CALEXICO — The state Department of Education has approved Calexico Unified School District’s appeal of the Imperial County Office of Education’s recertification of its second interim report, according to a letter to the district.
While the district had self-certified as “qualified,” ICOE Superintendent Anne Mallory notified the district in mid-April that she would be changing the district’s second interim’s report certification to “negative.”
Calexico Unified’s board voted last month to formally appeal that decision.
A “qualified” certification means, based on projections, that the district “may not” meet its financial obligations for the current fiscal year or two subsequent fiscal years while a “negative” certification means the district will be “unable” to meet those obligations.
Calexico Unified’s second interim report projects the district will meet its obligations this fiscal year as well as the next two, according to the letter from the state, and has ongoing reductions totaling $6.2 million for the 2012-2013 fiscal year.
However, “there are still uncertainties regarding the district’s cash flow,” wrote Scott Hannan, Fiscal Services Division director for the California Department of Education.
The district still projects a negative ending cash balance of $2.9 million June 30, which will be covered by a June 2012 deferral exemption, and a negative ending cash balance of $1.5 million is projected for June 30, 2013, requiring either a June 2013 deferral exemption or short term loan in the form of a Tax Revenue Anticipation Note.
“We encourage the district and the county to continue working together to resolve any differences in the future,” Hannan wrote, adding that if reductions by Calexico Unified aren’t implemented or anything else negatively affects district finances, the county has the authority to revisit the issue.
Calexico Unified Superintendent Richard Fragale said that by being certified as “qualified,” the district should be able to secure lower interest rates for the TRAN short-term loan.
“We’re ecstatic,” he said. “I compliment the business department for doing an outstanding job with providing factual information for the second interim report.”
Staff Writer Chelcey Adami can be reached at 760-337-3452 or cadami@ivpressonline.com
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