S T A T E O F C A L I F O R N I A

1. S T A T E O F C A L I F O R N I A

2. “What to Expect in a Financial Hardship Re-Review” Presented by Jason Hernandez & Steve Inman

3. Background on Financial Hardship Unfunded Re-Reviews & Priority in Funding Rounds. Submitting your Documents for a Unfunded Re-Review. Review of Available Funds – Unfunded Re-Review Submittal & Documents Needed FH Re-Review Findings Letter Financial Hardship Re-Review – Topics of Discussion

4. SFP regulation section 1859.81(f) is allowed to sunset. What does this mean for School Districts with Financial Hardship project on the unfunded list? When is an unfunded re-review conducted? Background on Financial Hardship Unfunded Re-Reviews

5. If and when funding becomes available – the OPSC is ready to assist Financial Hardship (FH) Districts who would require a Re-Review. FH Districts participating in the certification filing period and have had a project on an unfunded list for more than 180 days.. Applicable Districts were sent a notification letter and an unfunded review FH Checklist. Districts will have 15 calendar days to submit the requested documentation. Districts should submit the required information as soon as possible. The District does not have to re-establish their FH status. Financial Hardship District Participating Priority Funding Round

6. The Financial Hardship (FH) team is available for any preliminary questions. The FH team is available to perform a site visit to assist Districts. Districts get started by submitting the “Unfunded Review Financial Hardship Checklist”. Submitting Your Financial Hardship Re-Review Package

7. During the review, the district will need to provide a reliable day to day contact who can help resolve issues and provide additional information. The contact should include district accounting staff familiar with facility accounting, the general ledger, and the Financial Hardship Re-Review package. OPSC audit staff require timely answers to questions. This will ensure your package is processed as soon as possible. District Contact

8. A Financial Hardship (FH) Unfunded Re-Review submittal will include the following: A cover letter stating the District is submitting documents for a FH Re-Review. A completed & signed Unfunded Review Financial Hardship Checklist http://www.documents.dgs.ca.gov/opsc/Forms/Checklists/Fin_Hrdshp_Chklst.pdf The appropriate backup documents (discussed in the presentation). Once the FH Unfunded Re-Review package is received by the OPSC they are reviewed for completeness. Financial Hardship Re-Review Submittal

9. (1) Open to the OPSC home page at www.opsc.ca.gov. (2) Click on “Program & Services” tab (left side of screen). (3) Click on Financial Hardship (FH) Program tab (middle of page). (4) Click where it says: “read more”. (5) Click where it says: “Financial Hardship Program forms”. (6) From there you will click on the “+” sign on the blue box marked “Financial Hardship Program Eligibility Forms” This will drop down a list of forms needed for Financial Hardship. The Unfunded Review Financial Hardship Checklist is the fourth form listed. Steps to Locate Financial Hardship Forms

10. Incomplete Unfunded Review Financial Hardship (FH) Checklist. 4 day letter issued – requesting missing documents. Any Financial Hardship Unfunded Re-review packages incomplete after the 4 day passes will be not be processed. Only processing complete FH Unfunded Re-Review packages. Incomplete Unfunded Re-Review Submittals

11. Auditor reviews District’s financial information to make a determination of additional available funds. The review will not commence until documentation is complete. Review possible funding sources received since July 1, 2011. Certificates of Participation (COP). General Obligation Bonds. Redevelopment Funds & Developer Fees. Sale of Surplus Property, etc. Review of Available Funds – Financial Hardship Re-Review

12. Review Funds which contain the District’s Capital Facility related funding. Make determination of eligible expenditures, eligible encumbrances, and available fund balances. A complete Unfunded Re-Review package should include the following documentation: An expenditure report for each project on a unfunded list. Documents Needed for Unfunded Re-Review Submittal

13. Financial Hardship Fund Worksheets. Trail Balance for each Fund Worksheet General Ledger (GL) Summary Report Information in column 1 of the Fund Worksheets General Ledger (GL) Detail Reports. Information in Column 2 of the Fund Worksheet Copy of latest Independent Audit Report - if not previously submitted. Documentation supporting the liquidation of previously approved encumbrances. Documents Needed for Unfunded Re-review Submittal - Continued

14. One Fund worksheet is submitted for every fund that contains capital facility funding. The worksheet is used to determine how much contribution is available within the Fund. Documents Needed: Most recent audited financial statements General Ledger (GL) Summary report for the fiscal year covered in Column 1. A General Ledger Detail Report for each fiscal year covered in Column 2. Trial Balance for the ending fund balance in Column 2. Documents showing previously approved encumbrances liquidated. Financial Hardship Fund Worksheet

15. Financial Hardship Fund Worksheet

16. Additional Fund Detail Worksheet

17. A review of RDA funding received by the District after June 30, 2011, to determine if any is available contribution (Object Code 8625 – CA Accounting manual). Documents Needed: RDA Agreements Table which breaks out all the RDA areas in District and lists: the beginning balance of each RDA area on July 1, 2011. Revenue & Expenditures since July 1st. Balance of each RDA area at the date of submittal. Map of applicable RDA Areas. Listing on maps where school projects are located. Redevelopment Area Funding

18. RDA Funding Summary Table

19. Determination of available Funds The OPSC makes a determination of available funds using the information provided by the district. The “Financial Hardship Re-Review Findings” Letter will be issued with attached fund worksheets. District has 15 days to respond to letter. If District doesn’t agree with findings – may submit additional documents during this time period. The District concurs with the findings by signing & returning the fund worksheets. After the review is complete and the District concurs, they will be eligible to receive an apportionment. FH Findings Letter

20. Overview of the Financial Hardship (FH) Re-Review process. District has FH project on the unfunded list. District requests to have FH project compete in the current priority in funding round. OPSC contacts District to request documents needed for FH Re-Review. District submits needed documents for Re-Review. Available funds review. Re-Review findings are sent to District. District ready for apportionment. Summary

21. FH Audit Staff Members Steve Inman, Audit Supervisor (916) 375-4576 or steve.inman@dgs.ca.gov Jason Hernandez, Audit Supervisor (916) 376-5639 or jason.hernandez@dgs.ca.gov Maria Gamino, Auditor (916) 375-2031 or maria.gamino@dgs.ca.gov John Leininger, Auditor (916) 375-4610 or john.leininger@dgs.ca.gov Audrey Sims Davis, Auditor (916) 375-6736 or audrey.sims-davis@dgs.ca.gov Contact Information

22. Questions?