Education Code Section 42130 requires school districts to prepare two annual interim financial reports. These reports intend to provide an “early warning system” to indicate whether a district can meet its current or future years’ financial obligations.
Therefore, Los Banos Unified School District must file two fiscal reports during a fiscal year (interim reports) on the district’s financial health status. The first interim report is due December 15 for the period ending October 31. The second interim report is due March 17 for the period ending January 31. County superintendents are to report to the Superintendent of Public Instruction and the State Controller the certification for all districts in their county within 75 days after closing the reporting period.
The interim reports must include a certification of whether or not Los Banos Unified School District was able to meet its financial obligations. The certifications are classified as positive, qualified, or negative. A positive certification is assigned when the district meets its financial obligations for the current and two subsequent fiscal years. A qualified certification is assigned when the district may not meet its financial obligations for the current or two subsequent fiscal years. A negative certification is assigned when a district cannot meet its financial obligations for the remainder of the current year or the subsequent fiscal year. In addition, the Superintendent of Public Instruction may reclassify any county office of education certification or reclassify a certification based on an appeal of a school district under the above standards.