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SFUSD accepts unaudited financial reports; staff praised, liabilities flagged
Summary
The board accepted FY2005–06 unaudited financial reports after staff met state deadlines; district fiscal staff highlighted improved processes but warned of encroachments on categorical programs and large unfunded liabilities for retiree health.
The San Francisco Unified School District Board of Education accepted the district's unaudited financial reports for fiscal year 2005–06 after Superintendent Gwen Chan and Chief Financial Officer Greg Grama praised staff for meeting statutory reporting deadlines.
Greg Grama told the board the reports were submitted to the state on Oct. 16 and credited a cross-departmental effort, restructured general ledger staffing and adherence to a strict schedule for the early completion. "We completed it on time," he said, and named several staff for contributions in accounting, payroll, contracts, purchasing, budget and IT.
Grama and board members highlighted several fiscal challenges moving forward: high encroachments on categorical programs (the finance presentation cited a child development encroachment of $3.7 million and student nutrition encroachment of $800,000 for FY2005–06), an upcoming actuarial study for retiree health insurance due in December that officials said "will be a huge number," and a long-term liability figure cited at about $37 million with an unfunded balance near $26 million. Grama said the finance office is continuing reconciliations and will work with auditors to finalize figures; auditors are scheduled to aim for completion by Dec. 15.
Board members thanked finance staff for making reports more understandable and for reaching the state deadline; several members said the district must begin planning strategies to address long-term liabilities and unexpected encroachments.
Vote: the acceptance of the unaudited financial reports was recorded on the consent calendar roll call as unanimous.
Next steps: auditors will complete the final audit, staff will present refined categorical and encroachment analyses to program managers and the board will consider strategies for retiree liabilities and categorical encroachment mitigation.
