District reports strong revenue accuracy, cites GASB 87 accounting effects

Assistant Superintendent Gerardo Cruz presented the district's unaudited actuals for fiscal 2024–25 and told the board the district closed the books with revenue projections coming in just under a 2% variance from estimates.

"If you were to account for the percent change in our revenue projection, it's just below 2% — it was actually 1.83%," Cruz said, then explained that implementation of GASB 87 required reclassifying a portion of lease and rental revenue to interest earned, which added about $2,000,000 to interest lines while reducing the lease line. Cruz also identified other revenue variances: roughly $504,000 collected in delinquent property taxes, a $130,000 decrease in the Education Protection Account tied to prior lower enrollment, a $416,000 increase tied to Measure R parcel tax collections, and additional local reimbursements (insurance) recorded at roughly $485,000 related to recent wildfires.

Cruz stressed the difference between accounting recognition and net fiscal position: reimbursements and GASB reclassifications increased revenue lines but did not fully offset fire‑related expenditures. He said auditors will test the closing entries and a draft audit will be reviewed by the Financial Oversight Committee in November, with the final audit expected by Jan. 31.