005-06 of $3.5 million. These reductions include staffi ng reductions, program delivery changes, and reductions to department and school site discretionary budgets.

The district administration became aware of the need for signifi cant budget reductions during fall 2005. Budget reductions were identifi ed during the preparation of the 2005-06 fi rst interim report, with the goal to reduce the budget by at least $3 million that year. The district requested that FCMAT prepare an independent multiyear projection to verify the estimated budget shortfall in 2005-06 and subsequent years. FCMAT suggested that the district issue a third interim report for 2005-06 to better project the ending fund balance prior to FCMAT’s preparation of the multiyear projections. The third interim general fund budget refl ected an unrestricted ending balance of $9,287,149, which was signifi cantly lower than the actual unrestricted ending balance of $12,556,753. Although this difference refl ects budget savings and conservative spending, it also indicates that the budget monitoring and oversight functions had not been working properly.

• Has the district controlled defi cit spending over multiple years? No

FCMAT reviewed independent audit reports for Hacienda La Puente from 1997-98 through 2005-06 that identifi ed general fund defi cit spending in six of the nine years. The district showed excess revenues over expenditures in 2000-01, 2004-05, and 2005-06 and budgeted excess revenues in 2006-07, before the settlement of negotiations.

• Is the defi cit spending addressed by fund balance, ongoing revenues, or expenditure reductions? Yes

The district administration and board developed and implemented budget reductions of $3.5 million in 2005-06 and $5.7 million in 2006-07 that appear to have adequately addressed the defi cit spending in both years, before the settlement of employee bargaining unit negotiations. Much of the success of this planning will depend on the accuracy of the enrollment projections for the current and future years as well as the district’s ability to prepare accurate multiyear fi nancial



projections after reaching negotiated settlements of approximately 4% in ongoing salary increases for all employees. The July 1, 2006 adopted budget for 2006-07 indicated a projected net increase in the unrestricted general fund balance of approximately $2.7 million. The 2006-07 fi rst interim report indicates a projected increase in the ending fund balance of $3 million but does not include the 4% general fund salary increases that were recently approved by the board, estimated to be about $4.5 million.

2. Fund Balance • Is this area acceptable? Yes• Is the district’s fund balance consistently increasing? No

The general fund ending balance has experienced both increases and decreases since 1997-98. However, the fund balance has continued to support the required 3% minimum reserve level. The district’s diligence in implementing budget reductions in 2005-06 and 2006-07 indicates improvement in the fund balance before the recently approved salary increases.

Ending Fund Balance* Combined General Fund1998-99 $12,710,9981999-00 $9,133,6892000-01 $22,228,9632001-02 $22,071,7512002-03 $13,318,8172003-04 $12,523,1872004-05 $15,559,0762005-06 $19,178, 9852006-07 $22,258,650

*source – annual independent audit balances include legally restricted categorical ending balances 2006-07 projected balance taken from fi rst interim report, 12/15/06

• Is the fund balance increasing due to ongoing revenues and/or expenditure reductions? Yes

The projected fund balance increases for 2005-06 and 2006-07 are due to increased revenues and decreased expenditures but do not refl ect any negative effect from the negotiated settlements for 2006-07.

3. Reserve for Economic Uncertainty • Is this area acceptable? Yes• Is the district able to maintain its reserve for economic uncertainty in the

current and two subsequent years based on current revenue and expenditure trends? Yes



• Was the district able to maintain its reserve in 2003-04 and 2004-05 without using the state fl exibility? Yes

• Is the district aware that the reserves must be restored with the 2005-06 budget? N/A

• Is there a plan to restore the 2005-06 reserve for economic uncertainty? N/A

The district administration identifi ed the budget shortfall early enough in 2005-06 for the board to approve and implement savings that improved the fund balance in 2005-06 and 2006-07.

4. Enrollment • Is this area acceptable? No • Has the district’s enrollment been increasing or stable for multiple years?

No

District enrollment has declined over the past several years. In prior years the enrollment projections were not always estimated accurately.

• Is the district’s enrollment projection updated at least semiannually? Yes

The district updates enrollment and ADA projections at least three times a year. An analysis of actual enrollment and ADA should be conducted monthly to ensure that projections are reasonable.

• Are staffi ng adjustments consistent with the enrollment trends? No

In the past the district made changes in certifi cated staffi ng levels based on enrollment changes and reduced 18 positions in 2005-06. Although the collective bargaining agreement between the district and the certifi cated teachers union identifi es a student teacher ratio of 30:1, the 2005-06 staffi ng levels for grades 4-6 were 28.7:1, grades 7-8 were 25.1:1, and grades 9-12 were 27.5:1. Classifi ed staffi ng does not appear to have been adjusted as enrollment declined. • Does the district analyze enrollment and average daily attendance (ADA)

data? Yes • Does the district track historical data to establish future trends between P-1

and P-2 for projection purposes? Yes

It was unclear which district administrator actually was responsible for enrollment and ADA projections. One specifi c person should be designated to oversee enrollment and ADA trends and projections, reporting to cabinet and the board monthly.

5. Unrestricted or Undesignated Balance • Is this area acceptable? Yes



• Is the district’s unrestricted or free balance maintained throughout the year? Yes

Like many school districts, the unrestricted general fund estimated ending balance varies during the year. The 2005-06 unaudited actual ending fund balance included the required reserves for revolving cash, stores inventory, and 3% reserve for economic uncertainties, as well as about $6.975 million in board designated reserves for the following items:

Unused vacation payoff $500,000Donation accounts 281,000Liability losses 360,00005-06 open purchase orders 480,000Enrollment study 40,000Facility master plan 250,000Post employment benefi ts 1,130,0002005-06 2% salary increase 2,084,000Classroom furniture/equip 1,850,000

No undesignated fund balance amount was shown in the 2005-06 unaudited actual fi nancial report.

• Does the district consistently have fund balance above the required reserve? Yes

• The district has maintained an ending fund balance above the required 3% reserve but the ending balance has dwindled over the past several years.

6. Interfund Borrowing • Is this area acceptable? Yes • Can the district manage its cash fl ow without interfund borrowing? Yes

The district has not participated in interfund borrowing to date.

• Is the district repaying the funds within the statutory period? N/A

7. Bargaining Agreements • Is this area acceptable? Yes• Has the district settled bargaining agreements at or under COLA during the

past three years? Not always



Source information for statutory and funded COLA percentages, School Services of California

Source information for salary COLA provided by the district

• Did the district conduct a pre-settlement analysis identifying an ongoing revenue source to support the agreement? Partially

Negotiations for 2006-07 were not settled at the time of the FCMAT study. The district’s 2005-06 unaudited actuals include a board designated reserve equal to a 2% increase for all employees, assuming the use of state COLA increase and reserves as the funding source. It is not known if a pre-settlement analysis was identifi ed in prior years.

Subsequent to the FCMAT fi eldwork, the district settled negotiations for 2006-07 with all bargaining units in the amount of 4%. The certifi cated increase became effective September 1, 2006. The classifi ed CSEA increase of 4% became effective January 1, 2007. The classifi ed SEIU unit received an increase of 4% retroactively to July 1, 2006. The Governing Board has not yet approved an increase for management, but a decision is expected soon. The salary increase included using the 2% designated ending reserve balance and an additional 2% from current year revenue limit COLA and other ongoing revenues.

• Did the district correctly identify the related costs above the COLA? No

The district did not provide salary increases above the state COLA.

• Did the district address budget reductions necessary to sustain the total compensation increase? Yes

• Did the Superintendent and CBO certify the agreement prior to ratifi cation? Yes

01-02 02-03 03-04 04-05 05-06 06-07

Statutory COLA 3.17% 1.66% 1.86% 2.41% 4.23% 5.92%

Funded COLA 3.17% 2.00% -1.20% 2.41% 4.19% 5.92%

Certificated Teachers 3.50% 2.00% 0.00% 2.00% 2.00% 4.00%

Classified CSEA 4.00% 2.00% 0.00% 2.00% 2.00% 4.00%

Management 4.50% 2.00% 0.00% 2.00% 2.00% 4.00% proposed

Classified Supervisory 2% Jan 02 2.00% 0.00% 0.00% 4.00% 4.00% SEIU 2% July 02



• Is the Governing Board’s action consistent with the superintendent’s/CBO’s certifi cation? Yes

8. General Fund • Is this area acceptable? Yes • Is the percentage of the district’s general fund unrestricted budget allocated to

salaries and benefi ts at or under the statewide average? Yes

Fiscal YearCombined general fund cost of salaries and benefi ts

Percentage of general fund budget

Unrestricted general fund cost of salaries and benefi ts

Percentage of general fund budget

2002-03 139,112,693 78.6 105,934,870 85.72003-04 139,895,414 82.9 104,986.541 89.72004-05 145,571,514 80.7 105,591,436 89.82005-06 141,690,815 82.1 102,685,095 90.92006-07 1st interim budget

146,064,459 85.2 108,938,634 90.1

Source: District unaudited actual fi nancial reports Excludes transfers out in the total expenditure denominator

California school districts generally experience employee salary and benefi t costs in the range of 85% to 90% of total general fund expenditures. The average unrestricted percentage has recently begun to creep into the 90% range, with some districts experiencing as high as 94%, limiting their ability to fund basic needs such as classroom supplies, rising utility costs, equipment replacement, etc. with remaining discretionary dollars. Hacienda La Puente has stayed within the average percentage range because negotiations had not been settled as of the 2006-07 fi rst interim report and by maintaining a cap on the employer contribution to the employee health plans.

• Is the district making sure that only authorized restricted dollars pay for permanent staff? Yes

9. Encroachment • Is this area acceptable? Yes

• Is the district aware of the contributions to restricted programs in the current year? Yes

Fiscal Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 as of 1st interim

Contribution -6,422,784 -12,911,424 -3,757,938 -7,641,637 -9,813,353 -8,934,899

The district has been fortunate to have carryover balances to support expenditures in the Special Education programs. However, it is anticipated that in 2006-07



the current balances will be expended and a larger unrestricted general fund contribution will be required this year and in subsequent years. The recent negotiated salary increases will impact the contribution as well.

• Does the district have a reasonable plan to address increased encroachment trends? Yes

The potential for providing general fund support to Special Education is being addressed by the administration and the Budget Committee. Recommendations are being developed that will be presented to the Governing Board.

• Does the district manage its encroachment from other funds such as Special Education, adult, cafeteria, child development, etc.? Yes

The district does not currently have any encroachments by other funds.

10. Management Information Systems • Is this area acceptable? No • Is the district data accurate and timely? No

The district currently operates an in-house system that is aging and requires specialized programming services, and also utilizes the LACOE PeopleSoft system. The business offi ce staff does not have adequate time to regularly reconcile the two systems. Budget revisions are made at interim reporting periods only. Both systems are reconciled by year end.

• Are the county and state reports fi led in a timely manner? Yes

• Are key fi scal reports readily available and understandable? Yes

Recently the CBO has been providing additional information to the board on a more regular basis, usually monthly.

• Is the district on the same fi nancial system as the county? Yes

The district has its own system, but the information is uploaded into the county system. The county system is considered the offi cial fi nancial record of the district.

11. Position Control • Is this area acceptable? No

• Is position control integrated with payroll? No

The district does not have a computerized position control system. The Director of Fiscal Services manages position control for budget purposes using self-



built Excel spreadsheets. With the large number of employees in a district this size, this is a very time-consuming process and could lead to undetected errors. The Human Resources department manages position control for employment purposes.

For budget development, each employee is entered into the spreadsheet by site. Steps and columns are changed manually and benefi ts are calculated for each employee, then all costs are tallied by site. When the Director of Fiscal Services learns that employees have moved to another site or new employees are hired, then the spreadsheet and budget are updated at the interim reporting periods.

The system is not integrated with human resources or payroll. However, the director works very closely with both departments to verify the accuracy of the position control data. Human Resources maintains its own system of tracking positions and employees. The two systems are reconciled periodically. The Director of Fiscal Services also manually verifi es the position control system and budget to payroll records.

• Does the district control unauthorized hiring? Yes

The district uses a personnel action form that requires signatures from the HR and business departments to confi rm that there is available funding for new positions or changes in current position assignments. The Assistant Superintendent of Human Resources has been with the district for many years and has an excellent history of managing staffi ng due to years of experience. Should this employee leave the district, the loss of institutional memory would place the district in serious jeopardy without a reliable integrated position control system in place.

. 12. Budget Monitoring • Is this area acceptable? Partially

• Is there suffi cient consideration to the budget related to long-term bargaining agreements? Yes

Although interim reports are prepared as required and budget revisions are processed throughout the year, including personnel changes, budget monitoring is done strictly by the Director of Fiscal Services, whose workload is overwhelming. It is virtually impossible for one person to monitor the budget detail and manually maintain the position control spreadsheets that are required to ensure budget accuracy in a district this size.

Communication about the district budget has improved, with presentations to the board and staff in a narrative format through PowerPoint. Communication is key to keeping the district employees, board, bargaining units, and community up to date on the issues that affect the use of district funds.



These issues include declining enrollment, the requirement to use 3% of the general fund total budget annually to maintain district facilities, growing Special Education encroachment, and the district’s ability to offer competitive compensation for employees.

• Are budget revisions completed in a timely manner? Only at interim reporting periods

The time constraints imposed by the current, mostly manual budgeting process preclude the inclusion of all changes in the interim reports. Budget revisions are prepared at the interim reporting periods. Considering the serious fi nancial issues the district has faced in the past several years and may face in the future due to declining enrollment, the budget should be revised monthly, or at least quarterly, to provide up-to-date information to the board at all times. • Does the district openly discuss the impact of budget revisions at the board

level? Yes

This is now the case. Presentations are now made to the board regularly.

For a short period of time in the recent past, the information provided to the board by a prior administrative team may not have been as timely or reliable as it is now.

• Are budget revisions made or confi rmed by the board at the same time the collective bargaining agreement is ratifi ed? Yes

• Has the district’s long-term debt decreased from the prior fi scal year? Yes

The independent audit reports for 1998-99 through 2005-06 show the amount of long-term debt is steadily decreasing largely due to repayment of general obligation bonds. However, at this time, the district has not recognized the full fi nancial impact of retiree benefi ts under the GASB 45 requirements.

• Has the district identifi ed the repayment sources for the long term debt? Yes

Retiree benefi ts are funded on a “pay as you go” basis, with no funds set aside for the long-term debt portion of the liability. The disclosure of the long-term debt obligation of employee retirement benefi ts under GASB 45 requirements will signifi cantly affect the district’s fi nancial position. Obtaining an updated actuarial report should be considered in the near future.

13. Retiree Health Benefi ts • Is this area acceptable? Yes



The district provides post-employment health care benefi ts, in accordance with district employment contracts, to all employees who retire from the district on or after age 55 with at least ten years of continuous service for classifi ed employees or 15 years of service for certifi cated employees. Classifi ed employees hired after January 1, 2003 must have 15 years of service to be eligible. The district currently provides health care benefi ts to 234 retirees.

The district provides medical benefi ts at the same level that employees received when they retired for a period of up to fi ve years or age 65, whichever occurs fi rst.

The cost of retiree benefi ts in 2005-06 on the pay-as-you-go basis was $427,482 and the future long-term liability is estimated to be about $5 million as of June 30, 2006 (source: 2005-06 independent audit report). The district cap on benefi ts was $9,000 in 2005-06 and $9,500 in 2006-07, with agreement to add the revenue limit COLA factor to $9,500 in future years. The revenue limit COLA would be calculated as the statutory cola + or – defi cit, equalization, etc.

• Has the district completed an actuarial calculation to determine the unfunded liability? No

An actuarial report was not provided to the team, based on the minimal level of liability. The district plans to obtain an actuarial report this year.

• Does the district have a plan for addressing the retiree benefi ts liabilities? Yes

The district is currently using the pay-as-you-go method. No funding has been set aside to meet the GASB 45 early retiree benefi t requirements. However, the Assistant Superintendent of Business and board are working on a plan to address GASB 45 in the near future.

• Has the district conducted a re-enrollment process to identify eligible retirees?

The district recently went through a full re-enrollment process for all active and retired employees requiring proof of marriage and birth certifi cates for children.

14. Leadership/Stability • Is this area acceptable? Yes, at this time• Does the district have a Superintendent and/or Chief Business Offi cial that has

been with the district over four years? See explanation below

The district has undergone many administrative changes over the past several years that are partially responsible for the recent budget crisis. The current



superintendent has been with the district for many years as an assistant superintendent, and accepted the superintendent position in June 2006.

The current Assistant Superintendent of Business was an employee of the district for many years, left for a short period of time and returned in September 2006.

Both of these administrators have many years of experience and have brought much needed overall stability to the district and the business operations.

• Does the Governing Board adopt clear and timely policies and support the administration in their implementation? Yes

Based on the interview conducted with two board members, FCMAT believes that the board is working with the administration to address the current issues.

• Does the Governing Board refrain from micromanaging? Yes, in most instances

15. District Liability • Is this area acceptable? Yes

• Has the district performed the proper legal analysis regarding potential lawsuits that may require the district to maintain increased reserve levels? Yes

According to the 2005-06 independent audit report, the district is a defendant in several legal actions brought about in the normal course of operations, but in the opinion of management, there are no cases that would materially affect the fi nancial statements. Most such claims are covered by insurance.

• Has the district set up contingent liabilities for anticipated settlements, legal fees, etc? There is no need for such action

16. Charter Schools • Is this area acceptable? Yes

The district does not have any charter schools at this time.

17. Audit Report • Is this area acceptable? Yes

• Did the district receive an audit report with material fi ndings? No

The 2004-05 and 2005-06 independent audit reports did not include any major audit adjustments or fi ndings, although fi nancial adjustments were made to several funds other than the general fund by the auditors due to their materiality threshold. Most of the management comments and other fi ndings related to ASB activities. All prior year recommendations were implemented. The district is



committed to always resolving audit fi ndings to ensure they do not reoccur in subsequent years.

• Can the audit fi ndings be addressed without impacting the district’s fi scal health? Yes, all have been implemented

18. Facilities • Is this area acceptable? Yes• Has the district passed a general obligation bond? Yes, in 2000 for $100

million.

• Has the district met the audit and reporting requirements? Yes

The bond funds were used for modernization projects that will be substantially complete by June 30, 2007. The oversight of bond funds and reporting obligations has been contracted out and all requirements have been met.

• Is the district participating in the state’s school facilities program? Yes

As such, the district is required to fund the annual 3% routine restricted maintenance contribution for the maintenance and upkeep of district facilities and meets that obligation.

. • Does the district have suffi cient personnel to properly track and account for

facility-related projects? Yes

An outside contractor is used for this purpose. At this time, most of the major modernization projects are completed.

• Does the district have surplus property that may be sold or used for lease revenues? Yes

The district owns some excess property, but no decision has been made as to the future disposition of it. The district currently operates several small elementary schools. Should a decision be made in the future to close or combine the smaller schools, additional property might become available.

• Are there other potential statutory options? No

.• Does the district have a Facilities Master Plan that was completed or updated

in the last two years? Yes

The district regularly updates its facilities plan. FCMAT did not request or receive a copy, as this issue was outside the scope of the current study agreement.



RISK ANALYSIS Total the number of areas that were not acceptable (“No” responses).Use the key below to determine the level of risk to the district’s fi scal health.0 – 3 4 – 6 7 – 10 11 – 18Low Moderate High Extremely HighTotal “No” Responses: 3

At this time, with three “No” responses, the district’s rating is in the low risk category. However, because of a few qualifi ed responses, the lack of an integrated position control system, and continued concerns about declining enrollment, the district should carefully consider the recommendations made in this report and continue to closely monitor all aspects of the budget. This report includes recommendations regarding implementing a position control system to ensure that salary and benefi t costs are accurately projected during the school year and in the stages of budget development. It is possible for the dis-trict to increase enrollment/ADA generated funding levels by improving the percentage of students that attend school each day, without increases in staffi ng levels.

Improvements in the methods of communicating the elements of the district’s budget and analyzing the proposals related to negotiations will keep the board, staff, and community well informed on how decisions are made for the district.


APPENDICES 43

Appendices

Appendix A - Study agreement

Appendix B - First management letter, April 4, 2006

Appendix C - Second management letter, July 19, 2006

Appendix D - Third management letter, September 6, 2006

Appendix E - Multiyear projection detail

MANAGEMENT ASSISTANCE TEAMSTUDY AGREEMENT

March 20, 2006

The FISCAL CRISIS AND MANAGEMENT ASSISTANCE TEAM (FCMAT), hereinafterreferred to as the Team, and the Hacienda La Puente Unified School District, hereinafter referredto as the District, mutually agree as follows:

1. BASIS OF AGREEMENT

The Team provides a variety of services to school districts and county offices ofeducation upon request. The District has requested that the Team provide for theassignment of professionals to study specific aspects of the Hacienda La Puente UnifiedSchool District operations. These professionals may include staff of the Team, CountyOffices of Education, the California State Department of Education, school districts, orprivate contractors. All work shall be performed in accordance with the terms andconditions of this Agreement.

2. SCOPE OF THE WORK

A. Scope and Obiectives of the Study

The scope and objectives of this study are to:

1) Conduct a review of the District's 2005-06 Second Interim financial reportfor all the general fund, Adult Education and Child Development fundsincluding revenue, expenditure, and ADA/enrollment information.

2) Prepare a general fund multi year financial forecast to identify theDistrict's financial position in 2006-07 and 2007-08 if enrollmentcontinues to decline and no changes other than statutory COLA, step andcolumn, and CPI trends are applied.

3) Determine the current level of risk to the District's fiscal health using theFCMAT Fiscal Health Risk Analysis model.

B. Services and Products to be Provided

1) Orientation Meeting - The Team will conduct an orientation session at theDistrict to briefDistrictmanagementand supervisorypersonnelon theproceduresof the Team and on the purposeand scheduleof the study.

2) On-site Review - The Team will conduct an on-site review at the Districtoffice and at school sites if necessary.

3) ProgressReports- The Teamwill hold an exit meetingat the conclusionof the on-site reviewto informthe Districtof significantfindingsandrecommendationsto thatpoint.

4) Exit Letter - The Teamwill issue an exit letter approximately10daysafterthe exit meetingdetailingsignificantfindingsand recommendationsto

1

. . ... . . .- -.- -- - - . .---

date and memorializing the topics discussed in the exit meeting.

5) Draft Reports - Sufficient copies of a preliminary draft report will bedelivered to the District administration for review and comment.

6) Final Report - Sufficient copies of the final study report will be deliveredto the District following completion of the review.

3. PROJECT PERSONNEL

The study team will be supervised by Barbara Dean, Deputy Administrative Officer,Fiscal Crisis and Management Assistance Team, Kern County Superintendent of SchoolsOffice. The study team may also include:

A. Michele McClowry FCMAT Management AnalystB. Margaret Rosales, FCMAT Fiscal ConsultantC. Carleen Wing Chandler, FCMAT Fiscal Consultant

Other equally qualified consultants will be substituted in the event one of the above notedindividuals is unable to participate in the study.

4. PROJECT COSTS

The cost for studies requested pursuant to E.C. 42127.8(d)(1) shall be:

A. $400.00 per day for each Team Member while on site, conducting fieldwork atother locations, presenting reports, or participating in meetings.

B. All out-of-pocket expenses, including travel, meals, lodging, etc. Based on thescope identified in section 2A, estimated cost is $6,500. District will be billed atactual costs.

Payments for FCMAT services are payable to Kern County Superintendent of Schools-Administrative Agent.

5. RESPONSffiILITIES OF THE DISTRICT

A. The District will provide office and conference room space while on-site reviewsare In progress.

B. The District will provide the following (if requested):

1) A map of the local area2) Existing policies, regulations and prior reports addressing the study

request3) Current organizational charts

2

4) Current and four (4) prior year's audit reports5) Any documents requested on a supplemental listing

C. The District Administration will review a preliminary draft copy ofthe study.Any comments regarding the accuracy of the data presented in the report or thepracticability of the recommendations will be reviewed with the Team prior tocompletion ofthe final report.

Pursuant to EC 45125.1(c), representatives of FCMAT will have limited contact withDistrict pupils. The District shall take appropriate steps to comply with EC 45125.1(c).

6. PROJECT SCHEDULE

The following schedule outlines the planned completion dates for key study milestones:

Orientation:Staff Interviews:Exit Interviews:Preliminary Report SubmittedFinal Report SubmittedBoard Presentation

February 6,2006February 6-8, 2006February 8, 2006,March 17, 2006To be determinedTo be determined

7. CONTACT PERSON

Please print name of contact person: Walter Freeman

Telephone 626 933-3869 EAX

Edward Lee Vargas,Hacienda La Puente

.~rintendent

. ed School District

I&~ /-/8-0kBarbara Dean, Deputy Administrative Officer DateFiscal Crisis and Management Assistance Team

In keeping with the provisions of AB1200, the County Superintendent will be notified of thisagreement between the District and FCMAT and will receive a copy ofthe final report.

3

April 4, 2006

Edward L. Vargas, SuperintendentHacienda La Puente Unified School District15959 East Gale AvenueCity of Industry, California 91716-0002

Dear Superintendent Vargas,

The purpose of this letter is to confirm the initial major findings and recommendations identified by the Fiscal Crisis and Management Assistance Team (FCMAT) as discussed at the exit conference conducted at the district office on March 22, 2006.

The district requested that FCMAT conduct a review of the budget development process and prepare a multiyear projection as described in the study agreement, as follows:

1. Conduct a review of the district’s 2005-06 second interim financial report for all the general fund, adult education and child development funds including revenue, expenditure, and ADA/enrollment information.

2. Prepare a general fund multiyear financial forecast to identify the district’s financial position in 2006-07 and 2007-08 if enrollment continues to decline and no changes other than statutory COLA, step and column, and consumer price index trends are applied.

3. Determine the current level of risk to the district’s fiscal health using the FCMAT Fiscal Health Risk Analysis model.

2005-06 District Budget and Multiyear ProjectionsFCMAT reviewed district records, interviewed employees and examined numerous financial reports to gather pertinent information for this study. The district’s once-large reserve balance of $25 million has dwindled over several years and has been used to cover the deficiency between revenues and expenditures. The district continues to deficit spend even though budget adjustments were made in prior years and this year.

2

The district recently submitted a qualified second interim report to the Los Angeles County Office of Education. The projected ending balance for 2005-06 will barely meet the minimum 3% reserve for economic uncertainties required by the state.

The deficit spending is largely due to declining enrollment and the district’s inability to quickly respond by adjusting the budget. The decline in enrollment was even greater than anticipated this year, leaving the district facing budget reductions of at least $10 million in 2006-07 on top of $3 million in cuts implemented this year to retain fiscal solvency.

In addition, several employees in the business office are either new to the district or to their current positions. The high turnover in key personnel may have kept the seriousness of the budget crisis from being adequately communicated to the board, staff and community.

The study team was asked to prepare a multiyear projection (MYP) based on the district’s working budget as of the 2005-06 second interim report. The MYP could not be completed because some of the data in the second interim report had not been updated. The MYP process requires uploading budget information from a mainframe computer system into a software program, assuming that all budget line items are complete and accurate. The base data was deemed incomplete when various test assumptions did not produce plausible data.

This situation was discussed with the district administration, and it was mutually decided to postpone the preparation of the MYP projections for a few weeks to allow the district time to review all of the budget line items in question. It should be noted that the major budget components were deemed reasonable; it was specific line item detail that, when uploaded, was found to be incomplete.

Although preparation of the MYP is temporarily delayed, the findings and recommendations contained in this letter may assist the district administration and board of trustees as they conduct the difficult process of identifying and approving $10 million in budget reductions.

The district’s financial situation is very serious. Deficit spending must cease. The administration and board have kept budget reductions as far away from the classroom as possible, but few future cuts can be made without drastically impacting student programs or amending bargaining agreements. With 85% to 90% of the unrestricted budget devoted to employee compensation, the bargaining units and the administration must work closely to help the district avoid insolvency.

Communication may not have been sufficient to keep key stakeholders and employees informed about the budget shortfall. Most employees stated that the budget problems caught them by surprise and they were unaware that major budget reductions were being considered. The most common complaint from staff was that communication has been sporadic or inadequate and must be improved to ensure that all parties are kept apprised of the board’s decisions during this process.

The Public Information Officer (PIO) is on medical leave, leaving the district with no one in charge of keeping the public informed about the budget crisis. The district should consider alternatives to assist with public relations and press releases until the PIO returns.

�

Spending on major facility and technology projects is ongoing. Employees and the public may not completely understand the difference between unrestricted general fund dollars and the restricted funding sources available for construction and other specific programs. Open communication, beginning budget work early, and including stakeholders in the decision making will enable the district to effectively work through the process. All parties should be kept informed over the next few months to ensure that the budget savings are properly calculated and incorporated into the final adopted budget.

Employee contract negotiations are in progress. Only the smallest bargaining unit (SEIU) has settled its contract. The budget includes an allowance to cover a 2% increase for all employees this year. It may be difficult for the district to explain to the public why salary increases are being approved while budget reductions are being made.

In the past, some budget reductions have not materialized due to subsequent decisions by the administration or board of trustees. One example is the last-minute change in the high school teacher staffing ratio from 34:1 to 33:1 that occurred just before the start of school in 2005. The budgeted savings from a teacher ratio of 34:1 were not realized, so one-time reserve funds were used to cover the deficit. In the future, programs should not be added or enhanced without carefully identifying an ongoing funding source.

FCMAT did not delve into the specific budget reductions being considered by the administration and board of trustees, but it was noted that the district has several small elementary schools with fewer than 300 students enrolled. The administrative and operational costs to maintain a small school are nearly as high as those of a larger campus. Other school districts facing critical budget deficits have been faced with the difficult decisions to close small schools or adjust boundaries to smooth out enrollment. The district should seriously consider closing small schools during the budget reduction process.

The 2005-06 second interim report for the adult education fund was budgeted incorrectly. Revisions submitted to the business office by the Assistant Superintendent were not promptly updated. Based on FCMAT’s interview with the child development program director, the second interim report for that fund also was incorrect. All operating funds such as the adult education fund, child development fund and cafeteria fund should be updated every time the general fund budget is revised, especially at interim reporting periods.

The study team noted that the district’s categorical (CAT) form for 2004-05 showed a restricted carryover for home-to-school transportation and special education transportation. This is highly unusual since it would indicate the district incurred no encroachment for transportation in the prior year. The current year’s budget showed that only personnel costs were budgeted in the transportation resource code. Expenditures may have been incorrectly coded, which could have caused incorrect information to be entered on state and federal reports. In some cases, this could result in the district not receiving appropriate funding. The district should carefully review its account code structure for accuracy for the current fiscal year and budget year, and make corrections as necessary. The district should also consider refiling certain state and federal reports if revenues and/or expenditures have been reported incorrectly.

4

The business staff should strive to complete the current budget adjustments quickly to facilitate the preparation of multiyear projections that will accurately verify and forecast the financial condition of the district this year and in two subsequent years. The district may wish to consider contracting an independent consultant with extensive budget experience to provide assistance. Once the budget is corrected, FCMAT will return to prepare the MYP as required by the study agreement. The proposed cuts and savings must be accurately projected and fully implemented to ensure that the district’s 2006-07 budget is approved by the Los Angeles County Office of Education (LACOE). The LACOE will require that the district submit a detailed, accurate budget reduction plan and multiyear projection by June 30, 2006, indicating that the district will be able to meet its financial obligations in 2006-07 and two subsequent years, along with its adopted budget.

Budget Development and OversightResponsibility for developing the district’s budget generally resides with the business office under the direction and oversight of the Chief Business Officer. Budget revisions, monitoring, and financial reporting are the responsibility of the director, with changes submitted by budget managers throughout the district. Budget monitoring is essential to ensure that district funds are used correctly and effectively.

Five business office employees are assigned to budget tasks, but three of them are new to their positions and have very limited experience. The turnover and lack of experience have placed a heavy burden on the director, creating a major backlog in budget revisions. The district’s multiple software systems have made budget development and monitoring difficult and time-consuming. The business office must develop, manage, revise, and monitor the budget and financial resources in a timely manner to retain the district’s fiscal viability. The budget should reflect the district’s goal to provide a comprehensive instructional program.

The district distributes an annual budget guide. However, budget managers may not always be fully trained or included in budget development. This seems especially true with regard to federal and state categorical programs. Most budget managers at sites and departments can access their budgets online, but need more training to use the system more effectively. Budget managers need to be held accountable for budgeting accurately and not overspending their allocations. The level of student enrollment, number of sites, impact of contractual obligations, and past practices often determine the budgeting process used by a school district. A successful budget model establishes a level of financial confidence within the district. Throughout the process, budget managers must be provided with clear and concise procedures to follow. Budget development should begin early in the year, preferably in January after the governor proposes the budget for the upcoming fiscal year. The first step in the process is to approve a budget calendar indicating the due dates that must be met to adopt the district’s budget by June 30 each year. A well-managed budget development calendar serves two purposes: It allows site and department budget managers to identify their needs for the upcoming year and it strengthens communications between the managers and the business office.

5

The business office staff should meet with budget managers and principals at least once in the spring to discuss budget assumptions and assist in budget development, and again in the fall to review prior year carryovers.

One of the most critically essential budget development and monitoring tools is a position control system to identify employee salary and benefit costs. A reliable position control system also is an integral part of the overall internal accounting controls to ensure that salaries and benefits are budgeted and paid only as authorized by the board of trustees. Salaries and benefits are approximately 85% of a district’s general fund budget. Unanticipated increases in these categories can quickly alter a district’s fiscal stability. An integrated position control system establishes authorized positions by site or department and ensures that staffing levels and payroll expenditures conform to district formulas and standards, preventing overstaffing and overpayments.

The district’s position control system is not computerized. Instead, employee tracking and budgeting for salaries and benefits is managed manually by the Human Resources Department and Fiscal Services. The business director uses an Excel spreadsheet based on payroll information to identify current employee salaries and benefits. Data in the Human Resources Department is managed on Excel spreadsheets and by memory. Human Resources uses its system to track and fill positions. Implementation and utilization of a reliable, computerized position control system by Human Resources, budget and payroll should be top priority. This will enable Human Resources and the business office to jointly maintain salary and benefit information. The fiscal/budget department would open new positions or change existing ones. Human Resources would place employees or remove them from positions. Payroll could only pay employees based on the information in the system. This separation of duties enhances internal control standards.

The district uses multiple computer systems: its own Boss system and the LACOE PeopleSoft system and Human Resources system for payroll, which flows directly into PeopleSoft but not into Boss. Agencies using multiple systems effectively must constantly reconcile the data to maintain financial integrity and reliable records. The district’s business office does not reconcile the data in the two systems until the year-end financial closing. FCMAT could not verify the accuracy of the data in either system because the reports did not match.

The Director of Human Resources prepares enrollment projections, which are reviewed by the Assistant Superintendent of Business. Student enrollment and the corresponding average daily attendance (ADA) are the key factors in the amount of state funding received in revenue limit funds. Enrollment levels were down more than projected, exacerbating the budget shortfall. District staff must review and update enrollment projections throughout the budget development process and adjust staffing accordingly.

Staffing ratios must be carefully reviewed and strictly enforced. The district has reduced certificated staff as enrollment has declined, but classified positions may not have been adjusted. The district’s small and large schools have some similar classified support staff regardless of the enrollment level. Staffing ratios should be reviewed and updated before adoption of the 2006-07 budget.

6

As with most districts in California, the cost of special education has increased significantly. The district should closely review the caseloads of resource specialist program teachers especially at the small elementary schools, monitor the use and placement of instructional assistants, and consider employing part-time instructional assistants in place of full-time assistants wherever possible.

The district receives considerable state and federal categorical funds that are designated by the granting agency for special projects. At the end of last year, the district had over $5 million in unspent carryover categorical funds. Careful planning for the effective use of these funds may help ease the burden on the unrestricted general fund. The recent second interim report showed that the restricted ending balance is projected to be the same as the prior year ending balance, indicating that categorical fund expenditures were not reviewed.

As the district considers reductions and further changes in the budget for next year, it should develop a process to fully define anticipated increases or decreases in spending. Once the options are identified and prioritized, a full cost analysis must be completed to determine the total savings of each. For example, when positions are created or eliminated, the cost of statutory benefits and health coverage must be calculated along with salaries to quantify the full dollar value of these changes. Once budget reductions are approved by the board, the cuts must be implemented and monitored to ensure that the anticipated savings are realized. Proper planning and cost analysis will protect the district’s future financial health.

The district should consider forming a budget committee. Many school districts use budget committees with members representing all employee groups and community stakeholders to review and prepare recommended budget reductions to the board. A budget committee could help communicate financial information to constituents, which would enhance trust throughout the district. Multiyear financial projections are an important part of the overall budget process and a major requirement of the AB1200 school district financial oversight legislation. The district is required to submit multiyear projections along with the adopted budget and all interim reports. AB1200 requires school districts to be able to meet all financial obligations for the current and two subsequent years.

The district is taking a proactive, responsible approach to address the budget shortfall in 2006-07. The administration and board must work diligently to find ways to reduce the budget with as little impact to students and employees as possible. As the district faces major budget reductions, the availability of cash to cover current expenditures may be tight. Monthly cash flow projections should be prepared and cash regularly reconciled to better manage cash and plan the timing of certain types of expenses.

7

Should you need any further information at this time, please feel free to contact our office. The study team will complete the multiyear projection as soon as the district has performed the necessary current year budget adjustments.

Sincerely,

Michele McClowryManagement Analyst

July 19, 2006

Dr. Barbara Nakaoka, SuperintendentHacienda La Puente Unified School District15959 East Gale AvenueCity of Industry, California 91716-0002


The purpose of this letter is to confirm our agreement that the Fiscal Crisis and Management Assistance Team (FCMAT) will postpone further work in the district until August 21-22, 2006. This is because the 2005-06 third interim report with district-prepared multiyear projections contained information that impeded FCMAT’s ability to upload and process the data into our software system. The study team discussed this situation with you and Assistant Superintendent Walter Freeman on June 14, 2006. The district requested that FCMAT conduct a review of the district’s budget development process and prepare a multiyear projection as described in the study agreement, as follows:

1. Conduct a review of the district’s 2005-06 second interim financial report for all the general fund, adult education and child development funds including revenue, expenditure, and ADA/enrollment information.

2. Prepare a general fund multiyear financial forecast to identify the district’s financial position in 2006-07 and 2007-08 if enrollment continues to decline and no changes other than statutory COLA, step and column, and consumer price index trends are applied.


FCMAT has previously addressed other issues related to this scope of study, as described in our management letter dated April 4, 2006. FCMAT visited the district in mid-June to review the budget and prepare a multiyear projection based on the 2005-06 third interim report that was approved by the Board of Trustees. However, while reviewing pertinent documents during the fieldwork, the study team noticed that the district-prepared multiyear projection that was included with the third interim report was not in a useable format.

2

At that time in mid-June the district was in the process of finalizing the 2006-07 budget, with plans to present it to the board for approval in the very near future. The Los Angeles County Office of Education (LACOE) and the California Department of Education (CDE) require adopted budgets to include a district-prepared multiyear projection, which the district was also in the process of finalizing.

The district and FCMAT mutually agreed during a meeting on June 14, 2006 that FCMAT would postpone work on the district’s multiyear projection until after the 2005-06 accounting records were closed, the state-required SACS unaudited actual documents were finalized, and the 2006-07 budget had been approved by LACOE. It has since been determined that this information will be available on August 21, 2006.

The district’s dedication to ensuring future fiscal solvency by taking action to address the budget shortfall in 2005-06 and 2006-07 is to be commended. The administration and board are working together to identify and approve budget reductions with as little impact to students and employees as possible. As the district faces major budget reductions, the availability of cash to cover current expenditures may be tight. Monthly cash flow projections should be prepared and cash regularly reconciled to better manage cash and plan the timing of certain types of expenses.

Should you need any further information at this time, please feel free to contact our office. In addition, please notify FCMAT when the district has completed the year-end closing process, and the study team will then return to complete the multiyear projections as requested in the study agreement.

Sincerely,

Michele McClowry, CPAFiscal Intervention Specialist

C: Walter Freeman, Assistant Superintendent of Business

�

September 6, 2006

Dr. Barbara Nakaoka, SuperintendentHacienda La Puente Unified School District15959 East Gale AvenueCity of Industry, California 91716-0002


The purpose of this letter is to confirm the major findings and recommen-dations identified by the Fiscal Crisis and Management Assistance Team (FCMAT) during fieldwork that was conducted in the district on August 21 and 22, 2006, and discussed at the exit meeting with Mr. Walter Freeman and Ms. Maureen Scanlon on August 24, 2006.

In March 2006 the district initially requested that FCMAT review its budget development process and prepare a multiyear projection (MYP) as described in the study agreement, as follows:

1. Conduct a review of the district’s 2005-06 second interim fi-nancial report for all the general fund, adult education and child development funds including revenue, expenditure, and ADA/enrollment information.

2. Prepare a general fund multiyear financial forecast to identify the district’s financial position in 2006-07 and 2007-08 if en-rollment continues to decline and no changes other than statu-tory COLA, step and column, and consumer price index trends are applied.


The scope of the project was amended after FCMAT visited the district on two occasions prior to August 2006 because it was determined that the district’s financial data was not in a format that FCMAT could process us-ing its MYP software.

Two prior letters from FCMAT to the district are attached to provide a historical record of the findings and recommendations that have been iden-tified previously. These letters should provide a thorough picture of the findings that will be included in the final report, which will be forthcoming in approximately six weeks.

2

Since several months have passed, rather than using the 2005-06 second interim report as a base for the MYP, FCMAT is currently processing the MYP using the district’s 2006-07 adopted bud-get as a base. The MYP will evaluate the 2006-07 budget and will include financial projections for 2006-07 and 2007-08. In addition, FCMAT is preparing a fiscal health risk analysis to evalu-ate the financial impact of past trends in 18 operational and management areas. Both documents will be included in the final report.

2006-07 District Budget and Multiyear ProjectionsMultiyear financial projections are an important part of the overall budget process and a major re-quirement of the AB1200 school district financial oversight legislation. The district is required to submit multiyear projections along with the adopted budget and all interim reports. AB1200 requires school districts to be able to meet all financial obligations for the current and two subsequent years.

FCMAT reviewed district records, interviewed employees and examined numerous financial reports to gather pertinent information for the MYP. The district has experienced deficit spending in the past and could continue to deficit spend if the budget is not carefully and frequently moni-tored, even though significant budget adjustments were made in 2005-06 and this year.

The deficit spending is largely attributable to declining enrollment and the district’s inability to quickly respond by making timely budget adjustments. The enrollment decline was even greater than anticipated in 2005-06. Enrollment is projected to decline by 500 in 2006-07 and another 200 in 2007-08. A high turnover in key personnel may have kept the seriousness of the budget crisis from being adequately addressed in prior years.

For the most part, budget development and monitoring is performed by the Director of Fiscal Services. Since there is no integrated position control system in place, this employee also over-sees the position control function by preparing Excel spreadsheets to calculate and budget for employee salaries and benefits. Because several employees in the business office are either new to the district or to their current positions, the director is responsible for an enormous workload.

As discussed with district administrators, the FCMAT study team could not previously prepare an MYP based on the district’s working budget as of the 2005-06 second interim report. The MYP process requires uploading budget information from a mainframe computer system into a software program, assuming that all budget line items are complete and accurate. The base data was deemed incomplete when various test assumptions did not produce plausible data.

FCMAT’s MYP will be prepared using the district’s budget information but may contain assumptions different from other multiyear projections prepared by district staff. At this time, based on the 2006-07 budget information that the district provided to FCMAT, it appears that the district will comply with the AB 1200 requirement of meeting its financial obligations in the current and two subsequent years.

The district met the required 3% reserve for economic uncertainties and ended the 2005-06 fiscal year with unrestricted general fund reserves exceeding the projected ending fund balance on the 2005-05 third interim report by over $3 million. The unaudited actual financial statements indi-cate that all of the excess funds have been designated for specific future purposes.

�

Salaries and benefits are budgeted at approximately 89% of the district’s unrestricted general fund. Employee contract negotiations are not settled for 2006-07, except for a cap on the cost of employee health benefits at $9,500 per employee. The budget includes projected step and col-umn moves for both certificated and classified employees. The ending fund balance of 2005-06 includes a designation of 2% to offset a retroactive pay increase of that amount should that come to pass. Maintaining fair and competitive salaries and benefits is important to recruit and retain highly qualified employees, but it may be difficult for the district to explain to the public why salary increases are being approved when significant budget reductions were implemented.

One of the most critically essential budget development and monitoring tools is a position con-trol system to identify employee salary and benefit costs. A reliable position control system also is an integral part of the overall internal accounting controls to ensure that salaries and benefits are budgeted and paid only as authorized by the board of trustees. Unanticipated increases in salaries and benefits can quickly alter a district’s fiscal stability. An integrated position control system establishes authorized positions by site or department and ensures that staffing levels and payroll expenditures conform to district formulas and standards, preventing overstaffing and overpayments.

It was reported to FCMAT that the district reduced 18 certificated teaching positions this year due to declining enrollment. The staffing ratios must be strictly enforced. The district seems to have reduced certificated staff as enrollment declined, but classified positions may not have been adjusted. The district’s small and large schools have some similar classified support staff regard-less of the school’s enrollment level. Staffing ratios should be reviewed and updated regularly.

The district receives considerable state and federal categorical funds that are designated by the granting agency for special purposes. At the end of 2003-04, the district had over $5 million in unspent carryover categorical funds. At the end of 2005-06, the district had restricted carryover of $6.6 million, over $1.5 million more than the prior year. Compliance with program legal re-strictions is very important but with careful planning, many districts have effectively used cat-egorical funds to help ease the burden on the unrestricted general fund.

Should you need any further information at this time, please feel free to contact our office. The study team will complete the multiyear projection and fiscal health risk analysis as soon as pos-sible and will include the specific details in the final report.

Sincerely,

Michele McClowry, CPAFiscal Intervention Specialist

C: Gary Matsumoto, Chief Business Officer

Notes

1, 2, 3

4

5, 6, 7

(1,276,721)(1,276,721)(1,276,721)3,302,3143,220,5361,997,600

2008-092007-082006-07Codes

General FundRestricted & Unrestricted Programs


Date:Time:

02/26/200710:57 AM

Hacienda La Puente Unified School DistrictProj. 2Proj. 1Base YearAccount

Description


12,893,71412,893,71412,893,7148100 - 8299Federal Revenues36,778,53135,925,53134,827,5668300 - 8599Other State Revenues

1,673,2201,673,2201,673,2208600 - 8799Other Local Revenues181,289,323178,623,058174,646,734Total Revenues


27,080,41026,655,08826,238,1022000 - 2999Classified Salaries37,574,61036,950,59536,168,0913000 - 3999Employee Benefits

8,941,9278,718,0168,401,7934000 - 4999Books and Supplies


16,348,45415,959,68715,540,2805000 - 5999Services and Other Operating Expenditures1,532,8501,492,8161,451,0286000 - 6900Capital Outlay2,324,9202,263,7992,200,0007000 - 7299Other Outgo

(2,282,147)(2,282,147)(2,282,147)7300 - 7399Direct Support/Indirect Cost


1,276,7211,276,7211,276,7217600 - 7629Interfund Transfers Out0008930 - 8979All Other Financing Sources0007630 - 7699All Other Financing Uses0008980 - 8999Contributions

Total Other Sources\Uses

24,397,12021,176,58519,178,985




50,00050,00050,000


300,000300,000300,0006,975,5846,975,5846,975,584

0006,429,4986,517,1496,622,2325,339,6155,262,0785,179,474

000

8,604,7375,292,3092,049,295







0009790Negative Shortfall1. Source: 1300 Class Size Reduction, Grades K–3 (Obj 8434) - K-3 CSR Revenue based on 97% of Projected K-3 CBEDS Enrollment:

2007/08 - 6,198 * .97 * $1,072 = $6,444,8642008/09 - 6,237 * .97 * $1,102 = $6,667,100

2. Source: 1100 State Lottery (Obj 8560) - FCMAT did not adjust the unrestricted Lottery based on decling ADA. As the district has adjustedfor the reduced ADA and Lottery adjustments.

3. Source: 7156 Instructional Materials: Grades K–8 (Includes Disaster funding and Fast Growth) (Obj 8590) - Instructional Materials based on: 2007/08 - Prior Year CBEDS estimate of 23,037 * 55.92 = $1,288,2292008/09 - Prior Year CBEDS estimate of 22,736 * 57.49 (includes COLA) = $1,307,093

4. Source: 0000 No reporting requirements (Obj 1103) - Adjustment of Classroom Teachers: 2007/08 - Reduction of 18 Classroom Teacher @ $46,816 Average Salary per anticipated decline of 500 ADA. 2008/09 - Reduction of 7 Classroom Teachers @ $46,816 Average Salary per anticipated decline of 200 ADA.

5. Source: 0000 No reporting requirements (Obj 3401) - Health/Welfare Adjusted by COLA: 2007/08 Estimated COLA 4.7% and reduced by 18 Teachers * $9,5002008/09 Estimated COLA 2.8% and reduced by 7 Teachers * $9,500

6. Source: 1300 Class Size Reduction, Grades K–3 (Obj 3401) - Health & Welfare increased by COLA estimate in future years.7. Source: 0000 No reporting requirements (Obj 3402) - Health and Welfare Adjusted by COLA:

Notes

1, 2

3

4, 5, 6

(10,559,885)(10,309,721)(10,211,620)3,389,9653,325,6191,997,600

2008-092007-082006-07Codes

General FundUnrestricted Program Only


Date:Time:

02/26/200710:57 AM


Description


0008100 - 8299Federal Revenues12,117,83811,895,60211,673,3838300 - 8599Other State Revenues

1,120,0001,120,0001,120,0008600 - 8799Other Local Revenues138,154,768136,119,267133,018,689Total Revenues


16,555,07616,251,31615,953,5122000 - 2999Classified Salaries28,145,90027,677,74727,107,1023000 - 3999Employee Benefits

3,086,7083,005,5822,920,9014000 - 4999Books and Supplies


11,974,93711,660,81411,332,9315000 - 5999Services and Other Operating Expenditures1,154,9471,124,5841,092,8916000 - 6900Capital Outlay

0007000 - 7299Other Outgo(3,566,062)(3,548,763)(3,472,888)7300 - 7399Direct Support/Indirect Cost


638,994612,9171,276,7217600 - 7629Interfund Transfers Out0008930 - 8979All Other Financing Sources0007630 - 7699All Other Financing Uses

(9,920,891)(9,696,804)(8,934,899)8980 - 8999Contributions to Restricted ResourcesTotal Other Sources\Uses

17,879,97214,554,35312,556,753




50,00050,00050,000


300,000300,000300,0006,975,5846,975,5846,975,584

000000

5,339,6105,262,0765,179,474

000

8,604,7425,292,3122,049,295







0009790Negative Shortfall1. Source: 1300 Class Size Reduction, Grades K–3 (Obj 8434) - K-3 CSR Revenue based on 97% of Projected K-3 CBEDS Enrollment:

2007/08 - 6,198 * .97 * $1,072 = $6,444,8642008/09 - 6,237 * .97 * $1,102 = $6,667,100

2. Source: 1100 State Lottery (Obj 8560) - FCMAT did not adjust the unrestricted Lottery based on decling ADA. As the district has adjustedfor the reduced ADA and Lottery adjustments.

3. Source: 0000 No reporting requirements (Obj 1103) - Adjustment of Classroom Teachers: 2007/08 - Reduction of 18 Classroom Teacher @ $46,816 Average Salary per anticipated decline of 500 ADA. 2008/09 - Reduction of 7 Classroom Teachers @ $46,816 Average Salary per anticipated decline of 200 ADA.

4. Source: 1300 Class Size Reduction, Grades K–3 (Obj 3401) - Health & Welfare increased by COLA estimate in future years.5. Source: 0000 No reporting requirements (Obj 3401) - Health/Welfare Adjusted by COLA:

2007/08 Estimated COLA 4.7% and reduced by 18 Teachers * $9,5002008/09 Estimated COLA 2.8% and reduced by 7 Teachers * $9,500

6. Source: 0000 No reporting requirements (Obj 3402) - Health and Welfare Adjusted by COLA:

Notes

1

9,283,1649,033,0008,934,899(87,651)(105,083)0

2008-092007-082006-07Codes

General FundRestricted Program Only


Date:Time:

02/26/200710:57 AM


Description


12,893,71412,893,71412,893,7148100 - 8299Federal Revenues24,660,69324,029,92923,154,1838300 - 8599Other State Revenues

553,220553,220553,2208600 - 8799Other Local Revenues43,134,55542,503,79141,628,045Total Revenues


10,525,33410,403,77210,284,5902000 - 2999Classified Salaries9,428,7109,272,8489,060,9893000 - 3999Employee Benefits5,855,2195,712,4345,480,8924000 - 4999Books and Supplies

52,505,37051,641,87450,562,944Total Expenditures(9,370,815)(9,138,083)(8,934,899)Excess (Deficiency) of Revenues over Expenditures

4,373,5174,298,8734,207,3495000 - 5999Services and Other Operating Expenditures377,903368,232358,1376000 - 6900Capital Outlay

2,324,9202,263,7992,200,0007000 - 7299Other Outgo1,283,9151,266,6161,190,7417300 - 7399Direct Support/Indirect Cost


637,727663,80407600 - 7629Interfund Transfers Out0008930 - 8979All Other Financing Sources0007630 - 7699All Other Financing Uses

9,920,8919,696,8048,934,8998980 - 8999Contributions from Unrestricted ResourcesTotal Other Sources\Uses

6,517,1496,622,2326,622,232




000


000000000

6,429,4986,517,1496,622,232000

000

000







0009790Negative Shortfall1. Source: 7156 Instructional Materials: Grades K–8 (Includes Disaster funding and Fast Growth) (Obj 8590) - Instructional Materials based on:

2007/08 - Prior Year CBEDS estimate of 23,037 * 55.92 = $1,288,2292008/09 - Prior Year CBEDS estimate of 22,736 * 57.49 (includes COLA) = $1,307,093

2430 Community Day Schools (Education Code sections 48660–48667)

Notes

111,313103,152(17,041)(8,880)

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

285,101285,101000000

285,101285,101

232,019227,47167,81466,48596,58194,297

00

396,414388,253(111,313)(103,152)

00000000

00000000

111,313103,152

0000

00

Rule(s)

RevLimitNoChgNoChgNoChg

NoChgNoChgNoChgNoChgNoChgNoChgNoChgNoChg

NoChgN/AN/AN/A

NoChg

94,2720

2006-07Base Year

285,101000

285,101

223,01265,18291,179

0

379,373(94,272)

0000

0000

94,272

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues

Federal RevenuesOther State RevenuesOther Local RevenuesTotal Revenues

Certificated SalariesExpenditures

Classified SalariesEmployee BenefitsBooks and Supplies

Total ExpendituresRevenues over Expenditures

Services and Other Operating ExpendituresCapital OutlayOther OutgoDirect Support/Indirect Cost

Interfund Transfers InOther Financing Sources\Uses

Interfund Transfers OutAll Other Financing SourcesAll Other Financing UsesContributionsTotal Other Sources\Uses



Ending Fund Balance

Debt Service

Description

Revenue Limit Sources


3010 NCLB: Title I, Part A, Basic Grants Low-Income and Neglected

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

003,679,5573,679,557

0000

3,679,5573,679,557

1,320,5181,320,518482,859482,859465,622465,622448,503448,503

3,679,5573,679,55700

687,603687,6030000

274,452274,452

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

03,679,557

00

3,679,557

1,320,518482,859465,622448,503

3,679,5570

687,60300

274,452

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3030 NCLB: Title I, Part B, Reading First Program

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00839,281839,281

0000

839,281839,281

516,850516,85000

116,691116,6911,4541,454

839,281839,28100

173,890173,8900000

30,39630,396

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0839,281

00

839,281

516,8500

116,6911,454

839,2810

173,89000

30,396

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3310 Special Ed: IDEA Basic Local Assistance Entitlement, Part B, Sec 611 (formerly PL 94-142)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

004,672,6914,672,691

0000

4,672,6914,672,691

003,285,9903,285,9901,386,7011,386,701

00

4,672,6914,672,69100

00000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

04,672,691

00

4,672,691

03,285,9901,386,701

0

4,672,6910

0000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3315 Special Ed: IDEA Preschool Grants, Part B, Sec 619

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00103,577103,577

0000

103,577103,577

84,17484,17400

19,40319,40300

103,577103,57700

00000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0103,577

00

103,577

84,1740

19,4030

103,5770

0000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3320 Special Ed: IDEA Preschool Local Entitlement, Part B, Sec 611

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00197,909197,909

0000

197,909197,909

153,226153,22600

38,91938,91900

197,909197,90900

000000

5,7645,764

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0197,909

00

197,909

153,2260

38,9190

197,9090

000

5,764

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3330 Special Ed: IDEA Infant Discretionary, Part B, Sec 611

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00801801

0000

801801

68868800

909000

80180100

000000

2323

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0801

00

801

6880

900

8010

000

23

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3340 Special Ed: IDEA Local Staff Development Grant, Part B, Sec 611

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

009,7009,700

0000

9,7009,700

00000000

9,7009,70000

9,7009,700000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

09,700

00

9,700

0000

9,7000

9,700000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3345 Special Ed: IDEA Preschool Staff Development, Part B, Sec 619

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00800800

0000

800800

000000

7777

80080000

7007000000

2323

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0800

00

800

000

77

8000

70000

23

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3360 Special Ed: IDEA Low-Incidence Entitlement, Part B, Sec 617

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

008,1398,139

0000

8,1398,139

004,6504,6503,4893,489

00

8,1398,13900

00000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

08,139

00

8,139

04,6503,489

0

8,1390

0000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3385 Special Ed: IDEA Early Intervention Grants

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0083,54383,543

0000

83,54383,543

73,93273,93200

9,6119,61100

83,54383,54300

00000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

083,543

00

83,543

73,9320

9,6110

83,5430

0000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3405 Special Ed: Workability I

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00246,130246,130

0000

246,130246,130

39,55939,559124,160124,160

45,02945,0296,0006,000

246,130246,13000

15,28015,2800000

16,10216,102

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0246,130

00

246,130

39,559124,160

45,0296,000

246,1300

15,28000

16,102

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3550 Vocational Programs: Voc & Appl Tech Secondary II C, Sec 131 (Carl Perkins Act)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00156,000156,000

0000

156,000156,000

21,20721,20713,02013,02015,69515,695

102,828102,828

156,000156,00000

3,2503,250000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0156,000

00

156,000

21,20713,02015,695

102,828

156,0000

3,250000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



3710 NCLB: Title IV, Part A, Drug-Free Schools

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0091,59091,590

0000

91,59091,590

51,70051,70000

16,62116,6217,9117,911

91,59091,59000

8,5008,5000000

6,8586,858

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

091,590

00

91,590

51,7000

16,6217,911

91,5900

8,50000

6,858

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



4035 NCLB: Title II, Part A, Teacher Quality

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00670,012670,012

0000

670,012670,012

366,430366,4308,2508,250

97,63297,632129,125129,125

670,012670,01200

18,60018,6000000

49,97549,975

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0670,012

00

670,012

366,4308,250

97,632129,125

670,0120

18,60000

49,975

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



4045 NCLB: Title II, Part D, Enhancing Education Through Technology

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0030,26230,262

0000

30,26230,262

14,82114,82100

2,9172,9175,2675,267

30,26230,26200

5,0005,0000000

2,2572,257

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

030,262

00

30,262

14,8210

2,9175,267

30,2620

5,00000

2,257

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



4045 NCLB: Title II, Part D, Enhancing Education Through Technology

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00705,328705,328

0000

705,328705,328

177,706177,70600

38,57938,579188,172188,172

705,328705,32800

248,262248,2620000

52,60952,609

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0705,328

00

705,328

177,7060

38,579188,172

705,3280

248,26200

52,609

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



4110 NCLB: Title V, Part A, Innovative Education Strategies

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00322,825322,825

0000

322,825322,825

53,62653,62695,29095,29057,53257,53252,29852,298

322,825322,82500

40,00040,0000000

24,07924,079

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0322,825

00

322,825

53,62695,29057,53252,298

322,8250

40,00000

24,079

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



4201 NCLB: Title III, Immigrant Education Program

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0062,08062,080

0000

62,08062,080

0043,71043,71011,38711,387

2,3532,353

62,08062,08000

000000

4,6304,630

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

062,080

00

62,080

043,71011,387

2,353

62,0800

000

4,630

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



4203 NCLB: Title III, Limited English Proficiency (LEP) Student Program

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00482,880482,880

0000

482,880482,880

300,883300,88345,45045,45089,98989,989

00

482,880482,88000

10,54110,5410000

36,01736,017

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0482,880

00

482,880

300,88345,45089,989

0

482,8800

10,54100

36,017

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



5640 Medi-Cal Billing Option

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

109,890109,890109,890109,890

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

109,890109,890

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



5810 Other Federal

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

00505,609505,609

0000

505,609505,609

332,551332,55119,46619,46676,33576,335

7,3277,327

505,609505,60900

32,21732,2170000

37,71337,713

0000000000

10,47810,47810,47810,478

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

0505,609

00

505,609

332,55119,46676,335

7,327

505,6090

32,21700

37,713

00000

10,47810,478

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6091 Cal-SAFE Supportive Services

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

108,922105,95600

108,922105,956

42,78141,94321,41620,99725,84525,259

6,1015,217

108,922105,95600

4,0004,0000000

8,7798,540

0000000000

86,32886,32886,32886,328

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

101,2000

101,200

41,12120,58624,494

3,503

101,2000

4,00000

7,496

00000

86,32886,328

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6226 School Facilities Needs Assessment Grant Program

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

17,10017,10017,10017,100

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

17,10017,100

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6250 Early Mental Health Initiative (EMHI) (Department of Mental Health)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

38,72538,72500

38,72538,725

3,4333,36623,40922,950

6,6886,5572,1952,852

38,72538,72500

3,0003,000000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

38,7250

38,725

3,30022,500

6,4183,507

38,7250

3,000000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6268 Certificated Staff Performance Incentive Bonus

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

199,466199,466199,466199,466

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

199,466199,466

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6286 English Language Acquisition Program, Teacher Training & Student Assistance

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

76,94476,94476,94476,944

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

76,94476,944

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6296 Calif. Public School Library Act of 1998

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

25,42725,42725,42725,427

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

25,42725,427

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6300 Lottery: Instructional Materials

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

772,200772,20000

772,200772,200

000000

714,602714,602

772,200772,20000

000000

57,59857,598

0000000000

1,204,6381,204,6381,204,6381,204,638

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

772,2000

772,200

000

714,602

772,2000

000

57,598

00000

1,204,6381,204,638

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6350 ROC/P Apportionment

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

121,627121,627121,627121,627

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

121,627121,627

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6360 Pupils with Disabilities Attending ROC/P

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

6,0026,0026,0026,002

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

6,0026,002

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6405 School Safety & Violence Prevention, Grades 8–12

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

366,877356,88500

366,877356,885

00216,733212,974

82,49380,61115,17111,625

366,877356,88500

12,91012,91010,00010,000

0029,57028,765

0000000000

380,841380,840380,840380,841

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

340,8650

340,865

0209,288

77,9886,000

340,8650

12,91010,000

024,679

00000

380,840380,840

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6500 Special Education

Notes

4,508,2444,369,867(115,706)22,582

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

4,741,8274,741,82700

11,907,08211,582,765540,320540,320

17,189,22916,864,912

12,315,27812,075,7161,660,6491,628,1284,221,6624,122,114

148,896144,984

21,697,30421,234,699(4,508,075)(4,369,787)

1,025,899999,95800

2,324,9202,263,79900

00000000

4,508,2444,369,867

80024980

00

Rule(s)



NoChgN/AN/AN/A

NoChg

4,392,3690

2006-07Base Year

4,741,8270

11,062,813540,320

16,344,960

11,840,8511,596,2453,986,453

140,900

20,737,329(4,392,369)

972,8800

2,200,0000

0000

4,392,369

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



6660 Tobacco-Use Prevention Education: Elementary Grades 4–8

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

35,23734,27800

35,23734,278

000000

32,39731,515

35,23734,27800

000000

2,8402,763

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

32,7400

32,740

000

30,298

32,7400

000

2,442

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7050 Demonstration Programs in Intensive Instruction

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

332332332332

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

332332

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7091 Economic Impact Aid: Limited English Proficiency (LEP)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

1,947,4851,894,44100

1,947,4851,894,441

373,582368,618548,090537,900246,436246,436540,703504,405

1,947,4851,894,44100

180,249180,2490000

58,42556,833

0000000000

299,021299,021299,021299,021

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

1,809,4000

1,809,400

363,750527,908246,436438,359

1,809,4000

180,24900

52,698

00000

299,021299,021

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7120 Education Technology: Staff Development

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

5,2065,2065,2065,206

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

5,2065,206

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7140 Gifted & Talented Education (GATE)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

202,933197,40600

202,933197,406

75,29673,86415,20014,90231,04730,31155,61252,717

202,933197,40600

19,69019,6900000

6,0885,922

0000000000

90,37790,37790,37790,377

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

188,5450

188,545

72,46014,61029,28147,012

188,5450

19,69000

5,492

00000

90,37790,377

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7155 Instructional Materials: Grades K–8 (Includes Disaster funding and Fast Growth)

Notes

1

00(87,820)(105,163)

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

1,307,0931,288,22900

1,307,0931,288,229

000000

1,289,5611,289,561

1,394,9131,393,392(87,820)(105,163)

000000

105,352103,831

0000000000

1,600,0791,705,2421,512,2591,600,079

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

1,393,5000

1,393,500

000

1,289,561

1,393,5000

000

103,939

00000

1,705,2421,705,242

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



1. Source: 8590 All Other State RevenueInstructional Materials based on: 2007/08 - Prior Year CBEDS estimate of 23,037 * 55.92 = $1,288,2292008/09 - Prior Year CBEDS estimate of 22,736 * 57.49 (includes COLA) = $1,307,093

7155 Instructional Materials: Grades K–8 (Includes Disaster funding and Fast Growth)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

1,8831,8831,8831,883

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

1,8831,883

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7158 Instructional Materials for Deciles 1 and 2

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

255,620255,620255,620255,620

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

255,620255,620

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7230 Transportation: Home to School

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

1,127,8291,097,11000

1,127,8291,097,110

00428,748420,342181,036176,865407,106392,808

1,127,8291,097,11000

(35,298)(35,298)146,237142,393

0000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

1,047,8610

1,047,861

0412,101171,388361,290

1,047,8610

(35,298)138,380

00

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7240 Transportation: Special Education (Severely Handicapped/Orthopedically Handicapped) Education Code s

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

892,988868,66600

892,988868,666

00000000

892,988868,66600

892,988868,666000000

0000000000

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

829,6720

829,672

0000

829,6720

829,672000

00000

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7250 School Based Coordination Program (SBCP)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

118,380118,380118,380118,380

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

118,380118,380

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7271 California Peer Assistance & Review Program for Teacher (CPARP)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

258,315251,28000

258,315251,280

113,450113,45000

14,25014,250102,50496,227

258,315251,28000

7,2917,1000000

20,82020,253

0000000000

166,765166,765166,765166,765

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

240,0000

240,000

113,4500

14,25087,499

240,0000

6,90000

17,901

00000

166,765166,765

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7286 International Baccalaureate (IB) Program: Staff Development & Startup

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

15,78715,78715,78715,787

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

15,78715,787

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7294 Staff Development: Mathematics and Reading (AB 466)

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

99,21399,21399,21399,213

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

99,21399,213

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7375 Tenth Grade Counseling

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

00000000

0000

00000000

0000000000

104,039104,039104,039104,039

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00000

0000

00

0000

00000

104,039104,039

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7385 County Oversight

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

717,493697,95100

717,493697,951

291,530286,030142,952140,365144,114140,825

50,56044,668

717,493697,95100

30,50729,8080000

57,83056,255

0000000000

48,31548,31548,31548,315

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

666,6200

666,620

280,639137,829136,371

32,981

666,6200

29,07800

49,722

00000

48,31548,315

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description




Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

285,029277,26600

285,029277,266

157,808154,90123,84523,37860,32158,90713,58211,232

285,029277,26600

6,5006,5000000

22,97322,348

0000000000

33,51933,51933,51933,519

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

264,8200

264,820

152,05022,92056,942

6,656

264,8200

6,50000

19,752

00000

33,51933,519

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description




Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

847,749824,65900

847,749824,659

567,018555,90000

205,184200,1597,2182,132

847,749824,65900

000000

68,32966,468

0000000000

210,325210,325210,325210,325

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

787,6400

787,640

545,0000

193,0020

787,6400

000

49,638

00000

210,325210,325

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description




Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

2,106,3992,049,02700

2,106,3992,049,027

208,879204,784847,070830,461512,530500,300206,800191,227

2,106,3992,049,02700

161,344157,1030000

169,776165,152

0000000000

621,939621,939621,939621,939

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

1,957,0460

1,957,046

200,769814,178483,447160,000

1,957,0460

152,67600

145,976

00000

621,939621,939

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description




Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

1,661,4001,616,14800

1,661,4001,616,148

425,427419,906184,844181,641150,433147,467453,594430,156

1,661,4001,616,14800

313,193306,7160000

133,909130,262

0000000000

121,063121,063121,063121,063

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

1,543,5990

1,543,599

414,493178,499143,573395,298

1,543,5990

299,95400

111,782

00000

121,063121,063

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



7810 Other State

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

76,93776,93700

76,93776,937

001,0001,000

24124116,22116,221

76,93776,93700

59,47559,475000000

0000000000

4,5824,5824,5824,582

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

00

76,9370

76,937

01,000

24116,221

76,9370

59,475000

00000

4,5824,582

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



8150 Ongoing & Major Maintenance Account (RMA: Education Code Section 17070.75)

Notes

4,663,6074,559,981(215,349)(111,723)

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000000000

002,220,7192,179,404

954,815933,215841,081818,970

4,663,6074,559,981(4,663,607)(4,559,981)

425,326412,553221,666215,839

0000

00637,727663,804

0000

5,301,3345,223,785

0000

00

Rule(s)



NoChgN/AN/AN/A

NoChg

4,448,2580

2006-07Base Year

00000

02,138,899

904,492795,890

4,448,258(4,448,258)

399,220209,757

00

0000

4,448,258

00

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



9010 Other Local

Notes

0000

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0025,00025,000

0012,90012,90037,90037,900

21,48021,48000

2,7922,79200

37,90037,90000

12,90012,9000000

728728

0000000000

481,884481,884481,884481,884

00

Rule(s)



NoChgN/AN/AN/A

NoChg

00

2006-07Base Year

025,000

012,90037,900

21,4800

2,7920

37,9000

12,90000

728

00000

481,884481,884

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



0000 No reporting requirements

Notes

1

2, 3

(10,559,885)(10,309,721)3,070,1912,880,039

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

124,916,930123,103,66500

500,000500,0001,120,0001,120,000

126,536,930124,723,665

60,233,80059,695,81316,555,07616,251,31623,815,71323,442,660

3,086,7083,005,582

113,255,119111,632,00613,281,81113,091,659

11,974,93711,660,8141,154,9471,124,584

00(3,566,062)(3,548,763)

00638,994612,917

0000

(9,920,891)(9,696,804)

16,716,45313,934,51519,438,37816,716,453

00

Rule(s)



NoChgN/AN/AN/A

NoChg

(10,211,620)1,377,762

2006-07Base Year

120,225,3060

500,0001,120,000

121,845,306

59,387,92815,953,51223,040,649

2,920,901

110,255,92411,589,382

11,332,9311,092,891

0(3,472,888)

01,276,721

00

(8,934,899)

12,556,75313,934,515

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



1. Source: 1103 Classroom Teachers - ADA Decline AdjustmentAdjustment of Classroom Teachers: 2007/08 - Reduction of 18 Classroom Teacher @ $46,816 Average Salary per anticipated decline of 500 ADA. 2008/09 - Reduction of 7 Classroom Teachers @ $46,816 Average Salary per anticipated decline of 200 ADA.

2. Source: 3401 H&W, Cert.Health/Welfare Adjusted by COLA: 2007/08 Estimated COLA 4.7% and reduced by 18 Teachers * $9,5002008/09 Estimated COLA 2.8% and reduced by 7 Teachers * $9,500

3. Source: 3402 H&W, Class.Health and Welfare Adjusted by COLA:

1100 State Lottery

Notes

1

00149,060150,640

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

4,300,0004,300,00000

4,300,0004,300,000

3,673,4403,672,00000

477,500477,36000

4,150,9404,149,360149,060150,640

00000000

0000000000

382,640232,000531,700382,640

00

Rule(s)



NoChgN/AN/AN/A

NoChg

0232,000

2006-07Base Year

00

4,300,0000

4,300,000

3,600,0000

468,0000

4,068,000232,000

0000

00000

0232,000

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



1. Source: 8560 State Lottery RevenueFCMAT did not adjust the unrestricted Lottery based on decling ADA. As the district has adjusted forthe reduced ADA and Lottery adjustments.

1200 Class Size Reduction, Grade 9

Notes

00(21,123)(16,709)

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

650,738650,73800

650,738650,738

465,921465,55600

205,940201,89100

671,861667,447(21,123)(16,709)

00000000

0000000000

(16,710)(1)(37,833)(16,710)

00

Rule(s)



NoChgN/AN/AN/A

NoChg

0(1)

2006-07Base Year

00

650,7380

650,738

456,4270

194,3120

650,739(1)

0000

00000

0(1)

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



1300 Class Size Reduction, Grades K–3

Notes

1

2

00540,102409,750

2008-092007-08



Date:Time:

02/26/200710:57 AM

Proj. 2Proj. 1

0000

6,667,1006,444,86400

6,667,1006,444,864

2,480,2512,479,27800

3,646,7473,555,83600

6,126,9986,035,114540,102409,750

00000000

0000000000

797,589387,8391,337,691797,589

00

Rule(s)



NoChgN/AN/AN/A

NoChg

0387,839

2006-07Base Year

00

6,222,6450

6,222,645

2,430,6650

3,404,1410

5,834,806387,839

0000

00000

0387,839

0

AccountCodes

9700 - 97098010 - 80998100 - 82998300 - 85998600 - 8799

1000 - 19992000 - 29993000 - 39994000 - 49995000 - 59996000 - 69007000 - 72997300 - 7399

8910 - 89297600 - 76298930 - 89797630 - 76998980 - 8999

7430 - 7439

Revenues










Ending Fund Balance

Debt Service

Description



1. Source: 8434 Class Size Reduction, Grades K–3K-3 CSR Revenue based on 97% of Projected K-3 CBEDS Enrollment: 2007/08 - 6,198 * .97 * $1,072 = $6,444,8642008/09 - 6,237 * .97 * $1,102 = $6,667,100

2. Source: 3401 H&W, Cert.Health & Welfare increased by COLA estimate in future years.

Date post:	13-Oct-2018
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Hacienda La Puente Uniﬁ ed School District -...

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