On June 24, 2019, the board adopted the Fiscal Year 2019-2020 budget.  A subsequent budget revision was approved by the board on October 8, 2019, as a result of the ending fund balance in the 2018-2019 unaudited actuals financial report, which was approved on September 24, 2019.  On December 16, 2019, the board of trustees approved the 2019-2020 First Interim Report with a negative certification and adopted Resolution No. 4648, to Declare a Negative Certification and Balance the District Budgets for 2020-2021 and 2021-2022.

California Education Code Section 42130 requires that the board of trustees approve the Second Interim Report of the district’s budgetary status as of January 31, on or before March 15.  The board is also required to certify to the state that the district’s projected financial condition at this point in time is one of the following:

1. Positive Certification – will be able to meet its financial obligations

2. Qualified Certification – may not meet its financial obligations

3. Negative Certification – will be unable to meet its financial obligations   

All other district funds outside of the General Fund are projected to meet their financial obligations for the current year.

Resolution No. 4659 identifies the amount of budget solutions necessary for Fiscal Years 2020-2021 and 2021-2022.

This Board Agenda Item supports LCAP Goal 4, coherent and transparent systems, because it provides information on the district’s ability to meet its financial obligations for the current and subsequent two years.

For questions regarding this board item, please contact Jenny Salkeld at 619/691-5550 or jenny.salkeld@sweetwaterschools.org.

The Fiscal Year 2019-2020 Second Interim Financial Report shows a total General Fund projected July 31, 2020, ending balance of $(4,338,648): General Fund Unrestricted $(4,484,521), General Fund Restricted $145,873.  General Fund Unrestricted also includes revolving cash, stores, and prepaids totaling $867,018 balance.  The report includes the San Diego County Office of Education imposed budget entries requested on November 8, 2019.