FY 2015 General Fund Monthly Financial Update Overview

1. FY 2015 General FundMonthly Financial Update Overview October 6, 2014 Board Meeting

2. Changes in Content of Monthly Financial Update • Revenue information will be presented by major source, i.e., Local taxes, State revenue, and Other sources. • Expenditure information will be presented by State defined functions. The State definitions are summarized on Slide 3. • The top five District programs that comprise each function and their share of the total amount of the function are shown in Slide 4. • Year-to-Date actual data will be compared to the current budget (slides 5 and 7, for revenue and expenditures, respectively) and to prior year activity (slides 6 and 8, for revenue and expenditures, respectively). • Positive variances are good. Negative variances are bad. • Observations and Comments will be will be noted on the final slide. • The Monthly Financial Update presentation supplements financial reports provided as information items in the Board Docs. The information items will be augmented with a report on transfer activities, in accordance with the proposed Board policy.

4. Top Five APS Programs in Functions • Instruction • Classroom Instruction, Charter Schools, Exceptional Children, Unfunded Pension, and Kindergarten: 72% • Pupil Services • Student Programs and Services, Exceptional Children Support, School Social Workers, Health, and Psychologists: 70% • Staff Services • Teaching and Learning, Testing and Assessment, Research and Evaluation, Career Education, and Media Services: 61% • School Administration • School Administration, Unfunded Pension, and Summer School Admin.: 100% • General Administration • Operations Tech, Unfunded Pension, Employee Benefits (Worker Comp.), Information Applications, and Information Services: 49% • Student Transportation • Student Transportation, Fleet Maintenance, Unfunded Pension and Athletics: 100% • Maintenance and Operations • Utilities, Building Operations, Custodial Support, Safety, and Unfunded Pension: 59%

5. FY 2015 Revenue Activity for Period Ending August 31, 2014 Compared to Budget ($Millions)

6. FY 2015 Revenue Activity for Period Ending August 31, 2014 Compared to Prior Year ($Millions)

7. FY 2015 Expenditure Activity for Period Ending August 31, 2014 Compared to Budget ($Millions)

8. FY 2015 Expenditures Activity for Period Ending August 31, 2014 Compared to Prior Year ($Millions)

9. Observations and Comments • August YTD activity is not a good indicator of overall activity in any fiscal year because a significant amount of revenue and expenditures is accrued to the prior fiscal year. For example, teacher salaries paid in July and the first part of August are for services performed in the prior school year. • Recognizing this limitation, we are watching revenue carefully because YTD tax receipts did not meet expectations. In addition, YTD expenditure increases cannot be sustained through the entire year. • Budget transfers requested in September are included in October board agenda item 4.03. Future transfer requests will be reported in accordance with the revised Board Policy DC.