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Home My WebLink About8.1 Dub Unified Schl Dist Attach 15 CITY OF DUBLIN9" COMMUNITY GROUP/ORGANIZATIONAL FUNDING REQUEST ApPLICATION PACKET Fiscal Year 2008-2009 Section 2: Application for Com~unity Group/Organizational Funding SECTION 2 Page 1 of 22 AfTAC.HH€/IJ/ IS- CITY OF DUBLIN Fiscal Year 2008-2009 COMMUNITY GROUP/ORGANIZATION ApPLICATION FOR FUNDS COVER PAGE AGENCY NAME: DUBLIN UNIFIED SCHOOL DISTRICT PROPOSED PROJECT/PROGRAM NAME: INTEGRITY IN ACTION WITH LITERACY FUNDING AMOUNT REQUESTED: $11,000 CITY OF DUBLIN Fiscal Year 2008-2009 ApPLICATION FOR FUNDS 1. Please select one expense category: 0 Capital ~ Operating 2. Applicant Information: SECTION 2 Page 2 of 22 Organization/Agency Name Mailing Address Street Address City Dublin Dublin Unified School District 7471 Larkdale Avenue 7471 Larkdale Avenue State CA Zip 94568 Stephen Hanke. Superintendent Executive Director/Chairperson Denis Kine; Board President (if applicable) (925) 828-2551 ext.8001 hankestephen(tV,dublin.k12.ca.us Work Phone Email (925) 829-9144 Work Phone denis(tV,aol.com Email Please list the Primary Project Contact Person who would be able to answer questions about this application and project/program during the funding period. Glen Walder Library Media Specialist. Dublin Hi2h School Liana Smith Media Technician. Fallon School (K-8) SandyChan2-Yee Media Technician. Frederiksen Elementary Contact Person for Project/Program JobTitle (925) 833-3300 ext. 7018 (925) 875-9376 ext. 6308 828-1037 ext. 5217 Work Phone walden!:len(tV,dublin.k12.ca. us smithliana(tV,dublin.k12.ca.us chan2Veesandv(tV,dublin.k12.ca. us Email (925) 833-3322 (925) 829-7261 (925) 829-2562 Fax Federal Tax Identification No. (required) 94-174-2440 City of Dublin Business License No. (required) not applicable SECTION 2 Page 3 of 22 City of Dublin Fiscal Year 2008-2009 Application for Funds 3. Proposed Project/Program Information (Do not describe Organization.) Amount of Funds Requested $ 11.000 (Maximum $25,000 per project.) Proposed Project/Program Name Inte2ritv In Action With Literacy Proposed Project/Program Date(s): Start September of 2008 and End October of 2008 (Specific dates to be determined with author and site administrators.) Please note: City Council Grant Funds are distributed on a reimbursement basis. If your Agency needs a 100% disbursement at the beginning ofthe Fiscal Year, please indicate this below and please provide justification for this need. o Agency is requesting 100% disbursement at the beginningofthe Fiscal Year. If selecting this option, please provide justification in the blank space below. JXf Agency is not requesting 100% disbursement at the beginning of the Fiscal Year. If selecting this option, please provide the frequency that reimbursements will be submitted to the City in the blank space below; e.g., monthly, quarterly, at project completion, etc. Invoice will submitted at project end. SECTION 2 Page 4 of 22 City of Dublin Fiscal Year 2008-2009 Application for Funds a. How would the requested funds be lJsed? . Describe, in detail, the PROPOSED PROJECT/PROGRAM (not the Agency). · Bulleted text is acceptable. . Identify if the proposed project/program is a new service, or extension of an existing one. · An additional page may be added, if needed. The mission of Dublin Pride is to instill behaviors of personal, social, and civic responsibility by developing curriculum and activities within its schools and the community creating integrity in action..This new program "Integrity In Action With Literacy" will reinforce the City of Dublin's character-based awareness campaign "Integrity In Action."\Author Jeff Savage willbe invited to do assemblies for upper and lower grades and smaller writing workshops at 15 schools, public and private, throughout the city and the Dublin Branch of the Alameda County Library. Jeff Savage will accommodate each school's particular needs for an all day visit with customized number of assemblies and writing workshops. One school plans to have the author address the sttldentsthrough ~ts Physical Education classes. Two of the smaller schools will share a day. The Dublin Branch of the Alameda County Library can schedule a Family NigJlt presentation or a weekend young author's writing workshop. Jeff Savage will help fulfill the Dublin School Board Commitment that all students wiU be responsible citizens and possess the personal qualities, work habits and attitudes to be successful in life. Jeff Savage is one of the nation's leading writers of non..fiction books for children. As per the www.jeffsavage.com website, "Jeffs main theme is confidence. He reveals how he overcame his shyness as a boy in sixth grade with the mysterious help of a teacher. He describes his work with many of today's men and women athletes and explains how he chooses to write about good role models, those who SECTION 2 Page 5 of 22 have overcome obstacles and made smart choices to achieve success. Jeff encourages children to write with confidence and believe in themselves." Students from Mitch Eason's Dublin High School Industrial Arts and ROP class, in collaboration with the professionals at local public service television station TV 30, will create a documentary for the Dublin Life television show of TV 30. Local media people such as Alan Elias, Valley Times columnist of Around Dublin, will be invited to the assemblies and workshops for community news coverage. Students will benefit from the experience of interviewing an author and will gain practical work experience for the media world. This type of collaboration with the professionals at TV 30 is an example of how the School Board is committed towards "All students will receive a rigorous and relevant education that prepares them for any post- secondary option including college or university, the military or the world of work." To support the "Integrity InAction with Literacy" program, the Dublin Unified School District's Media Center. Staff will also be requesting funding from Dublin Partners In Education for books of current and relevant nonfiction high interest books, such as written by Jeff Savage to engage relllctant readers and those students who are below proficiency levels in English Language Arts. As stated in the article "Educators Differ on Why Boys Lag in Reading"by Valerie Strauss in the Washington Post on Tuesday,. March 15, 2005, "There is no consensus on how much genetics, environment and cultute.are responsible for the gap. What is>known is that boys generally take longer to learIlto read than girls; they read less and are less enthusiastic about it; and they have more trouble understanding narrative texts yet are better at absorbing informational texts. Those findings are from a literacy study done in 2002, "Reading Don't Fix No Chevys," by Michael W. Smith, a Temple University professor, and Jeffrey D. Wilhelm, Boise State University English education professor. The article further states that" A lot of teachers think of reading as reading stories," said Lee Gaida, professor of children's literature at the University of Minnesota. "And in fact, a lot of boys, and not just boys, like nonfiction. But we keep concentrating on novels or short stories and sometimes SECTION 2 Page 6 of22 don't think of reading nonfiction as reading. But in fact it is, and it is extremely important." The Dublin Branch of the Alameda County Library will also seek funding from the Dublin Friends of the Library to purchase these types of non- fiction books. b. How would the PROPOSED PROJECT/PROGRAM address an unmet community need and improve the quality of life for Dublin residents. Why is this project/program needed? (Additional page may be added, if needed): There is no funding In the budget for author visits from the Dublin Unified School District. Even the Parent Faculty Clubs. or Parent Faculty Student Organizations have reduced or eliminated funding for assemblies. When there are funds available, the/focus has been on science or cultural. arts. Therefore, students rarely have the opportunity to meet a published author and learn from an expert writer as a role model and motivator. Broadcasting portions of Jeff Savage's assemblies and writing workshops on Public television will create... more community awareness of. Integrity in Action with Literacy as well as provideisome free easy access parent education, especially to those parents who otherwise would not feel comfortable in formal settings or who do not have opportunities because of work or income constraints. An author such as Jeff Savag~, who can motivate the most reluctant readers and help instill the positive character traits of Integrity InAction, is also needed to help educators narrow the gender gap in test scores. Males consistently fall behind their female counterparts in English Languag~ Arts. Mr. Savage uses sports, which is of high interest for boys and girls, to show how winners make good choices and make a difference in the world. With athletes in the limelight in current events revolving around steroid and performance enhancing drugs, we need to promote positive role models whose actions embody integrity and make a difference in the world. SECTION 2 Page 7 of 22 According to Dr. Stephen Krashen, Professor Emeritus of Education at USC and author in the Literacy Network News of Spring 2007, "A number of studies confirm that given access to comprehensible and interesting reading material, children and adolescents take advantage of them. More access to reading results in more reading: this applies to books in the home, classroom libraries, school libraries and public libraries. In fact, sometimes a single, brief exposure to good reading material can result in a clear increase in enthusiasm for reading. If more access leads to more reading, and if more reading leads to better reading, writing, spelling, grammar and a larger vocabulary, this means that the first step to any literacy campaign needs to take is to make sure children have access to plenty of books." With funding for books from the Dublin Partners In Education and Friends of The Dublin Library, students will have more access to plenty of books. With the city grant to fund the Jeff Savage author visits, students will beinstilled with positive character traits and be sparked with .more enthusiasm for reading. SECTION 2 Page 8 of 22 What documentation/data/records support the need for this PROPOSED PROJECT/PROGRAM? Please identify your data sources. Statistics are available for the Dublin Unified School District's schools from its enrollment database and California Star Test results from the California Department of Education. Enrollment data from private schools were provided by secretaries or administrators. Dublin Unified School District Enrollment by Gender 1600 200 1400 1200 1000 800 600 400 o DES FES GES JDS MES NES FS WMS VHS DHS 298 513 459 570 307 295 832 721 100 1416 Private Schools in the City of Dublin Enrollment by Gender 600 100 IiiIMale iii Fern ale 500 400 300 200 o St. Rayrn onds 306 St. Phillips 64 Valley Christian Elern. 507 Valley Christian Middle 153 Valley Christian High School 297 SECTION 2 Page 9 of 22 The following graph validates the gender achievement gap in English Language Arts from Spring 2007 California State Test data. Dublin Unified is striving for all students to be in the Advanced and Proficient percentiles. 2007 CST ELA Gender Demographics 10 80 70 60 50 - - c: c: Q) ~ .13 40 .... "" Q) 0 a.. .... a.. 30 20 o Female Male ES ES Female Male MS MS Female Male HS HS AlP reflects Advanced and Proficient Scores. B/BB/FBB reflects Basic / Below Basic/ Far Below Basic Scores. The graph is broken down by.Elementary Schools (ES),.Middle Schools (MS), and High School (HS). SECTION 2 Page 10 of22 Student achievement in writing is a DUSD district wide goal. 4th and 7th grade students participate in the California State Test for Writing. The following graphs and tables show the percentage of students who are proficient on the state writing sample for Spring 07. As per state standards, a score of 4 is considered passing or proficient. Based on most schools' Single Site Improvement plans, most elementary schools are striving to improve proficiency by using 6 as a benchmark for proficiency. This also aligns to DUSD board goals and relates to the goal of all Dublin graduates meeting rigorous and relevantstandards for graduation. Thus, 4th and 7th graders will participate in Jeff Savage.'s small group writing workshops. 2007 CST Writing Rubric Scores Percent of Students with Writing Application Scores of 2,4,6, 8 DUSD is striving for a score of 6 or above 90 80 70 60 50 40 30 20 10 0 JDS DES FS ~:~ 06 08 FES MES NES FMS WMS SECTION 2 Page 11 of22 City of Dublin Fiscal Year 2008-2009 Application for Funds d. Specify the PROPOSED PROJECT/PROGRAM population to be served. Approximately 6800 students along with their parents and school personnel in grades Kindergarten through 12th grade in public and private schools in the City of Dublin will benefit from this "Integrity In Action With Literacy" program. e. Projects/programs must be evaluated to determine if they are being carried out efficiently and if project/program goals are being met. Please describe how you plan to monitor your project/program's success and impact. Family Surveys will be. compared to previous yea.r regarding how evident families think "Integrity InAction"cha~~cter~altlesarein schools.. . Referrals and Discipline data will be compared to previous year. The Spring 2009 California Test scores will be compared. with the previous years' test scores to seeifthe gender gap was narrowed and if writing scores.improved. Circulation Statistics will be tracked to see if there is an increase in circulations in the Library Media Centers in nonfiction books. f. Specify numbers of clients served by agency, then by PROPOSED PROJECT/PROGRAM: Total Number of Participants Served by Ag~ncy (if applicable) 5500 DUSD students Total Number of Dublin Residents Served by Agency (if applicable) 5500 + DUSD Total Proposed Participants Served by this Project/Program 6800 Dublin students Total Number of Dublin Residents Served by this Project 6800 + Dublin students, parents and staff SECTION 2 Page 12 of22 City of Dublin Fiscal Year 2008-2009 Application for Funds 5. Financial Information - Operating Budget a. Expense Budget Employee Salaries & Benefits Non-Personnel Cnsts Services & Supplies Capital Costs Author Visits 12 sites@ $800 Dublin Schools 2 sites $500 Author Visit DublinBranch Library TOTAL $10,600 $400 $11,000 SECTION 2 Page 13 of22 City of Dublin Fiscal Year 2008-2009 Application for Funds b. Revenue Budget Non Applicable TOTAL Further Comments/Explanations (if necessary): Dublin Partners in Education and Friends of the Dublin Library will be solicited for funding to purchase nonfiction books to support this 'Hntegrity In Action With Literacy" program. Dublin Partners in Education Dublin Schools Friends of the Dublin Library Dublin Library TOTAL Up to Up to $20,000 $5,000 $25,000 SECTION 2 Page 14 of22 City of Dublin Fiscal Year 2008-2009 Application for Funds 6. General Agency Information o Past grant applicants may check this box in lieu of completing item 6 (a-d) if the program/organizational description on file with the City is correct and current. a. List all years that Organization has previously received City of Dublin funding (not Community Development Block Grant - CDBG). 2007-2008 For many years, the City of Dublin provided funding to all schools for Dublin Pride and Red Ribbon Week via the Dublin Substance Abuse Council. b. Describe the population(s) served by the Organization. Students from Kindergarten through 12th grades, staff and parents with diverse ethnic, economic, social and religious backgrounds c. Describe all the services the Organization currently provides to Dublin residents. · An additional page maybe added~.ifneeded. All related to education d. Has your agency ever previously received funds from the City of Dublin? If yes, please specify in what Fiscal Years and the amount received each year. Funds have been received frolll The City of Dublin in prior year to assist in the funding of Red Ribbon Week, Dry Grad Night and Every 15 Minutes. In addition, DUSD had received $100,000/year for several years towards technology. SECTION 2 Page 15 of22 City of Dublin Fiscal Year 2008-2009 Application for Funds 7. Required Attachments: o Onlv one (1) copv per A2:encv of each ofthe following is required, even with multiple projects/programs submitted. o Applications without the following documents will not be reviewed for funding. o Please label attachments: A. B. C. etc. o A. Names of Governing Board; identify current Board officers. o B. Current total Organization operating budget, including revenue. · Clearly label/identify the program that includes the PROPOSED PROJECT/PROGRAM. Budget Report. does not provide any progranlbudget for "Integrity In Action With Literacy." o C. Most recent auditreport or tax return (if applicable). Audit Report will be attached to the grant request for Red Ribbon Week funding from the Dublin Unified School District (DUSD). o >D. Resolution, letter or.otherdocumeIlt pr9viding.evidence of Board/Organization approval of application, and date approval was granted. BoardlOrganization approval will be pending future Board Meeting. o E. Organization's certificate of in.surance showing coverage for liability and workers' compensation. of. Application Verification Declaration Signature Page. o G. Signed affidavit form from each collaborating agency named in proposed project/program plan (if applicable). Not Applicable. DUSD is specifically involved and responsible for developing and running of "Integrity In Action With Literacy." The private schools are service recipients. o H. Copy of IRS Letter of Determination indicating tax exempt status. Not applicable. SECTION 2 Page 16 of22 Attachment A Names of Governing Board and current Board officers. President District Information: Board of Trustees Vice President Denis King 2004 - 2008 (925) 829-9144 denisk@aol.com Member David Haubert . 2006 - 2010 (925) 829-7766 david haubert@comcast.net Member Patricia Kohnen 2004 - 2008 (925) 828-3623 pmko@aol.com Secretary Dr. Stephen Hanke Superintendent (925) 828-2551 x8001 hankestephen@dublin.k12.ca.us John ledahl 2004 - 2008 (925) 551-5965 ledahliohn@dublin.k12.ca.us Member Jennifer Henry 2006 - 2010 (925) 351-9139 ihenry@aalrr.com Student Re Brittney Gallup 8/2007 - 6/2008 (925) 828-2551 ext. 8002 qallupbrittney@dublin.k12.ca.us Attachment B Current total Or2anization operatin2 bud2et, including revenue Budget Report does not provide any program budget for "Integrity In Action With Literacy." Executive Summary Dublin Unified School District is a political subdivision of the State of California. The Murray School District was established June 5, 1866. The Dublin Unified School District was formed in 1988 with portions of the Amador Valley School District and schools from Murray School District. The district is located in the eastern bay area of Alameda County. There are ten schools; six elementary, one K-8 school, one middle school, one high school, and one alternative education center, serving students in grades kindergarten through twelfth grade. Governance. The district is governed by an elected board of trustees. There are five members of the board, each elected for a four-year term. The school board meets twice monthly on the second and fourth Tuesdays. District operations during 2007-08 were lead by new superintendent, Dr. Stephen Hanke. Included in this document's appendix is an organizational chart. Enrollment. The expected enrollment for fall 2007 is 5477 students. Enrollment has been increasing at an average of 4.15% for the last six years, since 2000-2001. Enrollment is expected to peak at 9,019 students in 2016. In 2007-08 there will be 294.47 full time equivalent (FTE) teachers. Approximately 253.87 are regular classroom teachers 33.75 are special education teachers and the rest are specialists (prep teachers, ROP teachers, ESL teachers, and categorically funded teachers). Achievement. Over the past five years since the inception of the Academic Performance Index all schools in the District have improved their scores significantly; whereas, six years ago only two schools were in the "800" club, this year six of our nine (based on prior year) schools with four schools scoring an API over 800 and two of our schools having scores over 900. Dublin High School is moving closer to scoring over 800. Budget. The district's fiscal year is from July 1 to June 30, as prescribed for all governmental agencies in the state. The budget for July 1,2007 to June 30,2008 (2007-08) totals $91,550,057. The General Fund, is used to record the day-to-day operations of the district. The remainder is in seven special purpose funds. The funds and their budgets are shown below. Fund 2006-2007~stimClted Actual Expenditures $44,614,967 $167,299 $1,388,401 $380,394 $134,565 $17,328,698 $7,848,865 2007-2008Ad()pte~ Budaet Expenditures $46,592,280 $126,038 $1,557,737 $1 07, 1 04 $0 %.Change General Adult Fund Child Nutrition Deferred Maintenance Special Reserve Capital Building (bond) Capital Facilities (developer) CSSF (modernization) Total 4.43% (24.66)% 12.2% (71.84)% (100)% $26,802,124 98,665,313 $29,407,366 $7,282,222 $6,477,310 $91,550,057 69.7% 7.22% (75.83)% (7.21) % The budget is built by carrying the same program forward from year to year. In building the 2007-2008 budget with the enrollment growth of 298 students, the state cost of living adjustment at 4.53 % the district is projected to deficit spend by ($215,454). Negotiation settlements will occur after budget B1 adoption and will impact this deficit spending dramatically, potentially over $1.3 million, if additional enrollments or revenues are not received. This year saw the addition of a process for a goals driven budget. This gave the district direction and guidance in establishing priorities in the 2007-2008 budget process. Assessment, staff development, Dublin Pride ,and the beginning of implementation of response to intervention (RT!) were a few of the high priority board goals implemented in this budget. There are district established staffing ratios and historically determined discretionary allocations to program managers. The process of establishing and approving the budget begins in January with the Governor's proposed budget for the state, which is the primary source of funding for schools. District administration prepares the budget details and the adopted budget of 2007-08 is based on the Governor's May revise. In June the board adopts a budget for the upcoming fiscal year based on the May revise. That budget is then monitored and adjusted as needed during the course of the year. The district is required by state law to provide the board with two interim financial reports during the year, which reflect any necessary budget adjustments. Expenditures. In 2007-08 the district anticipates spending $ 8,507 per student. The greatest proportion of this goes to pay classroom teachers. The average teacher costs the district $80,892; $71,712 in salary and $9,180 in benefits. An entry level teacher's salary is $53,634. The maximum teacher salary is $88,498. 2007-08Ex enditures $ 22,373,478 $ 17,293,786 $1,395,259 $5,210,899 $318,858 $46,592,280 '$ per<.$tudent $4,085 $3,157 $255 $952 $58 $8,507 %ofOTOtal 48% 67% 3% 11.3% .7% 100% Cateo Instructional Salaries Other Salaries Books & Su plies Util. '8, Repairs, Other Capital, Other Out 0 Total Revenues. The single largest source of funding is the revenue limit. This is a state allocation of general purpose money. For 2007-08 the revenue limit is $6,679.51 per student for a total allocation of $35.8 million. This amounts to 77% of all district revenues. The state also provides substantial special purpose funding, or categorical aid, in the amount of $5.7 million. The total state aid, combining general and special purpose funds, is 12% ofthe budget. Only 2.2 % of total funding comes from the federal government. The balance of funding (8.1 %) is local in nature. The largest portion of the local funding is received from the Special Education Local Plan Area (SELPA) for Special Education funding. Although not a part of the district's fmancial bookkeeping, individual school boosters and parent clubs contribute substantially to the district through donations of equipment, materials, landscaping, and innumerable volunteer hours. Category Revenue Limit State Cate orical Aid Lotte Federal Local $35,803,863 $5,026,774 $724,748 $1 ,057,240 $3,764,201 $ 46,376,826 $6,537 $918 $132 $193 $687 $8,467 77% 11.1% 1.6% 2.3% 8.0% 100% Total B2 2007-08 Final Budget BUDGET NARRATIVE The 2007-08 Final Budget is the result of a great deal of work and effort by many people involved with the Dublin Unified School District. The Board of Trustees had provided overall direction in the development of the budget. The Board developed its pledge that: "All Dublin Graduates Will Become Lifelong Learners" and adopted the following tenets: + uWe believe that our most important goal is to improve learning for all students." + "W ebelieve that all students deserve the best possible educational experience." + "We believe that all students can be successful." +"We believe that all students are continuous learners." The "Board Commitments" frame the district's focus on preparing our students to be successful and productive citizens in the 21 st century by providing an educational program that is second to none. These commitments are: 1. All students will receive a rigorous and relevant education that prepares them for any post-secondary option including college or university, the military, or the world of work. 2. All students will be responsible citizens and possess the personal qualities, work habits and attitudes to be successful in life. 3. Dublin Unified School District will provide the staff, resources, and support needed to assist all students in meeting rigorous and relevant standards for graduation. Academic goals for all students: 1. All 3rd 2:raders will read at grade level at the end of 3rd grade. 2. All 8th 2raders will pass Algebra 1. 3. All 2:raduates will communicate competently in at least one other language. 4. All students in grades 2 - 11 will be proficient in the California Standards Tests (CST) in English-Language Arts, mathematics, History- Social Science, and Science. 5. All students will improve their academic performance each year. 6. All students will meet the District's rigorous and relevant standards for graduation. Personal goals for all students: 1. All students will complete the District's character education program "Dublin PRIDE Integrity in Action". 2. All students will enhance their critical thinking and problem solving skills in order to be productive members of our global society. 3. All students will be successful in post- secondary options. The "Commitments" will be reviewed annually. Yearly action plans will detail how the district will achieve these commitments and an accountability system will monitor how we are doing. School staff and school site councils have worked together to prepare their individual site council budgets for Student Improvement Plan (SIP) funds. The site budgets reflect District general fund appropriations given on a per student basis, as well as special purpose appropriations from the Dublin Partners in Education and the state. District staff have worked with school site and program level managers to develop the budget. The budget itself is a financial representation of the district's educational plan. The figures in the budget reflect what is known at this point in time. These figures will change. The figures change will occur when the state finally adopts its budget for next year and determines the exact amount of funding for schools. This will change as the next school year goes on, and as the district makes adjustments in fine-tuning its programs. Preparation of the budget begins in January with the release of the Governor's proposed budget for the State of California for the upcoming year. In that proposed budget, the Governor indicates his estimate of school revenues. Since the district receives 80% of its funding from the state, the state budget is critical to our operations. C-5- The budget gets modified and adjusted many times from January 2007 on. The district's final budget, according to state law, is adopted prior to July 1. The budget is modified and adjusted many times thereafter. Adoption of the state budget and the closing of the district books, both of which usually occur in the summer months, provide additional information, which causes the budget to be adjusted. Throughout the school year, the budget is monitored closely and continues to be adjusted. The district's budget is comprised of several funds. The General Fund, by far the largest and most significant fund, is approximately $47 million in size. The General Fund is used to account for the day-to-day operations of the district. The General Fund budget for 2007-08 is based ona 4.53% cost of living adjustment (COLA) in funding from the state and enrollment growth of 298 students. The district's General Fund is divided into two sections: Unrestricted funds and Restricted funds. Restricted funds are monies received by the district, which are categorical in natUre, i.e., they can only be used for the purposes proscribed by the funding agency. The state and federal governments provide such funding for many such special programs or projects. For example, special education funds are restricted. They can only be spent on students with identified special needs and in the manner outlined in state and federal law. Restricted funds are, in some cases, provided directly to the schools and in other cases are controlled centrally by the district. In either case, how the district spends these monies is determined by restrictions imposed by the granting agency. Unrestricted funds are monies which are available for general use and are not restricted in their use. The district can spend unrestricted monies on whatever programs it chooses. Examples of unrestricted funds include the district's Revenue Limit appropriation, lottery revenues, and rental and lease income. In addition to the General Fund, the district has other special purpose funds. These funds are used to account for monies, which can only be spent on their designated purpose. The funds are designated as follows: A. Special Revenue Funds; Adult Education, Child Nutrition, Special Reserve, Deferred Maintenance B. Capital Project Funds; Building (Bond) Fund, Capital Facilities (Developer Fees) Fund, and County School Services (Modernization); C. Debt Service Funds Bond Interest and Redemption KEY ASSUMPTIONS REVENUES Revenue Limit - The Revenue Limit is the largest and most significant source of funding for the district. It is unrestricted or general purpose in nature. Based on state law, the district receives a set amount of funding per student (revenue limit). In 2007 -08 the revenue limit funding for Dublin is $6,679.51 per student, for a total of $38,803,863. This amount is greater than 2006-07 because of the proposed 4.53% COLA, a projected increase of 298 students, and the continued elimination of the revenue limit deficit. The base Revenue Limit for the district was established at unification and gets adjusted annually by a specified measure of inflation. This annual inflationary/deflationary adjustment is called a Cost of Living Adjustment (COLA). In 2007-08 the State of California has had sufficient resources to fully fund the revenue limit for schools, due to the state revenue increases. Districts are still receiving less in 2007-08 than they are entitled to under the revenue limit formula. The Education Coalition has reached agreement with the governor to allocate state resources to the state funding shortages from previous years. The deal is funding districts in Deciles 1 - 3. C-6- The Revenue Limit is calculated through a complex formula. The base of that formula is a per pupil allocation multiplied by the number of students in the district. Based on a projected average daily attendance (ADA) of 5,300 students and a per pupil allocation of $6,679.51, the base calculation gives a total of almost $36 million. This amount is adjusted by other components of the revenue limit calculation, including summer school funding, unemployment insurance rates, classified employee retirement contribution rates, beginning teacher salary adjustments, and meals for needy adjustment. The total revenue limit totals $35,803,863. Local property tax revenues are subtracted from the total to give the amount of state aid necessary to fund the revenue limit. Typically the amount of local property taxes collected is less than the total revenue limit amount. The state makes up the difference with an allocation of state monies. In some districts, though, the amount of local property tax collected is actually larger than the total revenue limit amount. These districts' are called Basic Aid districts. They get to keep the entire property tax collection plus a nominal "basic aid" amount of state funding of $120 per pupil. Dublin Unified School District's property tax collections make up 56% of the total revenue limit. The district receives some property tax collections, which formerly were kept by counties. These monies are known as Education Revenue Augmentation Funds (ERAF). Due toa change in state law, counties are now required to give these monies to schools thereby reducing the state aid contribution to the revenue limit. ERAF tax collections do not count as property taxes in determining if a district is Basic Aid. Without ERAF monies, property taxes make up 45% of the district's revenue limit. Federal Revenue The district receives approximately $1,057,240 in federal funding for special purpose programs. The largest federal program in the district is a funding allocation for special education, IDEA, Local Assistance. This allocation brings the district approximately $673,093. Other federally funded programs include funding for supplemental books, supplies, and equipment, No Child Left Behind (NCLB), Title I; Basic Grant (Low Income); funds for drug, alcohol, and tobacco education; NCLB - Title II, Teacher Quality; and NCLB - Title III, Limited English Proficient Students); and child nutrition (food services funding). Funding for these programs is entirely categorical, that is the monies received can only be spent for the purpose specified by the granting agency. Federal funding for the district in 2007-08 is expected to decrease due to increased socioeconomic status of Dublin's students and general federal government reductions in funding levels. The District has applied for Federal Impact Aide and expects to receive the first allocation in December, estimated at $100,000. Other State Revenues - Special programs funded by the state are accounted for in the revenue category called Other State Revenues. Lottery revenues and class size reduction, which are not restricted funds, are also included in this category. The amount of Other State Revenues estimated for 2007-08 is $5,751,520. In 1996/97 the state offered incentive funding to districts to reduce class size. $600 per student was given to every student in grades 1, 2, and 3 who was in class with 20 or fewer students. Dublin Unified School District participated in this program in all three grades in every school in the district. Implementing this Class Size Reduction program costs more than it was funded. The state is funding the Class Size Reduction program in 2007-08 at $1,066 per K-3 student for total funding to District of$1,958,859. Other state revenues also include funding for gifted and talented education (GATE), transportation for special education students, education of students with limited English proficiency (EIA), state approved textbooks (State Instructional Materials), Peer Assistance and Review, class size reduction grade nine, child nutrition, and drug, alcohol, and tobacco education. Until the state budget is adopted for 2007-08, it is assumed that these programs will be funded at the same level as in the current year. The state revenues were regrouped and categorized by state administration to increase flexibility for school districts. Unfortunately the regrouping did C-7 - not increase funding substantially but just provided some cost of living adjustments and allocations for growth. This plan for funding has Dublin at a disadvantage as our local growth is substantially higher than statewide growth. The major changes are itemized below: School improvement programs (SIP) were combined with the school library programs, with no funding allocated to school library at this time. A Pupil Retention Block Grant grouped capped hourly programs (K-12 Core Academic, Grade 2-6 Academically Deficient, Grade K-4 Reading, Grade 7-8 Algebra) with Continuation High School and 10th Grade Counseling. Professional Development Block Grant combined staff development buyback days with teaching as a priority (TAP). New rules apply for staff development days but Dublin has put the funding in the teachers' calendar days and thus in the teacher salaries. School Safety Consolidated Competition Grant combined safe school planning, safety planning for new schools, conflict resolution programs and various violence prevention programs. Lottery - Proceeds from lottery ticket sales augment school districts' budgets. Lottery funds are distributed throughout the state on a per pupil basis. Actual apportionments of lottery funds typically occur from four to six months after ticket sales, due to the complexities of accounting and distribution of prize winnings. Funding for 2007-08 is budgeted at $123.20 per pupil, for an annual amount of $724,748. Lottery funding was changed by Proposition 20. The funding was divided into a restricted portion for purposed of instructional texts and continued an unrestricted portion. The unrestricted portion of lottery is $625,872 and restricted is $98,876. The Proposition lottery revenues make up 1.7% of the district's total income in 2007-08. Other Local Revenue - The district anticipates receiving $3,764,202 in Other Local Revenue. The largest source of local revenues are from the Special Education Local Plan Area (SELP A) at $3,079,238. The next largest source is $615,631 from the Regional Occupation Program (ROP). The other local revenue sources are lease and rental income, interest earnings on district monies, and local donation income. Revenues from tenant leases and facility users are projected to be $83,652. Interest rates are expected to remain in the 3.5% range and are budgeted at $175,000, and TRANS at $268,811. EXPENDITURES Classroom Teachers - A total of 294.47 full time equivalent teachers are budgeted for 2007-08. Of this total, 253.87 are regular classroom teachers, 33.75 FTE are special education teachers, and the rest are specialists (physical education, music, ESL, ROP, etc.). Class size in grades K-3 averages 20 students. Classroom teachers represent 85% of the total cost for certificated employees. The average salary for classroom teachers in the district is $71,712. The district pays employer statutory costs and dental benefits for teachers at an average of $9,180 per teacher. Salary negotiations with teachers for 2007-08 have been concluded. Beginning with 2007-08, teachers will receive a salary increase equivalent to the effective Revenue Limit Cost of Living Adjustment of 3.8% and .11 % of the COLA has been applied to increase the Delta Dental Cap from $1,000 to $2,000, for a total of 3.91 % salary and benefit adjustment. This increase has not been included in the budget. Funds for settlement are set aside in fund balances. Salary increases for professional growth are included in the budget. This is projected to be $80,000. Other Staff - The balance of the salary accounts are instructional aides, certificated and classified leadership, and support staff including behaviorists, occupational therapists, maintenance and operations personnel, library aides, health clerks and all clerical personnel. Employee Benefits - The district is required by law to provide certain benefits to its employees. These statutory benefits include retirement funding (State Teachers Retirement System, STRS, for certificated employees and Public Employees Retirement System, PERS, for classified employees), social security contributions (OASDI), Medicare contributions, unemployment insurance (UI), and workers' compensation benefits. The sum total C-8- budgeted for statutory benefits for all employees for next year is $6,005,983. In addition to statutorily required benefits, the district provides dental benefits for teachers and a capped fringe benefit amount of $5,915 for each classified full time equivalent. Board members are also offered a capped fringe benefit package amount of $1,500 to participate in the district provided and approved health and welfare benefits. The cost of the benefits provided is $1,299,293. Included in the benefit accounts are the certificated golden handshake and retirement incentive costs of $90,301. In the next three years the costs will decline to $86,008, and $70,807. The District has obligations to payout on retirement incentives until 2012-2013. The past five years health and welfare costs have had double digit increases impacting all units' take home pay. The district took action in 2001-02 to reduce costs by changing to the PersCare medical plan. This provider has large purchasing power and carl assist the district in managing the upward spiraling costs of health care. Books & Supplies - A small portion, 3%, of the district budget is utilized for the purchase of books and supplies. A large portion of that amount comes from state and federal categorical funds. Funds are distributed to program managers, usually on a per student basis, and individual schools and programs have discretion over how they are spent. School allocations are $13.54 per student at the elementary level and $37.13 per student at the middle school and high school. District office program manager allocations have been reduced 30% for the last four years and sites have been reduced 15%. Budget enhancements in 2005-06 increased school supply accounts by 10%. Schools site budgets have been increased by 4.53% COLA adjustment in 2007-08 budget. Services, Other Operating Expenses - The district spends $5,210,899 in this expenditure category, or 11 % of the total budget. The major components include utilities, insurance, contracts for repair services, and non-public school services for severely handicapped children. The district has little or no control over the costs of most of the services in this category. Where appropriate, inflationary costs for C-9- maintenance agreements, utilities, and Insurances have been included. Other Outgo - The district operates the Regional Occupation Program (ROP) as a joint powers agreement (JP A) with Pleasanton. The district flows the ROP revenue of $615,631 to Pleasanton to run the program. Direct Support/Indirect Cost - The District also collects indirects, a charge for district overhead or fixed costs to other funds. Indirects are charged to the adult and child nutrition funds. The amount collected form both these funds is $73,815. The district also collects direct charges for the administration of collecting developer and mitigation fees. The district can collect up to 3% of revenues received. FUND BALANCE Beginning Balance - The actual beginning balance for 2007-08 will not be known until September, . after the district books are closed. At this time it is projected to be $2,438,071. This amount represents an increase in fund balance of $282,313. This increase in fund balance is due to receipt of $743,000 in mandated costs from prior years, back to 92-93. The district did not budget or spend the revenue due to cautions from the state that the revenue could be recaptured from the State Controller in the audit process. Various revenues have been permanently reduced and this amount is over $2 million for Dublin. This represents a 6.233% deficit in funding, cumulative from prior years. The state funding deficit is now at -0-%. Ending Balance - For the 2007-08 year the district is projected to deficit spending at $215,454. The general fund is expending $215,454 more in expenditures than it earns in revenues. The following years the district growth and the elimination of golden handshake payment should help aid the district in reducing deficit spending. The ending balance for the last several years IS shown in the graph on the following page. Restrictions on Ending Balance - In the 2007-08 ending balance of $2,222,747 are certain designations that are legally required to be maintained. The district has a $25,000 revolving cash fund. The district warehouse has approximately $24,534 of inventory (stores). Reserves - The state requires districts the size of Dublin Unified to maintain a 3% reserve. The district meets the requirement. Based on the projected 2007-08 expenditures that reserve requirement is $1,397,769. Districts are allowed to use their reserve funds during the year (they are for emergencies and to help buffer loss of state and other revenues), but they must replenish those reserves at the year's end. C-10- Attachment E Organization's certificate of insurance showing coverage for liability and workers' compensation Client#: 2071 ALAMECSIG ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE (MMfDDIYYYY) 1/23/08 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PRODUCER Keenan & Associates 1111 Broadway, Suite 2000 Oakland, CA 94607 Alameda County Schools Ins Group PO Box 2487 Dublin, CA 94568 INSURERS AFFORDING COVERAGE INSURER A: American International Group INSURER B: Specialty Underwriters Alliance Ins. INSURER C: INSURER D: INSURER E: NAIC# INSURED THE POliCIES OF INSURANCE liSTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POliCY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POliCIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POliCIES. AGGREGATE liMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR DD'I: TYPE OF INSURANCE PJ>l-~~~,;~fJ'g~E P~~fJ lif.rJ~reN LIMITS LTR NSRr POLICY NUMBER ~ERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ - ;=:J CLAIMS MADE 0 OCCUR - MED EXP (Anyone person) $ - PERSONAL & ADV INJURY $ - GENERAL AGGREGATE $ ~'L AGGREAE LIMIT APPlS PER: PRODUCTS - COMP/OP AGG $ POLICY j~& LOC ~TOMOBILE LIABIUTY COMBINED SINGLE LIMIT $ ANY AUTO (Ea accident) ~ ALL OWNED AUTOS . ~ BODILY INJURY $ SCHEDULED AUTOS (Per person) ~ - HIRED AUTOS BODILY INJURY $ NON-OWNED AUTOS (Per accident) - - PROPERTY DAMAGE $ (Per accident) ~RAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGG $ OESSfUMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR 0 CLAIMS MADE AGGREGATE $ $ R DEDUCTIBLE $ RETENTION $ $ A WORKERS COMPENSATION AND WC4644625 07/01/07 07/01108 l wc STATU-.I X lOJ);!- EMPLOYERS' LIABILITY SIR $1,000,000 $$1,000,000 ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT OFFICER/MEMBER EXCLUDED? WC Limit$50,000,000 E.L. DISEASE - EA EMPLOYEE $$1,000,000 If yes, describe under E.L. DISEASE - POLICY LIMIT $$1,000,000 SPECIAL PROVISIONS below B OTHER Excess Worke WSRSWCOO025202 07/01/07 07/01/08 SIR $250,000 WC Limit $750,00 DESCRIPTION OF OPERATIONS f LOCATIONS f VEHICLES f EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS Re: Grant applications submitted by the Dublin Unified School District to the City of Dublin for organizational funding requests for fiscal year 2007 2008. COVERAGES CERTIFICATE HOLDER CANCELLATION CITY OF DUBLIN 100 Civic Plaza Dublin, CA 94568 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL --1.0.- DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR ACORD 25 (2001/08) 1 of 2 #S11881/M11027 R3M @ ACORD CORPORATION 1988 IMPORT ANT If the c€!rtificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25-5 (2001/08) 2 of 2 #S11881/M11027 DUBLlUNIF ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DDIYYYY) 1/23/2008 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PRODUCER ABD Insurance and Financial Services 1039-A North McDowell Blvd. Petaluma, CA 94954 707-769-2900 INSURED Alameda County School Insurance Group JPA Dublin Unified School District 7471 Larkdale Avenue Dublin CA 94568 COVERAGES INSURERS AFFORDING COVERAGE INSURER A: Bay Area Schools Insurance Coop INSURER B: INSURER C: INSURER D: INSURER E: NAIC# THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. II~iFf ~~~~ TYPE OF INSURANCE POLICY NUMBER PJ>B~~:~)l8~E P%~fl ~~/~treN LIMITS A ~NERAL LIABILITY BGL07012007 7/1/2007 7/1/2008 EACH OCCURRENCE $ 5.000,000 X nMERCIAL GENERAL LIABILITY DAMAGE TO RENT';~M"~' $ ~ CLAIMS MADE 0 OCCUR MED EXP (Anyone person) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ n'L AGGREnE LIMIT APAS PER: PRODUCTS - COMP/OP AGG $ POLICY ~~8T LOC ~TOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO (Ea accident) - - ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS (Per person) - - HIRED AUTOS BODILY INJURY $ NON-OWNED AUTOS (Per accident) - - PROPERTY DAMAGE $ (Per accident) ~RAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGG $ :=JESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR 0 CLAIMS MADE AGGREGATE $ $ R DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND I //,gJ:~J.~;, I IOJ~- EMPLOYERS' LIABILITY $ ANY PROPRIETOR/PARTNER/EXECUTIVE E.l. EACH ACCIDENT OFFICER/MEMBER EXCLUDED? E.l. DISEASE - EA EMPLOYEE $ If yes, describe under E.l. DISEASE - POLICY LIMIT $ SPECIAL PROVISIONS below OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS RE: Grant applications submitted by the Dublin Unified School District to the City of Dublin for organizational funding requests during the remainder of the 2006-2007 fiscal year and for fiscal year 2007-2008. A renewal certificate for 2007-2008 will be issued at expiration. The City of Dublin is named as additional insured under General Liability per attached endorsement CG2026 1185, but only as to the liability arising out of the negligent acts of the named insured, with respects to the grant CERTIFICATE HOLDER CANCELLATION Ten Day Notice for Non-Payment City of Dublin Attn: Roger Bradley 100 Civic Plaza Dublin CA 94568 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE TI'IEREOF. THE ISSUING INSURER WILL ENDEAVOR TO MAIL ~ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ~ ~ @ ACORD CORPORATION 1988 ACORD 25 (2001/08) 1 of 2 105526 This certificate replaces certificate# 50353 issued on 6/22/2007 DESCRIPTIONS (Continued from Page 1) applications referenced above. ACORD 25-5 (7/97) @ACORDCORPORATION 1988 IMPORT ANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25-5 (2001/08) 2 of 2 #S915260/M915043 POLICY NUMBER: BGL07012007 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name of Person or Organization: City of Dublin Attn: Roger Bradley 100 Civic Plaza Dublin CA 94568 (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. RE: Grant applications submitted by the Dublin Unified School District to the City of Dublin for organizational funding requests during the remainder of the 2006-2007 fiscal year and for fiscal year 2007-2008. A renewal certificate for 2007-2008 will be issued at expiration. The City of Dublin is named as additional insured under General Liability per attached endorsement CG2026 1185, but only as to the liability arising out of the negligent acts of the named insured, with respects to the grant applications referenced above. CG 20 26 11 85 Copyright, Insurance Services Office, Inc., 1984 Page 1 of 1 o Attachment F Application Verification Declaration Signature Page City of Dublin Fiscal Year 2008-2009 Application for Funds ApPLICATION VERIFICATION I attest that the information contained in this FY 2008-2009 grant application is accurate and that the funds requested will not supplant any other monies secured by the organization. Attached is a resolution, letter, or other document providing evidence that the Board of Directors approved the application as submitted. Successful applicants are required to submit a summary report as soon as possible after submitting the reimbursement request, but not later than August 30,2009. Failure to submit a report will result in ineligibility for future funding. Signatures:_; , ,I' O. J b' ; i / -+----- c:::>. _. l , /( \ A.h',),. 1 'tN"\/~A.lL Execufve Director I -'. .1 I. ......,.' /.1 /,-,..1_/ . . .. -.." J '(1' I / .P' { /..1 II " "L, , - I Date I ' '" \ ~ '/;L( ~ 08 Date SECTION 2 Page17 of22 City of Dublin Fiscal Year 2008-2009 Application for Funds COLLABORATION AGENCY AFFIDAVIT FORM o This form is to be completed by each collaborating organization as named by the applicant agency in the proposed project/program. o Completed forms must be submitted at time of application. Collaborating Agency Name: Agency Division/Department: Project/Program Title: Project/Program Role Description (i.e., facility space, staff support, etc.): AgencyProject/Program Contact Person Title Phone Email I attest that the applicant agency and our organization agree to work collaboratively to implement the proposed project/program as identifiedinthe FY2008-2009 funding application. Executive Director Date Project/Program Contact Person Date SECTION 2 Page 18 of22 CITY OF DUBLIN Fiscal Year 2008-2009 COMMUNITY GROUP/ORGANIZATIONAL FUNDING PROGRAM REQUEST FOR REIMBURSEMENT AGENCY NAME MAILING ADDRESS FOR REIMBURSEMENT: PROJECT/PROGRAM NAME CLAIM # OF TOTAL FUNDING AMOUNT AWARDED TOTAL REIMBURSEMENT REQUESTED THIS PERIOD $ $ (Ifrequesting project/program "start-up;' funding, please describe initial funding use above.) I attest that the above listed expenses are accurate and true and have been used as represented in the approved funding application. Submitted by: Signature: Date: SECTION 2 Page 19 of22 CITY OF DUBLIN Fiscal Year 2008-2009 COMMUNITY GROUP/ORGANIZATIONAL FUNDING PROGRAM SUMMARY REpORT (Summary Report must be completed and submitted prior to August 31, 2009.) AGENCY NAME MAILING ADDRESS: TELEPHONE: PROJECT/PROGRAM NAME: TOTAL FUNDING AMOUNT AWARDED $ TOTAL REIMBURSEMENT RECEIVED $ 1.) How has the PROJECT/PR()G~addressedanumnet cOmmunity need and improved the quality of life for Dublin residents. (Additional page may be added, if needed): 2.) Please evaluate the success of your project/program. Were the goals outlined in the application met? Was the project/program carried out efficiently? Please use the objectives identified in your application to discuss your program/project's success and impact. Include any documentation/data/records you have that support your conclusions. SECTION 2 Page 20 of 22 City of Dublin Fiscal Year 2008-2009 SUMMARY REPORT 3) How many total participants were served by this project/program? How many of those participants are Dublin residents? I attest that the above listed information is accurate and true. Submitted by: Signature: Date: SECTION 2 Page 21 of22 AGREEMENT BETWEEN CITY OF DUBLIN AND (Dublin Unified School District) THIS AGREEMENT, dated for identification this _ day of _ 2008, is entered into between the City of Dublin ("City") and (Dublin Unified School District). RECITALS A. Dublin Unified School District has asked City to contribute $11.000 ( Eleven Thousand Dollars) for use by All Schools K-12 in the City of Dublin to cover Jeff Sava2e author visits costs in order to provide the services as described in Exhibit A. The services rendered pursuant to this agreement will be for the period July 1, 2008 through June 30, 2009. B. City has determined that it isin the interest of the residents ofthe City of Dublin to make a donation of $11.000 (Eleven Thousand Dollars) for such purpose, provided certain AGRE~~;;s are metto~~'0ttu;;~e.sejieeS~~~efi1 the residents of City. City and (Dublin Unified School Districtlagree asfollovvs: 1. Recitals The foregoing recitals are trueaIidcorrect and are part of this agreement. 2. City Donation City shall donate $11.000 (Eleven Thousand Dollars) to be used by Dublin Unified School District to beusedfor.operationalsupportfor"Inte2ritv In Action With Literacv" as described in Exhibit A to this Agreement. The donation shall be paid upon invoice to the City. 3. Records Each School shall maintain records for project/program review, evaluation, audit and/or other purposes and make them available to City upon request. 4. Periodic Reports Upon request by City, (Dublin Unified School Districtlshall provide reports describing the progress made by each school accomplishing the goals and objectives outlined in the work plan. CITY OF DUBLIN Dated: By: Richard C. Ambrose, City Manager Dated: By: Title: SECTION 2 Page 22 of 22 0' .., -1-.. ... r> '0 ''l\l "'r\ Iii' I T. I', ,. r-, 1-. ,., r,-c~. ,; ,- ~'. ,J, ,. ,IF"'! ,to-'. "'.'.'. ,.1'''''",~ ~ Ii l', l'f.L - _'-.. '" ~ 0; ;",.. ACCOUNTANTS DUBLIN UNIFIED SCHOOL DISTRICT COUNTY OF ALAMEDA DUBLIN, CALIFORNIA FINANCIAL STATEMENTS WITH SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2007 AND INDEPENDENT AUDITOR'S REPORT DUBLIN UNIFIED SCHOOL DISTRICT FINANCIAL STATEMENTS WITH SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2007 TABLE OF CONTENTS Paae Independent Auditor's Report 1-2 Management's Discussion and Analysis 3-9 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets 10 Statement of Activities 11 Fund Financial Statements: Balance Sheet - Governmental Funds 12 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 13 Statement of Revenues, Expenditures and Change in Fund Balances - Governmental Funds 14-15 Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances - Governmental Funds - to the Statement of Activities 16 Statement of Revenues, Expenditures and Change in Fund Balance - Budget (Non-GAAP) and Actual - Major Fund - General Fund 17 Statement of Fiduciary Net Assets - Agency Funds 18 Notes to Basic Financial Statements 19-31 Supplementary Information: Combining Balance Sheet - All Non-Major Funds 32 Combining Statement of Revenues, Expenditures and Change in Fund Balances - All Non-Major Funds 33 DUBLIN UNIFIED SCHOOL DISTRICT FINANCIAL STATEMENTS WITH SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2007 TABLE OF CONTENTS (Continued) Page Supplementary Information: (Continued) Combining Statement of Changes in Assets and Liabilities - Agency Funds 34-35 Organization 36 Schedule of Average Daily Attendance 37 Schedule of Instructional Time 38 Schedule of Expenditure of Federal Awards 39 Reconciliation of Unaudited Actual Financial Report with Audited Financial Statements 40 Schedule of Financial Trends and Analysis 41 Schedule of Charter Schools 42 Schedule of Excess Sick Leave 43 Notes to Supplementary Information 44 Independent Auditor's Report on Compliance with State Laws and Regulations 45-47 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 48-49 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 50-51 Findings and Recommendations: Schedule of Audit Findings and Questioned Costs 52-59 Status of Prior Year Findings and Recommendations 60-62 PERRY-SM~TH LLP . ~ ACCOUNTANTS 400 Capitol Mall, Suite 1200 Sacramento, CA 95814 www.perry-smith.com 916.441.1000 INDEPENDENT AUDITOR'S REPORT Governing Board Dublin Unified School District Dublin, California We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Dublin Unified School District, as of and for the year ended June 30, 2007, which collectively comprise Dublin Unified School District's basic financial statements as listed in the Table of Contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of Dublin Unified School District as of June 3D, 2007, and the respective changes in financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2007 on our consideration of Dublin Unified School District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Management's Discussion and Analysis is not a required part of the financial statements, but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. H f\/! EN ^ SA NCI CO I\. ROSE\/ILLE ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT (Continued) Our audit was conducted for the purposes of forming an opinion on the financial statements that collectively comprise Dublin Unified School District's basic financial statements. The accompanying financial and statistical information listed in the Table of Contents, including the Schedule of Expenditure of Federal Awards, which is required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part of the basic financial statements of Dublin Unified School District. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. re.{{}-5",,~~ lM' Sacramento, California December 12, 2007 MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2007 This section of Dublin Unified School District's annual financial report presents management's discussion and analysis of the District's financial performance during the fiscal year that ended on June 30, 2007. Please read it in conjunction with the District's financial statements, which immediately follow this section. OVERVIEW OF THE FINANCIALSTATEMENTS The Financial Statements The financial statements presented herein include all of the activities of Dublin Unified School District (the District) using the integrated approach as prescribed by GASB Statement Number 34. The Government- Wide Financial Statements present the financial picture of the District from the economic resources measurement focus using the accrual basis of accounting. These statements include all assets of the District (including capital assets) as well as all liabilities (including long-term liabilities). Additionally, certain eliminations have occurred as prescribed by the statement in regards to interfund activity, payables and receivables. The Fund Financial Statements include statements for each of the two categories of activities: governmental and fiduciary. The Governmental Activities are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The Fiducimy Activities are agency funds, which only report a balance sheet and do not have a measurement focus. Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach. The Primary unit of the government is Dublin Unified School District. 3 FINANCIAL HIGHLIGHTS OF THE PAST YEAR . District managed to increase the state recommended reserve for economic uncertainty from 3 percent to 4 percent by placing mandated cost revenues of$773,471 in reserve. . The experienced enrollment growth at the high level scenario for the first time, over 249 students at 5% growth . Special education expenditures continue to increase beyond Federal, State and local resources, our encroacrunent percentage is at 9 % at year end and totals $2,311,719. REPORTING THE DISTRICT AS A WHOLE The Statement of Net Assets and the Statement of Activities The Statement of Net Assets and the Statement of Activities report information about the District as a whole and about its activities. These statements include all assets and liabilities of the District using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the District's net assets and changes in them. Net assets are the difference between assets and liabilities, one way to measure the District's financial health, or jinancial position. Over time, increases or decreases in the District's net assets are one indicator of whether itsjinancial health is improving or deteriorating. Other factors to consider are changes in the District's property tax base and the condition of the District's facilities. The relationship between revenues and expenses is the District's operating results. Since the Board's responsibility is to provide services to our students and not to generate profit as commercial entities do, one must consider other factors when evaluating the overall health of the District. The quality of the education and the safety of our schools will likely be an important component in this evaluation. In the Statement of Net Assets and the Statement of Activities, the District activities are presented as follows: Governmental activities - Most of the District's services are reported in this category. This includes the education of kindergarten through grade twelve students, adult education students, the operation of child development activities, and the on-going effort to improve and maintain buildings and sites. Propel1y taxes, state income taxes, user fees, interest income, Federal, State and local grants, as well as general obligation bonds, finance these activities. REPORTING THE DISTRICT'S MOST SIGNIFICANT FUNDS Fund Financial Statements The fund financial statements provide detailed information about the most significant funds - not the District as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money that it receives from the Federal government and the State of California. 4 THE DISTRICT AS TRUSTEE Reoortinrz the District's Fiduciary Resoonsibilities The District is the trustee, or fiduciary, for funds held on behalf of others, like our funds for associated student body activities. The District's fiduciary activities are reported in separate Statements of Fiduciary Net Assets. We exclude these activities from the District's other financial statements because the District cannot use these assets to finance its operations. The District is responsible for ensuring that the assets reported in these funds are used for their intended purposes. THE DISTRICT AS A WHOLE Net Assets The District's net assets were $217,351,161 and $190,281,841 for the fiscal years ended June 30, 2007 and 2006, respectively. Of this amount, $947,285 and ($79,405) were unrestricted for each respective year. Restricted net assets are reported separately to show legal constraints from debt covenants and enabling legislation that limit the School Board's ability to use those net assets for day-to-day operations. Our analysis below focuses on the net assets (Table 1) and change in net assets (Table 2) of the District's governmental activities. Table 1 Current and other assets Capital assets Total Assets 2007 Governmental Activities $55,946,299 . $251,018,921 $306,965,220 2006 Governmental Activities $62,659,232 $218,220,543 $280,879,775 Current liabilities Long-term debt Total Liabilities $ 8,780,186 $80,833,873 $89,614,059 $ 9,687,634 $80,910,300 $90,597,934 Net Assets Invested in capital assets, net of related debt Restricted Unrestricted Total Net Assets $172,510,847 $43,893,029 $947,285 $217,351,161 $135,489,149 $54,872,097 ($79,405) $190,281,841 Umestricted net assets of governmental activities represents the accumulated results of all past years' operations. It means that if we had to payoff all of our bills today including all of our non-capital liabilities (compensated absences as an example). We will need to closely monitor our expenditures in the future and adhere strictly to the budget to increase the net assets. 5 Chanf.!es in Net Assets The results of this year's operations for the District as a whole are reported in the Statement of Activities. Table 2 takes the information from the Statement, rounds off the numbers, and rearranges them slightly so you can see our total revenues for the year. Table 2 2007 Governmental Activities 2006 Governmental Activities Revenues: Program revenues Charges for services Operating grants and contributions Capital grants and contributions General Revenue: Federal and State aid Property taxes Other general revenues Total Revenues $7,464,132 $10,254,340 $18,076,031 $6,111,288 $8,613,384 $0 $15,794,197 $27,565,046 $663,609 $79,817,355 $12,749,276 $24,549,919 $614,860 $52,638,727 Expenses: Instruction and instruction related Student support services Administration Maintenance and operations Other Total Expenses Change in Net Assets $34,397,868 $3,469,622 $3,370,504 $7,137,451 $4,342,590 $52,748,035 $27,069,320 $30,875,187 $3,229,552 $2,725,666 $9,308,219 $6,174,650 $52,313,274 $325,453 Governmental Activities As reported in the Statement of Activities on page 11, the cost of all of our governmental activities was $52,748,035 and $52,313,274 for 2007 and 2006, respectively. However, the amount that our taxpayers ultimately financed for these activities through local taxes was only $27,565,046 and $24,549,919 for 2007 and 2006 because the cost was paid by those who benefited from the programs ($7,464,132 and $6,111,288 for 2007 and 2005) or by other governments and organizations who subsidized certain programs with grants and contributions ($10,254,340 and $8,613,384 for 2007 and 2006). We paid for the remaining "public benefit" portion of our governmental activities with State funds and with other revenues, like interest and general entitlements. In Table 3, we have presented the net cost (total cost less revenues generated by the activities) of each of the District's seven largest functions - regular program instruction, guidance and counseling, school administration, pupil transportation, administration; maintenance and operations, and other services as well as each program's net cost. As discussed above, net cost shows the financial burden that was placed on the District's taxpayers by each of these functions. Providing this information allows our citizens to consider the cost of each function in comparison to the benefits they believe are provided by that function. 6 Table 3 2007 Net Cost of Services $2,870,034 $1,393,743 $3,170,597 $269,695 $2,984,170 $6,322,126 $56,833 2009 Net Cost of Services $20,487,802 $1,142,641 $2,896,361 $226,160 $2,424,789 $7,214,508 $3,196,341 Instruction Guidance and counseling School Administration Pupil Transportation Administration Maintenance and operations Other Net Cost (Revenue) of Governmental Activities $16,953,532 ($37,588,602) THE DISTRICT'S FUNDS As the District completed this year, our governmental funds reported a combined fund balance of$47,961,295, which is a decrease of $8,006,769 from last year. The primary reasons for this decrease: a. Our General Fund is our principal operating fund. The fund balance in the General Fund increased from $2,155,758 to $3,408,767. This increase is due primarily to growth in average daily attendance from the adopted budget, entitlement carryover balances and mandated reimbursements. b. Our Capital Projects Fund balances collectively decreased from $49,072,545 to $38,233,827. This increase is primarily due to the costs associated with the ongoing modernization and bond projects at various school sites. General Fund Budrzetarv Highlights Over the course of the year, the District revises its budget as it attempts to deal with unexpected changes in revenues and expenditures. The final amendment to the budget was adopted as the books were closed in September 2007. A schedule showing the District's original and final budget amounts compared with amounts actually paid and received is provided for the General Fund in our annual report. }> Significant revenue revisions made to the 2006/07 Budget were due to Special Education AB602 revenues and increased emollment for the revenue limit calculations. }> Actual expenditures increased from the original budget by $35,461 due to significant carryovers from restricted funding in the instructional programs and ADA growth causing increased staffing costs. CAPITAL ASSET & DEBT ADMINISTRA TION Capital Assets At June 30,2007, the District had $251,018,921 in a broad range of capital assets, including land, buildings, and furniture and equipment, net of accumulated depreciation. This amount represents a net increase (including additions, deductions and depreciation) of $32,798,378 or 15.03 percent from last year. 7 Table 4 Land Construction in progress Building and improvements Equipment Total Assets 2007 Governmental Activities $143,122,043 $73,839,547 $33,133,586 $923,745 $251,018,921 2006 Governmental Activities $143,122,043 $44,245,110 $30,052,457 $800,933 $218,220,543 This year's major additions included: $18,477,222 $6,118,944 $647,915 $7,162,226 $5,993 $0 $0 $936,293 $33,348,593 $752,295 $0 $0 $9,726,104 $3,008,146 $1 ,506 $2,680,631 $22,494 $16,191,176 Green Elementary Dublin High School, Phase I Dublin High School, Phase II Fallon Middle School Dublin High Renovation Valley High School Portables Wells Remodeling Kolb Elementary This year's major additions of $33,348,593 included school modernization at various sites. No debt was issued for these additions. More detailed information about our capital assets in Note 4 to the financial statements. Lonf!:-Term Obligations At the end of this year, the District had $80,501,520 million in bonds outstanding versus $82,731,394 million last year. Those bonds consisted of: Table 5 Current Interest Bonds Premium Total Assets 2007 Net Cost of Services $79,505,000 $996,520 $80,501,520 2006 Net Cost of Services $81,685,000 $1,046,394 $82,731,394 The District's general obligation bond rating continues to be liMA." The State limits the amount of general obligation debt that District's can issue to 2.5 percent of the assessed value of all taxable property within the District's boundaries. The District's outstanding general obligation debt of $80,501 ,520 million is significantly below this $204,953,707 million statutorily - imposed limit. Other obligations include compensated absences payable and early retirement incentives. We present more detailed information regarding our long-term liabilities in Note 5 of the financial statements. 8 SIGNIFICANT ACCOMPLISHMENTS OF FISCAL YEAR 2005-2006 ARE NOTED BELOW: The District continued to maintain the state recommended 3% reserve and increase to 4% reserve, with maintenance state, federal and local revenues. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES In considering the District Budget for the 2007/2008 year, the District Board and management used the following criteria: The key assumptions in our revenue forecast are: 1. Average Daily attendance will grow by 298 ADA. 2. Developer Fee collections are based on approximate number of housing units to be constructed in Eastern Dublin. 3. Federal income will remain approximately the same as current year. 4. State income will remain approximately the same as current year and will be updated when more information from the state is received. Expenditures are based on the following forecasts: Grades kindergarten through fifth Grades six through eight Grades nine through twelve Enrollment 2,701 1,242 1,534 The new items specifically addressed in the budget are: I. Step and column are implemented for all bargaining units. 2. There is not a cost of living allowance salary rate adjustment for bargaining units and leadership CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, students, and investors and creditors with a general overview of the District's finances and to show the District's accountability for the money it receives. If you have questions about this report or need any additional financial information, contact the Chief Business Officer, at Dublin Unified School District, 7471 Larkdale Avenue, Dublin, California, 94568-1599, or e-mail at heironimusbeverly@dublin.kI2.ca.us. 9 BASIC FINANCIAL STATEMENTS DUBLIN UNIFIED SCHOOL DISTRICT STATEMENT OF NET ASSETS June 30, 2007 Governmental Activities ASSETS Total assets $ 34,261,863 20,913,892 669,786 100,758 251,018,921 306,965,220 Cash and investments (Note 2) Accounts receivable Prepaid expenses Stores inventory Capital assets, net of accumulated depreciation (Note 4) LIABILITIES Total liabilities 8,642,161 138,025 3,363,559 77.470.314 89,614,059 Accounts payable Deferred revenue Long-term liabilities (Note 5): Due within one year Due after one year NET ASSETS Invested in capital assets, net of related debt Restricted (Note 6) Unrestricted 172,510,847 43,893,029 947,285 Total net assets $ 217,351,161 The accompanying notes are an integral part of these financial statements. 10 Total governmental activities DUBLIN UNIFIED SCHOOL DISTRICT STATEMENT OF ACTIVITIES For the Year Ended June 30. 2007 Net (Expense) Revenues and Changes in Proqram Revenues Net Assets Charges Operating Capital for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities $ 29.306,860 $ 1,892.688 $ 6,468.107 $ 18,076,031 $ (2,870,034 ) 1,469.966 32.854 393,694 (1.043,418) 395,491 2.233 42,933 (350,325) 3.225,551 1.728 53.226 (3,170,597) 403,325 133,630 (269,695) 1,282.615 1,058,492 176,447 (47,676) 1.783.682 713 392.707 (1.390.262) 803,800 34 13 (803,753) 2.566,704 178,317 207.970 (2.180,417) 7,137,451 452.592 362,733 (6,322,126) 241,545 (241,545) 3.518,435 (3,518,435) 612,610 3,844.481 2.022,880 5.254,751 $ 52,748.035 $ 7.464,132 $ 10,254,340 $ 18.076.031 (16.953,532) General revenues: Taxes and subventions: Taxes levied for general purposes 20,573,412 Taxes levied for debt service 6.991,634 Federal and state aid not restricted to specific purposes 15,794,197 Interest and investment earnings 311,011 Miscellaneous 352,598 Total general revenues 44.022,852 Change in net assets 27,069.320 Net assets, July 1, 2006 190,281,841 Net assets, June 30, 2007 $ 217.351,161 Governmental activities (Note 4): Instruction Instruction-related services: Supervision of instruction Instructional library. media and technology School site administration Pupil services: Home-to-school transportation Food services All other pupil services General administration: Data processing All other general administration Plant services Ancillary services Interest on long-term liabilities Other outgo The accompanying notes are an integral part of these financial statements. 11 ~ u i:2 ~ en 25 ...J o o 'J: u en e W i:i: z' ::l Z ::::i [Xl ::l e ~ W W :I: en W u z <( ...J <( [Xl lI) e z ::l 'u. ...J <( ~ Z W :E z D:: W > o <-' Iii - c:: _CI)IIl I1lE'O oE5 ~CI)u. > o <-' .2. wi I1l -:E'O <(,c:: c:: ~ ou. z Ul - Gl 5;"0 .-.- c:: 0.= ~ I1lUu. 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C to co .D -0 C .2 -0 C to en CD ~ :0 Jg co -0 I- DUBLIN UNIFIED SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS June 30, 2007 Total fund balances - Governmental Funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used for governmental activities arenot financial resources and, therefore, are not reported as assets in governmental funds. The cost of the assets is $269,927,794 and the accumulated depreciation is $18,908,873 (Note 4). Long-term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at June 30, 2007 consisted of (Note 5): General Obligation Bonds Premium on refinancing Early retirement incentive In governmental funds, debt issuance costs are recognized as expenditures in the period they are incurred. 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Ol .J:: (5 ro -0 I- rJl Q) U C ro ro .0 -0 C .2 C Q) 0) C ro .J:: U CD z to o o N I'- o o N ci C') Ol C ::::l ...., vi Ol U C CO ro .0 -0 C ::::l IJ.. . .- ~ ::::l ...., vi Q) u C .!2 CO .0 -0 c: ::::l U. DUBLIN UNIFIED SCHOOL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS - TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2007 Net change in fund balances - Total Governmental Funds $ (8,006,769) Amounts reported for governmental activities in the statement of activities are different because: Acquisition of capital assets is an expenditure in the governmental funds, but increases capital assets in the statement of net assets (Note 4). $ 34,153,323 Depreciation of capital assets is an expense that is not recorded in the governmental funds (Note 4). (1,354,945) Repayment of principal on long-term liabilities is an expend- iture in the governmental funds, but decreases the long- term liabilities in the statement of net assets (Note 5). 2,180,000 Unmatured interest on long-term liabilities is not recorded in the governmental funds until it becomes due, but increases the liabilities in the statement of net assets. (37,909) Amortization of debt issuance premiums or discounts for the period are: 49,874 In the statement of activities, expenses related to compen- sated absences and early retirement incentive are measured by the amounts earned during the year. In the govern- mental funds, expenditures are measured by the amount of financial resources used (Note 5). 85.746 35.076.089 $ 27 .069.320 Change in net assets of governmental activities The accompanying notes are an integral part of these financial statements. 16 DUBLIN UNIFIED SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE - BUDGET (NON-GAAP) AND ACTUAL MAJOR FUND - GENERAL FUND For the Year Ended June 30, 2007 BudQet Variance Favorable OriQinal Final Actual (U nfavorable) Revenues: Revenue limit sources: State apportionment $ 15,407,491 $ 12,217,168 $ 12,425,651 $ 208,483 Local sources 17.703,882 20.741,895 20.533.412 (208.483) Total revenue limit 33.111.373 32,959,063 32.959.063 Federal sources 895,075 1,021,931 976.708 ( 45,223) Other state sources 5,051,448 7,264,098 7,205,548 (58,550) Other local sources 3.797.424 3.752.403 3.580,7 47 (171.656) Total revenues 42.855.320 44.997.495 44,722,066 (275.429) Expenditures: Certificated salaries 24,477 ,330 24,644,430 24,520,122 124,308 Classified salaries 6,745,204 6,771,339 6,619,198 152,141 Employee benefits 5,523,188 5,312,754 5,241,247 71,507 Books and supplies 1,193,413 2,752,080 1,661,733 1,090,347 Contract services and operating expenditures 4,868,126 5,221,815 4,855,242 366,573 Capital outlay Other outgo 615,631 625.439 560.811 64.628 Total expenditures 43.422,892 45.327 .857 43.458.353 1 ,869.504 (Deficiency) excess of revenues (under) over expenditures (567.572) (330.362) 1.263.713 1.594,075 Other financing sources (uses): Operating transfers in 312,040 189,297 89,296 (100,001) Operating transfers out (100.000) (100.000) Total other financing sources (uses) 312,040 89.297 (10.704) (100.001) Net change in fund balance (255,532) (241,065) 1,253,009 1,494.074 Fund balance, July 1, 2006 2.155.758 2.155,758 2.155.758 Fund balance, June 30, 2007 $ 1.900.226 $ 1.914.693 $ 3,408.767 $ 1,494.074 The accompanying notes are an integral part of these financial statements. 17 DUBLIN UNIFIED SCHOOL DISTRICT STATEMENT OF FIDUCIARY NET ASSETS AGENCY FUNDS June 30, 2007 ASSETS Cash on hand and in banks (Note 2): LIABILITIES Due to student groups NET ASSETS Net assets The accompanying notes are an integral part of these financial statemetns. 18 $ 323.738 323.738 $ DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Dublin Unified School District (the "District") accounts for its financial transactions in accordance with the policies and procedures of the California Department of Education's California School Accounting Manual. The accounting policies of the District conform to accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board and the American Institute of Certified Public Accountants. The following is a summary of the more significant policies: Reportinq Entity The Governing Board is the level of government which has governance responsibilities over all activities related to public school education in the District. The Board is not included in any other governmental "reporting entity" as defined by the Governmental Accounting Standards Board since Board members have decision-making authority, the power to designate management, the responsibility to significantly influence operations and primary accountability for fiscal matters. Basis of Presentation - Financial Statements In June 1999, the Governmental Accounting Standards Board (GASB) unanimously approved Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments. The basic financial statements now include a Management's Discussion and Analysis (MD & A) section providing an analysis of the District's overall financial position and results of operations, financial statements prepared using full accrual accounting for all of the District's activities, including infrastructure, and a change in the fund financial statements to focus on the major funds. Basis of Presentation - Government-Wide Financial Statements The Statement of Net Assets and the Statement of Activities display information about the reporting government as a whole. Fiduciary funds are not included in the government-wide financial statements. Fiduciary funds are reported only in the Statement of Fiduciary Net Assets at the fund financial statement level. The Statement of Net Assets and the Statement of Activities are prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions. Program revenues: Program revenues included in the Statement of Activities derive directly from the program itself or from parties outside the District's taxpayers or citizenry, as a whole; program revenues reduce the cost of the function to be financed from the District's general revenues. 19 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation - Government-Wide Financial Statements (Continued) Allocation of indirect expenses: The District reports all direct expenses by function in the Statement of Activities. Direct expenses are those that are clearly identifiable with a function. Depreciation expense is specifically identified by function and is included in the direct expense of each function. Interest on general long-term liabilities is considered an indirect expense and is reported separately on the Statement of Activities. Basis of Presentation - Fund Accountinq The accounts of the District are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. District resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be sp(:lnt and the means by which spending activities are controlled. The District's accounts are organized into two broad categories which, in aggregate, include five fund types as follows: A Governmental Fund Types 1 - General Fund: The General Fund' is the general operating fund of the District and accounts for all revenues and expenditures of the District, not encompassed within other funds. All general tax revenues and other receipts that are not allocated bylaw or contractual agreement to some other fund are accounted for in this fund. General operating expenditures and the capital improvement costs that are not paid through other funds are paid from the General Fund. 2 - Special Revenue Funds: The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for speCified purposes. This classification includes the Adult Education, Cafeteria, Deferred Maintenance and Special Reserve Funds. 3 - Capital Projects Funds: The Capital Projects Funds are used to account for resources used for the acquisition or construction of major capital facilities and equipment. This classification includes the County School Facilities, Building and Capital Facilities Funds. 20 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation - Fund Accountinq (Continued) A Governmental Fund Types (Continued) 4 - Debt Service Fund: The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. This classification includes the Bond Interest and Redemption Fund. B Fiduciary Fund Type 1 - Agency Funds: Agency Funds are used to account for assets of others for which the District has an agency relationship with the activity of the fund. This classification consists of the Student Body Fund. Basis of Accountinq Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. . Accrual Governmental activities in the government-wide financial statements and the fiduciary fund financial statements are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. Modified Accrual The governmental funds financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. "Available" means collectible within the current period or within 60 days after year end. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. The exception to this general rule is that principal and interest on general obligation long-term liabilities, if any, is recognized when due. Budqets and Budqetary Accountinq By state law, the Board of Education must adopt a final budget by July 1. A public hearing is conducted to receive comments prior to adoption.. The Governing Board complied with these requirements. 21 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Budqets and Budqetarv Accountinq (Continued) The District employs budgetary control by major object code and by individual appropriation accounts. Expenditures cannot legally exceed appropriations by major object code. The budgets are revised during the year by the Governing Board to provide for unanticipated revenues and expenditures, and to provide for revised priorities. The originally adopted and final revised budgets for the General Fund are presented in the basic financial statements. Capital Assets Capital assets purchased or acquired, with an original cost of $5,000 or more, are recorded at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements and other capital outlay that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Capital assets are depreciated using the straight-line method over 2 - 50 years depending on asset types. Accumulated Sick Leave Accumulated sick leave benefits are not recognized as liabilities of the District. The District's policy is to record sick leave as a operating expenditure or expense in the period taken since such benefits do not vest nor is payment probable; however, unused sick leave is added to the creditable service period for calculation of retirement benefits for all STRS employees and certain PERS employees, when the employee retires. Restricted Net Assets Restrictions of the ending net assets indicate the portions of net assets not appropriable for expenditure or amounts legally segregated for a specific future use. The restrictions for revolving cash, prepaid expenses and stores inventory reflect the portion of net assets represented by revolving fund cash, prepaid expenses and stores inventory, respectively. These amounts are not available for appropriation and expenditure at the balance sheet date. The restriction for unspent categorical program revenues represents the portion of net assets restricted to specific program expenditures. The restrictions for special revenues and capital projects represent the portion of net assets restricted for special purposes and capital outlay, respectively. The restriction for debt service represents the portion of net assets available for the retirement of long-term liabilities. Deferred Revenue Revenue from federal, state, and local" special projects and programs is recognized when qualified expenditures have been incurred. Funds received but not earned are recorded as deferred revenue until earned. 22 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Accordingly, actual results may differ from those estimates. Property Taxes Secured property taxes are attached as an enforceable lien on property as of January 1. Taxes are due in two installments on or before December 10 and April 10. Unsecured property taxes are due in one installment on or before August 31. The County of Alameda bills and collects taxes for the District. Tax revenues are recognized by the District when received. Encumbrances Encumbrance accounting is used in all budgeted funds to reserve portions of applicable appropriations for which commitments have been made. Encumbrances are recorded for purchase orders, contracts, and other commitments when they are written. Encumbrances are liquidated when the commitments are paid. Elimination and Reclassifications In the process of aggregating data for the Statement of Net Assets and the Statement of Activities, some amounts reported as interfund activity and balances in the funds were eliminated or reclassified. Interfund receivables and payables were eliminated to minimize the "grossing up" effect on assets and liabilities within the governmental activities column. 2. CASH AND INVESTMENTS Cash and investments at June 30, 2007 consisted of the following: Governmental Activities Fiduciary Activities Pooled Funds: Cash in County Treasury Totals $ 32,083,220 160,197 $ 25,000 1.993.446 $ 34.261.863 $ 323,738 Deposits: Cash on hand and in banks Cash in revolving fund Cash with Fiscal Agent 323.738 23 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 2. CASH AND INVESTMENTS (Continued) Pooled Funds In accordance with Education Code Section 41001, the District maintains substantially all of its cash in the Alameda County Treasury. The County pools these funds with those of school districts in the County and invests the cash. These pooled funds are carried at cost which approximates fair value. Interest earned is deposited monthly into participating funds. Any investment losses are proportionately shared by all funds in the pool. Because the District's deposits are maintained in a recognized pooled investment fund under the care of a third party and the District's share of the Treasurer's Pooled Investment Fund does not consist of specific, identifiable investment securities owned by the District, no disclosure of the individual deposits and investments or related custodial credit risk classifications is required. In accordance with applicable state laws, the Alameda County Treasurer may invest in derivative securities. However, at June 30, 2007 the Alameda County Treasurer has represented that the Treasurer's pooled investment fund contained no derivatives or other investments with similar risk profiles. Deposits - Custodial Credit Risk Cash balances held in banks and in revolving funds are insured up to $100,000 by the Federal Depository Insurance Corporation (FDIC). At June 30, 2007, the carrying amount of the District's accounts was $509,115 and the bank balances were $572,230. Of the bank balances, $100,000 was insured by the FDIC and $472,230 was uninsured, but collateralized. Cash with Fiscal Aqent Cash with Fiscal Agent represents amounts held in the District's name by third party custodians. Interest Rate Risk The District allows investments with Federal Government Issues that have a maturity date of five years or less. At June 30, 2007, the District had no significant interest rate risk related to cash and investments held. Credit Risk The District may invest as permitted by state law all or part of the special revenue fund of the District or any surplus monies not required for immediate District operations. Such investments shall be limited to securities in Government Code 16430, 53601, and 53635. At June 30, 2007, the District had no significant credit risk. 24 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 2. CASH AND INVESTMENTS (Continued) Concentration of Credit Risk The District limits investments with Federal Government Issues which may not exceed 1/5 of the investable fund, Time Certificates of Deposit which may not exceed $100,000 per financial institution and State of California Issues which may not exceed 115 of the investable fund. At June 30,2007, the District had no concentration of credit risk. 3. INTERFUND TRANSACTIONS Interfund Activity Transactions between funds of the District are recorded as interfund transfers. The unpaid balances at year end, as a result of such transactions, are shown as due to and due from other funds. Interfund Receivables/Payables Individual fund interfund receivable and payable balances at June 30, 2007 were as follows: Interfund Interfund Fund Receivables Payables Major Funds: General $ 141,096 $ 214,773 County School Facilities 1,585,500 16,869,954 Building 5,598,351 Capital Facilities 11 ,484,817 1,674,796 Non-Major Funds: Adult Education 150 4,764 Cafeteria 1 .408 47.035 Totals $ 18,811.322 $ 18,811.322 Interfund Transfers Interfund transfers consist of operating transfers from funds receiving revenue to funds through which the resources are to be expended. Interfund transfers for the 2006-2007 fiscal year were as follows: Transfer from the General Fund to the Capital Facilities Fund for construction projects. Transfer from the Capital Facilities Fund to the General Fund for indirect support costs. Transfer from the Building Fund to the Deferred Maintenance Fund for the required state match. $ 100,000 89,296 190,000 25 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 3. INTERFUND TRANSACTIONS (Continued) Interfund Transfers (Continued) Transfer from the County School Facilities Fund to the Building Fund for construction projects. Transfer from the Building Fund to the County School Facilities Fund for construction projects. Transfer from the Capital Facilities Fund to the County School Facilities Fund for construction projects. Transfer from the County School Facilities Fund to the Capital Facilities Fund for construction projects. $ 1,696 293 6,983,236 3.332.736 $ 10.697.257 4. CAPITAL ASSETS A schedule of changes in capital assets for the year ended June 30, 2007 is shown below: . Balance Transfers Transfers Balance July 1. and and. June 30, 2006 Additions Deductions 2007 Land $143,122,043 $143,122,043 Improvement of sites 2,376,978 2,376,978 Buildings 44,434,194 $. 4,267,715 48,701,909 Equipment 1,596,146 291,171 1,887,317 Work-in-process 44,245.110 33,787,379 $ 4,192,942 73,839,547 Totals, at cost 235.774.471 38.346.265 4.192.942 269.927,794 Less accumulated depreciation: Improvement of sites (2,131,436) (22,968) (2,154,404) Buildings (14,627,279) (1,163,618) (15,790,897) Equipment (795.213) (168,359) (963.572) Total accumulated depreciation (17.553,928) (1 .354,945) (18.908,873) Capital assets, net $218.220.543 $ 36,991,320 $ 4.192,942 ~251 .018.921 Depreciation expense was charged to governmental activities as follows: Total depreciation expense $ 1,218,806 1,760 4,495 2,152 97,294 30.438 $ 1.354.945 Instruction Site administration Food services Data processing General administration Plant services 26 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 5. LONG. TERM LIABILITIES General Obliqation Bonds On February 1, 2002, the District issued 2002 General Obligation Refunding Bonds totaling $22,760,000. Repayment of the Bonds is made from the special parcel tax revenues levied in connection with this bond issue. The Bonds bear interest rates from 4.0% to 4.75% and are scheduled to mature through 2022. On March 22, 2005, the District issued 2005 General Obligation Bonds, Election of 2004 Series "A" totaling $39,500,000. Repayment of the Bonds is made from the special parcel tax revenues levied in connection with this bond issue. The Bonds bear interest rates from 3.0% to 5.0% and are scheduled to mature through 2029. On September 13, 2005, the District issued 2005 Refunding General Obligation Bonds, totaling $21,030,000 to advance refund the Series 1994, 1998 and 1999 General Obligation Bonds. Repayment of the Bonds is made from the special parcel tax revenues levied in connection with this bond issue. The Bonds bear interest rates from 3.5% to 6.0% and are scheduled to mature through 2023. The following is a schedule of outstanding General Obligation Bonds: Balance Current Current Current Balance July 1. Year Year Year, June 30, Series 2006 Proceeds Refunded Maturities 2007 2002 $ 21,155,000 $ (700,000) $ 20,455,000 2005 39,500,000 (1,380.000) 38,120,000 2006 21 ,030,000 (100,000) 20,930,000 Totals $ 81 ,685.000 $ $ $ (2,180,000) $ 79.505,000 The General Obligation Bonds are scheduled to mature as follows: Year Ending June 30, Principal Interest Total 2008 $ 3,235,000 $ 3,474,941 $ 6,709,941 2009 1,760,000 3,401,866 5,161,866 2010 2,300,000 3,342,816 5,642,816 2011 1,995,000 3,277,366 5,272,366 2012 2,320,000 3,205,601 5,525,601 2013-2017 15,345,000 14,667,907 30,012,907 2018-2022 27,545,000 10,657,163 38,202,163 2023-2027 17,265,000 3,977,250 21,242,250 2028-2032 7,740.000 601 .625 8.341 .625 $ 79.505.000 $ 46.606.535 $ 126,111,535 27 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 5. LONG-TERM LIABILITIES (Continued) Early Retirement Incentive The District has entered into various early retirement incentive agreements during the past three years, The District has obligations under the STRS golden handshake program of $157,150 that will be paid off over the next seven years. Additional incentive agreements amounting to $175,203 include providing payments of $50,000 for each eligible individual over the next two to four years. Schedule of Chanqes in Lonq- Term Liabilities A schedule of changes in long-term liabilities for the year ended June 30, 2007 is shown below: Balance Balance Amounts July 1. June 30. Due Within 2006 Additions Deductions 2007 One Year General Obligation Bonds $ 81,685,000 $ 2,180,000 $ 79.505,000 $ 3,235,000 Premium on refinancing 1,046,394 49.874 996.520 49.874 Early retirement incentive 411,036 78,683 332,353 78.685 Compensated absences 7,063 7,063 Totals $ 83,149,493 $ ~ 2,315,620 $ 80,833,873 $ 3,363,559 Payments on the General Obligation Bonds are made from the Bond Interest and Redemption Fund. Payments on the Early Retirement Incentive and compensated absences are made from the Fund for which the related employee worked. 6. RESTRICTED NET ASSETS Restricted net assets consisted of the following at June 30, 2007: Governmental Activities Revolving cash Prepaid expenses Stores inventory Unspent categorical program revenues Special revenues Capital projects Debt service $ 25,000 669,786 100,758 569,394 654,105 36,240,381 5.633.605 $ 43.893.029 28 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 7. EMPLOYEE RETIREMENT SYSTEMS Qualified employees are covered under multiple-employer defined benefit pension plans maintained by agencies of the State of California. Certificated employees are members of the State Teachers' Retirement System (STRS), and classified employees are members of the California Public Employees' Retirement System (CaIPERS). Plan Description and Provisions California Public Employees' Retirement System (CaIPERS) Plan Description The District contributes to the School Employer Pool under the California Public Employees' Retirement System (CaIPERS), a cost-sharing multiple-employer public employee retirement system defined benefit pension plan administered by CaIPERS. The plan provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by state statutes, as legislatively amended, within the Public Employees' Retirement Law. CalPERS issues a separate comprehensive annual financial report that includes financial statements and required supplementary information. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814. Funding Policy Active plan members are required to contribute 7% of their salary and the District is required to contribute an actuarially determined rate. The actuarial methods and assumptions used for determining the rate are those adopted by the CalPERS Board of Administration. The required employer contribution rate for fiscal year 2006-2007 was 9.124% of annual payroll. The contribution requirements of the plan members are established by state statute. The District's contributions to CalPERS for the fiscal years ending June 30, 2005, 2006 and 2007 were $519,856, $566,285 and $652,163, respectively, and equal 1 00% of the required contributions for each year. State Teachers' Retirement System (STRS) Plan Description The District contributes to the State Teachers' Retirement System (STRS), a cost- sharing multiple-employer public employee retirement system defined benefit pension plan administered by STRS. The plan provides retirement, disability and survivor benefits to beneficiaries. Benefit provisions are established by state statutes, as legislatively amended, within the State Teachers' Retirement Law. STRS issues a separate comprehensive annual financial report that includes financial statements and required supplementary information. Copies of the STRS annual financial report may be obtained from the STRS Executive Office, 7667 Folsom Boulevard, Sacramento, California 95826. 29 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 7. EMPLOYEE RETIREMENT SYSTEMS (Continued) Plan Description and Provisions (Continued) State Teachers' Retirement System (STRS) (Continued) Funding Policy Active plan members are required to contribute 8% of their salary. The required employer contribution rate for fiscal year 2006-2007 was 8.25% of annual payroll. The contribution requirements of the plan members are established by state statute. The District's contributions to STRS for the fiscal years ending June 30, 2005, 2006 and 2007 were $1,588,404, $1,774,936 and $2,013,986, respectively, and equal 100% of the required contributions for each year. 8. JOINT POWERS AGREEMENTS Alameda County Schools Insurance Group The District is a member with other school districts of a Joint Powers Authority, Alameda County Schools Insurance Group (ACSIG). ACSIG arranges for and provides workers' compensation insurance for its members. The following is a summary of financial information for ACSIG at June 30, 2006 (the most recent information available): Total assets Total liabilities Total net liabilities Total revenue Total expenses $ 32,729,429 $ 40,099,379 $ (7,369,950) $ 89,075,967 $ 95,289,071 Schools Excess Liability Fund The District is also a member with other school districts of a Joint Powers Authority, School Excess Liability Fund (SELF), for the purpose of providing excess insurance coverage. The following is a summary of the financial information for SELF at June 30, 2007 (the most recent information available): Total assets Total liabilities Total net assets Total revenues Total expenses $ 191,466,418 $ 48,726,602 $ 142,739,816 $ 59,475,262 $ 17,534,362 The relationship between Dublin Unified School District and the Joint Powers Authorities is such that the Joint Powers Authorities are not a component unit of the District for financial reporting purposes. 30 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 9. COMMITMENTS AND CONTINGENCIES The District is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management. the amount of ultimate liability with respect to these actions will not materially affect the financial position or results of operations of the District. 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DUBLIN UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended June 30, 2007 Balance Balance July 1, June 30, 2006 Additions Deductions 2007 Fallon Middle School Assets: Cash on hand and in banks $ 13,992 $ 93,192 $ 79,946 $ 27,238 liabilities: Due to student groups $ 13,992 $ 93,192 $ 79,946 $ 27 ,238 Frederiksen Elementary School Assets: Cash on hand and in banks $ 8.539 $ 10,609 $ 7,819 $ 11 ,329 liabilities: Due to student groups $ 8,539 $ 10,609 $ 7,819 $ 11 ,329 Nielsen Elementary School Assets: Cash on hand and in banks $ 1,040 $ 7,249 $ 3,025 $ 5,264 liabilities: Due to student groups $ 1 ,040 $ 7,249 $ 3.025 $ 5,264 Wells Middle School Assets: Cash on hand and in banks $ 110.539 $ 354,833 $ 339,225 $ 126,147 liabilities: Due to student groups $ 110,539 $ 354,833 $ 339,225 $ 126,147 Dublin Hiqh School Assets: Cash on hand and in banks $ 145,709 $ 605.301 $ 608,104 $ 142,906 Liabilities: Due to student groups $ 145,709 $ 605,301 $ 608,104 $ 142,906 (Continued) 34 DUBLIN UNIFIED SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS (Continued) For the Year Ended June 30, 2007 Balance Balance July 1, June 30, 2006 Additions Deductions 2007 Valley Hiqh School Assets: Cash on hand and in banks $ 8.624 $ 20.501 $ 18.271 $ 10,854 Liabilities: Due to student groups $ 8,624 $ 20,501 $ 18.271 $ 10.854 Total Student Body Assets: Cash on hand and in banks $ 288.443 $ 1 .091.685 $ 1 ,056,390 $ 323,738 Liabilities: Due to student groups $ 288.443 $ 1.091 .685 $ 1.056.390 $ 323.738 The accompanying notes are an integral part of these financial statements. 35 DUBLIN UNIFIED SCHOOL DISTRICT ORGANIZATION June 30, 2007 Dublin Unified School District was established in 1988 and comprises an area of approximately 15 square miles located in Alameda County. The District operates 6 elementary schools, 2 middle schools, 1 high school, a continuation high school, an independent study program and an adult education program. There were no changes in the boundaries of the District during the current year. Name John Ledahl David Haubert Patricia Kohnen Denis King Jennifer Henry GOVERNING BOARD Office President Vice President Trustee Trustee Trustee ADMINISTRATION Stephen L. Hanke, Ed.D. Superintendent . Dave Marken, Ed.D. Assistant Superint~ndent, Educational Services Ms. Beverly Heironimus, CPA Chief Business Officer 36 Term Expires 2008 2010 2008 2008 2010 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AVERAGE DAILY ATTENDANCE Elementary: Kindergarten First through Third Fourth through Sixth Seventh and Eighth Home and Hospital Special Education Total Elementary Secondary: Regular Classes Continuation Education Home and Hospital Special Education Total Secondary For the Year Ended June 30, 2007 Regional Occupational Program Not Concurrently Enrolled: Classes for Adults Summer School: Elementary High school See accompanying notes to supplementary information. 37 Second Period Report 444 1,242 1,127 719 1 89 3.622 1,277 74 3 48 1 .402 145 5.243 74 Annual Report 446 1,242 1,130 720 1 93 3.632 1,274 72 3 45 1.394 150 78 5.254 Hours of Attendance 32,251 19.343 51.594 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF INSTRUCTIONAL TIME For the Year Ended June 30, 2007 1986-87 Number Minutes 1982-83 2006-07 of Days Require- Actual Actual Traditional Grade level ment Minutes Minutes Calendar Status Kindergarten 36,000 35,000 40,500 180 In Compliance Grade 1 50,400 45,775 54,615 1.80 In Compliance Grade 2 50,400 45,775 54,615 1.80 In Compliance Grade 3 50,400 45,775 54,615 180 In Compliance Grade 4 54,000 51,950 54,615 1.80 In Compliance Grade 5 54,000 51,950 54,615 1.80 In. Compliance Grade 6 54,000 51,950 54,615 1.80 In Compliance Grade 7 54,000 59,340 59,862 180 In Compliance Grade 8 54,000 59,340 59,862 180 In Compliance Grade 9 64,800 63,280 64,856 180 In Compliance Grade 10 64,800 63,280 64,856 180 In Complian.ce Grade 11 64,800 63,280 64,856 180 In Compliance Grade 12 64,800 63,280 64,856 180 In Compliance See accompanying notes to supplementary information. 38 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF EXPENDITURE OF FEDERAL AWARDS For the Year Ended June 30, 2007 Pass- Through Federal Entity Federal Catalog Federal Grantor/Pass-Through Identifying Expend- Number Grantor/Pro~ram or Cluster Title Number itures U.S. Department of Education Special Education Cluster: 84.027 Special Ed IDEA: Local Assistance 13379 $ 600,659 84.027A Special Ed IDEA: Low Incidence 13456 1,075 84.173 Special Ed IDEA: Federal Preschool Grant 13430 24,163 84.027 A Special Ed IDEA: Preschool Local Entitlement 13682 43,810 84.173A Special Ed IDEA: Preschool Staff Development 13431 604 84.027 A Special Ed IDEA: Local Staff Development 13613 1,852 84.027 A Special Ed IDEA: Infant Discretionary 13612 1.748 Subtotal Special Education Cluster 673.911 84.010 NCLB: Title I, Part A, Basic 14329 141,134 84.367 NCLB: Title II, Part A, Teacher Quality 14341 107,789 84.318 NCLB: Title II, Part D, Technology 14335 2,106 84.365 NCLB: Title III, Immigrant Education 14346 19,787 84.365 NCLB: Title III, Limited English Proficiency 10084 26,984 84.186 NCLB: Title IV, Part A, Drug Free Schools 14347 1,544 84.298A NCLB: Title V, Part A, Innovative Education 14354 3.453 Total U.S. Department of Education 976.708 U.S. Department of Aqriculture 10.556 Child Nutrition - School Programs 14198 170.685 Total $ 1.147.393 See accompanying notes to supplementary information. 39 DUBLIN UNIFIED SCHOOL DISTRICT RECONCILIATION OF UNAUDITED ACTUAL FINANCIAL REPORT WITH AUDITED FINANCIAL STATEMENTS For the Year Ended June 30, 2007 There were no audit adjustments proposed to any funds of the District. See accompanying notes to supplementary information. 40 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS For the Year Ended June 30, 2007 (Budget) 2008 2007 2006 2005 General Fund Revenues and other financing sources $ 46.376.826 $ 44.811.362 $ 39.734.636 $ 35.471.819 Expenditures 46,592,280 43,458,353 39,381,469 35,190,232 Other uses and transfers out 100.000 Total outgo 46,592.280 43.558.353 39.381 ,469 35.190,232 Change in fund balance $ (215.454) $ 1.253,009 $ 353,167 $ 281,587 Ending fund balance $ 3.193.313 $ 3,408,767 $ 2.155.758 $ 1.802.591 Available reserves $ 2.085,110 $ 1.742,334 $ 1.177.050 $ 1.065.068 Designated for economic uncertainties $ 1 .397.769 $ 1,742.334 $ 1.177,050 $ 1.065.068 Undesignated fund balances $ 687 ,341 $ $ $ Available reserves as percentages of total outgo 4.5% 4.0% 3.0% 3.0% All Funds Total long-term liabilities $ 77.470.314 $ 80.833.873 '$ 83.149.493 $ 82.922,931 Average daily attendance at P-2, excluding Adult and Rap 5.300 5.024 4.761 4.477 The General Fund fund balance has increased by $1,887,763 over the past three years. The District projects a decrease of $215,454 for the fiscal year ending June 30, 2008. For a district this size, the state requires available reserves of at least 3% of total General Fund expenditures, transfers out, and other uses. For the year ended June 30, 2007, the District has met this requirement. The District has incurred operating surpluses in each of the past three years, but anticipates an operating deficit during the 2007-2008 fiscal year. Total long-term liabilities have decreased by $2,089,058 over the past two years. See Note 5 to the financial statements. Average daily attendance (excluding classes for adults and RaP) has increased by 547 over the past two years and is anticipated to increase by 276 ADA during the year ending June 30, 2008. See accompanying notes to supplementary information. 41 None DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF CHARTER SCHOOLS For the Year Ended June 30, 2007 Charter Schools Chartered by District See accompanying notes to supplementary information. 42 Included in District Financial Statements, or Separate Report DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF EXCESS SICK LEAVE For the Year Ended June 30, 2007 Contract or Bar~aining A~reement Title of Emplovee There are no employment contracts allowing excess sick leave. See accompanying notes to supplementary information. 43 DUBLIN UNIFIED SCHOOL DISTRICT NOTES TO SUPPLEMENTARY INFORMATION 1. PURPOSE OF SCHEDULES A Schedule of Averaqe Daily Attendance Average daily attendance is a measurement of the number of pupils attending classes of the District. The purpose of attendance accounting from a fiscal standpoint is to provide the basis on which apportionments of state funds are made to school districts. This schedule provides information regarding the attendance of students at various grade levels and in different programs. B Schedule of Instructional Time The District has received incentive funding for increasing instructional time as provided by the Incentives for Longer Instructional Day. This schedule presents information on the amount of instructional time offered by the District, and whether the District complied with the provisions of Education Code Sections 46201 through 46206. C Schedule of Expenditure of Federal Awards OMB Circular A-133 requires a disclosure of the financial activities of all federally funded programs. This schedule was prepared to comply with A-133 requirements, and is presented on the modified accrual basis of accounting. D Reconciliation of Unaudited Actual Report with Audited Financial Statements This schedule provides the information necessary to reconcile the Unaudited Actual Financial Report to the audited financial statements. E Schedule of Financial Trends and Analysis This schedule provides trend information on fund balances, revenues, expenditures and average daily attendance, as required by the State Controller's Office. F Schedule of Charter Schools This schedule provides information for the California Department of Education to monitor financial reporting by Charter Schools. G Schedule of Excess Sick Leave This schedule provides information to the California State Teachers' Retirement System to monitor the granting of excess sick leave by school districts. 2. EARLY RETIREMENT INCENTIVE PROGRAM Education Code Section 14503 requires certain disclosure in the financial statements of districts which adopt Early Retirement Incentive Programs pursuant to Education Code Sections 22714 and 44929. For the fiscal year ended June 30, 2007, the District did not offer an Early Retirement Incentive Program. 44 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE LAWS AND REGULATIONS Governing Board Dublin Unified School District Dublin, California We have audited the compliance of Dublin Unified School District with the types of compliance requirements described in the State of California's Standards and Procedures for Audits of California K-12 Local Educational Agencies (the "Audit Guide") to the state laws and regulations listed below for the year ended June 30, 2007. Compliance with the requirements of state laws and regulations is the responsibility of Dublin Unified School District's management. Our responsibility is to express an opinion on Dublin Unified School District's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the State of California's Standards and Procedures for Audits of California K-12 Local Educational Agencies. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the state laws and regulations listed below occurred. An audit includes examining, on a test basis, evidence about Dublin Unified School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Dublin Unified School District's compliance with those requirements. Description Audit Guide Procedures Procedures Performed Regular and Special Day Classes Kindergarten Continuance Independent Study Continuation Education Adult Education Regional Occupational Center and Programs Instructional Time: School Districts County Offices of Education Community Day Schools Morgan-Hart Class Size Reduction Program Instructional Materials: General requirements Grades K-8 Grades 9-12 Ratio of Administrative Employees to Teachers Early Retirement Incentive Program Gann Limit Calculation School Construction Funds: School District Bonds State School Facilities Funds Alternative Pension Plans Excess Sick Leave 8 3 23 10 9 6 Yes Yes No, see below Yes Yes No, see below 6 3 9 7 Yes No, see below No, see below Yes 12 1 1 1 4 1 Yes Yes Yes Yes No, see below Yes 3 1 2 2 No, see below Yes No, see below Yes 45 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE LAWS AND REGULATIONS (Continued) Description Audit Guide Procedures Procedures Performed 1 Yes 2 Yes 2 Yes 3 No, see below 3 No, see below 7 Yes 3 Yes 4 No, see below 4 No, see below 1 No, see below 1 No, see below 15 No, see below 3 No, see below 3 No, see below Notification of Right to Elect California State Teachers Retirement System (CaISTRS) Membership Proposition 20 Lottery Funds State Lottery Funds California School Age Families Education (Cal-SAFE) Program School Accountability Report Card Class Size Reduction Program: General requirements Option one classes Option two classes Districts with only one school serving K-3 Contemporaneous Records of Attendance, for charter schools Mode of Instruction, for charter schools Nonclassroom-Based Instruction/Independent Study, for charter schools Determination of Funding for Nonclassroom-Based Instruction, for charter schools Annual Instructional Minutes - Classroom-Based, for charter schools The District's reported ADA for Independent Study was below the materiality level that requires testing; therefore, we did not perform any testing of Independent Study ADA. The District does not operate an R.OC/P Program; therefore, we did not perform any testing of ROC/P ADA. The District is not a County Office of Education; therefore, we did not perform any testing for Instructional Time - County Offices of Education. The District does not operate a Community Day School Program; therefore, we did not perform any testing of Community Day School ADA. The District did not enter into any new Early Retirement Incentive Programs; therefore, we did not perform any procedures relating to Early Retirement Incentive Programs. The District only has Proposition 39 Bonds; therefore, we did not perform steps a (1) through a (3) related to School Construction Funds - School District Bonds. The District does not offer an Alternative Pension Plan; therefore, we did not perform procedures related to Alternative Pension Plans. The District does not participate in the Cal-SAFE Program; therefore, we did not perform any procedures related to the Cal-SAFE Program. 46 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE LAWS AND REGULATIONS (Continued) The 2006-2007 School Accountability Report Cards specified by Education Code Section 33126 are not required to be completed, nor were they completed, prior to the completion of our audit procedures for the year ended June 30, 2007. Accordingly, we could not perform the portions of audit steps (a), (b) and (c) of Section 19837 of the 2006-2007 Audit Guide relating to the comparison of tested data from the 2006-2007 fiscal year to the 2006- 2007 School Accountability Report Cards. The District does not participate in Option Two of the Class Size Reduction Program; therefore, we did not perform any procedures related to Option Two. The District does not have only one school serving grades K through 3; therefore, we did not perform any procedures relating to Class Size Reduction - Districts with only one school serving grades K through 3. The District does not have any Charter Schools; therefore, we did not perform any of the testing required by Article 4 of the Audit Guide. In our opinion, Dublin Unified School District complied with the state laws and regulations referred to above for the year ended June 30, 2007, except as described in the Findings and Questioned Costs section of this report. Further, based on our examination, for items not tested, nothing came to our attention to indicate that Dublin Unified School District had not complied with the state laws and regulations. This report is intended solely for the information of the Governing Board, management, the State Controller's Office, the California Department of Education and the California Department of Finance, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. Peu,;,/ S"" i -th L.t..f Sacramento, California December 12, 2007 47 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Governing Board Dublin Unified School District Dublin, California We have audited the financial statements of Dublin Unified School District as of and for the year ended June 30, 2007, and have issued our report thereon dated December 12, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial ReportinQ In planning and performing our audit, we considered Dublin Unified School District's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Dublin Unified School District's internal control over financial reporting. Accordingly, we do not express an opinion of the effectiveness of Dublin Unified School District's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the District's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the District's financial statements that is more than inconsequential will not be prevented or detected by the District's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the District's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 48 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (Continued) Compliance and Other Matters As part of obtaining reasonable assurance about whether Dublin Unified School District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information of the Governing Board, management, the California Department of Education, the California State Controller's Office and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. . However, this report is a matter of public record and its distribution is not limited. pe{{~- SM..~~ W Sacramento, California December 12, 2007 49 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Governing Board Dublin Unified School District Dublin, California Compliance We have audited the compliance of Dublin Unified School District with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2007. Dublin Unified School District's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Audit Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grant agreements applicable to each of its major federal programs is the responsibility of Dublin Unified School District's management. Our responsibility is to express an opinion on Dublin Unified School District's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMS Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Dublin Unified School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dublin Unified School District's compliance with those requirements. In our opinion, Dublin Unified School District complied. in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30,2007. Internal Control Over Compliance The management of Dublin Unified School District is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations. contracts and grants applicable to federal programs. In planning and performing our audit, we considered Dublin Unified School District's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance but, not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Dublin Unified School District's internal control over compliance. 50 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 (Continued) Internal Control Over Compliance (Continued) A control deficiency in the District's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the District's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the District's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the District's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information of the Governing Board, management, the California Department of Education, the California State Controller's Office and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. P e.H':) - 5",,: I(\-. u...f Sacramento, California December 12, 2007 51 FINDINGS AND RECOMMENDATIONS DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2007 SECTION I - SUMMARY OF AUDITOR'S RESULTS FINANCIAL STATEMENTS Type of auditor's report issued: Unqualified Internal control over financial reporting: Material weakness( es) identified? Significant deficiency(ies) identified not considered to be material weakness( es)? Noncompliance material to financial statements noted? FEDERAL AWARDS Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified not considered to be material weakness(es)? Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a)? Identification of major programs: Yes Yes Yes Yes Yes Yes x x x No None reported No x No x None reported x No 84.027, 84.027A, 84.173A Special Education Cluster Name of Federal Proqram or Cluster CFDA Number(s) Dollar threshold used to distinguish between Type A and Type B programs: $ Auditee qualified as low-risk auditee? STATE AWARDS Internal control over state programs: Material weakness(es) identified? Significant deficiency(ies) identified not considered to be material weaknesses? Type of auditor's report issued on compliance for state programs: Qualified 52 300,000 x Yes Yes Yes No x No x None reported DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2007 SECTION II - FINANCIAL STATEMENT FINDINGS 1. INTERNAL CONTROL - STUDENT BODY ACCOUNTING (30000) Criteria Internal Controls - Safeguarding of Assets Education Code Section 48930 (and California Department of Education's "Accounting Procedures for Student Organizations Handbook") requires student body organizations to follow the regulations set by the Governing Board of the school district. Condition At Wells Middle School: The detailed schedules used as receipts for clubs in the initial receipt of cash were not prenumbered and there was no log maintained to track the issuance of these prenumbered schedules. There is no formal written approval before expenditures are made or before fundraising activities are done. The monthly financial transaction statements are not being sent to the advisors or to the principal for review. There was no signature on the monthly financial transaction statements by the principal as evidence of the review. At Dublin High School: The Accounting Technician could not show that individual clubs issued receipts for receipt of cash items. There was no log or record of receipt books or detailed schedule held by the Accounting Technician. There is no written approval process for fund raising activities. Effect ASB funds could potentially be misappropriated. Cause Adequate internal control procedures have not been implemented and enforced. Fiscal Impact Not determinable. 53 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2007 SECTION 11- FINANCIAL STATEMENT FINDINGS (Continued) 1. INTERNAL CONTROL - STUDENT BODY ACCOUNTING (30000) (Continued) Recom mendation We recommended at the various sites the following: At Wells Middle School: The ASB advisor should use prenumbered detailed schedules and keep a log for. these prenumbered detailed schedule listing the number and to whom were they signed out to. There should be a formal written approval form that is used for approval before an expenditure is made and there should be a formal written approval form that is used for approval for fundraising activities. The monthly financial transaction statements should be printed out and sent to each advisor and the principal. The principal should sign and return a copy of the monthly financial transaction statements to the ASB advisor and they should be filed by month. At Dublin High School: The Accounting Technician should create a log to keep track of all prenumbered detailed schedule or receipts issued by clubs for receipt of cash. Also they need to have clubs issue and turn in all receipts when cash is turned into the Accounting Technician. The school should create a written approval process for the all fundraising activities. Corrective Action Plan At Wells Middle School: All recommendations will be implemented in the 2007-2008 fiscal year. At Dublin High School: The District has advised the High School of this finding in prior years. This year the Chief Business Officer and Fiscal Director will work with the Accounting Technician at the High School to assist in the implementation of this finding. 2. INTERNAL CONTROLS - CASH DISBURSEMENTS (30000) Criteria Internal Controls - Safeguarding of Assets Condition There is no indication that the corresponding purchase requisition for one expenditure was reviewed by the Educational Services Department at the District Office to ensure that expenditures are appropriate for specific State categorical or Federal programs. 54 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2007 SECTION II - FINANCIAL STATEMENT FINDINGS (Continued) 2. INTERNAL CONTROLS - CASH DISBURSEMENTS (30000) (Continued) Effect There exists the risk that funds and/or assets could potentially be misappropriated. Cause This internal control has not been implemented. Fiscal Impact Not determinable. Recommendation All purchase requisitions should be reviewed for the proper use of funds prior to the issuance of a purchase order. Corrective Action Plan The current internal controls require Educational Services review for all federal and other categorical funds, but the controls were entirely manual. The District will set up a dual control in our new ONLINE ESCAPE software so that the principal and Educational Services both review a purchase before it is approved. 3. INTERNAL CONTROL - FOOD SERVICES (30000) Criteria Internal Controls - Safeguarding of Assets Condition There is no documentation of when physical inventory counts are performed and who they are performed by. Effect There exists the risk that funds and/or inventory could potentially be misappropriated. Cause This internal control has not been implemented. Fiscal Impact Not determinable. 55 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2007 SECTION 11- FINANCIAL STATEMENT FINDINGS (Continued) 3. INTERNAL CONTROL. FOOD SERVICES (30000) (Continued) Recommendation The Coordinator and a warehouse employee involved in the physical inventory count should sign and date the Inventory Count Sheet. Corrective Action Plan All documentation of cycle inventory counts will be retained by the Child Nutrition Services department. 56 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2007 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported 57 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2007 SECTION IV - STATE AWARD FINDINGS AND QUESTIONED COSTS 4. ATTENDANCE (10000) Criteria Attendance Accounting and Reporting in California Public Schools, Title 5, CCR, Sections 401 and 421 (b), and Education Code Section 44809 - Each LEA must develop and maintain accurate and adequate records to support the attendance reported to the State. Condition The Monthly Attendance Summary for Wells Middle School did not reconcile the summary used to prepare the Period Two Report of Attendance. Effect Overstatement of ADA. Cause The school sites do not send revised copies of the Attendance Monthly Summaries to the Attendance Clerk. Fiscal Impact An extrapolated overstatement of 4.13 ADA, representing approximately $20,000 in Revenue Limit funding. Recommendation The District should revise and resubmit the Period Two and Annual Reports of Attendance reflecting the removal of the disallowed ADA. Corrective Action Plan The District reconciled the discrepancy in the Wells Middle School attendance report. The District submitted a corrected Period Two Report of Attendance, and decreased the ADA by 4.13. 5. STATE COMPLIANCE - OTHER THAN ATTENDANCE (40000) Criteria Improper use of Construction funds under Section Code 17072.35and 17074.25. 58 DUBLIN UNIFIED SCHOOL DISTRICT SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS (Continued) Year Ended June 30, 2007 SECTION IV - STATE AWARD FINDINGS AND QUESTIONED COSTS (Continued) 5. STATE COMPLIANCE - OTHER THAN ATTENDANCE (40000) (Continued) Condition The District purchased 8 computer monitors for 4 server rooms that are not allowed under Section Code 17072.35 and 17074.25. Effect The District is out of compliance with County Schools Facilities Fund requirements. Cause The District was not aware that these purchases were not allowable expenditures under Section Code 17072.35. Fiscal Impact The questioned cost of the exception was $1,907, and the extrapolated effect was $9,173. Recommendation We recommend that the District develops a methodology to verify that expenditures are allowed under County Schools Facilities Fund. We also recommend that the DistriCt transfers all non-qualifying expenditure from County Schools Facilities to an unrestricted fund or other resource codes where these are allowable expenditures. Corrective Action Plan This purchase was incorrectly classified in the state construction funding due to a clerical error. The expenditure was corrected before the books were closed and final reports submitted to the state. 59 STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS DUBLIN UNIFIED SCHOOL DISTRICT STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS Year Ended June 30, 2007 Find i ng/Recommendation Current Status District Explanation If Not Implemented 2006-1 Not implemented. See current year finding #1 At Fallon Middle School: Sub-receipts books are not being issued to or used by student groups during fundraising activities. A log should also be maintained of receipt books issued to each specific student organization. When funds are remitted to the ASS Secretary, a copy of the count form is not retained by the student groups. At Dublin High School, student clubs in the initial receipt of cash do not use sub- receipt books. We recommend the following: Sub-receipts should be issued for all student fundraising activities to ensure the proper collection and appropria- tion of related monies. Further, a log should be maintained by the ASS Secretary indicating the specific student organization that is in possession of the receipt book. The log should include the starting and ending receipt numbers for the period that each student organization was in possession of the receipt book. Copies of the receipts should be maintained with supporting documentation of the deposit and reconciled to the log periodically. 2006-2 Implemented. There is no evidence of review of the payroll prelist or the warrant register. Warrant register is not reconciled to the payroll prelist to determine that no additional checks were paid on the final run. The review process of Payroll Audit Report should be evidenced with a signature to signify the review has been completed. 60 DUBLIN UNIFIED SCHOOL DISTRICT STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS (Continued) Year Ended June 30, 2007 Fi ndi ng/Recommendation Current Status District Explanation If Not Implemented 2006-3 Implemented. The District did not accrue an amount within accounts payable of $5,270 for an invoice totaling $7,905 for services received as of June 30, 2006. We recommend the District implement procedures to review all expenses to ensure they are recorded within the proper period. 2006-4 Implemented. At Fallon Middle School, two students were improperly counted as present for a total of two days. Attendance personnel should review records on a period basis to ensure the proper input of data in the attendance software. 2006-5 Implemented. The Dublin Unified School District governing board did not hold the public hearing on before the end of the eight week from the first day pupils attended school for fiscal 2005 - 2006. The first day of instruction was August 29th, 2006; however, the hearing was not held until November 8th, 2006. We recommend the District's governing board be diligent in holding the public meeting within the allotted time in future fiscal years. 61 DUBLIN UNIFIED SCHOOL DISTRICT STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS (Continued) Year Ended June 30, 2007 Fi nd i ng/Recommend ation Current Status District Explanation If Not Implemented 2006-6 Implemented. For Kindergarten the District was using an early/late system to count the minutes for students attending the morning and the afternoon sessions. By using an early late program the District would then be unable to use these classes for Class Size Reductions. A recalculation of the minutes without the use of an early/late program indicated that the District was still in compliance. For grades 1-5 we were unable to recalculate the total number of days that were attributed to planning days, minimum and regular days. Based on our recalculation the District actually offered more instructional minutes that outlined in the schedule of instruction al time. F or grades 9-12 the total nu m ber of minutes being offered were below the State's requirement. In response to this discovery the District adjusted the bell schedules for the remainder .of the school year and were able to bring the high school into compliance. The District should review all future bell schedules and minutes calculations to ensure that the minimum required number of instructional minutes are provided for each grade level and that no errors exist in the instructional minutes calculations. 62