Each School District must present two interim financial reports to its governing board for approval pursuant to Education Code (EC) Sections 42130. 

* Dates calculated as prescribed by law

The governing board of each school district is required to approve the reports no later than 45 days after the close of the period being reported and certify the district’s ability to meet its financial obligations for the current and two subsequent fiscal years. The certification will be classified as positive, qualified, or negative, defined as follows (EC Section 42131): 

Positive: A school district that, based upon current projections, will meet its financial obligations for the current and two subsequent fiscal years.  

Qualified: A school district that, based upon current projections, may not meet its financial obligations for the current and two subsequent fiscal years.

Negative: A school district that, based upon current projections, will be unable to meet its financial obligations for the current and two subsequent fiscal years.

After board approval, the interim report and signed certification must be filed with our office.  We will evaluate the district’s solvency using the state criteria and standards and the Fiscal Crisis Management Assistance Team (FCMAT) Fiscal Health Risk Analysis tool.  Therefore, please continue to focus on prudent fiscal management to ensure that the district will continue to meet its minimum reserve level while maintaining sufficient cash to meet its financial obligations.