Title
Unaudited Actuals Financial Report for Fiscal Year 2025-26, Multi-Year Projections and Gann Limit Resolution - PUBLIC HEARING
Finance Office
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Brief Description:
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(Unaudited Actuals Financial Report for Fiscal Year 2025-26, Multi-Year Projections, and Gann Limit Resolution - Public Hearing) Recommends approval of the Unaudited Actuals Financial Report for Fiscal Year 2025-26 and adoption of the Gann Limit Resolution.
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Recommendation
Action Proposed:
Approve the Unaudited Actuals Financial Report for Fiscal Year 2025-26 (Attachment A) and direct staff to take all necessary actions to submit the report to the Los Angeles County Superintendent of Schools (CSS) as required by Education Code Section 42100 and adopt the Gann Limit Resolution as required under Education Code Section 42132 (Attachment B).
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Body
Background:
Education Code Section 42100 requires the District to submit an annual statement of all receipts and
expenditures for all funds of the preceding fiscal year to the Los Angeles County Office of Education (LACOE) on or before September 15th.
Under Education Code Section 42132, the District must also adopt a resolution identifying an estimated
appropriations limit for the current year and an actual appropriations limit for the preceding year. The Gann Limit places limits on the growth of expenditures for publicly funded programs.
Although the Gann Limit calculations are provided as part of the Unaudited Actuals Financial Report, a specific resolution is required by statute.
Expected Outcomes:
The District’s statement of revenues and expenditures (unaudited actuals) for Fiscal Year 2025-26 shall be filed with the County Superintendent of Schools in compliance with Education Code 42100. The budget beginning balance for the current fiscal year (2026-27) shall be updated based on the Unaudited Actuals Financial Report.
The adopted Gann Limit Resolution shall be presented to the public.
Board Options and Consequences:
Board approval and filing of the Unaudited Actuals Financial Report and the adoption of the Gann Limit Resolution are statutorily mandated.
A “Yes” vote would allow the District to comply with the requirements of Ed Code by submitting the required report and resolution.
A “No” vote, shall cause the District to be non-compliant with Education Code requirements.
Policy Implications:
Submission of the District’s Unaudited Actuals Financial Report for Fiscal Year 2025-26 and adoption of the Gann Limit Resolution shall comply with Education Code and the Los Angeles County Office of Education requirements.
Budget Impact:
Fiscal Year 2026-27 carryover balances for schools and offices shall be adjusted based upon updated actual ending balances from the prior fiscal year and in accordance with current carryover policies.
Student Impact:
Compliance with Education Codes 42100 and 42132 ensures that the District shall continue to operate and serve its student population.
Equity Impact:
|
Component |
Score |
Score Rationale |
|
Recognition |
4 |
Unaudited Actuals are an annual statement reporting the financial activities of the District prior to audit. Revenues and expenditures reported ranges from “not recognizing historical inequities” to “actively recognizing and specifying historical inequities”. While some allocations of resources are district-wide, some investments are allocated using metrics that recognize historical inequities. |
|
Resource Prioritization |
4 |
Resource prioritization varies from a district-wide perspective to a targeted student population to address the unique needs for specific student groups and provide additional support to accelerate gains in closing learning gaps. |
|
Results |
4 |
Resources are allocated to the extent that it would improve student achievement and equity across all student groups in alignment with the District’s Strategic Plan. |
|
TOTAL |
12 |
|
Issues and Analysis:
For the fiscal year ending June 30, 2026, the District was able to meet its financial commitments and required ending balances, as set forth in the District’s Budget and Finance Policy. The unaudited actuals resulted in a General Fund unrestricted/unassigned balance of $1,606 million which is $62 million lower than estimated actuals. This shall be considered in the Budget for fiscal year 2026-27.
Attachments:
Attachment A - Unaudited Actuals Financial Report for Fiscal Year 2025-26
Attachment B - Gann Limit Resolution
Submitted:
08/31/26