Amador County Office of Education Report

Fiscal Health Risk Analysis July 18, 2025 Amador County Office of Education Michael H. Fine Chief Executive Officer July 18, 2025 Jared Critchfield, Superintendent Amador County Office of Education 217 Rex Ave. Jackson, CA 95642-2020 Dear Superintendent Critchfield: In April 2025, the Amador County Office of Education and the Fiscal Crisis and Management Assistance Team (FCMAT) entered into an agreement for FCMAT to conduct a FCMAT Fiscal Health Risk Analysis of the county office. The agreement stated that FCMAT would perform the following: Prepare an analysis using the 20 factors in FCMAT’s Fiscal Health Risk Analysis (FHRA) and identify the Client’s specific risk rating for fiscal insolvency. This report contains the fiscal health risk analysis report with the study team’s findings. FCMAT appreciates the opportunity to assist the Amador County Office of Education and extends thanks to all the staff for their assistance during fieldwork. Sincerely, Michael H. Fine Chief Executive Officer Michael H. Fine • Chief Executive Officer 1300 17th Street – City Centre, Bakersfield, CA 93301-4533 • Tel. 661-636-4611 • Fax 661-636-4647 www.fcmat.org Fiscal Health Risk Analysis Contents About FCMAT ..................................................................................................3 Introduction ......................................................................................................5 Background ...............................................................................................................5 Fiscal Health Risk Analysis Guidelines ...............................................................5 Study Team ................................................................................................................6 Fiscal Health Risk Analysis .......................................................................... 7 Summary .................................................................................................................... 7 About the Analysis ...................................................................................................9 Areas of High Risk....................................................................................................9 Budget and Fiscal Status ....................................................................................................9 Material Weakness Questions ...........................................................................................9 Score Breakdown by Section ................................................................................11 Fiscal Health Risk Analysis Questions ...............................................................12 Annual Independent Audit Report ..................................................................................12 Budget Development and Adoption ..............................................................................12 Budget Monitoring and Updates .....................................................................................13 Cash Management ..............................................................................................................15 Charter Schools ...................................................................................................................16 Collective Bargaining Agreements .................................................................................16 Contributions and Transfers .............................................................................................18 Deficit Spending (Unrestricted General Fund) ............................................................19 Employee Benefits ..............................................................................................................19 Enrollment and Attendance .............................................................................................20 Fiscal Crisis and Management Assistance Team Amador County Office of Education 1 Fiscal Health Risk Analysis Facilities ................................................................................................................................20 Fund Balance and Reserve for Economic Uncertainties ..........................................21 General Fund – Current Year ...........................................................................................21 Information Systems and Data Management .............................................................22 Internal Controls and Fraud Prevention .......................................................................22 Leadership and Stability ...................................................................................................23 Multiyear Projections ..........................................................................................................24 Non-Voter-Approved Debt and Risk Management ...................................................25 Position Control ..................................................................................................................26 Special Education ...............................................................................................................26 Risk Score ................................................................................................................27 County Office Fiscal Solvency Risk Level ........................................................27 Appendices ....................................................................................................28 Appendix A – Comparison of 2019 and 2025 FHRA Results .....................29 Appendix B – Study Agreement ........................................................................42 Fiscal Crisis and Management Assistance Team Amador County Office of Education 2 Fiscal Health Risk Analysis About FCMAT Purpose and Services FCMAT was created by the California Legislature to help California’s transitional kindergarten through grade 14 (TK-14) local educational agencies (LEAs) avoid fiscal insolvency. Today, FCMAT helps LEAs iden- tify, prevent and resolve financial, management, program, data, and oversight challenges; provides pro- fessional learning; produces and provides software, checklists, manuals and other tools; and offers other related school business and data services. FCMAT may be asked to provide fiscal crisis or management assistance by a school district, charter school, community college, county superintendent of schools, the state superintendent of public instruction, or the Legislature. When FCMAT is asked for help with management assistance or a fiscal crisis, FCMAT management and staff work closely with the requesting LEA to meet their needs. Often this means conducting a formal study using a FCMAT study team that coordinates with the LEA for on-site fieldwork to evaluate specified operational areas and subsequently produces a written report with findings and recommendations for improvement. For more immediate needs in a specific area, FCMAT offers short-term technical assistance from a FCMAT staff member with the required expertise. To help meet the need for qualified chief business officials (CBOs) in LEAs, FCMAT offers four different CBO training and mentoring programs that consist of 11 or 12 diverse two-day training sessions over the course of a full year. For agencies with professional learning needs, FCMAT offers workshops on specific topics. Popular topics include associated student body operations, use of FCMAT’s Projection-Pro online financial forecasting software, use of FCMAT’s Local Control Funding Formula (LCFF) Calculator, and data reporting for the California Longitudinal Pupil Achievement Data System (CALPADS). FCMAT staff and management also frequently make presentations at various professional conferences. The California School Information Services (CSIS) service of FCMAT helps the California Department of Education (CDE) operate CALPADS; helps LEAs learn about CALPADS, resolve data issues and meet reporting requirements; and provides LEAs with training and leadership in data management. CSIS also developed and continues to host and improve the Standardized Account Code Structure (SACS) web-based financial reporting system for all California LEAs, and provides ed-data.org, which gives educators, policy- makers, the Legislature, parents and the public quick access to timely and comprehensive data about TK-12 education in California. Since it was formed, FCMAT has provided LEAs with the types of help described above on more than 2,000 occasions. FCMAT’s administrative agent is the Kern County Superintendent of Schools. FCMAT is led by Michael H. Fine, Chief Executive Officer, and is funded by appropriations in the state budget and modest fees to requesting agencies. Workshop schedules, manuals, presentation slide decks, Projection-Pro software, LCFF calculators, past reports, an online help desk, and many other resources are available for download or use at no charge on FCMAT’s website. Fiscal Crisis and Management Assistance Team Amador County Office of Education 3 Fiscal Health Risk Analysis History FCMAT was created by Assembly Bill 1200 (Chapter 1213, Statutes of 1991) and Education Code 42127.8. Assembly Bill 107 (Chapter 282, Statutes of 1997) added Education Code 49080, which charged FCMAT with responsibility for CSIS and its statewide data management work, and Assembly Bill 1115 (Chapter 78, Statutes of 1999) codified CSIS’ mission. Assembly Bill 1200 created a statewide plan for county offices of education and school districts to work together locally to improve fiscal procedures and accountability standards. Assembly Bill 2756 (Chapter 52, Statutes of 2004) gave FCMAT specific responsibilities for districts that have received emergency state loans. In January 2006, Senate Bill 430 (Chapter 357, Statutes of 2005) amended Education Code 42127.8, and Assembly Bill 1366 (Chapter 360, Statutes of 2005) amended Education Codes 42127.8 and 84041. These new laws expanded FCMAT’s services to include charter schools and community colleges, respectively. Assembly Bill 1840 (Chapter 426, Statutes of 2018) changed how fiscally insolvent districts are administered once an emergency appropriation has been made, shifting oversight responsibilities from the state to the local county superintendent to be more consistent with the principles of local control, and giving FCMAT new responsibilities associated with the process. Fiscal Crisis and Management Assistance Team Amador County Office of Education 4 Fiscal Health Risk Analysis Introduction Background The Amador County Office of Education and the Amador County Unified School District are located in the Sierra Nevada foothills, about 45 miles southeast of Sacramento. Amador County spans 593 square miles and includes the cities of Jackson, Ione, Sutter Creek, and several other small, rural communities. The district and county office operate within a single-district county structure governed by a shared five-member board of trustees, with one superintendent serving both entities. This model, in which a school district and county office operate jointly, is rare in California; only seven such agencies exist statewide. Under this arrangement, the agencies share administrative services, including business operations, human resources, other support functions, and support staff. Oversight of the combined entity is the responsibil- ity of the state superintendent of public instruction and is administered by the California Department of Education’s (CDE’S) School Fiscal Services Division. Together, the county office and district serve approximately 4 ,060 transitional kindergarten through grade 12 students at two comprehensive high schools, one alternative high school, two middle schools, six ele- mentary schools, one continuation school, and one county community school (California Department of Education). They also offer state preschool, career technical education, independent study, adult education, and special education programs. As of the 2024-25 second principal apportionment — the most recent data available — 43% of students in Amador County were identified as English learners, foster youth, or economically disadvantaged. The county office’s 2024-25 second interim financial report projects unrestricted deficit spending of $110,824 in 2024-25, $112,474 in 2025-26, and $177,875 in 2026-27. It also indicates that the county office will not meet the required 4% reserve for economic uncertainties in 2025-26 and 2026-27. The county office self-certified its 2024-25 second interim financial report as qualified, indicating that it may not be able to meet its financial obligations in the current or subsequent two fiscal years. This marks the third consecu- tive qualified certification, following the 2023-24 second interim and 2024-25 first interim reports. Because of their three consecutive qualified interim report certifications, FCMAT automatically engaged with both the county office and district under provisions of the 2018-19 State Budget Act. As a result, the county office’s overall risk is automatically designated as High. To assess the county office’s risk of insol- vency, FCMAT conducted a Fiscal Health Risk Analysis using financial data from the 2024-25 second interim report. The county office received a score of 40.6%, which aligns with its automatic High-risk designation. Fiscal Health Risk Analysis Guidelines FCMAT entered into a study agreement with the Amador County Office of Education on April 29, 2025, and a study team visited the county office on May 14-15, 2025, to conduct interviews, collect data and review documents. After the fieldwork, the study team continued to analyze the gathered documents and data. This report summarizes the team’s findings and conclusions from those activities. FCMAT’s reports focus on systems and processes that may need improvement. Those that may be func- tioning well are generally not commented on in FCMAT’s reports. In writing its reports, FCMAT uses the Associated Press Stylebook and its own short internal style guide, which emphasize plain language, capital- ize relatively few terms, and strive for conciseness, clarity and simplicity. Fiscal Crisis and Management Assistance Team Amador County Office of Education 5 Fiscal Health Risk Analysis The Fiscal Health Risk Analysis tool was originally designed to review school districts under the oversight of their county offices of education. In this study, however, the reviewed entity is the Amador County Office of Education and the oversight agency is the CDE. While the tool remains applicable and relevant, refer- ences to district activities in this report pertain to the county office of education, and references to over- sight of the county office refer to the CDE. Study Team The team was composed of the following members: Roslynne Manansala-Smith Carolynne Beno FCMAT Intervention Specialist FCMAT Interim Chief Analyst Cassady Clifton FCMAT Technical Writer Each team member reviewed the draft report to confirm its accuracy and to achieve consensus on the analysis. Fiscal Crisis and Management Assistance Team Amador County Office of Education 6 Fiscal Health Risk Analysis Fiscal Health Risk Analysis For TK-12 Local Educational Agencies Dates of fieldwork: May 14-15, 2025 County Office: Amador County Office of Education Summary The Amador County Office of Education’s 2024-25 second interim budget projects a $110,824 deficit in the unrestricted general fund, following two years without deficit spending. Key drivers include rising special education contractor costs due to unfilled positions, increased nonpublic school and agency expenses, and an estimated $132,000 in excess claims liability under a new self-insured healthcare model for 2024-25. These costs have reduced the general fund balance and are expected to prevent the county office from meeting the state’s minimum reserve for economic uncertainties requirement in 2025-26 and 2026-27. In response to the county office’s ongoing fiscal challenges and two consecutive qualified budget certifica- tions, the California Department of Education (CDE) required the county office to submit a board-approved Fiscal Stabilization Plan with its 2024-25 second interim budget report. Submitted in March 2025, the plan outlines specific actions, timelines, and budget-balancing adjustments needed to restore financial solvency. It also addresses changes to the self-insured health insurance model and provides updates on staffing reductions. The plan must be fully implemented within the established timelines and updated with each subsequent budget reporting period. FCMAT conducted a Fiscal Health Risk Analysis (FHRA) for the county office in 2019, identifying a high risk of fiscal insolvency with a score of 46.4.%. The 2025 FHRA also indicates a high level of risk, with a score of 40.6%, reflecting persistent concerns in areas such as budget development and monitoring, collective bargaining, leadership stability, deficit spending, and erosion of the unrestricted general fund balance and reserves. A comparison of the results between the two FHRA studies is included in Appendix A. In fall 2023, the county office, in collaboration with its bargaining units, transitioned from a jointly managed trust model with California’s Valued Trust — a self-funded public school trust — to a self-insured healthcare benefits model with NewFront. This shift has exposed the county office to unanticipated excess claims liabilities totaling over $200,000 in both 2023-24 and 2024-25. Given the county office’s low ending bal- ances and reserves, this level of exposure is not sustainable. At the time of fieldwork, the county office was actively exploring options to transition out of it. The county office’s multiyear projections are often presented without the supporting assumptions needed for effective long-term planning. It does not adequately monitor its budget once adopted; FCMAT identified budget-to-actual discrepancies across several expenditure categories. The county office also lacks a formal budget development calendar, does not present its budgets with detailed written assumptions, and has no formal process to evaluate how accepting potential grants or restricted funds would affect its budget. Further, it has not consistently prioritized using grants or restricted funds before drawing on unrestricted funds. Establishing a more structured budget development process and prioritizing the use and oversight of restricted resources would significantly improve the county office’s financial planning and monitoring. As of this review, the county office has settled with its classified bargaining unit but has not finalized a 2024-25 agreement with its certificated unit. Although a presettlement analysis was conducted to calculate the cost of a 1% salary increase and quantify negotiation proposals, it did not include multiyear impacts or funding sources. The county office also failed to meet public disclosure requirements under Government Code 3540.2 and 3547.5 and Education Code 4214, preventing certification of affordability and a proper Fiscal Crisis and Management Assistance Team Amador County Office of Education 7 Fiscal Health Risk Analysis CDE review before board approval. Access to accurate information on the fiscal impact of labor agreements is essential for sound financial planning. Leadership turnover has also contributed to instability within the county office cabinet, with all five cabinet members appointed between August 2023 and October 2024. However, the current interim superintendent and interim chief business official (CBO), who assumed their roles in July 2024 following internal promo- tions, have provided some continuity. Prior to these appointments, the interim superintendent served as the CBO, and the interim CBO was the director of fiscal services. These internal transitions have helped the county office to maintain a degree of stability. The governing board has a fiduciary responsibility to safeguard the county office’s financial health, which includes ensuring a balanced budget and maintaining adequate reserves. County office administrators are responsible for presenting sound financial information based on current and accurate data so the board can make informed decisions that ensure long-term fiscal solvency. It is essential to consistently provide train- ing on budget, governance, and financial management to both board members and county office adminis- trators. Although interviews indicated that some training is provided, it is neither systematic nor regularly scheduled. To restore fiscal stability, the county office must implement its stabilization plan with urgency while also addressing underlying issues through improved governance, long-term planning, and stronger internal systems. County Office Fiscal Solvency Risk Level: High Fiscal Crisis and Management Assistance Team Amador County Office of Education 8 Fiscal Health Risk Analysis About the Analysis The Fiscal Crisis and Management Assistance Team (FCMAT) developed the Fiscal Health Risk Analysis (FHRA) to help evaluate a county office of education’s fiscal health and risk of insolvency in the current and two subsequent fiscal years. The FHRA consists of 20 sections, each including specific questions related to essential functions and processes. These sections and questions are based on FCMAT’s extensive work since the inception of Assembly Bill 1200 in 1991 and represent common indicators of fiscal risk or potential insolvency observed in local educational agencies that have neared insolvency and required external assistance. Each analysis section affects fiscal stability, and neglecting any of these areas will ultimately lead to the county office’s fiscal failure. The analysis aims to determine the county office’s level of risk at the time of evaluation. A higher number of “No” responses in the analysis indicates an increased risk of insolvency or other fiscal issues for the county office. Not all sections or questions carry equal weight; some areas pose a higher risk and thus have a greater impact on the county office’s fiscal stability. To help the county office, narratives are provided for each “No” response, explaining the reasoning behind the response and outlining the actions needed to achieve a “Yes” in the future. Identifying issues early is the key to maintaining fiscal health. Diligent planning allows county offices to better understand their financial objectives and implement strategies that sustain fiscal efficiency and long- term solvency. County offices should consider completing the FHRA annually to assess their fiscal health and track their progress. Areas of High Risk The following sections on this page and the next two pages repeat certain questions and answers found in the “Fiscal Health Risk Analysis Questions” section in this report. These sections identify conditions that create a significant risk of fiscal insolvency. A “No” response to any of these questions will supersede all other scoring and elevate the district’s overall risk level. Budget and Fiscal Status: Is district currently without the following? Yes No Disapproved budget ✓ ☐ Negative interim report certification ✓ ☐ Three consecutive qualified interim report certifications ☐ ✓ Downgrade of an interim certification by the county superintendent ✓ ☐ “Lack of going concern” designation ✓ ☐ Material Weakness Questions Yes No N/A 2 5 Has the district’s budget been approved unconditionally by September 15th by the county superintendent of schools in the current and two prior fiscal years ✓ ☐ ☐ 3 4 Following board approval of collective bargaining agreements, does the district make necessary budget revisions in the financial system to reflect settlement costs in accordance with EC 42142? ☐ ✓ ☐ Fiscal Crisis and Management Assistance Team Amador County Office of Education 9 Fiscal Health Risk Analysis 3 6 Has the district addressed any deficiencies the county superintendent of schools has identified in its oversight letters to the district in the most recent and two prior fiscal years? ☐ ✓ ☐ 4 3 Does the district forecast its general fund cash flow for the current and subsequent year and update it as needed to ensure cash flow needs are known? ☐ ✓ ☐ 4 4 If the district’s cash flow forecast shows insufficient cash in its general fund to support its current and projected obligations, does the district have a reasonable plan to meet its cash flow needs for the current and subsequent year? ☐ ☐ ✓ 5 2 Has the district fulfilled, and does it have evidence showing fulfillment of, its oversight responsibilities in accordance with EC 47604 32? ☐ ☐ ✓ 5 3 Are all charters authorized by the district going concerns and not in fiscal distress? ☐ ☐ ✓ 6 3 Does the district accurately quantify the effects of collective bargaining agreements and include complete disclosure documents that show the impact on its budget and multiyear projections? ☐ ✓ ☐ 6 4 Based on the presettlement analysis, did the district identify related costs or savings, and did it identify ongoing revenue sources or expenditure reductions to support the agreement in the current and subsequent years? ☐ ✓ ☐ 7 2 If the district has deficit spending in funds other than the general fund, has it included in its multiyear projection sufficient transfers from the unrestricted general fund to cover any projected negative fund balance? ☐ ☐ ✓ 8 3 If the district has deficit spending in the current or two subsequent fiscal years, has the board approved and implemented a plan to reduce and/or eliminate deficit spending to ensure fiscal solvency? ☐ ✓ ☐ 10 5 Are the district’s enrollment projections and assumptions based on historical data, industry-standard methods, and other reasonable factors? ✓ ☐ ☐ 11 2 Does the district have sufficient and available resources to cover all contracted obligations for capital facilities projects? ☐ ☐ ✓ 12 1 Is the district able to maintain the minimum reserve for economic uncertainties in the current year (including Fund 01 and Fund 17) as defined by the State Standards and Criteria for Fiscal Solvency? ✓ ☐ ☐ 12 2 Is the district able to maintain the minimum reserve for economic uncertainties in the two subsequent years? ☐ ✓ ☐ 12 3 If the district is not able to maintain the minimum reserve for economic uncertainties, does the district’s multiyear projection include a board-approved plan to restore the reserve? ✓ ☐ ☐ 19 1 Does the district account for all positions and costs (including substitutes, overtime, stipends, and employer-paid benefits) in position control? ☐ ✓ ☐ Fiscal Crisis and Management Assistance Team Amador County Office of Education 10 Fiscal Health Risk Analysis Score Breakdown by Section Because the score is not calculated by category, category values provided are subject to minor rounding and are provided for information only. 1. Annual Independent Audit Report 0.2% 2. Budget Development and Adoption 3.0% 3. Budget Monitoring and Updates 5.0% 4. Cash Management 2.0% 5. Charter Schools 0.0% 6. Collective Bargaining Agreements 6.2% 7. Contributions and Transfers 2.0% 8. Deficit Spending (Unrestricted General Fund) 3.6% 9. Employee Benefits 0.6% 10. Enrollment and Attendance 0.0% 11. Facilities 0.1% 12. Fund Balance and Reserve for Economic Uncertainty 3.0% 13. General Fund - Current Year 0.2% 14. Information Systems and Data Management 1.8% 15. Internal Controls and Fraud Prevention 1.8% 16. Leadership and Stability 4.4% 17. Multiyear Projections 3.0% 18. Non-Voter-Approved Debt and Risk Management 2.0% 19. Position Control 1.0% 20. Special Education 0.7% Score 40 6% Fiscal Crisis and Management Assistance Team Amador County Office of Education 11 Fiscal Health Risk Analysis Fiscal Health Risk Analysis Questions 1. Annual Independent Audit Report Yes No N/A 1 1 Has the district recorded findings from the most recent and prior two years’ audits without negatively affecting its fiscal health? ✓ ☐ ☐ 1 2 Has the audit report for the most recent fiscal year been completed and presented to the board within the statutory timeline per Education Code (EC) 41020? ☐ ✓ ☐ The county office of education’s 2023 and 2024 audit reports were not completed and presented to the board within the statutory timeline per EC 41020. 1 3 Were the district’s most recent and prior two audit reports free of findings of material weakness? ✓ ☐ ☐ 1 4 Has the district corrected all audit findings from the most recent and prior two audits? ✓ ☐ ☐ 2. Budget Development and Adoption Yes No N/A 2 1 Does the district develop and use written budget assumptions and multiyear projections that are reasonable, are aligned with the county superintendent of schools’ instructions, and have been clearly articulated? ☐ ✓ ☐ The county office did not provide written budget assumptions to FCMAT, and detailed assumptions were not included in the 2024-25 budget and interim presentations to the board. Although the county office shared budget documents summarizing changes from the prior period, these did not reflect assumptions aligned with industry standards. Key elements were missing, including assumptions for major revenues and expenditures; cost-of-living adjustments (COLAs); funding rates such as the Local Control Funding Formula and Lottery; projections for enrollment, average daily attendance (ADA) and unduplicated pupil count (UPC); staffing costs; trends in employee and retiree benefits; capital outlay plans; changes in operating costs; contribution details; and distinctions between ongoing and one-time funding. 2 2 Does the district use a budget development method other than a prior-year rollover budget and if so, does that method include tasks such as reviewing prior year estimated actuals by major object code and removing one-time revenues and expenses? ✓ ☐ ☐ 2 3 Does the district use position control data for budget development? ✓ ☐ ☐ 2 4 Does the district calculate its Local Control Funding Formula (LCFF) revenue correctly? ✓ ☐ ☐ 2 5 Has the district’s budget been approved unconditionally by September 15th by the county superintendent of schools in the current and two prior fiscal years? ✓ ☐ ☐ 2 6 Does the budget development process include input from staff, administrators, the governing board, the community, and the budget advisory committee (if there is one)? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Amador County Office of Education 12 Fiscal Health Risk Analysis 2 7 Does the district budget and expend restricted funds before unrestricted funds? ☐ ✓ ☐ Staff interviews indicate that although the county office’s goal is to use restricted funds before unrestricted funds, this practice is not consistently followed. The increase in restricted program ending fund balances from 2021-22 to 2023-24 suggests that restricted funds are not being strategically spent before unrestricted funds. 2 8 Have the district’s Local Control and Accountability Plan (LCAP) and budget been adopted within the statutory timelines established by EC 42103 and filed with the county superintendent of schools no later than five days after adoption or by July 1, whichever occurs first, for the current and prior fiscal year? ✓ ☐ ☐ 2 9 Has the district refrained from including carryover funds in its adopted budget? ☐ ✓ ☐ According to staff interviews, the county office will include estimated carryover funds from its June Estimated Actuals Budget in its adopted budget. Provided documents indicate that the county office adjusts these amounts in its first interim budget if actual carryover differs from the estimates in the adopted budget. 2 10 Other than objects in the 5700s and 7300s, does the district avoid using negative expense or contra expenditure accounts in its budget? ✓ ☐ ☐ 2 11 Does the district have and follow a documented standard procedure for evaluating both the proposed acceptance of grants and other restricted funds and the potential multiyear impact on the district’s unrestricted general fund? ☐ ✓ ☐ Staff reported that there are no documented standard procedures for evaluating proposed grants or assessing their potential multiyear impact on the county office’s unrestricted general fund. Although the development of such procedures is planned, they were not in place at the time of FCMAT’s fieldwork in May. 2 12 Does the district adhere to a budget calendar that includes statutory due dates, major budget development tasks and deadlines, and the staff members and departments responsible for completing them? ☐ ✓ ☐ The county office does not formally follow an organizationwide budget calendar that includes the elements described above. According to staff interviews and supporting documents, the county office relies on a budget checklist to help the Business Services Department track its tasks and progress. Additionally, staff reported that budget development dates and deadlines are typically communicated by email to each department rather than maintained in a centralized budget calendar. 3. Budget Monitoring and Updates Yes No N/A 3 1 Are actual revenues and expenses consistent with the most current budget? ☐ ✓ ☐ Several expenditure categories — including special education teacher salaries, classified support salaries, employee benefits, supplies, and special education contracts — were underbudgeted. In addition, local revenues were also underbudgeted. 3 2 Are budget revisions posted in the financial system at each interim reporting period, at a minimum? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Amador County Office of Education 13 Fiscal Health Risk Analysis 3 3 Are clearly written and articulated budget assumptions that support budget revisions communicated to the board at each interim reporting period, at a minimum? ☐ ✓ ☐ The county office did not provide written budget assumptions to FCMAT, and detailed assumptions were not included in its 2024-25 budget presentations to the board. While the county office shared budget documents summarizing changes from the prior period, these did not reflect assumptions aligned with industry standards. Key elements were missing, including assumptions for major revenues and expenditures; COLAs; funding rates such as the LCFF and Lottery; projections for enrollment, ADA and UPC; staffing costs; trends in employee and retiree benefits; capital outlay plans; changes in operating costs; contribution details; and distinctions between ongoing and one-time funding. 3 4 Following board approval of collective bargaining agreements, does the district make necessary budget revisions in the financial system to reflect settlement costs in accordance with EC 42142? ☐ ✓ ☐ In 2023-24, the county office included tentative salary schedule increases for certificated and classified employees in its first interim budget in December 2023. Following a negotiated agreement with the Special Educators of Amador County (SEAC), the governing board approved a revised salary schedule reflecting a 3% ongoing increase in August 2024. For 2024-25, the adopted budget included tentative salary schedule increases of approximately 3% for certificated and classified employees. After reaching an agreement that provided a 4.75% ongoing increase to the California School Employees Association (CSEA) salary schedule, the board approved the revised salary schedule at its November 13, 2024 meeting. At its December board meeting, the county office further revised the budget to include an additional 1.75% ongoing increase for salaries and benefits. 3 5 Do the district’s responses fully explain the variances identified in the SACS Criteria and Standards Review form? ✓ ☐ ☐ 3 6 Has the district addressed any deficiencies the county superintendent of schools has identified in its oversight letters to the district in the most recent and two prior fiscal years? ☐ ✓ ☐ For the past three years, the California Department of Education (CDE) has issued oversight letters to the county office regarding its adopted budget, first interim, and second interim reports — a total of nine letters covering fiscal years 2022-23 through 2024-25. In seven of these letters, the CDE reminded the county office of its obligations related to collective bargaining agreements, specifically that: • The county office must provide the CDE with an analysis of the cost of each settlement and its impact on the operating budget. • Public disclosure documents prepared in compliance with Government Code (GC) 3547.5 can be used to meet this requirement. • Under GC 3547.5(b), the superintendent and chief business official (CBO) must certify in writing that the costs of the agreement can be met during the term of the agreement. Fiscal Crisis and Management Assistance Team Amador County Office of Education 14 Fiscal Health Risk Analysis • Given the county office’s qualified budget certification, any proposed collective bargaining agreement must be submitted to the CDE, along with the required financial documents, at least 10 days in advance for review and comment under GC 3540.2(e). In its oversight letter dated February 27, 2025, concerning the county office’s 2024-25 first interim report, the CDE found the county office out of compliance with GC 3547.5 and 3540.2(e). The letter stated: After reviewing the First Interim Report from ACOE [Amador County Office of Education] and meeting with ACOE on February 14, 2025, it is evident that the collective bargaining agreements were settled before submitting the proposed agreement and the required financial documents to the CDE for review and commentary. Additionally, the county office did not provide evidence that it publicly disclosed the collective bargaining agreements for its classified units for 2023-24 and 2024-25, as required by GC 3574.5. It also did not provide certification from the superintendent and CBO that the costs of these agreements could be met. 3 7 Does the district prohibit processing of requisitions or purchase orders when the budget is insufficient to support the expenditure? ✓ ☐ ☐ 3 8 Does the district encumber funds for salaries and benefits and adjust those encumbrances as needed? ✓ ☐ ☐ 3 9 For the most recent and two prior fiscal years, have the district’s interim financial reports and unaudited actuals been adopted and filed with the county superintendent of schools within the timelines established in Education Code? ☐ ✓ ☐ The county office did not submit its 2023-24 second interim financial report to the CDE within the timelines required by the Education Code. The report was initially presented to the county office’s board on March 6, 2024, but it included personnel reductions that had not been approved by the board. As a result, the item was pulled from the agenda to revise the report and remove the unapproved reductions. The updated report was subsequently presented and approved at the March 27, 2024 board meeting. Although the submission was late, the county office promptly notified the CDE, explaining that the report had been withdrawn, updated and resubmitted for board approval at the end of March. 4. Cash Management Yes No N/A 4 1 Are accounts held by the county treasurer reconciled with the district’s and county office of education’s (COE) reports monthly? ✓ ☐ ☐ 4 2 Does the district reconcile all bank (cash and cash equivalent) accounts with each statement in a timely manner? ☐ ✓ ☐ The county office did not provide supporting documentation showing it reconciles all accounts. Fiscal Crisis and Management Assistance Team Amador County Office of Education 15 Fiscal Health Risk Analysis 4 3 Does the district forecast its general fund cash flow for the current and subsequent year and update it as needed to ensure cash flow needs are known? ☐ ✓ ☐ The county office prepares and updates cash flow projections only for the current year, not for the subsequent year. Under best practices, local educational agencies should update cash flow projections monthly, rather than only at periodic reporting periods. At a minimum, projections should cover both the current and following fiscal year to provide a two-year outlook. During periods of economic distress or funding uncertainty, the frequency and depth of cash flow projections and analysis should be increased. 4 4 If the district’s cash flow forecast shows insufficient cash in its general fund to support its current and projected obligations, does the district have a reasonable plan to meet its cash flow needs for the current and subsequent year? ☐ ☐ ✓ 4 5 Does the district have sufficient cash resources in its other funds to support its current and projected obligations in those funds? ✓ ☐ ☐ 4 6 If the district uses interfund borrowing, is it complying with EC 42603? ✓ ☐ ☐ 4 7 If the district is managing cash in any fund(s) through external borrowing, does the district’s cash flow projection include repayment based on the terms of the loan agreement? ☐ ☐ ✓ 5. Charter Schools Yes No N/A 5 1 Does the district have a board policy, memorandum of understanding (MOU), or other written document(s) regarding charter oversight? ✓ ☐ ☐ 5 2 Has the district fulfilled, and does it have evidence showing fulfillment of, its oversight responsibilities in accordance with EC 47604 32? ☐ ☐ ✓ 5 3 Are all charters authorized by the district going concerns and not in fiscal distress? ☐ ☐ ✓ 5 4 Has the district identified specific employees in its various departments (e g , human resources, business, instructional, and others) to be responsible for oversight of all approved charter schools? ☐ ☐ ✓ 5 5 Does the district monitor charter school audits for timeliness, completeness, and exceptions? ☐ ☐ ✓ 6. Collective Bargaining Agreements Yes No N/A 6 1 Has the district settled with all its bargaining units for the past two fiscal years? ✓ ☐ ☐ 6 2 Has the district settled with all its bargaining units for the current year? ☐ ✓ ☐ As of FCMAT’s fieldwork on May 14-15, 2025, the certificated bargaining unit, SEAC, had not yet reached a settlement for 2024-25. Fiscal Crisis and Management Assistance Team Amador County Office of Education 16 Fiscal Health Risk Analysis 6 3 Does the district accurately quantify the effects of collective bargaining agreements and include complete disclosure documents that show the impact on its budget and multiyear projections? ☐ ✓ ☐ The county office provided spreadsheets calculating the cost of a 1% salary increase to quantify negotiation proposals for 2023-24 and 2024-25. However, interviews and a review of board meeting agendas indicate that the county office did not prepare disclosure documents showing the impact of collective bargaining agreements on its budget and multiyear projections. 6 4 Based on the presettlement analysis, did the district identify related costs or savings, and did it identify ongoing revenue sources or expenditure reductions to support the agreement in the current and subsequent years? ☐ ✓ ☐ While the county office prepared presettlement analyses to calculate the cost of a 1% salary increase for negotiation proposals, it did not identify ongoing revenue sources or expenditure reductions to support the agreements in the current or subsequent years. Under GC 3540.2 and 3547.5 and EC 42142, public disclosures of collective bargaining agreements are required and must include both the cost of the agreement and the identification of ongoing funding sources or expenditure reductions to sustain the agreement over time. 6 5 In the current and prior two fiscal years, has the total cost of the district’s bargaining agreement settlements, including step-and-column increases, been at or under the funded cost-of-living adjustment (COLA)? ☐ ✓ ☐ When reviewing each year individually in Table 1, the county office’s bargaining agreement settlements, including step-and-column increases, were below the funded COLAs for 2022-23 and 2023-24. However, the settlement for the classified bargaining unit, CSEA Chapter 239, exceeded the funded COLA in 2024-25. Under the CSEA Chapter 239 agreement covering 2023-24 and 2024-25, the total ongoing salary increase is 4.75%, effective July 1, 2024, with no increase applied in 2023-24. As shown in the last column of Table 1, when considering the two years together, the county office’s increase remained below the combined COLA for both years. At the time of fieldwork, the certificated bargaining unit, SEAC, had not yet settled for 2024-25. Table 1 Funded COLA and Salary Increases, 2022-23 — 2024-25 2023-24 & 2024-25 Description 2022-23 2023-24 2024-25 Combined Statutory COLA 13.26% 8.22% 1.07% 9.29% SEAC Salary Increases 9.30% 4.50% 1.3% 5.8% CSEA Chapter 239 Salary Increases 8.80% 1.50% 6.05% 7.55% Sources: Adapted from the SACS General Fund School District Criteria and Standards Review for each budget and interim period shown, and from county office board agendas and items documenting approval of updated salary schedules. Note: Salary increases include both settlements and step-and-column adjustments for certificated and classified bargaining units, with the exception of the 1.3% SEAC salary increase for 2024-25, which only reflects the cost of step-and-column adjustments. Fiscal Crisis and Management Assistance Team Amador County Office of Education 17 Fiscal Health Risk Analysis 6 6 If settlements have not been reached in the past two years, has the district identified resources to cover the costs of the district’s proposal(s)? ☐ ☐ ✓ 6 7 Did the district comply with public disclosure requirements under Government Codes 3540 2 and 3547 5, and EC 42142? ☐ ✓ ☐ As noted in item 6.3, the superintendent and CBO did not present the required public disclosures of collective bargaining agreements to the board or the public. Instead, the county office’s board approved revised salary schedules that reflected the negotiated increases. 6 8 Did the superintendent and CBO certify the public disclosure of collective bargaining agreement before board approval? ☐ ✓ ☐ The county office did not complete the required public disclosures of collective bargaining agreements, including the certifications by the superintendent and CBO affirming that the county office can afford the negotiated costs. 6 9 Is the governing board’s action consistent with the superintendent’s and CBO’s certification? ☐ ✓ ☐ The superintendent and CBO did not present the required public disclosures of collective bargaining agreements to the board or the public. Instead, the county office’s board approved revised salary schedules that reflected the negotiated increases. 7. Contributions and Transfers Yes No N/A 7 1 Does the district have an active, board-approved plan to eliminate, reduce or control any contributions/transfers from its unrestricted general fund to other restricted programs and funds? ☐ ✓ ☐ The county office makes contributions from its unrestricted general fund to restricted programs, including the routine restricted maintenance account (RRMA) and special education. According to the county office’s second interim general fund School District Criteria and Standards Review, the projected contribution increased by $84,384 due to high costs in both RRMA and special education. At both the first and second interim, the RRMA contribution exceeded the required 3% minimum. However, there is no board-approved plan in place to reduce or control these required RRMA and special education contributions and transfers. 7 2 If the district has deficit spending in funds other than the general fund, has it included in its multiyear projection sufficient transfers from the unrestricted general fund to cover any projected negative fund balance? ☐ ☐ ✓ 7 3 If any contributions or transfers were required for restricted programs and/or other funds in either of the two prior fiscal years, and there is a need in the current year, did the district budget for them at reasonable levels? ☐ ✓ ☐ In the current year, the county office’s contribution to its special education program exceeded the budgeted amount. According to its second interim general fund School District Criteria and Standards Review, vacancies in special education positions have led the county office to rely more heavily on contracted positions. Additionally, rising costs for students attending nonpublic schools have further increased contributions from unrestricted to restricted funds. Fiscal Crisis and Management Assistance Team Amador County Office of Education 18 Fiscal Health Risk Analysis 8. Deficit Spending (Unrestricted General Fund) Yes No N/A 8 1 Is the district avoiding deficit spending in the current fiscal year? ☐ ✓ ☐ The county office’s 2024-25 second interim report projects a net decrease of $110,824 in the unrestricted general fund balance for the current year. 8 2 Is the district projected to avoid deficit spending in both of the two subsequent fiscal years? ☐ ✓ ☐ The county office’s 2024-25 second interim multiyear projection report projects a net decrease in the unrestricted general fund balance of $112,474 in 2025-26 and $177,875 in 2026-27. 8 3 If the district has deficit spending in the current or two subsequent fiscal years, has the board approved and implemented a plan to reduce and/or eliminate deficit spending to ensure fiscal solvency? ☐ ✓ ☐ In March 2025, the county office’s board approved a fiscal stabilization plan to address its qualified budget status. Some Phase 1 actions, such as the reduction in force, have been completed, while others, like the health and welfare transition, are still in process or have not yet been implemented. Phases 2 and 3 are planned to be implemented in 2026 and 2027, respectively. 8 4 Has the district decreased deficit spending over the past two fiscal years and is there evidence of this in its unaudited actuals reports? ☐ ✓ ☐ The county office’s 2022-23 unaudited actuals financial report shows a net increase of $113,370 in the unrestricted general fund balance, and its 2023-24 unaudited actuals financial report reflects a smaller net increase of $30,360. However, in the current year, the 2024-25 second interim report projects a net decrease of $110,824 in the unrestricted general fund balance, indicating increased deficit spending. 9. Employee Benefits Yes No N/A 9 1 Has the district completed an actuarial valuation in accordance with Governmental Accounting Standards Board requirements to determine its unfunded liability for other post-employment benefits (OPEB)? ✓ ☐ ☐ 9 2 Does the district have a plan to fund its OPEB liabilities for the current and two subsequent years such that the total of annual required service payments (whether legally or contractually required, or locally defined such as pay-as-you-go premiums, trust agreement obligations or a board adopted commitment) are no greater than 2% of the district’s unrestricted general fund revenues? ✓ ☐ ☐ 9 3 Within the last five years, has the district conducted a verification and determination of eligibility for benefits for all active and retired employees and dependents? ✓ ☐ ☐ 9 4 Does the district track, reconcile and report employees’ compensated leave balances? ✓ ☐ ☐ 9 5 Has the district followed a policy or collectively bargained agreement to limit accrued vacation balances? ☐ ✓ ☐ Staff interviews indicate that some employees have accumulated vacation balances exceeding the limits set by their collective bargaining agreements or the county office’s Administrative Regulation 4261. Fiscal Crisis and Management Assistance Team Amador County Office of Education 19 Fiscal Health Risk Analysis 10. Enrollment and Attendance Yes No N/A 10 1 Has the district’s enrollment been increasing or remained stable for the current and two prior years? ✓ ☐ ☐ 10 2 Does the district monitor and analyze enrollment and average daily attendance (ADA) data at least monthly through the second attendance reporting period (P-2)? ✓ ☐ ☐ 10 3 Does the district track historical enrollment and ADA data to project future trends? ✓ ☐ ☐ 10 4 Do schools maintain an accurate record of daily enrollment and attendance that is reconciled monthly at the school and district levels? ✓ ☐ ☐ 10 5 Are the district’s enrollment projections and assumptions based on historical data, industry-standard methods, and other reasonable factors? ✓ ☐ ☐ 10 6 Has the district planned for enrollment losses to any charter schools? ☐ ☐ ✓ 10 7 Do all applicable schools and departments review and verify their respective California Longitudinal Pupil Achievement Data System (CALPADS) data and correct it as needed before the report submission deadlines? ✓ ☐ ☐ 10 8 Has the district certified its CALPADS data (most recent Fall 1, Fall 2, and end-of-year reports) by the required deadlines? ✓ ☐ ☐ 10 9 Does the district follow established board policy to limit outgoing interdistrict transfers and ensure that only students who meet the required qualifications are approved? ☐ ☐ ✓ 10 10 Does the district adhere to the average TK-3 class enrollment limits at each school, the adult-to-student ratio for each TK class, and the credentialing requirements for teachers assigned to TK classes as defined in the Education Code? ☐ ☐ ✓ 11. Facilities Yes No N/A 11 1 If the district participates in the state’s School Facility Program, has it made the required contribution to its Routine Restricted Maintenance Account? ✓ ☐ ☐ 11 2 Does the district have sufficient and available resources to cover all contracted obligations for capital facilities projects? ☐ ☐ ✓ 11 3 Does the district properly track and account for facility-related projects? ☐ ☐ ✓ 11 4 Does the district use its facilities fully (districtwide) in accordance with the Office of Public School Construction’s loading standards? ☐ ☐ ✓ 11 5 Does the district include facility needs (maintenance, repair, and operating requirements) when adopting a budget? ✓ ☐ ☐ 11 6 Has the district met the facilities inspection requirements of the Williams Act and resolved any outstanding issues? ✓ ☐ ☐ 11 7 If the district passed a Proposition 39 general obligation bond, has it met the requirements for audit, reporting, and a citizens’ bond oversight committee? ☐ ☐ ✓ 11 8 Does the district have a board-approved long-range facilities master plan completed within the last five years that reflects its current and projected facility needs? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Amador County Office of Education 20 Fiscal Health Risk Analysis 12. Fund Balance and Reserve for Economic Uncertainties Yes No N/A 12 1 Is the district able to maintain the minimum reserve for economic uncertainties in the current year (including Fund 01 and Fund 17) as defined by the State Standards and Criteria for Fiscal Solvency? ✓ ☐ ☐ 12 2 Is the district able to maintain the minimum reserve for economic uncertainties in the two subsequent years? ☐ ✓ ☐ According to the county office’s 2024–25 second interim report multiyear projections, its minimum reserve for economic uncertainties will fall below the required 4% in the two subsequent years. Available reserves are projected to decline to $469,122 (3.62%) in 2025-26 and $291,247 (2.23%) in 2026-27. 12 3 If the district is not able to maintain the minimum reserve for economic uncertainties, does the district’s multiyear projection include a board-approved plan to restore the reserve? ✓ ☐ ☐ 12 4 Is the district’s projected unrestricted fund balance stable or increasing in the two subsequent fiscal years without unsubstantiated revenue increases or expenditure reductions? ☐ ✓ ☐ The county office’s 2024-25 second interim report multiyear projection indicates a net decrease of $110,824 in the unrestricted general fund balance for the current year, with projected net decreases of $112,474 in 2025-26 and $177,875 in 2026-27. 12 5 If the district has unfunded or contingent liabilities or one-time costs other than post-employment benefits, does the unrestricted general fund balance include sufficient assigned or committed reserves above the recommended reserve level to cover these costs? ☐ ✓ ☐ For 2024-25, the county office paid $132,000 from its current-year unrestricted general fund reserves to cover excess claims liability costs. If the county office does not transition from its self-insured health insurance model in 2025-26, it risks incurring unfunded excess claims liability costs in future years. As noted in item 12.2, the county office also projects insufficient funds to meet its minimum reserve for economic uncertainties in 2025-26 and 2026-27. 13. General Fund – Current Year Yes No N/A 13 1 Does the district ensure that one-time revenues do not pay for ongoing expenditures? ✓ ☐ ☐ 13 2 Is the percentage of the district’s general fund unrestricted expenditure budget that is allocated to salaries and benefits at or below the prior year statewide average? ✓ ☐ ☐ 13 3 Is the percentage of the district’s general fund unrestricted expenditure budget that is allocated to salaries and benefits at or below that of the prior two years? ✓ ☐ ☐ 13 4 If the district has received any uniform complaints or legal challenges regarding local use of supplemental and concentration grant funding in the current or prior two years, is the district addressing the complaint(s)? ☐ ☐ ✓ 13 5 For positions supported with one-time or restricted funding, does the district either ensure that these funds are sufficient to pay for these staff or have a plan to pay for the positions with unrestricted funds? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Amador County Office of Education 21 Fiscal Health Risk Analysis 13 6 Is the district using its restricted dollars fully by expending allocations for restricted programs within the required time? ✓ ☐ ☐ 13 7 Does the district account for all program costs, including the maximum allowable indirect costs, for each restricted resource and other funds? ☐ ✓ ☐ The county office’s 2023-24 unaudited actuals report indicates that the maximum allowable indirect cost was not charged to resources 3385, 5035, 6123, 6127, 6500, 6546, and 7368. Similarly, the 2024-25 second interim budget indicates that indirect costs are not budgeted at the full allowable rate for restricted resources 3010, 3310, 3327, 6266, 6500, 6510, 6546, 6547, and 6770. 13 8 Are all balance sheet accounts in the general ledger reconciled at least at each interim reporting period and at year-end close? ✓ ☐ ☐ 14. Information Systems and Data Management Yes No N/A 14 1 Does the district use an integrated financial and human resources system? ✓ ☐ ☐ 14 2 Does the district use the system(s) to provide key financial and related data, including personnel information, to help the district make informed decisions? ✓ ☐ ☐ 14 3 Has the district accurately identified students who are eligible for free or reduced-price meals, English learners, and foster youth, in accordance with the LCFF and its LCAP? ✓ ☐ ☐ 14 4 Is the district using the same financial system as its COE? ☐ ✓ ☐ In single-district-county models, the CDE’s School Fiscal Services Division provides fiscal oversight of the combined entity. However, the county office’s financial system operates separately from the CDE. 14 5 If the district is using a separate financial system from its COE, is there an automated interface that allows data to be sent and received by both the district’s and COE’s financial systems? ☐ ✓ ☐ In addition to the comments noted in item 14.4, there is no automated interface that allows data exchange between the financial systems of single-district-counties and the CDE. 14 6 If the district is using a separate financial system from its COE, has the district provided the COE with direct access so the COE can provide oversight, review and assistance? ☐ ✓ ☐ At the time of fieldwork, the county office had not provided CDE with direct access to its financial system. 15. Internal Controls and Fraud Prevention Yes No N/A 15 1 Does the district have controls that limit access to its financial system and include multiple levels of authorization? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Amador County Office of Education 22 Fiscal Health Risk Analysis 15 2 Are the district’s financial system’s access and authorization controls reviewed and updated upon employment actions (e g , resignations, terminations, promotions, or demotions) and at least annually? ☐ ✓ ☐ The district and county office use ESCAPE as their financial system. According to staff interviews, the county office updates access and authorization controls in ESCAPE for employment actions such as new hires and promotions. However, it was unclear how frequently the county office reviews and updates access and authorization for terminations, resignations or demotions. Additionally, the county office does not have an established annual process to review and update access and authorization controls in ESCAPE. 15 3 Does the district ensure that duties in the following areas are segregated, and that they are supervised and monitored?: • Accounts payable (AP) ✓ ☐ ☐ • Accounts receivable (AR) ✓ ☐ ☐ • Purchasing and contracts ✓ ☐ ☐ • Payroll ✓ ☐ ☐ • Human resources (i e , duties related to position control and payroll processes) ✓ ☐ ☐ 15 4 Are beginning balances for the new fiscal year posted and reconciled with the ending balances for each fund from the prior fiscal year? ✓ ☐ ☐ 15 5 Does the district review and work to clear prior year accruals throughout the year? ✓ ☐ ☐ 15 6 Has the district reconciled and closed the general ledger (books) within the time prescribed by the county superintendent of schools? ✓ ☐ ☐ 15 7 Does the district have processes and procedures to discourage and detect fraud? ✓ ☐ ☐ 15 8 Does the district have a process for collecting reports of possible fraud (such as an anonymous fraud reporting hotline) and for following up on such reports? ☐ ✓ ☐ While leadership was able to describe the follow-up process once a report of possible fraud is submitted to cabinet members, other staff were unclear about how they should or could report suspected fraud. Most believed they should bring concerns to their supervisor, but this understanding was not consistent across all staff. There is no formal or documented process for reporting suspected fraud, and the county office does not have an independent or anonymous reporting mechanism in place. 15 9 Does the district have an internal audit process? ☐ ✓ ☐ While the district and county office maintain segregation of duties in AP, AR, purchasing and contracts, payroll, and human resources, neither has a formal, documented internal audit process. 16. Leadership and Stability Yes No N/A 16 1 Does the district have a chief business official who has been in this position with the district for more than two years? ☐ ✓ ☐ In 2024-25, the county office is operating with an interim CBO, who previously served as its director of fiscal services. Fiscal Crisis and Management Assistance Team Amador County Office of Education 23 Fiscal Health Risk Analysis 16 2 Does the district have a superintendent who has been in this position with the district for more than two years? ☐ ✓ ☐ In 2024-25, the county office is led by an interim superintendent who has been appointed by the board as the permanent superintendent starting in July 2025. Prior to assuming the interim role, this individual served as the county office’s CBO. 16 3 Does the superintendent schedule and hold meetings regularly with all members of their administrative cabinet? ✓ ☐ ☐ 16 4 Is training on financial management and budget provided to school and department administrators who are responsible for budget management? ☐ ✓ ☐ Staff reported that when the county office adopted the ESCAPE financial system several years ago, training was provided for all employees responsible for budget management. However, they also indicated that ongoing training — including training for new staff on financial management and budgeting — is not provided systematically or on a regular basis. 16 5 Does the governing board adopt and revise policies and administrative regulations annually? ☐ ✓ ☐ Many of the county office’s board policies and administrative regulations have not been updated in at least five years. In spring 2024, the county office contracted with the California School Boards Association (CSBA) to review and identify board policies and administrative regulations requiring updates. Staff reported that these updates are now being brought to the board for consideration. 16 6 Are newly adopted or revised policies and administrative regulations implemented, communicated, and available to staff? ✓ ☐ ☐ 16 7 Do all board members attend training on the budget and governance at least every two years? ☐ ✓ ☐ The last board governance training was held in February 2023. While some board members attended the CSBA conference this year and others have received one-on- one budget training from county office staff, the county office plans to provide several trainings on budget and governance for all board members in the upcoming fiscal year. 16 8 Is the superintendent’s evaluation performed according to the terms of the contract? ☐ ✓ ☐ The previous superintendent was not evaluated in accordance with the terms of their contract. Additionally, the current superintendent, who served in an interim capacity this year, has not been evaluated. 16 9 Is the district avoiding relying on consultants to prepare financial reports (e g SACS) or other primary fiscal activities? ✓ ☐ ☐ 17. Multiyear Projections Yes No N/A 17 1 Has the district developed multiyear projections that include detailed assumptions aligned with industry standards? ☐ ✓ ☐ The county office did not provide written multiyear budget assumptions to FCMAT, and its 2024-25 multiyear projections at second interim did not include detailed assumptions. While the county office shared budget documents summarizing current- year changes from the prior period, these did not reflect assumptions aligned with industry standards. Fiscal Crisis and Management Assistance Team Amador County Office of Education 24 Fiscal Health Risk Analysis Key elements were missing, including assumptions for major revenues and expenditures; COLAs; funding rates such as the LCFF and Lottery; projections for enrollment, ADA and UPC; staffing costs; trends in employee and retiree benefits; capital outlay plans; changes in operating costs; contribution details; and distinctions between ongoing and one-time funding. 17 2 To help calculate its multiyear projections, did the district prepare an accurate LCFF calculation that includes multiyear considerations? ✓ ☐ ☐ 17 3 Does the district use its most current multiyear projection when making financial decisions? ☐ ✓ ☐ Staff interviews indicate that county office administration relies on the most current multiyear projection when making financial decisions. However, there was no evidence that these projections were provided to administration or the board to illustrate the multiyear impact of the collective bargaining agreements before decisions were made. 17 4 If the district uses a broad adjustment category in its multiyear projection (such as line B10, B1d, B2d Other Adjustments, in the SACS Form MYP/MYPI), is there a detailed list of what is included in the adjustment amount and are the adjustments reasonable? ☐ ✓ ☐ In reviewing the county office’s multiyear projection from its 2024-25 second interim budget, FCMAT found that the county office entered reductions in the certificated and classified “other adjustments” categories on its SACS Form MYP (lines 1d and 2d) for 2025-26. These included projected reductions of $14,876 for certificated salaries and $4,170 for classified salaries. However, the “Assumption” section of the SACS Form MYP form did not provide any details, simply stating “Explained Later,” and FCMAT could not locate any further explanation in the budget documents submitted with the 2024-25 second interim report. 18. Non-Voter-Approved Debt and Risk Management Yes No N/A 18 1 Are the sources of repayment for non-voter-approved debt {such as certificates of participation (COPs), bridge financing, bond anticipation notes (BANS), revenue anticipation notes (RANS) and others} stable, predictable, and other than the unrestricted general fund? ☐ ✓ ☐ According to the Criteria and Standards Review (SACS Form 01CS) submitted with the 2024-25 second interim report, the county office has a capital lease principal balance of $166,511. Estimated annual payments of $59,867 will be made through 2027, paid from the unrestricted general fund. 18 2 If the district has issued non-voter-approved debt, has its credit rating remained stable or improved during the current and two prior fiscal years? ✓ ☐ ☐ 18 3 If the district is self-insured, has it completed an actuarial valuation as required and does it have a plan to pay for any unfunded liabilities? ☐ ✓ ☐ In fall 2023, the district and the county office, in collaboration with their bargaining units, transitioned from a jointly managed trust model with California’s Valued Trust — a self-funded public school trust — to a self-insured healthcare benefits model with NewFront. Fiscal Crisis and Management Assistance Team Amador County Office of Education 25 Fiscal Health Risk Analysis Under Governmental Accounting Standards Board (GASB) Statement No. 75, full actuarial valuations are required every two years. Due to the timing of this transition, the district and county office have not yet completed an actuarial valuation for 2023-24. During fieldwork in May, interviews indicated that the district and county office plan to exit the self-insured model, because the risk and exposure to excess claims liabilities is unsustainable. They intend to transition in the fall (October), aligning with the end of the old plan year and the start of a new one. 18 4 If the district has non-voter-approved debt (such as COPs, bridge financing, BANS, RANS and others), is the total of annual debt service payments no greater than 2% of the district’s unrestricted general fund revenues? ✓ ☐ ☐ 19. Position Control Yes No N/A 19 1 Does the district account for all positions and costs (including substitutes, overtime, stipends, and employer-paid benefits) in position control? ☐ ✓ ☐ The county office uses the position control module within its financial system to track salary and benefit costs for most positions; however, it does not include substitutes or extra duty stipends in this system. 19 2 Does the district analyze and adjust staffing based on staffing ratios and enrollment? ✓ ☐ ☐ 19 3 Does the district reconcile budget, payroll and position control regularly, at least at budget adoption and interim financial reporting periods? ✓ ☐ ☐ 19 4 Does the district identify a budget source for each new position before the position is authorized by the governing board? ✓ ☐ ☐ 19 5 Does the governing board approve all new positions and extra assignments (e g , stipends) before positions are posted? ✓ ☐ ☐ 19 6 Do managers and staff responsible for the district’s human resources, payroll and budget functions meet at least monthly to discuss issues and improve processes? ✓ ☐ ☐ 20. Special Education Yes No N/A 20 1 For special education classrooms and support services, does the district use staffing ratios that align with statutory requirements and industry standards, and are students’ support needs also considered? If so, are those needs documented and evaluated at each budget cycle? ✓ ☐ ☐ 20 2 Does the district access all available funding sources for costs related to special education (e g , state excess cost pool, legal fees, mental health)? ☐ ✓ ☐ Staff reported that they only recently became aware of the state’s Extraordinary Cost Pool (ECP), which reimburses Special Education Local Plan Areas (SELPAs) for the extraordinary costs of single placements in nonpublic, nonsectarian schools (NPSs) and for special education and related services for students residing in licensed children’s institutions (LCIs), as outlined in EC 56836.21. A three-year review of the SELPA Special Education Funding Exhibit confirms that the county office has not accessed the ECP. Fiscal Crisis and Management Assistance Team Amador County Office of Education 26 Fiscal Health Risk Analysis 20 3 Does the district use appropriate tools to help it make informed decisions about whether to add services (e g , special circumstance instructional assistance process and form, transportation decision tree)? ✓ ☐ ☐ 20 4 Does the district budget and account correctly for all costs related to special education (e g , transportation, due process hearings, indirect costs, nonpublic schools and/or nonpublic agencies)? ✓ ☐ ☐ 20 5 Does the district monitor contributions from the unrestricted general fund and adjust to trends in the special education program? ✓ ☐ ☐ 20 6 Is the district’s rate of identification of students as eligible for special education at or below the countywide and statewide average rates? ☐ ☐ ✓ 20 7 Does the district analyze whether it will meet the maintenance of effort requirement at each interim financial reporting period? ☐ ✓ ☐ Staff reported that the county office evaluates its compliance with the maintenance of effort requirement annually at the end of the school year but does not perform this analysis at each interim financial reporting period. Risk Score, 20 numbered sections only: 40 6% Key to Risk Score from 20 numbered sections only: High Risk: 40% or more Moderate Risk: 25-39.9% Low Risk: 24.9% and lower County Office Fiscal Solvency Risk Level, all FHRA factors: High (The existence of any condition from the “Budget and Fiscal Status” section, and/or a material weakness, will supersede the score above because it elevates the district’s risk level.) Fiscal Crisis and Management Assistance Team Amador County Office of Education 27 Appendices Appendices Appendix A – Comparison of 2019 and 2025 FHRA Results Appendix B –Study Agreement Fiscal Crisis and Management Assistance Team Amador County Office of Education 28 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results Appendix A – Comparison of 2019 and 2025 FHRA Results Appendix A presents a comparative analysis of the 2019 and 2025 Fiscal Health Risk Analysis (FHRA) results to identify changes in the county office’s fiscal health indicators. This comparison highlights shifts in responses, focusing on areas of improvement and emerging risks. Items present in the 2019 FHRA but absent from the 2025 FHRA are excluded from this analysis. For scoring purposes, “N/A” is treated as “Yes.” Additionally, shading is used to indicate changes in the county office’s “No” responses between the two assessment years, providing a clear visual reference for areas of fiscal concern or progress. This appendix serves as a valuable tool for evaluating the county office’s financial management practices and identifying key areas that require continued oversight and improvement. 1 Annual Independent Audit Report 2019 2025 1 1 Has the district recorded findings from the most recent and prior two years’ audits Yes Yes without negatively affecting its fiscal health? 1 2 Has the audit report for the most recent fiscal year been completed and presented to Yes No the governing board within the statutory timeline per Education Code (EC) 41020? 1 3 Were the district's most recent and prior two audit reports free of findings of material Yes Yes weakness? 1 4 Has the district corrected all audit findings from the most recent and prior two No Yes audits? 1 Annual Independent Audit Report Answer 2019 2025 Change in Number of “No” Responses Yes 3 3 No 1 1 No Change N/A 0 0 2 Budget Development and Adoption 2019 2025 2 1 Does the district develop and use written budget assumptions and multiyear No No projections that are reasonable, are aligned with the county superintendent of schools' instructions, and have been clearly articulated? 2 2 Does the district use a budget development method other than a prior-year rollover Yes Yes budget, and if so, does that method include tasks such as reviewing prior year estimated actuals by major object code and removing one-time revenues and expenses? 2 3 Does the district use position control data for budget development? Yes Yes 2 4 Does the district calculate its Local Control Funding Formula (LCFF) revenue No Yes correctly? 2 5 Has the district’s budget been approved unconditionally by September 15th by the No Yes county superintendent of schools in the current and prior two fiscal years? Fiscal Crisis and Management Assistance Team Amador County Office of Education 29 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 2 Budget Development and Adoption 2019 2025 2 6 Does the budget development process include input from staff, administrators, the Yes Yes governing board, the community, and the budget advisory committee (if there is one)? 2 7 Does the district budget and expend restricted funds before unrestricted funds? No No 2 8 Have the district's Local Control and Accountability Plan (LCAP) and budget been Yes Yes adopted within the statutory timelines established by EC 42103 and filed with the county superintendent of schools no later than five days after adoption or by July 1, whichever occurs first, for the current and prior fiscal year? 2 9 Has the district refrained from including carryover funds in its adopted budget? Yes No 2 10 Other than objects in the 5700s and 7300s, does the district avoid using negative Yes Yes expense or contra expenditure accounts in its budget? 2 11 Does the district have and follow a documented standard procedure for evaluating No No both the proposed acceptance of grants and other restricted funds and the potential multiyear impact on the district’s unrestricted general fund? 2 12 Does the district adhere to a budget calendar that includes statutory due dates, No No major budget development tasks and deadlines, and the staff members and departments responsible for completing them? 2 Budget Development and Adoption Answer 2019 2025 Change in Number of “No” Responses Yes 6 7 No 6 5 Decreased by 1 N/A 0 0 3 Budget Monitoring and Updates 2019 2025 3 1 Are actual revenues and expenses consistent with the most current budget? No No 3 2 Are budget revisions posted in the financial system at each interim reporting period, Yes Yes at a minimum? 3 3 Are clearly written and articulated budget assumptions that support budget No No revisions communicated to the governing board at each interim reporting period, at a minimum? 3 4 Following board approval of collective bargaining agreements, does the district No No make necessary budget revisions in the financial system to reflect settlement costs in accordance with EC 42142? 3 5 Do the district's responses fully explain the variances identified in the SACS Criteria No Yes and Standards Review form? 3 6 Has the district addressed any deficiencies the county superintendent of schools has No No identified in its oversight letters to the district in the most recent and prior two fiscal years? Fiscal Crisis and Management Assistance Team Amador County Office of Education 30 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 3 Budget Monitoring and Updates 2019 2025 3 7 Does the district prohibit processing of requisitions or purchase orders when the No Yes budget is insufficient to support the expenditure? 3 8 Does the district encumber funds for salaries and benefits and adjust those No Yes encumbrances as needed? 3 9 For the most recent and prior two fiscal years, have the district's interim Yes No financial reports and unaudited actuals been adopted and filed with the county superintendent of schools within the timelines established in Education Code? 3 Budget Monitoring and Updates Answer 2019 2025 Change in Number of “No” Responses Yes 2 4 No 7 5 Decreased by 2 N/A 0 0 4 Cash Management 2019 2025 4 1 Are accounts held by the county treasurer reconciled with the district’s and county Yes Yes office of education's (COE) reports monthly? 4 2 Does the district reconcile all bank (cash and cash equivalent) accounts with each No No statement in a timely manner? 4 3 Does the district forecast its general fund cash flow for the current and subsequent No No year and update it as needed to ensure cash flow needs are known? 4 4 If the district’s cash flow forecast shows insufficient cash in its general fund to Yes N/A support its current and projected obligations, does the district have a reasonable plan to meet its cash flow needs for the current and subsequent year? 4 5 Does the district have sufficient cash resources in its other funds to support its Yes Yes current and projected obligations in those funds? 4 6 If the district uses interfund borrowing, is it complying with EC 42603? Yes Yes 4 7 If the district is managing cash in any fund(s) through external borrowing, does the Yes N/A district's cash flow projection include repayment based on the terms of the loan agreement? 4 Cash Management Answer 2019 2025 Change in Number of “No” Responses Yes 5 3 No 2 2 No Change N/A 0 2 Fiscal Crisis and Management Assistance Team Amador County Office of Education 31 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 5 Charter Schools 2019 2025 5 1 Does the district have a board policy, memorandum of understanding (MOU), or No Yes other written document(s) regarding charter oversight? 5 2 Has the district fulfilled, and does it have evidence showing fulfillment of, its No N/A oversight responsibilities in accordance with EC 47604 32? 5 3 Are all charters authorized by the district going concerns and not in fiscal distress? Yes N/A 5 4 Has the district identified specific employees in its various departments (e g , human No N/A resources, business, instructional, and others) to be responsible for oversight of all approved charter schools? 5 5 Does the district monitor charter school audits for timeliness, completeness, and N/A* N/A exceptions? *Item 5.5 was not included in the 2019 FHRA. 5 Charter Schools Answer 2019 2025 Change in Number of “No” Responses Yes 1 1 No 3 0 Decreased by 3 N/A 1 4 6 Collective Bargaining Agreements 2019 2025 6 1 Has the district settled with all its bargaining units for the past two fiscal years? Yes Yes 6 2 Has the district settled with all its bargaining units for the current year? No No 6 3 Does the district accurately quantify the effects of collective bargaining agreements No No and include complete disclosure documents that show the impact on its budget and multiyear projections? 6 4 Based on the presettlement analysis, did the district identify related costs or savings, No No and did it identify ongoing revenue sources or expenditure reductions to support the agreement in the current and subsequent years? 6 5 In the current and prior two fiscal years, has the total cost of the district's bargaining No No agreement settlements, including step-and-column increases, been at or under the funded cost-of-living adjustment (COLA)? 6 6 If settlements have not been reached in the past two years, has the district identified N/A N/A resources to cover the costs of the district's proposal(s)? 6 7 Did the district comply with public disclosure requirements under Government Code Yes No 3540 2 and 3547 5, and EC 42142? 6 8 Did the superintendent and chief business official (CBO) certify the public disclosure Yes No of collective bargaining agreement before board approval? 6 9 Is the governing board’s action consistent with the superintendent’s and CBO’s Yes No certification? Fiscal Crisis and Management Assistance Team Amador County Office of Education 32 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 6 Collective Bargaining Agreements Answer 2019 2025 Change in Number of “No” Responses Yes 4 1 No 4 7 Increased by 3 N/A 1 1 7 Contributions and Transfers 2019 2025 7 1 Does the district have an active, board-approved plan to eliminate, reduce or control No No any contributions/transfers from its unrestricted general fund to other restricted programs and funds? 7 2 If the district has deficit spending in funds other than the general fund, has it No N/A included in its multiyear projection sufficient transfers from the unrestricted general fund to cover any projected negative fund balance? 7 3 If any contributions or transfers were required for restricted programs and/or other Yes No funds in either of the prior two fiscal years, and there is a need in the current year, did the district budget for them at reasonable levels? 7 Contributions and Transfers Answer 2019 2025 Change in Number of “No” Responses Yes 1 0 No 2 2 No Change N/A 0 1 8 Deficit Spending (Unrestricted General Fund) 2019 2025 8 1 Is the district avoiding deficit spending in the current fiscal year? No No 8 2 Is the district projected to avoid deficit spending in both of the two subsequent fiscal No No years? 8 3 If the district has deficit spending in the current or two subsequent fiscal years, No No has the board approved and implemented a plan to reduce and/or eliminate deficit spending to ensure fiscal solvency? 8 4 Has the district decreased deficit spending over the past two fiscal years and is there No No evidence of this in its unaudited actuals reports? 8 Deficit Spending (Unrestricted General Fund) Answer 2019 2025 Change in Number of “No” Responses Yes 0 0 No 4 4 No Change N/A 0 0 Fiscal Crisis and Management Assistance Team Amador County Office of Education 33 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 9 Employee Benefits 2019 2025 9 1 Has the district completed an actuarial valuation in accordance with Governmental Yes Yes Accounting Standards Board requirements to determine its unfunded liability for other post-employment benefits (OPEB)? 9 2 Does the district have a plan to fund its OPEB liabilities for the current and two Yes Yes subsequent years such that the total of annual required service payments (whether legally or contractually required, or locally defined such as pay-as-you-go premiums, trust agreement obligations, or a board-adopted commitment) are no greater than 2% of the district’s unrestricted general fund revenues? 9 3 Within the last five years, has the district conducted a verification and determination Yes Yes of eligibility for benefits for all active and retired employees and dependents? 9 4 Does the district track, reconcile and report employees’ compensated leave Yes Yes balances? 9 5 Has the district followed a policy or collectively bargained agreement to limit accrued Yes No vacation balances? 9 Employee Benefits Answer 2019 2025 Change in Number of “No” Responses Yes 5 4 No 0 1 Increased by 1 N/A 0 0 10 Enrollment and Attendance 2019 2025 10 1 Has the district’s enrollment been increasing or remained stable for the current and Yes Yes prior two years? 10 2 Does the district monitor and analyze enrollment and average daily attendance Yes Yes (ADA) data at least monthly through the second attendance reporting period (P-2)? 10 3 Does the district track historical enrollment and ADA data to project future trends? Yes Yes 10 4 Do schools maintain an accurate record of daily enrollment and attendance that is Yes Yes reconciled monthly at the school and district levels? 10 5 Are the district’s enrollment projections and assumptions based on historical data, Yes Yes industry-standard methods, and other reasonable factors? 10 6 Has the district planned for enrollment losses to any charter schools? N/A N/A 10 7 Do all applicable schools and departments review and verify their respective Yes Yes California Longitudinal Pupil Achievement Data System (CALPADS) data and correct it as needed before the report submission deadlines? 10 8 Has the district certified its CALPADS data (most recent Fall 1, Fall 2, and end-of-year Yes Yes reports) by the required deadlines? 10 9 Does the district follow established board policy to limit outgoing interdistrict N/A N/A transfers and ensure that only students who meet the required qualifications are approved? Fiscal Crisis and Management Assistance Team Amador County Office of Education 34 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 10 Enrollment and Attendance 2019 2025 10 10 Does the district adhere to the average TK-3 class enrollment limits at each school, N/A N/A the adult-to-student ratio for each TK class, and the credentialing requirements for teachers assigned to TK classes as defined in the Education Code? 10 Enrollment and Attendance Answer 2019 2025 Change in Number of “No” Responses Yes 7 7 No 0 0 No Change N/A 3 3 11 Facilities 2019 2025 11 1 If the district participates in the state’s School Facility Program, has it made the Yes Yes required contribution to its Routine Restricted Maintenance Account? 11 2 Does the district have sufficient and available resources to cover all contracted Yes N/A obligations for capital facilities projects? 11 3 Does the district properly track and account for facility-related projects? Yes N/A 11 4 Does the district use its facilities fully (districtwide) in accordance with the Office of N/A N/A Public School Construction’s loading standards? 11 5 Does the district include facility needs (maintenance, repair, and operating Yes Yes requirements) when adopting a budget? 11 6 Has the district met the facilities inspection requirements of the Williams Act and No Yes resolved any outstanding issues? 11 7 If the district passed a Proposition 39 general obligation bond, has it met the N/A N/A requirements for audit, reporting, and a citizens’ bond oversight committee? 11 8 Does the district have a board-approved long-range facilities master plan completed No Yes within the last five years that reflects its current and projected facility needs? 11 Facilities Answer 2019 2025 Change in Number of “No” Responses Yes 4 4 No 2 0 Decreased by 2 N/A 2 4 12 Fund Balance and Reserve for Economic Uncertainties 2019 2025 12 1 Is the district able to maintain the minimum reserve for economic uncertainties in the No Yes current year (including Fund 01 and Fund 17) as defined by the State Standards and Criteria for Fiscal Solvency? 12 2 Is the district able to maintain the minimum reserve for economic uncertainties in the No No two subsequent years? Fiscal Crisis and Management Assistance Team Amador County Office of Education 35 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 12 Fund Balance and Reserve for Economic Uncertainties 2019 2025 12 3 If the district is not able to maintain the minimum reserve for economic uncertainties, No Yes does the district’s multiyear projection include a board-approved plan to restore the reserve? 12 4 Is the district’s projected unrestricted fund balance stable or increasing in the two No No subsequent fiscal years without unsubstantiated revenue increases or expenditure reductions? 12 5 If the district has unfunded or contingent liabilities or one-time costs other than post- N/A No employment benefits, does the unrestricted general fund balance include sufficient assigned or committed reserves above the recommended reserve level to cover these costs? 12 Fund Balance and Reserve for Economic Uncertainties Answer 2019 2025 Change in Number of “No” Responses Yes 0 2 No 4 3 Decreased by 1 N/A 1 0 13 General Fund – Current Year 2019 2025 13 1 Does the district ensure that one-time revenues do not pay for ongoing No Yes expenditures? 13 2 Is the percentage of the district’s general fund unrestricted expenditure budget that N/A Yes is allocated to salaries and benefits at or below the prior year statewide average? 13 3 Is the percentage of the district’s general fund unrestricted expenditure budget that N/A Yes is allocated to salaries and benefits at or below that of the prior two years? 13 4 If the district has received any uniform complaints or legal challenges regarding N/A N/A local use of supplemental and concentration grant funding in the current or prior two years, is the district addressing the complaint(s)? 13 5 For positions supported with one-time or restricted dollars, does the district either Yes Yes ensure that these funds are sufficient to pay for these staff or have a plan to pay for the positions with unrestricted funds? 13 6 Is the district using its restricted dollars fully by expending allocations for restricted Yes Yes programs within the required time? 13 7 Does the district account for all program costs, including the maximum allowable No No indirect costs, for each restricted resource and other funds? 13 8 Are all balance sheet accounts in the general ledger reconciled at least at each No Yes interim report and at year-end close?* *Item 13.8 in the 2025 FHRA was previously identified as Item 3.9 in the 2019 FHRA. Fiscal Crisis and Management Assistance Team Amador County Office of Education 36 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 13 General Fund - Current Year Answer 2019 2025 Change in Number of “No” Responses Yes 2 6 No 3 1 Decreased by 2 N/A 3 1 14 Information Systems and Data Management 2019 2025 14 1 Does the district use an integrated financial and human resources system? Yes Yes 14 2 Does the district use the system(s) to provide key financial and related data, Yes Yes including personnel information, to help the district make informed decisions? 14 3 Has the district accurately identified students who are eligible for free or reduced- Yes Yes price meals, English learners, and foster youth, in accordance with the LCFF and its LCAP? 14 4 Is the district using the same financial system as its COE? No No 14 5 If the district is using a separate financial system from its COE, is there an automated No No interface that allows data to be sent and received by both the district's and COE's financial systems? 14 6 If the district is using a separate financial system from its COE, has the district No No provided the COE with direct access so the COE can provide oversight, review and assistance? 14 Information Systems and Data Management Answer 2019 2025 Change in Number of “No” Responses Yes 3 3 No 3 3 No Change N/A 0 0 15 Internal Controls and Fraud Prevention 2019 2025 15 1 Does the district have controls that limit access to its financial system and include Yes Yes multiple levels of authorization? 15 2 Are the district’s financial system’s access and authorization controls reviewed and Yes No updated upon employment actions (e g , resignations, terminations, promotions, or demotions) and at least annually? 15 3 Does the district ensure that duties in the following areas are segregated, and that they are supervised and monitored?: • Accounts payable (AP) Yes Yes • Accounts receivable (AR) Yes Yes • Purchasing and contracts Yes Yes • Payroll Yes Yes • Human resources (i e , duties related to position control and payroll Yes Yes processes) Fiscal Crisis and Management Assistance Team Amador County Office of Education 37 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 15 Internal Controls and Fraud Prevention 2019 2025 15 4 Are beginning balances for the new fiscal year posted and reconciled with the ending Yes Yes balances for each fund from the prior fiscal year? 15 5 Does the district review and work to clear prior year accruals throughout the year? No Yes 15 6 Has the district reconciled and closed the general ledger (books) within the time Yes Yes prescribed by the county superintendent of schools? 15 7 Does the district have processes and procedures to discourage and detect fraud? Yes Yes 15 8 Does the district have a process for collecting reports of possible fraud (such as an No No anonymous fraud reporting hotline) and for following up on such reports? 15 9 Does the district have an internal audit process? No No 15 Internal Controls and Fraud Prevention Answer 2019 2025 Change in Number of “No” Responses Yes 10 10 No 3 3 No Change N/A 0 0 Note: Item 15.3 includes subitems so the total number of possible “Yes,” “No” or “N/A” responses is greater than the number of section items. 16 Leadership and Stability 2019 2025 16 1 Does the district have a CBO who has been in this position with the district for more No No than two years? 16 2 Does the district have a superintendent who has been in this position with the No No district for more than two years? 16 3 Does the superintendent schedule and hold meetings regularly with all members of No Yes their administrative cabinet? 16 4 Is training on financial management and budget provided to school and department Yes No administrators who are responsible for budget management? 16 5 Does the governing board adopt and revise policies and administrative regulations Yes No annually? 16 6 Are newly adopted or revised policies and administrative regulations implemented, Yes Yes communicated, and available to staff? 16 7 Do all board members attend training on the budget and governance at least every Yes No two years? 16 8 Is the superintendent’s evaluation performed according to the terms of the contract? N/A No 16 9 Is the district avoiding relying on consultants to prepare financial reports (e g SACS) N/A* Yes or other primary fiscal activities? *Item 16.9 was not included in the 2019 FHRA. Fiscal Crisis and Management Assistance Team Amador County Office of Education 38 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 16 Leadership and Stability Answer 2019 2025 Change in Number of “No” Responses Yes 4 3 No 3 6 Increased by 3 N/A 2 0 17 Multiyear Projections 2019 2025 17 1 Has the district developed multiyear projections that include detailed assumptions No No aligned with industry standards? 17 2 To help calculate its multiyear projections, did the district prepare an accurate LCFF No Yes calculation that includes multiyear considerations? 17 3 Does the district use its most current multiyear projection when making financial No No decisions? 17 4 If the district uses a broad adjustment category in its multiyear projection (such N/A No as line B10, B1d, B2d Other Adjustments, in the SACS Form MYP/MYPI), is there a detailed list of what is included in the adjustment amount and are the adjustments reasonable? 17 Multiyear Projections Answer 2019 2025 Change in Number of “No” Responses Yes 0 1 No 3 3 No Change N/A 1 0 18 Non-Voter-Approved Debt and Risk Management 2019 2025 18 1 Are the sources of repayment for non-voter-approved debt (such as certificates of No No participation [COPs], bridge financing, bond anticipation notes [BANS], revenue anticipation notes [RANS] and others) stable, predictable, and other than the unrestricted general fund? 18 2 If the district has issued non-voter-approved debt, has its credit rating remained Yes Yes stable or improved during the current and prior two fiscal years? 18 3 If the district is self-insured, has it completed an actuarial valuation as required and N/A No does it have a plan to pay for any unfunded liabilities? 18 4 If the district has non-voter-approved debt (such as COPs, bridge financing, BANS, Yes Yes RANS and others), is the total of annual debt service payments no greater than 2% of the district’s unrestricted general fund revenues? 18 Non-Voter-Approved Debt and Risk Management Answer 2019 2025 Change in Number of “No” Responses Yes 2 2 No 1 2 Increased by 1 N/A 1 0 Fiscal Crisis and Management Assistance Team Amador County Office of Education 39 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 19 Position Control 2019 2025 19 1 Does the district account for all positions and costs (including substitutes, overtime, No No stipends, and employer-paid benefits) in position control? 19 2 Does the district analyze and adjust staffing based on staffing ratios and enrollment? No Yes 19 3 Does the district reconcile budget, payroll and position control regularly, at least at Yes Yes budget adoption and interim financial reporting periods? 19 4 Does the district identify a budget source for each new position before the position is No Yes authorized by the governing board? 19 5 Does the governing board approve all new positions and extra assignments (e g , No Yes stipends) before positions are posted? 19 6 Do managers and staff responsible for the district’s human resources, payroll and Yes Yes budget functions meet at least monthly to discuss issues and improve processes? 19 Position Control Answer 2019 2025 Change in Number of “No” Responses Yes 2 5 No 4 1 Decreased by 3 N/A 0 0 20 Special Education 2019 2025 20 1 For special education classrooms and support services, does the district use staffing No Yes ratios that align with statutory requirements and industry standards, and are students’ support needs also considered? If so, are those needs documented and evaluated at each budget cycle? 20 2 Does the district access all available funding sources for costs related to special Yes No education (e g , state excess cost pool, legal fees, mental health)? 20 3 Does the district use appropriate tools to help it make informed decisions about Yes Yes whether to add services (e g , special circumstance instructional assistance process and form, transportation decision tree)? 20 4 Does the district budget and account correctly for all costs related to special No Yes education (e g , transportation, due process hearings, indirect costs, nonpublic schools and/or nonpublic agencies)? 20 5 Does the district monitor contributions from the unrestricted general fund and adjust N/A* Yes to trends in the special education program? 20 6 Is the district’s rate of identification of students as eligible for special education at or N/A N/A below the countywide and statewide average rates? 20 7 Does the district analyze whether it will meet the maintenance of effort requirement Yes No at each interim financial reporting period? *Item 20.5 was not included in the 2019 FHRA. Fiscal Crisis and Management Assistance Team Amador County Office of Education 40 Fiscal Health Risk Analysis Appendix A – Comparison of 2019 and 2025 FHRA Results 20 Special Education Answer 2019 2025 Change in Number of “No” Responses Yes 3 4 No 2 2 No Change N/A 2 1 Fiscal Crisis and Management Assistance Team Amador County Office of Education 41 Fiscal Health Risk Analysis Appendix B – Study Agreement Appendix B – Study Agreement Fiscal Crisis and Management Assistance Team Amador County Office of Education 42 Fiscal Health Risk Analysis Appendix B – Study Agreement Fiscal Crisis and Management Assistance Team Amador County Office of Education 43 Fiscal Health Risk Analysis Appendix B – Study Agreement Fiscal Crisis and Management Assistance Team Amador County Office of Education 44 Fiscal Health Risk Analysis Appendix B – Study Agreement Fiscal Crisis and Management Assistance Team Amador County Office of Education 45 Fiscal Health Risk Analysis Appendix B – Study Agreement Fiscal Crisis and Management Assistance Team Amador County Office of Education 46 Fiscal Health Risk Analysis Appendix B – Study Agreement Fiscal Crisis and Management Assistance Team Amador County Office of Education 47 Fiscal Health Risk Analysis Appendix B – Study Agreement Michael H. Fine Digitally signed by Michael H. Fine Date: 2025.04.29 18:19:03 -07'00' Fiscal Crisis and Management Assistance Team Amador County Office of Education 48