Annual Budget Adoption and Interim Financial Reporting

Budget Adoption

Each year, local educational agencies (LEAs) are required to adopt an annual budget by July 1. Once adopted, the budget must undergo a formal review process. For school districts, this review is conducted by the county superintendent of schools. For county offices of education, the responsibility falls to the State Superintendent of Public Instruction (SSPI). 

The purpose of this review is to ensure the budget meets state-adopted criteria and standards for fiscal solvency, and to determine whether the LEA can meet its financial obligations for the budget year and multiyear financial commitments. 

Budgets must be approved, conditionally approved or disapproved by September 15. If a budget is conditionally approved or disapproved, additional requirements and timelines apply.

Interim Financial Reports

Following the adoption of the budget, school districts’ local governing boards are required to file two interim budget reports with their county office of education during the fiscal year to continuously monitor their financial health. These reports certify whether the LEA can meet its financial obligations for the remainder of the current fiscal year and the two subsequent fiscal years through a positive, qualified or negative certification.

The Interim Reports are due no later than 45 days after the close of the respective reporting periods, which generally occur around December 15 and March 15.

First Interim Report - Covers the LEA’s financial and budgetary status from July 1 through October 31.

Second Interim Report - Covers the LEA’s financial and budgetary status from July 1 through January 31.

If an LEA receives a qualified or negative certification on the Second Interim Report, a Third Interim Report is required, with a due date of June 1.

For more information, visit the CDE Fiscal Oversight Website and

FCMAT County Office of Education Fiscal Oversight Guide.