2.4 Financial Condition and Activities

The Chancellor shall ensure that the District (A) is in compliance with Local, State, and Federal laws and (B) does not risk fiscal jeopardy. The Chancellor shall not allow a material deviation of actual expenditures from the Board's priorities. 

TECHNICAL CHANGES approved June 27, 2023 Governing Board Meeting 

AMENDED June 28, 2022, Governing Board Meeting

AMENDED October 22, 2013, Motion No. 10112

AMENDED February 22, 2011, Motion No. 9781, 9782


Chancellor Interpretation

I interpret this policy to mean that the District will operate within a system of internal controls. Compliance is demonstrated by following Generally Accepted Accounting Principles and when the following activities occur: 

  1. No expenditure for funds of more than has been received and carried forward in the fiscal year.
  2. No occurrence of inter-fund transfers in amounts that would cause a deficit fund balance in any fund. 
  3. No occurrence in any fiscal year of District expenditures or indebtedness in an amount that reduces the ending General Fund balance to less than ten percent of General Fund revenues recognized during the fiscal year without Governing Board approval. 
  4. Payroll and other District debts or obligations are settled in a timely manner. Timeliness is contingent upon the transaction. 
  5. Tax payments or other government-ordered payments or filings are submitted accurately and on time. 
  6. No transfers of $50,000.00 or more from Governing Board contingency fund without Governing Board approval. The Governing Board President can approve transfers for less than $50,000.00 or those required in an emergency. Emergency uses of $50,000.00 or more require ratification of the Governing Board at a subsequent meeting. 

AMENDED at the Governing Board Meeting of October 24, 2023

AMENDED June 28, 2022, Governing Board Meeting

AMENDED May 22, 2018, Motion No. 10567

AMENDED by Direct Chancellor Approval, June 16, 2015

AMENDED November 26, 2013

ADOPTED May 24, 2011, Motion No. 9814