Bd. of Ed Rpt No. 064-14/15 Page 1 of 3 Board of Education Report Submitted on 09/05/14, Revision 1 September 9, 2014
Report Number: 064-14/15 Date: September 9, 2014 Subject: Unaudited Actuals Report for Fiscal Year 2013-14 and Gann Limit Resolution Responsible Staff: Megan K. Reilly Name Office/Division Office of the Chief Financial Officer Telephone No. 213-241-7888
BOARD REPORT
Action Proposed:
The Board is requested to take the following action:
1.) Approve the Unaudited Actuals Report for Fiscal Year 2013-14 (Attachment A) and direct staff to submit the report to the County Superintendent of Schools.
2.) Adopt the Gann Limit Resolution as required under Ed Code Section 42132 (Attachment B).
3.) Expressly commits all unassigned unrestricted ending balance of $85.8 million into a reserve for potential 2014-15 salary compensation.
Background:
Education Code Section 42100 requires the governing board of each school district to approve, in a format prescribed by the Superintendent of Public Instruction, an annual statement of all receipts and expenditures of the district for the preceding fiscal year and to file the statement with the County Superintendent of Schools on or before September 15th.
Education Code Section 42132 requires the governing board of each school district to adopt a resolution identifying their estimated appropriations limit for the current year and their actual appropriations limit for the preceding year. The so-called Gann Initiative placed limits on the growth of expenditures for publicly funded programs. Although the Gann Limit Calculations are provided as part of the Unaudited Actuals Report, a specific resolution is required by statute.
Consistent with Government Accounting Standards Board (GASB) Statement No. 54, a committed fund balance is a portion of a fund balance
LOS ANGELES UNIFIED SCHOOL DISTRICT Board of Education Report
Bd. of Ed Rpt No. 064-14/15 Page 2 of 3 Board of Education Report Submitted on 09/05/14, Revision 1 September 9, 2014 which the Board limits for specific purpose and which cannot be used for any other purpose unless there is a subsequent Board action.
Expected Outcomes:
The Districts statement of revenues and expenditures (Unaudited Actuals) for Fiscal Year 2013-14 will be filed with the County Superintendent of Schools, in compliance with Education Code 42100. The budget for the current fiscal year (2014-15) will be updated based on the Unaudited Actuals report.
The adopted Gann Limit Resolution will be made available to the public.
Committed amounts cannot be used for any other purpose unless the Board takes subsequent formal action.
Board Options and Consequences:
Board approval and filing of the Unaudited Actuals Report and adoption of the Gann Limit Resolution is statutorily mandated. Board action is also required to commit funds pursuant to GASB 54 and be compliant with generally accepted accounting principles.
Policy Implications: None.
Budget Impact: Budget adjustments for the current fiscal year may be required based on updated ending balances from the prior fiscal year. In addition, budget projections for the current fiscal year and two out-years may be revised based on a review of expenditures and updated balances from the Unaudited Actuals. The informative on the Unaudited Actuals provides a summary of 2013-14 ending balances.