The Sacramento City Unified School District’s chief business and operations officer and senior administrators presented the board with a detailed overview of contracting controls, the unauthorized-contracts process and the fiscal context behind a reported $43 million unaudited deficit.

Chief Business and Operations Officer Janae Marking told trustees the ‘‘unauthorized contracts’’ procedure was implemented after accounting found invoices without associated purchase orders and without prior board authority. Assistant Superintendent Cindy Thao outlined a stepwise contracts workflow: departments submit requisitions and supporting documentation; vendor agreements and insurance are reviewed by contracts and risk management; board approval appears as a consent item; and a purchase order is issued before spending. The unauthorized-contracts process was described as a corrective mechanism to present past invoices to the board for payment and to create transparency and audit trails.

Assistant Superintendent Becky Bryant (Special Education) explained a key driver: legal timelines under the Individuals with Disabilities Education Act require timely delivery of IEP services, which can force the district to contract for urgent services when staffing or MOUs are not yet in place. Bryant said the department has substantially increased board-approved MOUs and master service agreements this year; she reported 15 of 39 master service agreements are now board-approved compared with none at the same time last year.

Administrators said the district had historically lacked consistent processes, and improvements included a move from paper forms to an electronic approvals system (InForm K12) and an escalated year-end closing bulletin emphasizing deadlines that protect the fiscal year’s accuracy. ‘‘Early engagement and timely approvals protect the district financial health,’’ Marking said.

Board members pressed for clarity about accountability, budget impact and timelines. Member Taylor Callata (Member Kayeatta in roll-call usage) and Member Rhodes urged the board to require greater visibility for unauthorized items and to set firm deadlines for outstanding vendor documentation; Member Kiata proposed board-level spending thresholds and a formal, time-limited spending freeze on certain nonessential expenditures. Several trustees asked that future unauthorized-contract items include a clear line showing the item’s budgetary impact and funding source.

After extended discussion the board voted to approve staff’s recommendation to pay two unauthorized-contract items submitted for payment on Oct. 2 and Oct. 16, 2025, ‘‘under protest.’’ The roll call recorded a majority of aye votes with Member Rhodes voting no. Members voting aye: Jean, Kayeatta, Benjamin, Navarro, Singh, Ibarra; Member Rhodes voted no. The approved motion authorized payment to vendors for the listed invoices while preserving the district’s right to audit and critique the process that led to the prior service delivery.

Marking and staff warned the board that the County Office of Education had begun a Fiscal Health Risk Analysis and that the district must deliver a draft fiscal solvency plan by the required county deadlines. Staff said it will return with recommended controls and additional reporting on fiscal solvency for subsequent board meetings.

The board also passed a motion to extend the meeting so the agenda could be completed.