Comparison of Fiscal Expert/Fiscal Adviser Authority

COMPARISON OF FISCAL EXPERT/FISCAL ADVISER AUTHORITY

WITH AND WITHOUT STAY OR RESCIND POWERS

Education
Code Section / Trigger / Action by County
Superintendent of Schools (CSS) / Who Pays? / Will FCMAT
Reimburse COE?[1]
42127(d) / CSS disapproves single/dual budget / “The CSS may assign a fiscal adviser to assist the district to develop a budget in compliance with those [CSS proposed budget] revisions.”
No stay or rescind authority. / COE 100% / No
42127.3(b)(2)
42127.3(d) / State Budget Review Committee/SPI
concur with CSS disapproval of single/dual budget / “. . . until the CSS certifies the district’s first interim report . . ., the CSS shall do the following, as necessary: . . . (2) Cancel purchase orders, prohibit the issuance of non-salary warrants and otherwise stay or rescind any action that is inconsistent with the budget adopted pursuant to paragraph (1).”
No mention of Fiscal Expert or Fiscal Adviser. / District 75%
COE 25% / Yes
42127.6(a)(1) / CSS determines (at any time during the fiscal year) that a district may be unable to meet its financial obligations for the current or two subsequent fiscal years, or that a district has a qualified or negative certification / “The CSS . . . shall do at least one of the following, and all actions that are necessary to ensure that the district meets its financial obligations:”
“(A) Assign a fiscal expert, paid for by the county superintendent, to advise the district on its financial problems.”
No stay or rescind authority. / COE 100% / No
Education
Code Section / Trigger / Action by County
Superintendent of Schools (CSS) / Who Pays? / Will FCMAT
Reimburse COE?[1]
42127.6(a)(1) / “(B) Conduct a study of the financial and budgetary conditions of the
district . . ..” CSS may employ staff, on short-term basis, to provide assistance and expertise. / District 75%
COE 25% / Yes
42127.6(e)(2) and (e)(5)
42127.6(h) / CSS determines (at any time during the fiscal year) that a district will be unable to meet its financial obligations for the current or subsequent fiscal year / If, after the CSS determines that a district may be unable to meet its financial obligations for the current or two subsequent fiscal years and reviews the district’s financial situation and determines that the district will be unable to meet its financial obligations for the current or subsequent fiscal year, and the district’s appeal of this finding is denied or an appeal isn’t filed, CSS shall take at least one of the actions in paragraphs (1) to (5). Options include:
(2) “Stay or rescind any action that is determined to be inconsistent with the ability of the school district to meet its obligations for the current or subsequent fiscal year.”
(5) “As necessary, appoint a fiscal adviser to perform any or all of the duties prescribed” in EC 42127.6(e) / District 75%
COE 25% / Yes

Los Angeles County Office of Education

Division of Business Advisory Services

1-23-08

[1] FCMAT reimbursement recommendations are subject to approval by both the California Department of Education and the Department of Finance.