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Board accepts FCMAT fiscal health analysis, hears warnings about cash flow and staffing costs
Summary
San Ramon Valley Unified trustees unanimously accepted a FCMAT fiscal health risk analysis that rated the district’s risk score about 38.7 and flagged weaknesses—budget monitoring, cash‑flow transparency, internal controls and a high salaries/benefits ratio—while staff outlined next steps to stabilize finances.
San Ramon Valley Unified School District trustees on a unanimous vote accepted a fiscal health risk analysis from the stateFiscal Crisis and Management Assistance Team (FCMAT) and heard recommendations to strengthen budget monitoring, cash management and internal controls.
FCMAT representatives Jennifer Noga and Aaron Lillbridge told the board the review was triggered after the county office downgraded the district's second interim certification. Noga said the team's score for the district was about 38.7, which the report describes as "moderate risk," but the county trigger automatically elevates the designation in public materials. She summarized the top concerns as "budget monitoring and updating, cash management, deficit spending, high salary and benefit ratios and some internal control gaps." The team noted the district's salaries and benefits accounted for roughly 92.5% of general‑fund expenditures.
Assistant Superintendent of Business Services Danny Hillman and FCMAT both emphasized the need for transparent cash‑flow projections covering at least two years. "Knowing your cash position gives you time to plan if you need to borrow," Hillman told the board, summarizing the presentation. FCMAT recommended timely budget revisions after collective‑bargaining settlements, routine reconciliation of bank accounts and visible reporting mechanisms for suspected fraud.
Board members asked whether the district's recent bargaining settlement would materially change the score; FCMAT said the downward county action that triggered the analysis would likely have produced the same overall categorization even after later settlements, because the county letter and the second‑interim status were the triggering events.
The board voted 5‑0 to accept the FCMAT report and directed staff to return with follow‑up work: updated cash‑flow projections, a plan for implementing the report's internal‑control recommendations and a timeline for using FCMAT tools internally to monitor risk on a recurring basis.
The acceptance is procedural; the district did not adopt any new policies during the vote. Hillman said staff will bring a multi‑year projection and further implementation steps to the board in fall meetings, and FCMAT is scheduled to provide feedback on the district's multi‑year projection later in October.
