AR 3460
Business and
Noninstructional Operations
Financial Reports And
Accountability
Interim Reports
The Superintendent or
designee shall submit two interim fiscal reports to the Governing Board, the
first report covering the district’s financial and budgetary status for the
period ending October 31 and the second report covering the period ending
January 31. The reports and supporting data shall also be made available by the
district for public review. (Education Code 42130)
Within 45 days after
the close of the period reported, the Board shall assess the interim report on
the basis of criteria adopted by the State Board of Education pursuant to
Education Code 33127 and on current information regarding the adopted state
budget, district property tax revenues if any, and ending balances for the
preceding year. The Board shall approve the fiscal report and send it to the
1. "Positive
certification" indicating that the district will meet its financial
obligations for the current fiscal year and two subsequent fiscal years
2. "Qualified
certification" indicating that the district may not meet its financial
obligations for the current fiscal year or two subsequent fiscal years
3. "Negative
certification" indicating that the district will be unable to meet its
financial obligations for the remainder of the fiscal year or the subsequent
fiscal year
If the second interim
report of the fiscal year is accompanied by a qualified or negative
certification as determined by the Board or subsequently by the County
Superintendent, the Superintendent or designee shall, no later than June 1,
provide to the County Superintendent, the Controller, and the Superintendent of
Public Instruction a financial statement that reports data for the period
ending April 30 and projects the district’s fund and cash balances as of June
30. (Education Code 42131)
Whenever the district
has a qualified or negative certification, it shall allow the county office of
education at least 10 working days to review and comment on any proposed agreement
with exclusive representatives of employees. The district shall provide the
Annual Statement of
Receipts and Expenditures
On a form prescribed
by the Superintendent of Public Instruction, the Superintendent or designee
shall prepare a statement of all receipts and expenditures of the district for
the preceding fiscal year. On or before September 15, the Board shall approve
this statement and file it with the
Audit Report
By April 1 of each year,
the Board shall either provide for an audit of the district’s books and
accounts or make arrangements with the
The Superintendent or
designee shall establish a timetable for the completion and review of the audit
within the deadlines established by law.
To conduct the audit,
the Board shall select a certified public accountant, or public accountant
licensed by the State Board of Accountancy, from among those deemed qualified
by the State Controller. (Education Code 41020, 41020.5)
The Board shall not
select any public accounting firm to provide audit services if the lead audit
partner or coordinating audit partner having primary responsibility for the
audit, or the audit partner responsible for reviewing the audit, has performed
audit services for the district in each of the six previous fiscal years.
(Education Code 41020)
While a firm is
performing the audit of the district, it shall not provide any nonauditing, management or other consulting services except
as provided in Government Accounting Standards, Amendment #3, published by the
U.S. Government Accounting Office. (Education Code 41020)
The audit shall
include an audit of income and expenditures by source of funds for all funds of
the district, including the student body and cafeteria funds and accounts and
any other funds under the control or jurisdiction of the district, as well as
an audit of student attendance procedures. (Education Code 41020)
The district’s audited
financial reports shall include:
1. Management’s discussion
and analysis, which shall introduce the basic financial statements and provide
an analytical overview of the district’s financial activities, including:
a. An objective and easily
readable analysis of the district’s financial activities based on currently
known facts, decisions, and conditions
b. Comparisons of the current year to the
prior year
c. An analysis of the
district’s overall financial position, enabling a determination as to whether
that position has improved or deteriorated as a result of the year’s activities
d. An analysis of
significant changes that occur in funds and significant budget variances
e. A description of capital
asset and long-term debt activity during the year
f. A description of
currently known facts, decisions, and conditions that are expected to have a
significant effect on the district’s financial position
2. Basic financial statements, including:
a. Districtwide
financial statements, consisting of a statement of net assets and a statement
of activities which report all of the assets, liabilities, revenues, expenses,
and gains and losses of the district
b. Fund financial statements,
consisting of a series of statements that focus on information about the
district’s major governmental and enterprise funds, including its blended
component units
c. Notes to the financial
statements that are essential to a user’s understanding of the basic financial
statements
3. Supplementary
information required by the Governmental Standards Accounting Board, including
but not limited to budgetary comparison schedules
No later than
December 15, the Superintendent or designee shall file the report of the audit
for the preceding fiscal year with the
By January 31 of each
year, the Board shall review, at an open meeting, the annual district audit for
the prior year, any audit exceptions identified in that audit, the
recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct
any exceptions or any issue raised in a management letter. (Education Code 41020.3)
Non-Voter-Approved Debt
Report
Whenever the Board
approves the issuance of certificates of participation bonds, revenue bonds, or
any agreement for financing school construction, the Superintendent or designee
shall notify the
Accrued Benefits and
Claims Report
The Superintendent or
designee shall plan for the implementation of the Governmental Accounting
Standards Board Statement 45, including the procurement of a qualified actuary
to determine the district’s annual expense and liability for post-employment
health and welfare benefits. In addition, the Superintendent or designee shall
recommend actions to the Board to mitigate the financial impact to the district
of any unfunded liabilities.
Adopted:
Revised: