Committee to Elect Gracey Van Der Mark p.o. box 4443 Huntington Beach, California 92605

I have reviewed the District finances and while I am not an accountant, but some things are very clear: 

According to the District’s Multi-year projections (most recent can be found in the District’s 2018-2019 Adopted Budget) the District recorded a deficit in the amount of $4,662,976.  There is a projected deficit spending for the 2019-2020 and 2020-2021 school years as well. 

The District is projecting no deficit and amazingly just about the same ending balance as the current year for the 2018-2019 school year, despite a deficit for years past and years to come.  This is because the District is projecting (in the Budget) no decrease in student enrollment.

I believe the District orchestrated these numbers because this is an election year and voices such as mine have challenged the deficit spending.

Looking at the District’s 2017-2018 1st Interim Report Presentation, the Board of Trustees was advised that there is a “structural Deficit”.

 

At the time of the 1st Interim Report, the staff projected a deficit of over $3million for the current year and the next.

This is why I am concerned about the transparency and accountability with regards to the District’s finances.

 

OVSD Financial Update

 

OVSD issued the 2017-2018 Unaudited Actuals on September 4, 2018.  The following information is from that report.

YES, there is still a DEFICIT

This report was issued in June 2018.  The 2017-2018 Budget deficit of $4,662,976 shown above has been severely reduced.  The District’s fiscal year is from July 1 – June 30 so how does a deficit change by approximately $3Million in a 2-week period?  (The 2 week period is from the time the report was issued to the end of the fiscal year.)

 

June 2018 Estimated Actuals:  $-4,662,976

September 4, 2018 Unaudited Actuals:  $-1,456,821

Difference of $3,206,155

Where are the changes?

Since the public became aware of the OVSD deficit spending, changes have occurred.

 

These are questions we should all be asking:

 

  1. How did expenses decrease over $2M in the month of June? (Remember that there is only about 2 weeks of school left during that time period.)

  2. Did the District move the expenditures for Services (about $1M) to another account?  Maybe to be paid for by the Bond?

  3. Why did the Board give a retroactive pay increase to the highest paid employees in the District?  (Totaling almost $500,000).  

Note:  This must be a 6-month retroactive raise since the future 

years show $961,164

Where did the District surplus go?  Reference the 2015-2016 District Report