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Summary Statement

Following is a detailed description of the information presented in the summarized data of the Expenditures by Object and the Expenditures by Function formats, known as the Summary Statement:

Revenues: Section A

Displays operating revenues that are of a recurring or ongoing nature and likely to be received year after year. Does not include interfund transfers or non recurring sources (revenues), such as proceeds from the sale of sites.

Expenditures: Section B

Displays operating expenditures that are of a recurring or ongoing nature and likely to be expended year after year. Does not include interfund transfers or non recurring uses of revenues (expenditures), such as transfers from lapsed or reorganized districts.

Excess (Deficiency) of Revenues Over Expenditures Before Other Financing Sources and Uses: Section C

Compares operating revenues and expenditures, indicates whether revenues and expenditures are balanced, and highlights any deficit in operations. Creates a first line of focus on the ongoing financial health of the fund.

Other Financing Sources/Uses: Section D

Displays all interfund transfers plus other sources and uses. The other sources/uses are generally of a non recurring nature and are not likely to be received or expended year after year, such as site sale proceeds (source) and transfers from lapsed or reorganized LEAs (use). Provides information on the amount of unrestricted General Fund[CSSF] revenues needed to subsidize restricted programs.

Net Increase (Decrease) in Fund Balance: Section E

Displays the net change in the fund balance as a result of all activities. Does not include the beginning fund balance (prior year’s ending fund balance).

Fund Balance, Reserves: Section F

Displays the beginning fund balance, ending fund balance, and reserves.

Beginning Balance—As of July 1: F1a

  • The 2020–¬21 estimated/unaudited actual beginning balance must agree with the 2019–¬20 unaudited actual ending balance as previously reported to the California Department of Education. For the 2021–¬22 budget year, the SACS Web System automatically calculates the beginning balance based on the amount calculated for the 2020–¬21 estimated/unaudited actual ending balance.

  • The Technical Review Checklist will check to ensure that your 2020–¬21 “July 1” beginning balances agree with the 2019–¬20 unaudited actual ending balances, by fund and resource.

Adjustments: F1b & F1d

  • A prior period adjustment applies to a correction of an error in the financial statements of a prior period or a restatement of the beginning balance when a change in accounting principle cannot be applied retroactively. Prior period adjustments or restatements are only applicable to the unaudited actual section of the report.

Ending Balance, June 30: F2

  • The estimated/unaudited actual ending fund balance (EFB) displayed on the fund form is calculated based on the data extracted into the form from the database. When invalid object codes or fund by object combination codes (which are both fatal in the Technical Review Checks) exist in your database, they will not display on the fund form, and the EFB on the fund form will not equal the EFB in your database or the budget beginning fund balance (which is calculated from the estimated/unaudited actual EFB in the database). For example, when Object 4100 is used in Fund 71, there is no place on the fund form for it to post so it is not included in the EFB calculation on the fund form, but it is used in the database EFB calculation. This type of exception must be corrected by changing the invalid codes in the source of the data (i.e., the LEA’s accounting system).

Components of Ending Fund Balance—For all funds except funds 61 through 95

Non spendable Fund Balance: F2a (Objects 9710–9719)

Displays the amounts that are not in spendable form, either because they will never convert to cash (such as prepaid items) or must remain intact pursuant to legal or contractual requirements (such as the principal of a permanent endowment).

  • Non spendable Revolving Cash (Object 9711)—the portion of fund balance reflecting the value of the revolving cash account.
  • Non spendable Stores (Object 9712)—the portion of fund balance reflecting the value of stores.
  • Non spendable Prepaid Items (Object 9713)—the portion of fund balance reflecting the value of prepaid items.
  • All Other Non spendable Assets (Object 9719)—the portion of fund balance reflecting the value of non spendable assets not specified above. For example, this object is used for the legal reserve required for Certificates of Participation, the long-term portion of notes receivable, or the principal of a permanent endowment.

Actual data reported in the asset accounts for Revolving Cash Account (Object 9130), Stores (Object 9320), and Prepaid Expenditures (Object 9330) is compared to amounts reported in the Non spendable Fund Balance for Revolving Cash (Object 9711), Stores (Object 9712), and Prepaid Items (Object 9713) accounts, respectively. When the amounts do not agree by fund and resource, the SACS Web System recalculates the amounts reported in the Non spendable accounts to equal the asset amounts.

Restricted Fund Balance: F2b (Objects 9730–9749)

Displays the amounts subject to externally imposed and legally enforceable constraints.

  • Restricted Balance (Object 9740)—the portion of fund balance representing resources subject to externally imposed and legally enforceable constraints imposed either by external resource providers, e.g., grantors or creditors, or by law through constitutional provisions or enabling legislation. Examples include unspent balances of restricted state and federal grants, and unspent proceeds of general obligation bonds. All positive balances of SACS restricted resources 2000 through 9999 are reported using Object 9740.

Committed Fund Balance: F2c (Objects 9750–9769)

Displays the amounts of resources whose use is constrained by limitations self-imposed by the LEA through formal action of its highest level of decision-making authority. The constraints can be modified or removed only through the same process by which they were imposed. The action imposing the constraint must be made by the end of the reporting period. The actual amounts may be determined at a later date, prior to the issuance of the financial statements.

  • Stabilization Arrangements (Object 9750)—the portion of fund balance set aside pursuant to a stabilization arrangement more formal than the reserve for economic uncertainties recommended by the Criteria and Standards for fiscal solvency or other minimum fund balance policy. The level of constraint must meet the criteria to be reported as committed, and the circumstances in which the resources are used must be specific and nonroutine. The formal action imposing the constraint should identify and describe in sufficient detail the circumstances in which the amounts may be used. Minimum fund balance policies and other stabilization arrangements that do not meet the criteria to be reported as committed are reported as unassigned. Also see Reserve for Economic Uncertainties (Object 9789).
  • Other Commitments (Object 9760)—the portion of fund balance representing commitments other than stabilization arrangements.

Assigned Fund Balance: F2d (Objects 9770–9788)

Displays the amounts of resources that are intended to be used for specific purposes but for which the constraints do not meet the criteria to be reported as restricted or committed. Intent may be established either by the LEA’s highest level of decision-making authority or by a designated body or official. Constraints giving rise to assigned fund balance may be imposed at any time before the financial statements are issued, and may be modified or removed by a process less formal than is required for committed fund balance. In governmental fund types other than the general fund, this is the residual fund balance classification.

  • Other Assignments (Object 9780)—the portion of fund balance representing assignments.

Unassigned Fund Balance: F2e (Objects 9789–9790)

Displays the amounts not classified as non spendable, restricted, committed, or assigned.

  • Reserve for Economic Uncertainties (Object 9789)—the portion of unassigned fund balance set aside pursuant to a minimum fund balance policy. This amount includes the reserve recommended by the Criteria and Standards for fiscal solvency, as well as additional reserve amounts established pursuant to local policy. Object 9789 is available in Fund 01 and Fund 17.

  • Unassigned/Unappropriated (Object 9790)

    • In the General Fund[CSSF], residual fund balance in excess of amounts reported in the non spendable, restricted, committed, or assigned fund balance classifications and net of Object 9789, Reserve for Economic Uncertainties.
    • In all governmental funds including the general fund, the excess of non spendable, restricted, and committed fund balance over total fund balance (deficits). Assigned amounts must be reduced or eliminated if a deficit exists.

Components of Ending Net Position—For funds 61 through 95

Since funds 61 through 95 use accrual accounting, components of ending fund balance are not appropriately reported for them. Two objects are established to allow components of net position to be reported correctly.The two object codes are:

  • Net Investment in Capital Assets (Object 9796)
  • Restricted Net Position (Object 9797)

Net Investment in Capital Assets: F2a (Object 9796)

Displays the amount of capital assets, net of accumulated depreciation, reduced by the outstanding debt directly related to the capital assets.

Restricted Net Position: F2b (Object 9797)

Displays the amount of restricted net position.

Unrestricted Net Position: F2c (Object 9790)

Displays the amount not required to be reported in the other components of net position.

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