Administrative Regulation

 

AR3460

 

Business and Non-Instructional 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 35035, 42130)

 

Within 45 days after the close of the period reported, the Board shall assess these reports of the District's financial condition on the basis of criteria adopted by the State Board of Education 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 reports and send the County Superintendent of Schools these reports and its certification of the District's financial status based on current projections, in accordance with the following: (Education Code 42131)

 

1. A positive certification will indicate that the District will meet its financial obligations for the current fiscal year and subsequent two fiscal years.

 

2. A qualified certification will indicate that the District may not meet its financial obligations for the current fiscal year or two subsequent fiscal years.

 

3. A negative certification will indicate that the District will be unable to meet its financial obligations for the remainder of the fiscal year or the subsequent fiscal year.

 

Qualified or negative certifications shall also be sent to the Superintendent of Public Instruction and State Controller, together with a copy of the fiscal report and a completed transmittal form provided by the Superintendent of Public Instruction. (Education Code 42131)

 

If the Board files a qualified or negative certification for the second report of the fiscal year, or if its second report is classified as qualified or negative by the County Superintendent of Schools, the Superintendent or designee shall provide to the County Superintendent of Schools, the Controller, and the Superintendent of Public Instruction, no later than June 1, 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)

 

Annual Financial Report

 

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 County Superintendent of Schools. (Education Code 42100)

 

Non-Voter-Approved Debt Report

 

Whenever the Board approves the issuance of certificates of participation or revenue bonds, the Superintendent or designee shall notify the County Superintendent of Schools and the county auditor. The Superintendent or designee shall provide the board, the county auditor, the County Superintendent of Schools and the public with related repayment schedules and evidence of the District's ability to repay the obligation. Within 15 days, the County Superintendent and county auditor may comment publicly to the Board regarding the District's capability to repay the debt. (Education Code 17850)

 

Accrued Benefits and Claims Report

 

The Superintendent or designee shall annually provide the Board, at a public meeting, information and related actuarial reports showing the estimated accrued but unfunded cost of workers' compensation claims. Costs shall be reported whether the District is responsible as a member of a joint powers agency. The Board shall disclose, as a separate agenda item, whether or not it will reserve in the budget sufficient amounts to fund the present value of these claims or if it is otherwise decreasing the amount in its workers' compensation reserve fund. The Board shall annually certify to the County Superintendent of Schools the amount, if any, that it has decided to reserve in the budget for these costs. The Board shall submit to the county Superintendent any budget revisions that may be necessary to account for this budget reserve. (Education Code 42141)

 

 Investment Reports

 

Within 30 days of the end of each quarter, the Superintendent or designee shall provide the Board with quarterly reports of District investments that include the following: (Government Code 53646)

 

1. The extent to which the portfolio complies and/or does not comply with the District's investment policy

 

2. A statement denoting the District's ability to meet its pool's expenditure requirements for the next six months, or an explanation of why sufficient money shall or may not be available

 

3. The most recent statement(s) received from the state's local Agency investment fund or from FDIC-insured accounts in a bank or savings and loan association, in a county investment pool or in any combination of these

 

4. The type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and monies held by the District other than those specified in item #three above

 

5. A description of any District funds, investments or programs that are under the management of contracted parties, including ending programs

 

6. The current market value, and the source of this information, for all securities held by the District and under management of any outside party that is not another local agency or the state's local agency investment fund

 

In the above report, a subsidiary ledger of investments may be used in accordance with accepted accounting practices. (Government Code 53646)

 

Adopted: 9/10/97

Revised:

 

Related Polices and Exhibits:

BP 3460 Business and Noninstructional Operations