Oak Run Elementary School District Report

Fiscal Health Risk Analysis June 17, 2024 Oak Run Elementary School District Michael H. Fine Chief Executive Officer June 17, 2024 Misti Livingston, Superintendent/Principal Oak Run Elementary School District 27635 Oak Run to Fern Road Oak Run, CA 96069 Dear Principal/Superintendent Livingston: In March 2024, the Oak Run Elementary School District 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 district. 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 fiscal health risk analysis is required by California’s 2018-19 Budget Act because the district has been designated a lack of going concern by the county superintendent of schools. This final report contains the fiscal health risk analysis report with the study team’s findings and recommendations. FCMAT appreciates the opportunity to assist the Oak Run Elementary School District 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 ...............................................................6 Study Team ................................................................................................................6 Fiscal Health Risk Analysis .......................................................................... 7 Summary .................................................................................................................... 7 About the Analysis ...................................................................................................8 Areas of High Risk....................................................................................................8 Budget and Fiscal Status ...................................................................................................8 Material Weakness Questions ...........................................................................................8 Score Breakdown by Section ...............................................................................10 Fiscal Health Risk Analysis Questions ................................................................11 Budget and Fiscal Status ...................................................................................................11 Annual Independent Audit Report ...................................................................................11 Budget Development and Adoption ...............................................................................11 Budget Monitoring and Updates .....................................................................................13 Cash Management ..............................................................................................................13 Charter Schools ...................................................................................................................14 Collective Bargaining Agreements .................................................................................15 Contributions and Transfers .............................................................................................16 Deficit Spending (Unrestricted General Fund) ............................................................16 Employee Benefits ..............................................................................................................16 Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 1 Fiscal Health Risk Analysis Enrollment and Attendance ...............................................................................................17 Facilities .................................................................................................................................18 Fund Balance and Reserve for Economic Uncertainty ..............................................18 General Fund – Current Year ...........................................................................................19 Information Systems and Data Management .............................................................20 Internal Controls and Fraud Prevention .......................................................................20 Leadership and Stability ....................................................................................................21 Multiyear Projections .........................................................................................................22 Non-Voter-Approved Debt and Risk Management ...................................................22 Position Control ..................................................................................................................23 Special Education ...............................................................................................................23 Risk Score, 20 numbered sections only ...........................................................24 District Fiscal Solvency Risk Level, all FHRA factors: ...................................24 Appendix ........................................................................................................25 Study Agreement ...................................................................................................25 Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 2 Fiscal Health Risk Analysis About FCMAT FCMAT’s primary mission is to assist California’s local TK-14 educational agencies to identify, prevent, and resolve financial, human resources and data management challenges. FCMAT provides fiscal and data management assistance, professional development training, product development and other related school business and data services. FCMAT’s fiscal and management assistance services are used not just to help avert fiscal crisis, but to promote sound financial practices, support the training and development of chief business officials and help to create efficient organizational operations. FCMAT’s data management services are used to help local educational agencies (LEAs) meet state reporting responsibilities, improve data quality, and inform instructional program decisions. FCMAT may be requested to provide fiscal crisis or management assistance by a school district, charter school, community college, county office of education, the state superintendent of public instruction, or the Legislature. When a request or assignment is received, FCMAT assembles a study team that works closely with the LEA to define the scope of work, conduct on-site fieldwork and provide a written report with findings and recommendations to help resolve issues, overcome challenges and plan for the future. 90 80 70 60 50 40 30 20 10 0 FCMAT has continued to make adjustments in the types of support provided based on the changing dynamics of TK-14 LEAs and the implementation of major educational reforms. FCMAT also develops and provides numerous publications, software tools, workshops and professional learning opportunities to help LEAs operate more effectively and fulfill their fiscal oversight and data management responsibilities. The California School Information Services (CSIS) division of FCMAT assists the California Department of Education with the implementation of the California Longitudinal Pupil Achievement Data System (CALPADS). CSIS also hosts and maintains the Ed-Data website (www.ed-data.org) and provides technical expertise to the Ed-Data partnership: the California Department of Education, EdSource and FCMAT. FCMAT was created by Assembly Bill (AB) 1200 in 1991 to assist LEAs to meet and sustain their financial obligations. AB 107 in 1997 charged FCMAT with responsibility for CSIS and its statewide data management work. AB 1115 in 1999 codified CSIS’ mission. AB 1200 is also a statewide plan for county offices of education and school districts to work together locally to improve fiscal procedures and accountability standards. AB 2756 (2004) provides specific responsibilities to FCMAT with regard to districts that have received emergency state loans. In January 2006, Senate Bill 430 (charter schools) and AB 1366 (community colleges) became law and expanded FCMAT’s services to those types of LEAs. On September 17, 2018 AB 1840 was signed into law. This legislation changed how fiscally insolvent districts are administered once an emergency appropriation has been made, shifting the former state-centric system to be more consistent with the principles of local control, and providing new responsibilities to FCMAT associated with the process. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 3 seidutS fo rebmuN Studies by Fiscal Year 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Fiscal Health Risk Analysis Since 1992, FCMAT has been engaged to perform more than 1,400 reviews for LEAs, including school districts, county offices of education, charter schools and community colleges. The Kern County Superintendent of Schools is the administrative agent for FCMAT. The team is led by Michael H. Fine, Chief Executive Officer, with funding derived through appropriations in the state budget and a modest fee sched- ule for charges to requesting agencies. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 4 Fiscal Health Risk Analysis Introduction Background Historically, FCMAT has not engaged directly with school districts showing distress until it has been invited to do so by the district or the county superintendent of schools. The state’s 2018-19 Budget Act provides for FCMAT to offer more proactive and preventive services to fiscally distressed school districts by automatically engaging with a district under the following conditions: • 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. Under these conditions, FCMAT will perform a fiscal health risk analysis to determine the level of risk for insolvency. FCMAT has updated its Fiscal Health Risk Analysis (FHRA) tool that weights each question based on high, moderate and low risk. The analysis will not be performed more than once in a 12-month period per district, and the engagement will be coordinated with the county superintendent and build on their oversight process and activities already in place per Assembly Bill (AB) 1200. There is no cost to the county superintendent or to the district for the analysis. This fiscal health risk analysis is being conducted because the district had the following condition, under which an analysis is required by the 2018-19 State Budget Act. • Lack of going concern designation. As a result of the lack of going concern designation, FCMAT engaged and performed a fiscal health risk analysis to determine the district’s level of risk for insolvency. Located in Shasta County, the Oak Run Elementary School District is governed by a five-member board and serves approximately 45 students in preschool through eighth grade at one school. According to data from the California Department of Education (CDE), the district’s unduplicated pupil percentage for 2021- 22, which includes students who are English learners, foster youth, or who qualify for free or reduced-price meals, is 77%. Because the district is small, the Shasta County Office of Education provides various business office functions including budget development, financial reporting, general accounting, payroll, and vendor payments. This is commonly known as providing the district with direct services. Ongoing district input is required for the county office to provide these services. School districts are required to update and certify the status of their financial obligations two times per year. The statutory deadline for the first interim financial report is December 15, and a district’s governing board must adopt the second interim report by March 15. The district’s governing board approved both reports on April 29, 2024, long after the statutory deadlines. Both interim reports indicate a substantial financial decline since the adopted budget because of decreased average daily attendance stemming from oversight agencies’ concerns about compliance with both independent study agreements and student immunization requirements. The potential disallowance of some reported attendance has caused a substantial decrease in projected revenue. The 2023-24 first interim report shows a significant decrease in the projected unrestricted ending fund balance, from $490,678 in 2023-24, to $137,674 in 2024-25, and to -$225,347 in 2025-26. The projected deficits included in the first interim report are not sustainable and require the school district to act immediately to mitigate the risk of insolvency. As a result of the declining fiscal outlook, the Shasta County Office of Education declared the district a lack of going concern on December 13, 2023. Subsequently, FCMAT performed a fiscal health risk analysis to determine the district’s level of risk for insolvency. FCMAT’s analysis is based on the district’s 2023-24 first interim report. Fiscal Health Risk Analysis Guidelines Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 5 Fiscal Health Risk Analysis FCMAT entered into a study agreement with the Oak Run Elementary School District on March 18, 2024, and a study team visited the county office of education on April 24, 2024 and the district on April 25, 2024 to conduct interviews, collect data and review documents. Following fieldwork, the FCMAT study team continued to review and analyze documents. This report is the result of those activities. FCMAT’s reports focus on systems and processes that may need improvement. Those that may be functioning well are generally not commented on in FCMAT’s reports. In writing its reports, FCMAT uses the Associated Press Stylebook, a comprehensive guide to usage and accepted style that emphasizes conciseness and clarity. In addition, this guide emphasizes plain language, discourages the use of jargon and capitalizes relatively few terms. Study Team The team was composed of the following members: Michelle Giacomini Jeffrey B. Potter, CFE FCMAT Deputy Executive Officer FCMAT Intervention Specialist John Lotze 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 Oak Run Elementary School District 6 Fiscal Health Risk Analysis Fiscal Health Risk Analysis For TK-12 School Districts Dates of fieldwork: April 24 and 25, 2024 District: Oak Run Elementary School District Summary The county superintendent of schools designated the district a lack of going concern in December 2023. This is required if at any time during the school year the county superintendent determines that a school district may be unable to meet its financial obligations, as mandated by Education Code (EC) 42127.6. The lack of going concern designation was due to noncompliance with immunization requirements based on an audit by the Shasta County Health and Human Services Agency, which found that only 13 out of 30 students tested had proper immunization documents or valid medical exemptions. Other items were also reported. A second audit, prepared by the county superintendent, found that the district is also out of compliance with independent study agreements, which means it faces a large decrease in allowable average daily attendance from adopted budget to the first interim report, resulting in a reduction of $427,033 in local control funding formula (LCFF) revenues. FCMAT reviewed the district’s board meeting agendas and minutes and found that the district has had significant turnover of board members in the last two years, and its front office staff are also new. The superintendent has been with the district for four years. The Shasta County Office of Education provides various business office functions including budget development, financial reporting, general accounting, payroll, and vendor payments. Ongoing district input is required for the county office to provide these services. The district’s management is responsible for maintaining the integrity of its systems, securing its assets, and presenting sound financial information based on current and accurate data so the board can make informed decisions, manage the budget, and maintain fiscal solvency. The district consists of one school that serves a small number of students with a small, unrepresented staff. Given its size, any turnover in staff can disrupt the continuity of the district’s plans and actions. Small districts commonly fail to cross-train staff, which often results in a steep learning curve for new employees. This fiscal health risk analysis shows that the district is at high risk of insolvency and identifies weaknesses and areas of concern that have contributed to its fiscal distress. Significant risk factors include, but are not limited to, internal controls, budget development and monitoring, cash management, disclosures of salary increases, deficit spending, enrollment and attendance analysis, leadership and stability, processes and procedures, the unrestricted general fund balance, and reserves. Because it is small and has few staff, the district lacks the systems and procedures needed to ensure segregation of duties (i.e., dividing duties between more than one employee) and oversight of business functions in areas such as accounts payable, payroll, human resources, accounts receivable, and purchasing. This could lead to inaccuracies, inefficiencies, and the possibility of fraud due to a lack of prevention and detection measures. The district’s 2023-24 first interim budget shows a decrease of $427,033 in local control funding formula (LCFF) revenues when compared with the adopted budget and assumes that a similar reduction will continue in future years unless the district ensures that independent study agreements are corrected to meet audit and education code requirements. The district will continue deficit spending unless it corrects these compliance issues and can claim ADA for independent study, especially for students who are not immunized and/or are not able to physically come to school. The 2023-24 first interim budget includes significant deficit spending: $258,147 in 2023-24, $381,002 in 2024-25 and $391,021 in 2025-26. The projected ending fund balances are $723,644 in 2023-24, $342,642 in 2024-25, and -$48,379 in 2025-26. In addition, the 2023-24 first interim report does not account for the contingent liability consisting of the potential penalties and reductions in revenue in addition to the ongoing LCFF reduction of $427,033 per year. The penalties could be spread over eight years if the CDE determines that is feasible. The district risks losing local control unless it ensures that its independent study agreements comply with all regulations and adopts a board-approved plan to reduce or eliminate deficit spending to maintain fiscal solvency. District Fiscal Solvency Risk Level: High Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 7 Fiscal Health Risk Analysis About the Analysis The Fiscal Crisis and Management Assistance Team (FCMAT) has developed the Fiscal Health Risk Analysis (FHRA) as a tool to help evaluate a school district’s fiscal health and risk of insolvency in the current and two subsequent fiscal years. The FHRA includes 20 sections, each of which contains specific questions. Each section and specific question is included based on FCMAT’s work since the inception of AB 1200; they are the common indicators of risk or potential insolvency for districts that have neared insolvency and needed assistance from outside agencies. Each section of this analysis is critical, and lack of attention to these critical areas will eventually lead to a district’s failure. The analysis focuses on essential functions and processes to determine the level of risk at the time of assessment. The greater the number of “no” answers to the questions in the analysis, the greater the potential risk of insolvency or fiscal issues for the district. Not all sections in the analysis and not all questions within each section carry equal weight; some areas carry higher risk and thus count more heavily in calculating a district’s fiscal stability. To help the district, narratives are included for responses that are marked as a “no” so the district can better understand the reason for the response and actions that may be needed to obtain a “yes” answer. Identifying issues early is the key to maintaining fiscal health. Diligent planning will enable a district to better understand its financial objectives and strategies to sustain a high level of fiscal efficiency and overall solvency. A district should consider completing the FHRA annually to assess its own fiscal health risk and progress over time. Areas of High Risk The following sections on this page and the next duplicate certain questions and answers given in the Fiscal Health Risk Analysis Questions later in this document and identify conditions that create significant risk of fiscal insolvency. The existence of an identified budget or fiscal status or a material weakness indicated by a “no” answer to any of these items supersedes all other scoring and will elevate the district’s overall risk level. Budget and Fiscal Status Is the 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 its county office of education 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 Education Code Section 42142? ✓ ☐ ☐ 3 6 Has the district addressed any deficiencies the county office of education has identified in its oversight letters 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? ☐ ✓ ☐ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 8 Fiscal Health Risk Analysis 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 address 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 Education Code Section 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 them in its budget and multiyear projections? ✓ ☐ ☐ 6 4 Did the district conduct a presettlement analysis and identify related costs or savings, if any (e g , statutory benefits, and step and column salary increase), for the current and subsequent years, and did it identify ongoing revenue sources or expenditure reductions to support the agreement? ☐ ✓ ☐ 7 2 If the district has deficit spending in funds other than the general fund, has it included in its multiyear projection any 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 6 Are the district’s enrollment projections and assumptions based on historical data, industry-standard methods, and other reasonable considerations? ✓ ☐ ☐ 11 2 Does the district have sufficient and available capital outlay and/or bond funds to cover all contracted obligations for capital facilities projects? ✓ ☐ ☐ 12 1 Is the district able to maintain the minimum reserve for economic uncertainty in the current year (including Fund 01 and Fund 17) as defined by criteria and standards? ✓ ☐ ☐ 12 2 Is the district able to maintain the minimum reserve for economic uncertainty in the two subsequent years? ☐ ✓ ☐ 12 3 If the district is not able to maintain the minimum reserve for economic uncertainty, does the district’s multiyear financial projection include a board-approved plan to restore the reserve? ☐ ✓ ☐ 19 1 Does the district account for all positions and costs? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 9 Fiscal Health Risk Analysis Score Breakdown by Section Because the score is not calculated by category, category values provided are subject to minor rounding error and are provided for information only. 1. Annual Independent Audit Report 0.4% 2. Budget Development and Adoption 2.9% 3. Budget Monitoring and Updates 3.5% 4. Cash Management 7.0% 5. Charter Schools 0.0% 6. Collective Bargaining Agreements 3.9% 7. Contributions and Transfers 1.0% 8. Deficit Spending (Unrestricted General Fund) 2.9% 9. Employee Benefits 2.3% 10. Enrollment and Attendance 2.0% 11. Facilities 0.0% 12. Fund Balance and Reserve for Economic Uncertainty 3.5% 13. General Fund - Current Year 0.2% 14. Information Systems and Data Management 1.0% 15. Internal Controls and Fraud Prevention 5.1% 16. Leadership and Stability 2.7% 17. Multiyear Projections 1.0% 18. Non-Voter-Approved Debt and Risk Management 0.0% 19. Position Control 1.0% 20. Special Education 0.7% Score 41 3% Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 10 Fiscal Health Risk Analysis Fiscal Health Risk Analysis Questions Budget and Fiscal Status: Is the 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 ☐ ✓ 1. Annual Independent Audit Report Yes No N/A 1 1 Has the district corrected the most recent and prior two years’ audit findings without affecting its fiscal health? ☐ ✓ ☐ The district’s 2020-21 and 2021-22 audit reports did not identify any findings. The district’s 2022-23 audit report has not been completed. The fiscal impact to the district, if any, is unknown. 1 2 Has the audit report for the most recent fiscal year been completed and presented to the board within the statutory timeline? (Extensions of the timeline granted by the State Controller’s Office should be explained ) ☐ ✓ ☐ The district’s 2022-23 audit report was due to the Shasta County Superintendent of Schools, the State Controller’s Office and the California Department of Education by March 15, 2024, which was the deadline set by the latest State Controller’s Office extension for that audit. The audit has not been completed, and the district could not verify its status at the time of FCMAT’s fieldwork. 1 3 Were the district’s most recent and prior two audit reports free of findings of material weaknesses? ☐ ✓ ☐ The district’s 2020-21 and 2021-22 audit reports did not identify any material weaknesses. The district’s 2022-23 audit report has not been completed. 1 4 Has the district corrected all reported 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 office of education instructions, and have been clearly articulated? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 11 Fiscal Health Risk Analysis 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 review of prior year estimated actuals by major object code and removal of one-time revenues and expenses? ✓ ☐ ☐ 2 3 Does the district use position control data for budget development? ✓ ☐ ☐ 2 4 Does the district calculate the Local Control Funding Formula (LCFF) revenue correctly? ✓ ☐ ☐ 2 5 Has the district’s budget been approved unconditionally by its county office of education in the current and two prior fiscal years? ☐ ✓ ☐ The district’s adopted budgets for 2021-22, 2022-23 and 2023-24 were all conditionally approved by the county superintendent because the county superintendent required revisions to the district’s local control and accountability plan (LCAP). 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)? ☐ ✓ ☐ The district’s budget development process usually consists of the superintendent/ principal working with the county office staff member assigned to provide direct services for the district. The district does not collect input from the community or its governing board. 2 7 Does the district budget and expend restricted funds before unrestricted funds? ✓ ☐ ☐ 2 8 Have the Local Control and Accountability Plan (LCAP) and the budget been adopted within statutory timelines established by Education Code Sections 42103 and 52062 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 one prior fiscal year? ✓ ☐ ☐ 2 9 Has the district refrained from including carryover funds in its adopted budget? ☐ ✓ ☐ In interviews, employees indicated that the district includes projected carryover in the adopted budget when it lacks a plan to spend restricted funds before the end of the current fiscal year. This increases the likelihood that these funds will be both expended in the current year and budgeted in the following year. 2 10 Other than objects in the 5700s and 7300s and appropriate abatements in accordance with the California School Accounting Manual, does the district avoid using negative or contra expenditure accounts? ✓ ☐ ☐ 2 11 Does the district have a documented policy and/or procedure for evaluating the proposed acceptance of grants and other types of restricted funds and the potential multiyear impact on the district’s unrestricted general fund? ☐ ✓ ☐ The district lacks a documented policy or procedure for evaluating the proposed acceptance and potential multiyear impact of grants and other types of restricted funds. 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/departments responsible for completing them? ☐ ✓ ☐ No evidence was provided to show that the district adheres to a budget calendar. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 12 Fiscal Health Risk Analysis 3. Budget Monitoring and Updates Yes No N/A 3 1 Are actual revenues and expenses consistent with the most current budget? ☐ ✓ ☐ The district’s 2023-24 first interim report includes multiple instances in which actual revenues and expenses for the reporting period differ from projected totals, including unrestricted revenues, unrestricted salary and benefits, unrestricted leases, and unrestricted consultants. 3 2 Are budget revisions posted in the financial system at each interim report, at a minimum? ✓ ☐ ☐ 3 3 Are clearly written and articulated budget assumptions that support budget revisions communicated to the board at each interim report, at a minimum? ✓ ☐ ☐ 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 Education Code 42142? ✓ ☐ ☐ 3 5 Do the district’s responses fully explain the variances identified in the criteria and standards? ☐ ✓ ☐ Although some explanations regarding variances identified in the Standards and Criteria for Fiscal Solvency are clear and concise, other responses lack sufficient detail to explain a variance other than acknowledging that it exists. 3 6 Has the district addressed any deficiencies the county office of education has identified in its oversight letters in the most recent and two prior fiscal years? ✓ ☐ ☐ 3 7 Does the district prohibit processing of requisitions or purchase orders when the budget is insufficient to support the expenditure? ☐ ✓ ☐ The purchase order function in the district’s financial system is not used because the district is small. A manual purchase order is generated if requested by a vendor. 3 8 Does the district encumber and adjust encumbrances for salaries and benefits? ✓ ☐ ☐ 3 9 Are all balance sheet accounts in the general ledger reconciled at least at each interim report and at year end close? ✓ ☐ ☐ 3 10 For the most recent and two prior fiscal years, have the interim reports and the unaudited actuals been adopted and filed with the county superintendent of schools within the timelines established in Education Code? ☐ ✓ ☐ At the time of FCMAT’s fieldwork in April 2024, the district’s governing board had not approved its 2023-24 first and second interim reports. Per the Education Code, these reports were due by December 15, 2023 and March 15, 2024, respectively. The reports were approved on April 29, 2024, a few days after FCMAT's fieldwork. Prior year reports were submitted on time. 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 reports monthly? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 13 Fiscal Health Risk Analysis 4 2 Does the district reconcile all bank (cash and investment) accounts with bank statements monthly? ☐ ✓ ☐ District staff indicated that the district has three local bank accounts. No evidence was provided to show that the bank accounts are reconciled monthly. 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 district creates cash flow projections for the current year only. No cash flow projection is prepared for the subsequent fiscal year. 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 address its cash flow needs for the current and subsequent year? ☐ ✓ ☐ The 2023-24 first interim report included a cash flow projection that showed the district’s general fund cash is sufficient to support its 2023-24 obligations, but it did not include a cash flow projection for the subsequent year. Without such a projection, the district can neither determine if it has sufficient cash to support its projected obligations nor can it develop a reasonable plan to address any cash flow needs. 4 5 Does the district have sufficient cash resources in its other funds to support its current and projected obligations in those funds? ☐ ✓ ☐ The 2023-24 first interim report included a cash flow projection that showed the district’s general fund is sufficient to support its 2023-24 obligations, but it did not include a cash flow projection for the subsequent year. Without such a projection, the district can neither determine if it has sufficient cash to support its projected obligations nor develop a reasonable plan to address any cash flow needs. The cafeteria fund required an interfund transfer of $13,982.37, which occurred in October 2023. 4 6 If interfund borrowing is occurring, does the district comply with Education Code 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 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 Education Code Section 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? ☐ ☐ ✓ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 14 Fiscal Health Risk Analysis 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? ☐ ☐ ✓ 6 3 Does the district accurately quantify the effects of collective bargaining agreements and include them in its budget and multiyear projections? ✓ ☐ ☐ 6 4 Did the district conduct a presettlement analysis and identify related costs or savings, if any (e g , statutory benefits, and step and column salary increase), for the current and subsequent years, and did it identify ongoing revenue sources or expenditure reductions to support the agreement? ☐ ✓ ☐ Board minutes indicate that the salary schedules for all employees were modified in August 2023 and adopted in September 2023. Interviewees indicated that this included an increase of 3% for all salaries. Although the district has no collective bargaining groups and no collective bargaining occurs, it is required to prepare public disclosure documents, and this should have been done for salary increases. For the 3% increase, the district did not conduct a public disclosure that outlines its quantitative effects on the multiyear financial projection. 6 5 In the current and prior two fiscal years, has the district settled the total cost of the bargaining agreements including step and column increases 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 resources to cover the costs of the district’s proposal(s)? ☐ ☐ ✓ 6 7 Did the district comply with public disclosure requirements under Government Code Sections 3540 2 and 3547 5, and Education Code Section 42142? ☐ ✓ ☐ FCMAT searched for but could find no public disclosure form or other evidence that the district complied with the public disclosure requirements for the last salary increase that was approved in September 2023. 6 8 Did the superintendent and CBO certify the public disclosure of collective bargaining agreement prior to board approval? ☐ ✓ ☐ FCMAT could find no evidence that the district complied with the public disclosure requirements for the last salary increase approved in September 2023. FCMAT could not find evidence of a public disclosure form; thus, no signatures of the superintendent and CBO were found.. 6 9 Is the governing board’s action consistent with the superintendent’s and CBO’s certification? ☐ ✓ ☐ See the response to question 6.8 above for information on this item. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 15 Fiscal Health Risk Analysis 7. Contributions and Transfers Yes No N/A 7 1 Does the district have a board-approved plan to eliminate, reduce or control any contributions/transfers from the unrestricted general fund to other restricted programs and funds? ☐ ✓ ☐ The district lacks a plan to reduce contributions/transfers from the unrestricted general fund to restricted programs and/or funds. 7 2 If the district has deficit spending in funds other than the general fund, has it included in its multiyear projection any transfers from the unrestricted general fund to cover any projected negative fund balance? ✓ ☐ ☐ 7 3 If any contributions/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? ✓ ☐ ☐ 8. Deficit Spending (Unrestricted General Fund) Yes No N/A 8 1 Is the district avoiding deficit spending in the current fiscal year? ☐ ✓ ☐ According to the 2023-24 first interim report, expenditures are expected to exceed revenues by $231,283 in the unrestricted general fund. 8 2 Is the district projected to avoid deficit spending in both of the two subsequent fiscal years? ☐ ✓ ☐ The 2023-24 first interim report projects deficit spending of $353,003 in 2024-25 and $363,021 in 2025-26. 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? ☐ ✓ ☐ FCMAT did not receive any documents that indicate the district has a board-approved plan to reduce or eliminate anticipated deficit spending in the unrestricted general fund. The district projected deficit spending in its 2021-22 and 2023-24 first interim reports. Deficit spending was not projected in the 2022-23 first interim report. 8 4 Has the district decreased deficit spending over the past two fiscal years? ☐ ☐ ✓ 9. Employee Benefits Yes No N/A 9 1 Has the district completed an actuarial valuation in accordance with Governmental Accounting Standards Board (GASB) requirements to determine its unfunded liability for other post-employment benefits (OPEB)? ☐ ✓ ☐ The district has not completed an actuarial valuation for its OPEB. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 16 Fiscal Health Risk Analysis 9 2 Does the district have a plan to fund its liabilities for retiree health and welfare benefits with the total of annual required service payments (legal, contractual or locally defined such as pay-as-you-go premiums, trust agreement obligations, or a board adopted commitment) no greater than 2% of the district’s unrestricted general fund revenues? ☐ ☐ ✓ 9 3 Has the district followed a policy or collectively bargained agreement to limit accrued vacation balances? ☐ ✓ ☐ No documents were provided showing accrued vacation balances. 9 4 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? ☐ ✓ ☐ In interviews, employees indicated that the district has not conducted a benefits eligibility review within the last five years. 9 5 Does the district track, reconcile and report employees’ compensated leave balances? ☐ ✓ ☐ No documents were provided showing accruals and reductions of leave balances. 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? ☐ ✓ ☐ As shown in Ed-Data (www.ed-data.org), the district’s enrollment decreased from 54 students in 2021-22 to 45 students in 2022-23. The district’s projected enrollment as of the 2023-24 first interim report remained stable at 45 students. 10 2 Does the district monitor and analyze enrollment and average daily attendance (ADA) data at least monthly through the second attendance reporting period (P2)? ✓ ☐ ☐ 10 3 Does the district track historical enrollment and ADA data to establish future trends? ✓ ☐ ☐ 10 4 Do school sites maintain an accurate record of daily enrollment and attendance that is reconciled monthly at the site and district levels? ☐ ✓ ☐ Although the school appeared to maintain an accurate record of enrollment and attendance, adjustments were needed because of a lack of compliance with independent study and immunization requirements. More specifically, only 13 of the 30 students sampled had proper immunization documentation on file or proof of a valid medical exemption. Also, the district’s independent study master agreements must comply with the Education Code, and all work products must comply with district board policy. To claim ADA and receive funding from the State of California, this documentation needs to be in place for each student claimed. The CDE can assess a penalty for the lack of documentation up to the amount of funding claimed for these pupils. The county office of education and the district were working on the amount of the penalty at the time of this report. The California Department of Education will grant up to eight years for repayment of a prior year ADA disallowance, which the county office plans to request once the penalty amount is final. 10 5 Has the district certified its California Longitudinal Pupil Achievement Data System (CALPADS) data by the required deadlines (Fall 1, Fall 2, EOY) for the current and two prior years? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 17 Fiscal Health Risk Analysis 10 6 Are the district’s enrollment projections and assumptions based on historical data, industry-standard methods, and other reasonable considerations? ✓ ☐ ☐ 10 7 Do all applicable sites and departments review and verify their respective CALPADS data and correct it as needed before the report submission deadlines? ✓ ☐ ☐ 10 8 Has the district planned for enrollment losses to charter schools? ☐ ☐ ✓ 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 meet the student-to-teacher ratio requirement of no more than 24-to-1 for each school in grades TK-3 classes, or, if not, does it have and adhere to an alternative collectively bargained agreement? ☐ ☐ ✓ 11. Facilities Yes No N/A 11 1 If the district participates in the state’s School Facilities Program, has it met the required contribution for the Routine Restricted Maintenance Account? ☐ ☐ ✓ 11 2 Does the district have sufficient and available capital outlay and/or bond funds 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 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 long-range facilities master plan that reflects its current and projected facility needs? ☐ ✓ ☐ The district lacks a long-range facilities master plan. 12. Fund Balance and Reserve for Economic Uncertainty Yes No N/A 12 1 Is the district able to maintain the minimum reserve for economic uncertainty in the current year (including Fund 01 and Fund 17) as defined by criteria and standards? ✓ ☐ ☐ 12 2 Is the district able to maintain the minimum reserve for economic uncertainty in the two subsequent years? ☐ ✓ ☐ The 2023-24 first interim report indicates the district will meet the required minimum reserve of $84,000 for economic uncertainties in 2024-25. However, the report projects the district will be unable to meet the required reserve in 2025-26 and shows a projected ending fund balance of -$48,379. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 18 Fiscal Health Risk Analysis 12 3 If the district is not able to maintain the minimum reserve for economic uncertainty, does the district’s multiyear financial projection include a board-approved plan to restore the reserve? ☐ ✓ ☐ The district lacks a board-approved plan to restore the minimum reserve for economic uncertainties. 12 4 Is the district’s projected unrestricted fund balance stable or increasing in the two subsequent fiscal years? ☐ ✓ ☐ The 2023-24 first interim report projects declines in the unrestricted ending fund balance, from $490,678 in 2023-24, to $137,674 in 2024-25, and to -$225,347 in 2025-26. 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? ☐ ✓ ☐ Documents related to student immunizations and to independent study agreements may be out of compliance with state requirements. While the district is disputing these findings, state apportionment revenue may be significantly affected in subsequent fiscal years by a disallowance of some reported ADA in the current and prior years. The district's 2023-24 first interim report indicates that the penalty could be approximately $1 million, payable over eight years as a reduction in state apportionment revenue. If the penalty is imposed, the district lacks a plan to reduce expenditures to accommodate the significant reduction in revenue. Without an immediate plan to address the potential revenue shortage, the district faces economic distress, including the potential for fiscal insolvency and loss of local control. (See item 10.4 for detail on this lack of compliance) 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 statewide average for the current year? ✓ ☐ ☐ 13 3 Is the percentage of the district’s general fund unrestricted expenditure budget that is allocated to salaries and benefits at or below the statewide average for the two prior 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 two prior years, is the district addressing the complaint(s)? ☐ ☐ ✓ 13 5 Does the district either ensure that restricted dollars are sufficient to pay for staff assigned to restricted programs or have a plan to fund these positions with unrestricted funds? ✓ ☐ ☐ 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 program costs, including the maximum allowable indirect costs, for each restricted resource and other funds? ☐ ✓ ☐ The district does not charge the maximum allowable indirect costs to its special education and food service programs. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 19 Fiscal Health Risk Analysis 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? ☐ ✓ ☐ The district only recently received access to the Escape financial system. Training by county office staff is ongoing. 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 county office of education? ✓ ☐ ☐ 14 5 If the district is using a separate financial system from its county office of education, is there an automated interface that allows data to be sent and received by both the district and county financial systems? ☐ ☐ ✓ 14 6 If the district is using a separate financial system from its county office of education, has the district provided the county office with direct access so the county office can provide oversight, review and assistance? ☐ ☐ ✓ 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? ✓ ☐ ☐ 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? ✓ ☐ ☐ 15 3 Does the district ensure that duties in the following areas are segregated, and that they are supervised and monitored?: • Accounts payable (AP) ☐ ✓ ☐ Although the district has adequate internal controls for generating and approving warrants, it has insufficient controls in the segregation of duties. The same user who creates new vendors in the accounts payable system can also pay that vendor, which is an internal control weakness. • Accounts receivable (AR) ☐ ✓ ☐ Internal controls for cash are insufficient. Neither the school nor the county office requires more than one employee to count or transport cash, which increases the risk of misappropriation. In addition, the funds are not stored in tamper-evident bags after being counted. • Purchasing and contracts ☐ ✓ ☐ The district lacks a sufficient segregation of duties in its purchasing process: it allows one position to create and pay a new vendor. Cash controls are also weak because they do not include two individuals being present when cash is counted and transported. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 20 Fiscal Health Risk Analysis • Payroll ☐ ✓ ☐ The payroll and human resource functions are handled by one position, allowing the creation and payment of a new employee without an adequate segregation of duties. Although both the fiscal and administrative staff review payroll payments before they are issued, a weakness remains in internal controls when any one position administers key functions for both human resources and payroll. • Human resources (i e , duties relative to position control and payroll processes) ☐ ✓ ☐ See the response to the Payroll item above. 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 office of education? ✓ ☐ ☐ 15 7 Does the district have processes and procedures to discourage and detect fraud? ☐ ✓ ☐ In interviews, employees indicated that the district does not 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? ☐ ✓ ☐ Employees indicated that the district does not have a process for collecting and following up on reports of possible fraud. 15 9 Does the district have an internal audit process? ☐ ✓ ☐ The district has no internal audit process. 16. Leadership and Stability Yes No N/A 16 1 Does the district have a chief business official who has been with the district as chief business official for more than two years? ✓ ☐ ☐ 16 2 Does the district have a superintendent who has been with the district as superintendent for more than two years? ✓ ☐ ☐ 16 3 Does the superintendent meet on a scheduled and regular basis with all members of their administrative cabinet? ☐ ☐ ✓ 16 4 Is training on financial management and budget provided to site and department administrators who are responsible for budget management? ☐ ✓ ☐ The superintendent/principal is the district’s only administrator. No evidence was provided to show that the superintendent/principal receives routine training on financial management and the budget. The position has online access to the district’s financial system but relies on county office staff to answer all budget and financial questions rather than generating this information at the school. 16 5 Does the governing board adopt and revise policies and administrative regulations annually? ☐ ✓ ☐ No evidence was provided to show that the district has a process for reviewing and revising board policies and administrative regulations annually. Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 21 Fiscal Health Risk Analysis 16 6 Are newly adopted or revised policies and administrative regulations implemented, communicated and available to staff? ☐ ✓ ☐ The district does not update its board policies or administrative regulations often, nor does it have a process or procedure for communicating any changes to staff. 16 7 Do all board members attend training on the budget and governance at least every two years? ☐ ✓ ☐ No evidence was provided to show that all board members attend training on budget and governance at least every two years. 16 8 Is the superintendent’s evaluation performed according to the terms of the contract? ✓ ☐ ☐ 17. Multiyear Projections Yes No N/A 17 1 Has the district developed multiyear projections that include detailed assumptions aligned with industry standards? ✓ ☐ ☐ 17 2 To help calculate its multiyear projections, did the district prepare an accurate LCFF calculation with multiyear considerations? ✓ ☐ ☐ 17 3 Does the district use its most current multiyear projection in making financial decisions? ☐ ✓ ☐ The district does not reference its multiyear financial projection (MYFP) when making financial decisions. The county office prepares the district’s MYFP at each required reporting period, but the district does not request updates between reporting periods. 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? ☐ ☐ ✓ 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 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 the district completed an actuarial valuation as required and 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, RANS and others), is the total of annual debt service payments no greater than 2% of the district’s unrestricted general fund revenues? ☐ ☐ ✓ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 22 Fiscal Health Risk Analysis 19. Position Control Yes No N/A 19 1 Does the district account for all positions and costs? ✓ ☐ ☐ 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 reporting periods? ☐ ✓ ☐ The district does not reconcile budget, payroll, and position control, and no evidence was provided to show that the district has recently performed a reconciliation. 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 regularly to discuss issues and improve processes? ☐ ☐ ✓ 20. Special Education Yes No N/A 20 1 Does the district monitor, analyze and adjust staffing ratios, class sizes and caseload sizes to align with statutory requirements and industry standards? ✓ ☐ ☐ 20 2 Does the district access available funding sources for costs related to special education (e g , excess cost pool, legal fees, mental health)? ✓ ☐ ☐ 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)? ☐ ✓ ☐ The district does not routinely budget or charge the full allowable indirect cost rate to the special education resource. This results in an undervaluation of the true cost of the program. 20 5 Is the district’s contribution rate to special education at or below the statewide average contribution rate? ✓ ☐ ☐ 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? ☐ ✓ ☐ The district’s 2022-23 special education identification rate of 20% is higher than the countywide rate of 13.2% and the statewide rate of 13%, possibly due to the district’s small size. 20 7 Does the district analyze whether it will meet the maintenance of effort requirement at each interim reporting period? ✓ ☐ ☐ Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 23 Fiscal Health Risk Analysis Risk Score, 20 numbered sections only: 41 3% 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 District 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 Oak Run Elementary School District 24 Fiscal Health Risk Analysis Appendix Study Agreement Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 25 Fiscal Health Risk Analysis Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 26 Fiscal Health Risk Analysis Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 27 Fiscal Health Risk Analysis Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 28 Fiscal Health Risk Analysis Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 29 Fiscal Health Risk Analysis Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 30 Fiscal Health Risk Analysis Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 31 Fiscal Health Risk Analysis Michael H. Fine Digitally signed by Michael H. Fine Date: 2024.03.18 15:39:27 -07'00' Fiscal Crisis and Management Assistance Team Oak Run Elementary School District 32