The Saugus Union School District Governing Board is expected to review several financial reports during its meeting Tuesday that include its annual audit.
Interim Financial Report
Governing Board members are expected to approve of the district’s first interim financial report for the 2017-18 year, which details revenue sources, expenditure expectations and ending fund balances of various district funds.
This report details the various revenue sources for the district that include the Local Control Funding Formula (LCFF), base grant, K-3 Class Size Reduction, supplemental grants, a Targeted Instructional Improvement Grant, federal sources, state revenue and local revenue.
Revenue primarily comes from the district’s enrollment, which is projected to be 9,960 in 2017-18, an increase of 60 students from 2016-17.
With an attendance rate projected to be 97.03 percent the district’s average daily attendance is projected to be 9,665.72, resulting in revenue totaling $76,533,571.
The district is also expected to receive $1,411,955 for Mandated Block Grant reimbursements, $1,940,631 from state lottery rates, among other resources.
Combined, the unrestricted and restricted revenue for 2017-18 is projected to be $97,186,641, an increase of about $1.5 million from the approved budget for the year.
Expenditures for the district during the year include: certificated and classified salaries, employee benefits, books and supplies, services and other operating expenditures and capital outlay.
This year, the district employs 359 general education teachers and 36 special education teachers. This results in a cost of $9,784,318 for CalSTRS and $2,272,292 for CalPERS.
Overall, total expenditures for the district increased 2.14 percent from the adopted budget, totaling $100,416,086.
The district is expected to meet its 3 percent reserve requirement with a reserve of $12 million and its ending fund balance at June 30, 2018 is expected to be $10,247,941.
The Governing Board is expected to approve of two audits for the districts: one for the 2016-17 annual audit and one for the 2016-17 Community Facilities District.
According to the agenda items, both audits indicate that the district is in compliance and followed correct accounting principles.
In its audit of the district, Vavrinek, Trine, Day & Co. found that the most sensitive estimates effecting the district’s finances include: the estimate of capital asset depreciation is based on expected useful life, the estimate of future costs of postemployment benefits provided to retirees and the future costs of pension plan benefits provided to retirees.
In addition, the company found no difficulties in performing its audit and had no disagreements with management when conducting the audit.
Five Year Reportable Fees Report
Board members are also expected to approve of a resolution approving the Saugus District’s annual Five Year Reportable Fees Report for the 2016-17 fiscal year.
To comply with California Government Code, the district is required to report its statutory and alternative school facilities fees, or reportable fees, for the construction or reconstruction of school facilities in order to accommodate students from new developments.
Found in the Reportable Fees Account, this revenue helps complete construction projects throughout the district.
During 2016-17, the Saugus District used these fees to support legal and administrative costs for the district’s School Facility Needs Analysis (SFNA), Justification Reports and other fees, and to provide additional restroom facilities for students at Mountainview Elementary School.
This work cost a total of $74,062.
For the Five Year-Report, the balance of the Reportable Fees Account is approximately $11.4 million.
All of these funds are expected to be used to support the creation of a classroom building at Plum Canyon Elementary School to provide additional capacity for new students in the district.
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