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Chapter 14. School Finance. Subchapter 8. Criteria and Standards for School District Budgets and Interim Reports. Interim Report Review. Note: For fiscal responsibility of County Superintendents. General.   

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(a) School districts shall conduct a review of their budgets at Interim Report time in accordance with the following criteria and standards (beginning with section 15454) and supplemental information (beginning with section 15464). The county superintendent of schools will review the school district's Interim Report using the criteria and standards.

(b) The school district superintendent shall submit two interim reports to its governing board during each fiscal year. Both interim reports shall be approved by the district's governing board along with a certification on whether their school district is able to meet its financial obligations for the remainder of the fiscal year and, based on current forecasts, for the two subsequent fiscal years. The certification shall be based on the governing board's assessment and the criteria and standards. The certification shall be classified as positive, qualified, or negative.

(1) A positive certification indicates that, based on current projections the school district will meet its financial obligations for the current fiscal year and two subsequent fiscal years.

(2) A qualified certification indicates that, based on current projections the school district may not meet its financial obligations for the current fiscal year or two subsequent fiscal years.

(3) A negative certification indicates that, based on current projections the school district will be unable to meet its financial obligations for the remainder of the current fiscal year or the subsequent fiscal year.

(c) The review includes an analysis of ten criteria, with standards, and supplemental information about the status of the budget at Interim Report time. The ten criteria are fund and cash balances, reserves, deficit spending, ADA, enrollment, ADA to enrollment, LCFF revenue, salaries and benefits, other revenues and expenditures, and facilities maintenance. Each of these criteria has a standard by which it is measured. In addition to the criteria and standards, the review must identify additional information regarding contingent liabilities, use of one-time revenues for ongoing expenditures, contingent revenues, contributions, long-term commitments, unfunded liabilities, temporary interfund borrowings, status of labor agreements, and the status of other funds. Deviations from the standards must be explained, and may affect the interim certification.

Authority cited:

Education Code 33127

Education Code 33129

Education Code 42131

Reference:

Education Code 33128

(Amended by Register 2013, No. 49.)