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HomeMy WebLinkAbout8.1 Dublin Unified Schl Dist Attach 7 RECEIVED CITY OF DUBLIN CITY 0 DUBLIN JAN 252008 F .1 arv MANAGER'S OFfiCE COMMUNITY GROUP/ORGANIZATIONAL FUNDING REQUEST ApPLICATION PACKET Fiscal Year 2008-2009 Section 2: Application for SECTION 2 Page 1 of 20 I1TTI)GHI-/6"NT 7 Fiscal Year 2008-2009 COMMUNITY GROUP/ORGANIZATION ApPLICATION FOR FUNDS COVER PAGE AGENCY NAME: DUBLIN UNIFIED SCHOOL DISTRICT PROPOSED PROJECT/PROGRAM NAME: RED RIBBON WEEK FUNDING AMOUNT REQUESTED: $3" 550.00 SECTION 2 Page 2 of 20 CITY OF DUBLIN Fiscal Year 2008-2009 ApPLICATION FOR FUNDS 1. Please select one expense category: o Capital [8] Operating 2. Applicant Information: Organization! Agency Name Dublin Unified School District Mailing Address 7471 Larkdale Avenue Street Address City Dublin State California Zip 94568 Stephen Hanke. Superintendent Executive Director/Chairperson 925-828-2551 ext 8001 hankestephen@dublin.k12.ca.us Work Phone Email Denis King Board President (if applicable) kingdenis@dublin.k12.ca.us 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. Eileen Rohan Contact Person for Project/Program 925-828-2551 extension 8016 Work Phone Coordinator. Educational Services Job Title rohaneileen~dublin.k12.ca. us Email 925-803-1669 Fax Federal Tax Identification No. (required) City of Dublin Business License No. (required) SECTION 2 Page 3 of 20 City of Dublin Fiscal Year 2008-2009 Application for Funds 3. Proposed Project/Program Information (Do not describe Organization.) Amount of Funds Requested $ 3.550 (Maximum $25,000 per project.) Proposed Project/Program Name: Red Ribbon Week Proposed Project/Program Date(s): Start ~ / -L / 08 and End l/ 30 /09 mo. day yr. mo. day yr. Please note: City Council Grant Funds are distributed on a reimbursement basis. If your Agency needs a 100% disbursement at the beginning of the Fiscal Year, please indicate this below and please provide justification for this need. [8] Agency is requesting 100% disbursement at the beginning of the Fiscal Year. If selecting this option, please provide justification in the blank space below. o 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. Red Ribbon Week occurs the week of October 18-26, 2008. Dublin schools will provide receipts for all expenses, along with a report of site projects, which include class projects, photos and responses from students, staff and parents. Reimbursements will be made upon receipt of the above documentation. SECTION 2 Page 4 of 20 City of Dublin Fiscal Year 2008-2009 Application for Funds a. How would the requested funds be used? Total funding request: $3,550 for all schools in the city of Dublin @ 50 cents per student. This project would support an ongoing and common thread of Dublin Pride throughout our city and impact our children from kindergarten through 1 ih grade. It is not intended to supplant ongoing health education but rather to increase awareness throughout our city and publicly commit to providing our youth ongoing support. Funds allocated for Red Ribbon Week would be used to fund activities and events in all city of Dublin Schools such as: . Classroom/grade level presentations or assemblies . Staff development . Parent Education . Curriculum and materials b. How would the PROPOSED PROJECT/PROGRAM address an unmet community need and improve the quality oflife for Dublin residents. Why is this project/program needed? The City of Dublin's development of Dublin Pride - Integrity in Action was established to empower citizens, businesses and students to share common language and culture based on empathy and respect. The goal of this project is to develop awareness of youth issues, educate students and parents, and offer alternatives that promote healthy choices to develop responsible citizens. Red Ribbon Week is a highly visible and tangible opportunity that all of our community could engage in and benefit from. Increasing the public's awareness of youth issues is paramount in transforming behaviors. Working together with community partnerships, i.e., Dublin Police Department, the business community, and health institutions, to highlight this event would serve us well to demonstrate to our youth that we are aware of their needs and vigilant in our efforts to support healthy lifestyles for all Dublin residents. In years past, the city of Dublin has provided funds for ALL Dublin schools, both public and private, through a program formerly known as Dublin Substance Abuse Council. Funds were requested and granted to promote drug safety and awareness via Red Ribbon Week. City- SECTION 2 Page 5 of 20 wide support for students to participate in Red Ribbon Week provides shared leadership in supporting our students to make healthy choices and live a drug free life. c. What documentation!datalrecords support the need for this PROPOSED PROJECT/PROGRAM? Please identify your data sources. (Additional page may be added, if needed.) California Healthy Kids Survey 2006 The spring 2006 California Healthy Kids Survey results support the need for increasing parent and community awareness of students' use of alcohol, tobacco and drugs. Thirty-five percent of students in grade 5 indicated that they had used alcohol. California Healthy Kids Survey 2006 - Grade 5 Ever Used Alcohol, Tobacco, or Drugs (230 Responses) Alcohol Marijuana Inhalants Smokeless Tobacco Cigarettes 0% 5% 10% 15% 20% 25% 30% 35% SECTION 2 Page 6 of 20 As indicated by the following table, the use of alcohol, tobacco and marijuana increases significantly from ih to 11th grade. California Healthy Kids Survey 2006 - Grades 7, 9 & 11 Percentage of Students Who Responded to the Question: During your life did you ever... IAlcohol, Tobacco & Drug Use Gr7 Gr9 Gr 11 03 06 03 06 03 06 (Number of Respondents) ~09 298 112 290 175 159 Smoke a cigarette? 5 4 16 15 25 25 Chew tobacco or snuff? 2 2 14 6 6 6 torink alcohol? 14 16 43 40 71 60 Iu se inhalants? 12 8 16 9 38 34 Smoke marijuana? 4 5 22 16 38 34 Tri Valley Student Health Survey 2006 The Tri -Valley Youth Planning Board is a group of youths who joined together to help identify and address major health concerns for youth in the Tri-Valley. In 2006, this group created a survey to help identify the major issues, and administered the survey to 7,000 middle and high school students throughout the Tri-Valley. The following data represents the 512 responses from Dublin students from Wells Middle School, and Valley and Dublin High schools. .:. 47% of Dublin youth reported driving under the influence is a very important health issue among students at their schools .:. 55% reported alcohol and drug use was a very important student issue .:. 36% said they would like to see more sex education resources in their school or community. .:. Top 4 reasons teens reported using alcohol/drugs: · 65% enjoy the feeling it gives them · 53% stress · 46% to fit in · 43% boredom SECTION 2 Page 7 of 20 City of Dublin Fiscal Year 2008-2009 Application for Funds d. Specify the PROPOSED PROJECT/PROGRAM population to be served. The Red Ribbon Week project will directly serve approximately 7100 students and their parents. 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. Multiple measures of data will be used to determine the goals of this project. Quantitative data will include the California Healthy Kids and Tri- Valley Youth Board surveys. Qualitative data from school counselors, principals and parent groups will provide impressions and perceptions from staff, parents and students. Reports to City Council and our Board of Trustees will update the community on the progress of our district wellness plan, that includes drug education. The following methods will be used for measuring the success of the program: . California Healthy Kids Survey administration to grades 5, 7, 9, and 11 . Tri- Valley Youth Board surveys . Secondary counselor updates . School site project reports . Reports to City Council (2) SECTION 2 Page 8 of 20 f. Specify numbers of clients served by agency, then by PROPOSED PROJECT/PROGRAM: Total Number of Participants Served by Agency (if applicable) 5,500 DUSD students Total Number of Dublin Residents Served by Agency (if applicable) 5,500 DUSD students, plus parents and staff Total Number of Dublin Residents Served by this Project 7,100 Dublin students 7,100+ students, plus parents, and staff SECTION 2 Page 9 of 20 Application for Funds 5. Financial Information - Operating Budget a. Expense Budget FY" . ....;\/,. " Capital Costs Other (please specify) Other (please specify) TOTAL $3,550 Further Comments/Explanations (if necessary): SECTION 2 Page 10 of20 City of Dublin Fiscal Year 2008-2009 Application for Funds b. Revenue Budget - Not Applicable FY 2008~2009 REVENUE BtmGET CommittedI:RestrictjdFu (s ,~~ify source) , Non-CommittedIRestricted FUn .....,y,"'..::> ''''IT't< " .....>. "', - .-,-,:,.,\-:,,:. ...'.. -.' (s eci soi\rce) TOTAL Further Comments/Explanations (if necessary): SECTION 2 Page 11 of20 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: Red Ribbon Week In prior years, funding for Red Ribbon Week was provided to all schools in the city of Dublin via the Dublin Substance Abuse Council. b. Describe the population( s) served by the Organization. Dublin Unified School District serves pre-kindergarten through twelfth grade students. Our families are culturally diverse, and represent all socio-economic lifestyles. c. Describe all the services the Organization currently provides to Dublin residents. Dublin Unified School District provides students a rigorous and relevant education that promotes social responsibility. In addition to academic coursework, adult and parent education is offered at Valley High School. ROP classes provide our students with opportunities to learn skills that are directly connected to the world of work, beyond their school experience. SECTION 2 Page 12 of20 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. The City of Dublin has funded many grants to the Dublin Unified School District; most recently, Red Ribbon Week,2007. Dublin High School has been the recipient of grants from the City of Dublin to provide our community: Dry Grad Night and Every 15 Minutes. The City also supported the funding of technology for schools throughout the district, 1999- 2004. SECTION 2 Page 13 of20 City of Dublin Fiscal Year 2008-2009 Application for Funds 7. Required Attachments: o Only one (1) COpy per A2encv of each of the 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. · The PROPOSED PROJECTIPROGRAM is not funded for this project. o C. Most recent audit report or tax return (if applicable). o D. Resolution, letter or other document providing evidence of Board/Organization approval of application, and date approval was granted. · Under consideration at upcoming Board of Trustees Meeting, February 12, 2008. o E. Organization's certificate of insurance 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). o H. Copy of IRS Letter of Determination indicating tax exempt status. · Not applicable SECTION 2 Page 14 of20 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. SignaturCi-l-:-.:_ JiL ~! Execut'iVe Director t / ~'-I/() <Y Date r- ,,..2.4,.. (.)8 Date SECTION 2 Page 15 of20 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.): Agency Project/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 identified in the FY 2008-2009 funding application. Executive Director Date Project/Program Contact Person Date SECTION 2 Page 16 of20 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 $ $ TQ'tALAntQtplt Re.U'<<sted (If requesting 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 17 of20 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/PROGRAM addressed an unmet community need and improved the quality oflife 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!datalrecords you have that support your conclusions. SECTION 2 Page 18 of20 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 19 of20 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 $3.550.00 (Three thousand five hundred and fifty Dollars) for use by Dublin Unified School District to cover curriculum and materials 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 is in the interest of the residents ofthe City of Dublin to make a donation of $3.550 (Three thousand five hundred and fifty Dollars) for such purpose, provided certain conditions are met to ensure that the services will benefit the residents of City. AGREEMENT City and Dublin Unified School District agree as follows: 1. Recitals The foregoing recitals are true and correct and are part of this agreement. 2. City Donation City shall donate $3.550 (Three thousand five hundred and fifty Dollars) to be used by Dublin Unified School District to be used for operational support for Red Ribbon Week as described in Exhibit A to this Agreement. The donation shall be paid upon invoice to the City. 3. Records Dublin Unified School District 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 District shall provide reports describing the progress made by Dublin Unified School District 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 20 of20 ATTACHMENT A CITY OF DUBLIN COMMUNITY GROUP/ORGANIZATIONAL FUNDING REQUEST N ames of Governing Board Dr. Stephen Hanke, Superintendent Mr. Denis King, President Mr. John Ledahl, Vice President Mr. David Haubert Ms. Jennifer Henry Ms. Patricia Kohnen ATTACHMENT C CITY OF DUBLIN COMMUNITY GROUP/ORGANIZATIONAL FUNDING REQUEST Dublin Unified School District Financial Statements And Independent Auditor's Report For the Year Ended June 30, 2007 ATTACHMENTD CITY OF DUBLIN COMMUNITY GROUP/ORGANIZATIONAL FUNDING REQUEST Dublin Unified School District Board of Trustees Approval of Application · Pending February 12, 2008 Board Meeting ATTACHMENTE i CITY OF DUBLIN I I I I COMMUNITY GROUP/ORGANIZlA TIONAL FUNDING REQUEST Dublin Unified School Distrrct Certificate of Insurance I Client#: 2071 I ALAMECSIG ACORDTM CERTIFICATE OF LIABILITY INSU RANCE I DATE (MMJDD/YYYY) 1/23/08 PRODUCER THIS CERTIFICATE~ ISSUED AS A MATTER OF INFORMATION Keenan & Associates ONLY AND CONFE NO RIGHTS UPON THE CERTIFICATE 1111 Broadway, Suite 2000 HOLDER. THIS CER IFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVER. GE AFFORDED BY THE POLICIES BELOW. Oakland, CA 94607 INSURERS AFFORDlN G COVERAGE NAIC# INSURED INSURER A: American I nternational Group Alameda County Schools Ins Group INSURER B: Specialty l nderwriters Alliance Ins. PO Box 2487 INSURER C: Dublin, CA 94568 INSURER D: INSURER E: I COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR TH~POLlCY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO W ICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE ERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. , LTR NSR TYPE OF INSURANCE POLICY NUMBER PJ>l-{~i,;~r58~E Pg~iJ,~ .:t~N LIMITS ~NERAL LIABILITY EACH OCCURRENCE $ 5MERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ - CLAIMS MADE 0 OCCUR - MED EXP (Anyone person) $ - PERSONAL & ADV INJURY $ - GENERAL AGGREGATE $ ~'L AGGREnE LIMIT APPLIES PER: PRODUCTS - COMPJOP AGG $ PRO- n POLICY JECT 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 I AUTO ONLY - EA ACCIDENT $ ANY AUTO I EA ACC $ I OTHER THAN I AUTO ONLY: AGG $ :5ESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR 0 CLAIMS MADE AGGREGATE $ $ R DEDUCTIBLE $ RETENTION $ $ A WORKERS COMPENSATION AND WC4644625 07/01/07 07/01/0 ~ I T~~.(l~~s I X IOJ::- EMPLOYERS' LIABILITY SIR $1,000,000 I $$1,000,000 ANY PROPRIETOR/PARTNER/EXECUTIVE i E.L. EACH ACCIDENT OFFICER/MEMBER EXCLUDED? WC Limit$50,000,000 I E.L. DISEASE - EA EMPLOYEE $$1,000,000 I tf yes, describe under I $$1,000,000 SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT B OTHER Excess Worke WSRSWCOO025202 07/01107 07/01/0. SIR $250,000 I I WC Limit $750,00 I DESCRIPTION OF OPERATIONS J LOCATIONS J VEHICLES I EXCLUSIONS ADDED BY ENODRSEMENT J 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. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION CITY OF DUBLIN DATE THEREOF, THE ISSUINd INSURER WILL ENDEAVOR TO MAIL ---3ll- DAYS WRmEN 100 Civic Plaza NOTICE TO THE CERTIFICATE, HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL Dublin, CA 94568 IMPOSE NO OBLIGATION OR ~IABILITY OF ANY KIND UPON THE INSURER. ITS AGENTS OR I REPRESENTATIVES. A~DREPR4N~ b ~/ ...... ACORD 25 (2001/08) 1 of2 #511881/M11027 R3M @ ACORD CORPORATION 1988 IMPORTANT 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 #S11881/M11027 LJVUL..IVI..,II 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. RECEIVE PRODUCER ABD Insurance and Financial Services 1039-A North McDowell Blvd. Petaluma, CA 94954 707-769-2900 INSURERS AFFORDING COVERAGE INSURER A: Bay Area Schools Insurance Coop INSURERB: INSURER C: INSURER D: INSURER E: INSURED Alameda County School Insurance Group JPA Dublin Unified School District 7471 Larkdale Avenue Dublin CA 94568 COVERAGES 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. LTR NSR TYPE OF INSURANCE POLICY NUMBER PJ>l-~~1ri~~~8,w\E p~~fJ(~XJ;~,w\N LIMITS A GENERAL LIABILITY BGL07012007 7/1/2007 7/1/2008 EACH OCCURRENCE $ 5,000,000 X COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED $ I CLAIMS MADE [8] OCCUR MED EXP (Anyone person) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ ~'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ n PRO- n POLICY JECT 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 $ ~ESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR D CLAIMS MADE AGGREGATE $ $ ~ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND I T"/,~N~~;,.I IOJ~- EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? E.L. DISEASE - EA EMPLOYEE $ If yes, describe under SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I 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 THEREOF, 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 %. CJ1l:tJlft-. @ ACORD CORPORATION 1988 ACORD 25 (2001/08) 1 of 2 105526 ThiC' ,....Qr+ifi,...~t.Q r.c:u",I~,....oC' ,....ortifi,...~t.o:li ~n,<",":l iC'C'II.on nn ~/"",,,nn7 DESCRIPTIONS (Continued from Page 1) applications referenced above. ACORD 25-5 (7/97) @ ACORD CORPORATION 1988 . IMPORTANT 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 P.. " 't:~. - i'l R ")/ -, r~ r\ Ill: I T Hit f-, ,;::",,, ."""l.,\\i.\" "~ E~I.:,.; _~.... li r, ". "'-'~~ 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 Page 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 14-1 5 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) Patte 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 MajorProgram 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~ 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 30, 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. Sf\CRJ.\f\!iENTO ^' SA rnAj\lC!SCO " ROSE\nLLE ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT (Continued) Our audit was conducted for the purposes of forming an opinion on the financial statements that coiiectively 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. r~({)-5/IA.;~ LU' 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. OVER VIEW OF THE FINANCIAL STATEMENTS 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 o/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 encroachment percentage is at 9 % at year end and totals $2,311,719. REPORTING THE DISTJUCT 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 ofthe 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. Property 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 TR USTEE Reoortinf! 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. Ofthis 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 Unrestricted 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 g~)Vernments 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 Budgetary Hi5!:hli5!:hts 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 Oblif!ations 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 "AAA." 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: I. A verage 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 MANA GEMENT 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 Cash and investments (Note 2) Accounts receivable Prepaid expenses Stores inventory Capital assets, net of accumulated depreciation (Note 4) $ 34,261,863 20,913,892 669,786 100,758 Total assets 251.018,921 306.965,220 LIABILITIES T otalliabilities 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 Governmental activities (Note 4): Instruction Instruction-related services: Supervision of instruction Instructional library, media and technology School site administration Pupil services: Home-to-schooltransportation 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 Total governmental activities The accompanying notes are an integral part of these financial statements. 11 I- U ii: I- (J) 25 .,j o o 'J: U (J) o W u:: Z ::J Z ::i m ::J o I- W W :I: (J) W U Z ct .,j ct a:l m o z ::J 'Ll. .,j ct I- Z W :E z 0:: W > o C) 1ii - c:: _Glen CllE" oE5 I-Glu.. > o C) ... o 'j? en =:E-g ctl~ gu.. z en - GI S:;:;" '-.- c:: 0.= ~ ~~u.. u.. 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'0 c: !tl en Q) ~ :c ~ ro "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 are not 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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Q) Q) (I) a. a. .500 o Vi Q) (J) ::J ~ (J) (I) ~ ::J o (J) 0) C 'U C ro e:: l;:: Q3 .c: "0 iii "0 I- (J) (I) U C ro ro .0 "0 e:: .2 .f: (I) 0) C ro ..c:: u (j) Z to o o N I"- o o N o C") Q) C ::J "'") (J) Q) u C ro ro .0 "0 C ::J U. . ..- >. "5 "'") (J) (I) U C ro ro .0 "0 e:: ::J 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 Oriainal Final Actual (Unfavorable) 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 3,580.747 (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 state.ments 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 spent 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 by law 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 Budqetary 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 1/5 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: Fund Interfund Receivables Interfund Payables Major Funds: General County School Facilities Building Capital Facilities Non-Major Funds: Adult Education Cafeteria $ 141,096 $ 214,773 1,585,500 16,869,954 5,598,351 11,484,817 1,674,796 150 4,764 1 .408 47.035 18.811.322 $ 18.811.322 T ota Is $ 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 Oblioation 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. - "I>- 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 ( 1 00,000) 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) Earlv 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 T ota I 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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I'- (") '<t <.D o o o o 0> ..-- Vi" 0) rJl ::l ~ rJl Q) t:' ::l o rJl Ol e 'u c ro c ~ ... 0) ~ '0 ro '0 f- o o C"!. (") 0> '<to ..-- N CO M 0> N IJ'). ..-- 0> o I'- I'- :::!:.- 0- '<t CO -.i ..-- ~ rJl 0) U C CIl ro .0 '0 e ::l - .S Q) 0) c ro .!:: o IJ') o '<t o '<t '<t 0> <.D <.D CO 0> N '<t '<t <.D ..-- <.D ..-- (") CO CO N N o <.D <.D <.D o o N . ..-- >- "S ..., en W U c CIl ro .0 '0 C ::l LL IJ') o <.D (") (") <.D IJ') o 0> '<t N ..-- (") (") I'- ..-- (") IJ') N ro ... 0) . 0) rJl 1:1: .- Q) e E CIl 0) 0)..... ... (tl ro..... rJl rJl- Q) CIl "0 T5 e e CIl Ole c~ ';;" Q) C rJl CIl Q) o-.!:: E..... g'O u-e ro CIl Q)O- .!:: f- (") ..-- ..-- CO ..-- ..-- o N (") I'- o o N o (") 0) e ::J ..., vi Q) U c .!2 ro .0 "0 e ::J LL 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 Hioh 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. GOVERNING BOARD Name Office John Ledahl David Haubert Patricia Kohnen Denis King Jennifer Henry President Vice President Trustee Trustee Trustee ADMINISTRATION Stephen L. Hanke, Ed.D. Superintendent Dave Marken, Ed.D. Assistant Superintendent, 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 54,615 180 In Compliance Grade 2 50,400 45,775 54,615 180 In Compliance Grade 3 50,400 45,775 54,615 180 In Compliance Grade 4 54,000 51,950 54,615 180 In Compliance Grade 5 54,000 51,950 54,615 180 In Compliance Grade 6 54,000 51,950 54,615 180 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 Compliance 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/Program or Cluster Title Number itures U.S. Department of Education Special Education Cluster: 84.027 Special Ed IDEA: Local Assistance 13379 $ 600,659 84.027 A Special Ed IDEA: Low Incidence 1 3456 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 84.027A 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 , 1 34 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 reserve!;: 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 BarQaininQ AQreement 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. S 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 OMS 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 re'concile 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 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 Instructionllndependent Study, for charter schools Determination of Funding for Nonclassroom-Based Instruction, for charter schools Annual Instructional Minutes - Classroom-Based, for charter schools 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 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 ROC/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 EarlyRetirement 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. Pe.N~/SM.;th L-Lf 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. p e.{ (') - S(\l\.~~ LA..,( 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 OMS 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 aWc;lrding 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 ~U{'} - 5",,: 'r\-. lM" 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 No x None reported x 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 11- 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 fund raising 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 fundraising 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) Recommendation We recommended at the various sites the following: At Wells Middle School: The ASB advisor should use prehumbered 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 fund raising 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 II - FINANCIAL STATEMENT FINDINGS (Continued) 3. INTERNAL CONTROL - FOOD SERVICES (30000) (Continued) Recom mendation 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 allowaple 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 nd i 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/Recommendation Current Status 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. For grades 9-12 the total number 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 District Explanation If Not Implemented