County Superintendent Issues Letter of Fiscal Concern to Oakland USD
January 17, 2017 - Hayward, CA - Upon concluding the review of Oakland Unified School District's (OUSD) First Interim Report, County Superintendent of Schools L. Karen Monroe issued a letter of fiscal concern to the District. In the letter, she notified OUSD that the Alameda County Office of Education (ACOE) has changed the District's First Interim Report certification from a Positive status to a Qualified status.
"After thoroughly reviewing OUSD's First Interim Report, I have significant concerns. I have expressed these concerns in conversations with the State Trustee, Board President, and Superintendent, and my office has been in touch with key staff. The District's response has been swift and responsive as they take action to address these issues. I look forward to receiving a plan of action to ensure OUSD is on a fiscally stable course," said Superintendent Monroe.
The First Interim Report, submitted to ACOE on December 15th, provided an updated forecast of the District's 2016-17 budget. Superintendent Monroe and her staff conducted a thorough review of the report and determined that, as a result of several contributing factors, the District may not be able to meet its financial obligations in the current or two subsequent fiscal years. Thus, the decision was made to change the District's certification from Positive to Qualified.
In the District's approved Adopted Budget for 2016-17, ACOE determined that Oakland Unified's enrollment and resulting attendance projections were reasonable. However, updated figures included with the First Interim Report revealed an unexpected decrease in the projected enrollment, resulting in lower anticipated revenues for the District. The District continues to experience increasing costs for Special Education services, requiring substantial additional resources from the District's General Fund and increasing expenditures beyond original estimates.
As a result of the change to a Qualified certification, ACOE will be able to more closely monitor the District's fiscal health. In particular, the District will be required to submit an extra interim report, commonly referred to as a "Third Interim Report." Additionally, ACOE may request further fiscal information and a plan to address the fiscal condition, conduct a fiscal study, and approve certain debt.
The District's next fiscal update, the Second Interim Report, is due to ACOE by March 17th. ACOE will then complete its review and notify the District of its certification status determination by April 16th.
County Superintendent of Schools First Interim Report Letter - Oakland USD 2016-17
Oakland USD Executive Summary - First Interim Financial Report Fiscal Year 2016
Oakland USD First Interim Standardized Account Code Structure (SACS) Financial Report Fiscal Year 2016
About County Office of Education Fiscal Oversight
One of the roles of the Alameda County Office of Education is to conduct a review of school district budgets, in accordance with AB 1200 & AB 2756, to determine a district's fiscal health in the current and subsequent two fiscal years.
The below graphic outlines the process for ACOE's regular reviews of school district budgets throughout the school year, known as interim reports. For more comprehensive information, view ACOE's District Business and Advisory Services web page.