reconvene regular meeting: 7:00 pm - Irvine Unified School District

would be measured the actuarially determined value of the related assets (the “Plan Assets”). To the extent
that Plan Liabilities exceeded Plan Assets, then similar to the actuarial and accounting practices for
pension plan liabilities, the difference would be amortized over a period which could be up to thirty (30)
years. The method of financial reporting for OPEB costs would be similar to financial reporting for
pension plan normal costs and unfunded accrued actuarial liability.
The requirements that the GASB 45 Statement impose on the Participants only affect the
Participants’ financial statements and do not impose any requirements regarding the funding of any OPEB
plans. Each of the Participants has commissioned and received an actuarial analysis with respect to its
OPEB. See Appendix A for a description of each Participant’s post-employment health care benefits set
forth in accordance with the GASB 45 Statement.
Reports and Certifications
The Education Code of the State of California (Section 42133 et seq.) requires each school district
to report and certify two times during the fiscal year whether it is able to meet its financial obligations for
the remainder of such fiscal year and, based on current forecasts, for the subsequent two fiscal years. The
first report covers the period ending October 31 and the second report covers the period ending January 31.
Such certifications are based on the governing board’s assessment based on standards and criteria for fiscal
stability adopted by the State Board of Education and the State Superintendent of Public Instruction. Each
certification is required to be classified as positive, qualified or negative on the basis of a review of the
respective report against such criteria, but may include additional financial information known by the
governing board to exist at the time of each certification. Such certifications are to be filed with the
County Superintendent of Schools within forty-five (45) days after the close of the period being reported
and, in the event of a negative or qualified certification, to the State Controller and the State
Superintendent of Public Instruction. A negative certification is to be assigned to any school district that
likely will be unable to meet its financial obligations for the remainder of the fiscal year or for which
existing expenditure practices jeopardize the ability of the district to meet its multi-year financial
commitments. Any school district or office of education that has a qualified or negative certification in any
fiscal year may not issue, in that fiscal year or in the next fiscal succeeding year, certificates of
participation, tax anticipation notes, revenue bonds or any other debt instruments that do not require the
approval of the voters of the district, unless the County Superintendent of Schools determines that the
district’s repayment of indebtedness is probable.
[On or before ______, 2010, on the basis of second interim certifications filed in connection with
the 2009-10 Fiscal Year, covenants made by the Participants in connection with their respective budget
reports and the review of such certifications and reports by the Orange County Superintendent of Schools,
each Participant was certified as positive. Currently, all Participants have a positive certification applicable
to the 2009-10 Fiscal Year within the meaning of Section 42133 of the Education Code of the State.
Copies of the reports and certifications of the Participants may be obtained upon request from such
Participants at the addresses set forth in Appendix A.][Confirm]
Each Participant anticipates reconciling its finances for Fiscal Year 2008-09 prior to September 15
deadline therefor pursuant to Section 42100(a) of the State Education Code, filing its audited financial
report for Fiscal Year 2009-10 by December 15, the deadline therefor pursuant to Section 41020(b) of the
Education Code and filing its first interim financial report for Fiscal Year 2010-11 with the Orange County
Superintendent of Schools by the December 15 the deadline therefor pursuant to Section 42130 of the
Education Code.
Major Revenues
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22314.4 033985 POS