Chairperson [President, Board of Trustees] Vice Chairperson [Vice-President, Board of Trustees] Secretary [Clerk of the Board]

Monday, March 8, 2021

Public Financing Authority Meeting

Board Room, 1130 Fifth Avenue, Chula Vista, CA **This meeting is being

held pursuant to Executive Orders N-25-20 and N-29-20, issued by CA

Governor Gavin Newsom, and any or all board members may attend the

meeting via telephone or video conference. All members of the public may

view the meeting online at https://www.youtube.com/user/suhsdk12, and

may request to address the board via teleconference (see instructions

under item B-1 below).

Administration Center - Virtually via MS Teams

3:55 PM

A.

Opening Procedures

1.

Call to Order (Meeting Notice)

2.

Roll Call

B.

Public Communication

1.

Public Communication on Posted I tems - Please see attached PDF

Form for instructions on how to address the board via teleconference

during the meeting. Request for Oral Communication forms should be

received by March 8, 3:55 p.m. for the special meeting of the Public

Financing Authority. Requests for Oral Communication can also be

emailed directly to deanne.vicedo@sweetwaterschools.org, with your

name, phone number, and item you wish to address. Speakers will

call in to the number provided on the form at the start of the meeting.

Pursuant to Board Bylaw, the board may limit the time for public

comments on any single topic to 20 minutes per topic. Any such

changes will be made at the time of the meeting and the public will be

notified at that time.

C.

Action/Discussion Items

1.

* Confirm members of the Sweetwater Union High School District

(“School District”) Board of Trustees serving as the members of the

Board of Directors (“Authority Board”) of the Sweetwater Union High

School District Public Financing Authority (“Authority”).

2.

* Elect/ratify the following to the Board of Directors of the Sweetwater

Union High School District Public Financing Authority:

Chairperson – [President, Board of Trustees]

Vice Chairperson – [Vice-President, Board of Trustees]

Secretary – [Clerk of the Board]

Executive Director – [Superintendent]

Treasurer - [Chief Financial Officer]

3.

* Approve minutes of the October 12, 2020, Sweetwater Union High

School District Public Financing Authority Meeting.

4.

* Accept the 2019-2020 audit of various Sweetwater Union High

School District (“District”) funds and accounts for the 2019-2020

fiscal year, and accept District responses to audit findings and

recommendations.

D.

Adjournment

March

8, 2021

Board Item - A.-1.

ATTACHMENTS:

Description

Type

SWEETWATER UNION HIGH SCHOOL DISTRICT

PUBLIC FINANCING AUTHORITY

NOTICE OF SPECIAL MEETING

Written notice is hereby given in accordance with Education Code Section 35144 and Government Code Section 54956 that the following special meeting of the Board of Directors of the Sweetwater Union High School District Public Financing Authority will be held and in accordance with Government Code Section 54954.3(a), the board of directors will provide an opportunity for members of the public to directly address the legislative body concerning any item that has been described in the notice for the meeting before or during consideration of that item.

DATE:

Monday, March 8, 2021

TIME: 3:55

p.m.

PLACE:

Administration

Center-Board

Room

Virtually

via

MS

Teams

1130

Fifth

Avenue

Chula

Vista,

CA

91911

**This meeting is being held pursuant to Executive

Orders N-25-20 and N-29-20, issued by CA Governor Gavin

Newsom, and any or all board members may attend the

meeting via telephone or video conference, and members

of the public may submit a Request for Oral

Communication prior to the meeting.

Items to be considered are noted on the reverse side of

this page.

Board of Directors

Adrian Arancibia

Paula Hall

Nicholas Segura

Arturo Solis

Frank A. Tarantino

Interim Superintendent

Moisés G. Aguirre, Ed.D.

Sweetwater Union High School District Financing Corporation, in complying with the Americans With Disabilities Act (ADA), and California Government Code Section 54953.2, provides special accommodations to individuals who may need assistance with access, attendance and/or participation in board meetings, including alternative formats for agendas, documents constituting agenda packets, and materials distributed during public meetings. Upon written request to the district, disability-related modifications or accommodations, including auxiliary aids or services, will be provided. Contact Deanne Vicedo, clerk of the board, at (619) 585-4405 for specific information on existing resources or programs that may be available for such accommodations. Please call at least 48 hours in advance of meetings and five days in advance of scheduled services and activities. Translation and Hearing-Impaired services are also available.

Items to be considered by the

Sweetwater Union High School District

Public Financing Authority

March 8, 2021

C-1.*

Confirm members of the Sweetwater Union High School

District (“School District”) Board of Trustees serving

as the members of the Board of Directors (“Authority

Board”) of the Sweetwater Union High School District

Public Financing Authority (“Authority”).

C-2.*

Elect/ratify the following to the Board of Directors of

the Sweetwater Union High School District Public

Financing Authority:

Chairperson – [President, Board of Trustees]

Vice Chairperson – [Vice-President, Board of Trustees]

Secretary – [Clerk of the Board]

Executive Director – [Superintendent]

Treasurer - [Chief Financial Officer]

C-3.*

Approve minutes of the October 12, 2020, Sweetwater

Union High School District Public Financing Authority

Meeting.

C-4.*

Accept the 2019-2020 audit of various Sweetwater Union

High School District (“District”) funds and accounts for

the 2019-2020 fiscal year, and accept District responses

to audit findings and recommendations.

March

8, 2021

Board Item - B.-1.

ATTACHMENTS:

Description

Type

If you have any questions or are unable to email this form, please call Deanne Vicedo, Clerk of

the Board, at 619/585-4405 for assistance.

BOARD OF TRUSTEES

REQUEST FOR ORAL COMMUNICATION

-ORAL COMMENTS WILL BE GIVEN VIA TELECONFERENCE

MARCH 8, 2021, PUBLIC FINANCING AUTHORITY

3:55 p.m.

This board meeting is being held as a teleconference/video conference meeting, pursuant to

Executive Orders N-25-20 and N-29-20, issued by CA Governor Gavin Newsom. All board

members will be participating in the meeting via teleconference or video conference. The

public can request to address the board via teleconference by completing the form below and

submitting it prior to the meeting. Please limit your comments to three minutes.

**To submit comments, please complete the following information, save the form, and email it

to

deanne.vicedo@sweetwaterschools.org

. Please provide the phone number you will use to call

in to the teleconference when you address the board.

Please submit forms by 3:55 p.m. on Monday, March 8, for the public financing authority

meeting.

I am speaking: Regarding Agenda Item _____

Name_____________________________________________________________________

Phone Number______________________________________________________________

Organization/Company Represented_____________________________________________

To address the board, please call 425/436-6389, Code: 644415# at the start time of the meeting.

Please have your phone muted during the meeting. When your name is called to address the

board, please unmute and make your comments. After your comments, you may mute yourself

again or you may disconnect from the teleconference number.

PLEASE NOTE: Pursuant to Board Bylaw, the board may limit the time for public comments

on any single topic to 20 minutes per topic. The board may also adjust the order of the agenda in

order to ensure that the business of the board is conducted in an efficient and effective manner.

Any such changes will be made at the time of the meeting and the public will be notified at that

time.

March

8, 2021

Board Item - C.-1.

Issue:

Ratification of the current members of the board of trustees serving as the members

of the Board of Directors of the Sweetwater Union High School District Public

Financing Authority.

Executive Officer's Recommendation:

* Confirm members of the Sweetwater Union High School District (“School District”)

Board of Trustees serving as the members of the Board of Directors (“Authority

Board”) of the Sweetwater Union High School District Public Financing Authority

(“Authority”).

Analysis:

Background:

The Sweetwater Union High School District Public Financing Authority (Authority) is

a joint exercise of powers authority organized under a Joint Exercise of Powers

Agreement dated December 13, 2004, entered into between the Sweetwater Union

High School District (School District) and Community Facilities District No. 1 of the

School District (CFD No. 1). Under state law, the Authority is authorized to incur

indebtedness for the purpose of assisting the School District, and community

facilities districts (CFDs) of the School District, in financing and refinancing public

school facilities, facilities projects and other financial obligations of the School

District and/or the CFDs.

The Authority assists the School District by “pooling” together two or more series of

bonds or securities into a single bond issuance that can be sold into the market by

the Authority. This takes place under the provisions of the Marks-Roos Pooling Act,

which is set out in the California Government Code. This allows the School District,

and/or CFD securities to be aggregated together in order to save issuance costs.

The Authority, and Authority Board, must undertake various actions, from time to

time, to maintain the Authority’s operational status and standing as a joint powers

agency.

At this time, the current members of the board of trustees will be confirmed as

members of the Board of Directors of the Authority.

For questions regarding this board item, please contact Dr. Jenny Salkeld at

619/691-5551 or jenny.salkeld@sweetwaterschools.org.

Fiscal Impact:

None.

March

8, 2021

Board Item - C.-2.

Issue:

Election/ratification of Authority Officers.

Executive Officer's Recommendation:

* Elect/ratify the following to the Board of Directors of the Sweetwater Union High

School District Public Financing Authority:

Chairperson – [President, Board of Trustees]

Vice Chairperson – [Vice-President, Board of Trustees]

Secretary – [Clerk of the Board]

Executive Director – [Superintendent]

Treasurer - [Chief Financial Officer]

Analysis:

The Sweetwater Union High School District Public Financing Authority (“Authority”)

is a joint exercise of powers authority organized under a Joint Exercise of Powers

Agreement (“Agreement”) dated December 13, 2004, entered into between the

Sweetwater Union High School District (“School District”) and Community Facilities

District No. 1 of the School District (CFD No. 1). The Agreement provides for

certain officers of the Authority to be elected from time to time.

Under state law, the Authority is authorized to incur indebtedness for the purpose of

assisting the School District in financing and refinancing public school facilities and

other financial obligations of the School District.

The Authority assists the School District in “pooling” several series of bonds or

securities into a single bond issuance that can be sold into the market. This takes

place under the provisions of the Marks-Roos Pooling Act which is in the California

Government Code. This allows the school district securities to be aggregate in order

to save costs.

The members of the Sweetwater UHSD School Board serve as the Board of Directors

for the Authority.

For questions regarding this board item, please contact Dr. Jenny Salkeld at

619/691-5551 or jenny.salkeld@sweetwaterschools.org.

Fiscal Impact:

None.

March

8, 2021

Board Item - C.-3.

Issue:

Meeting Minutes.

Executive Officer's Recommendation:

* Approve minutes of the October 12, 2020, Sweetwater Union High School District

Public Financing Authority Meeting.

Analysis:

The minutes for all meetings of the Public Financing Authority must be approved by

the Public Financing Authority Board of Directors.

For questions regarding this board item, please contact Dr. Jenny Salkeld at

619/691-5551 or jenny.salkeld@sweetwaterschools.org.

Fiscal Impact:

None.

ATTACHMENTS:

Description

Type

SWEETWATER PUBLIC FINANCING AUTHORITY

SWEETWATER UNION HIGH SCHOOL DISTRICT

BOARD OF TRUSTEES

UNADOPTED MINUTES

3:50 p.m.

October 12, 2020

Board: Paula Hall •Kevin J. Pike •Nicholas Segura •Arturo Solis •Frank A. Tarantino Acting Superintendent: Moises G. Aguirre Student Board Representative: Desiree Adamos

Order of Business

**This board meeting was held as a videoconference meeting pursuant to

Executive Orders N-25-20 and N-29-20, issued by CA Governor Gavin Newsom.

All board members participated in the meeting via MS Teams. The meeting

was live streamed and audio recorded.

A. OPENING

PROCEDURES

1. Call to Order

President Segura called the special meeting of the Sweetwater Public

Financing Authority Board of Directors to order at 3:50 p.m., via MS

Teams.

2. Roll Call

Board members present were Paula Hall, Kevin J. Pike, Arturo Solis, and

Frank A. Tarantino, all via MS Teams. Also present were Moises G.

Aguirre, acting superintendent, and Deanne Vicedo, clerk of the board,

both via MS Teams.

B. PUBLIC

COMMUNICATION

None.

C. ACTION/DISCUSSION ITEMS

*C-1. Elect/ratify the following to the Board of

Directors of the Sweetwater Union High

School District Public Financing Authority:

Chairperson – [President, Board of

Trustees]

Vice Chairperson – [Vice-President, Board

of Trustees]

Secretary – [Clerk of the Board]

Executive Director – [Acting

Superintendent]

Board Unadopted Minutes

October 12, 2020

Page 2

(Action/Discussion Items cont.) (Board Agenda Item *C-1 cont.)

Moved by Pike, seconded by Hall, to elect

the following officers: Nicholas Segura as

chairperson, Arturo Solis as vice

chairperson, Deanne Vicedo as secretary,

Moises G. Aguirre as executive director,

and Jenny Salkeld as treasurer, with a vote

of Hall Yes; Pike Yes; Segura Yes; Solis

Yes; Tarantino Yes.

*C-2. Approve minutes of the February 10, 2020,

Sweetwater Union High School District

Public Financing Authority Meeting.

Moved by Solis, seconded by Segura, with a

vote of Hall Yes; Pike Yes; Segura Yes;

Solis Yes; Tarantino Yes.

*C-3. Accept the 2018-2019 audit of various

Sweetwater Union High School District

(“District”) funds and accounts for the

2018-2019 fiscal year, and accept District

responses to audit findings and

recommendations.

Moved by Hall, seconded by Solis, with a

vote of Hall Yes; Pike Yes; Segura Yes;

Solis Yes; Tarantino Yes.

D. ADJOURNMENT

The special meeting of the Board of Directors of the Sweetwater Union

High School District Public Financing Authority was adjourned at 3:52

p.m.

March

8, 2021

Board Item - C.-4.

Issue:

Acceptance of the 2019-2020 audit and responses to audit findings and

recommendations.

Executive Officer's Recommendation:

* Accept the 2019-2020 audit of various Sweetwater Union High School District

(“District”) funds and accounts for the 2019-2020 fiscal year, and accept District

responses to audit findings and recommendations.

Analysis:

The District’s annual audit, including associated student body funds (ASBs), cafeteria

funds, and funds relating to the provision or debt service on the Authority’s

outstanding bonds, and other funds under the control or jurisdiction of the District,

has been completed and submitted by the firm of Crowe LLP, as required in

accordance with Education Code Section 41020.

The auditor’s summary of findings and recommendations are attached to this report

along with the District’s responses to these findings.

Background:

The Authority’s financial activity is presented in the financial statements on pages 38

and 39 of the audit report. Special Tax Bonds issued by the Authority are included

as long term obligation in the Long Term Obligations schedule. The Authority is

required to audit funds and accounts relating to its bonds on an annual basis.

Copies of the annual audit have been filed with the State Controller’s Office, and the

California Department of Education, as required by law. Additional copies of this

audit report are available in the office of the chief financial officer for public review.

For questions regarding this board item, please contact Dr. Jenny Salkeld at

619/691-5551 or jenny.salkeld@sweetwaterschools.org.

None.

ATTACHMENTS:

Description

Type

SWEETWATER UNION HIGH SCHOOL DISTRICT FINANCIAL STATEMENTS

SWEETWATER UNION HIGH SCHOOL DISTRICT FINANCIAL STATEMENTS

WITH SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2020

CONTENTS

INDEPENDENT AUDITOR'S REPORT ... 1

MANAGEMENT'S DISCUSSION AND ANALYSIS ... 4

BASIC FINANCIAL STATEMENTS: GOVERNMENT - WIDE FINANCIAL STATEMENTS: STATEMENT OF NET POSITION ... 16

STATEMENT OF ACTIVITIES ... 17

FUND FINANCIAL STATEMENTS: BALANCE SHEET - GOVERNMENTAL FUNDS ... 18

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION ... 19

STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES – GOVERNMENTAL FUNDS... 21

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS - TO THE STATEMENT OF ACTIVITIES ... 22

STATEMENT OF NET POSITION – FIDUCIARY FUNDS ... 24

STATEMENT OF CHANGE IN FIDUCIARY NET POSITION - TRUST FUND ... 25

NOTES TO THE FINANCIAL STATEMENTS ... 26

REQUIRED SUPPLEMENTARY INFORMATION: GENERAL FUND BUDGETARY COMPARISON SCHEDULE ... 64

SCHEDULE OF CHANGES IN THE DISTRICT’S TOTAL OPEB LIABILITY ... 65

SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ... 66

SCHEDULE OF THE DISTRICT'S CONTRIBUTIONS ... 68

SWEETWATER UNION HIGH SCHOOL DISTRICT FINANCIAL STATEMENTS

WITH SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2020

(Continued)

CONTENTS

SUPPLEMENTARY INFORMATION:

COMBINING BALANCE SHEET - ALL NON-MAJOR FUNDS ... 72

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES - ALL NON-MAJOR FUNDS ... 73

ORGANIZATION ... 74

SCHEDULE OF AVERAGE DAILY ATTENDANCE ... 75

SCHEDULE OF INSTRUCTIONAL TIME ... 76

SCHEDULE OF EXPENDITURE OF FEDERAL AWARDS ... 77

RECONCILIATION OF UNAUDITED ACTUAL FINANCIAL REPORT WITH AUDITED FINANCIAL STATEMENTS ... 79

SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS - (UNAUDITED) ... 80

SCHEDULE OF CHARTER SCHOOLS ... 81

NOTES TO SUPPLEMENTARY INFORMATION ... 82

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH STATE LAWS AND REGULATIONS ... 84

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ... 87

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE ... 89

FINDINGS AND RECOMMENDATIONS: SCHEDULE OF AUDIT FINDINGS AND QUESTIONED COSTS ... 91

Crowe LLP

Independent Member Crowe Global

(Continued)

INDEPENDENT AUDITOR'S REPORT Board of Trustees

Sweetwater Union High School District Chula Vista, California

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Sweetwater Union High School District, as of and for the year ended June 30, 2020 and the related notes to the financial statements, which collectively comprise Sweetwater Union High School District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Sweetwater Union High School District, as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

(Continued)

2.

Emphasis of Matter - Going Concern

The accompanying financial statements have been prepared assuming that the District will continue as a going concern. As discussed in Note 12 of the financial statements, the District has suffered from declining enrollment, increased General Fund expenditures, the lack of available reserves and the ongoing borrowing of cash for operations from a fund beyond the General Fund, which raises substantial doubt about its ability to continue as a going concern. Management's plan in regards to these matters is described in Note 12. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 4 to 15 and the General Fund Budgetary Comparison Schedule, Schedule of Changes in the District's Total OPEB Liability, the Schedule of the District's Proportionate Share of the Net Pension Liability, and the Schedule of the District's Contributions on pages 64 to 69 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Sweetwater Union High School District’s basic financial statements. The accompanying schedule of expenditure of federal awards as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the other supplementary information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The schedule of expenditure of federal awards and supplementary information as listed in the table of contents are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information, except for the Schedule of Financial Trends and Analysis, has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards and supplementary information as listed in the table of contents, except for the Schedule of Financial Trends and Analysis, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The Schedule of Financial Trends and Analysis has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2021 on our consideration of Sweetwater Union High School District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Sweetwater Union High School District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing

Standards in considering Sweetwater Union High School District's internal control over financial reporting

and compliance.

Crowe LLP

Sacramento, California February 26, 2021

4.

Management’s Discussion and Analysis

The Management’s Discussion and Analysis (MD&A) Section of the audit report is District

management’s overall view of the District’s financial condition and provides an

opportunity to discuss important fiscal issues with the Board of Trustees and the public.

The MD&A is an element of the reporting model adopted by the Governmental Accounting

Standards Board (GASB) in their Statement No. 34. Certain comparative information is

required to be presented in this document.

District Overview

Sweetwater Union High School District (the “District”), located in San Diego County, is

the largest secondary school district in California regarding student enrollment. The

District provides educational services to the residents in and around the cities of Chula

Vista, Imperial Beach, National City, and San Diego. The District operates under the

jurisdiction of the San Diego County Superintendent of Schools.

For fiscal year 2019-2020, the District operated thirteen high schools (grades 7-12), ten

middle schools (grades 7-8), one junior high (grades 7-9), four adult education schools,

one alternative school, two special education centers, and authorized two independent

charter schools.

The graph below shows the District’s enrollment trend, considering the impact of charter

school enrollment. The District’s enrollment and average daily attendance (ADA)

continues to decline year-over-year. The District is funded based on its ADA, which is

tracked daily with staff following up on areas of concern. For 2019-20 the District averaged

approximately 94.3% ADA to enrollment.

*Enrollment is as of California Basic Educational Data System (CBEDS) date in October each year

** P-2 ADA is collected as of the last full school month ending on or before April 15th_{. In 2019-20, per the Governor’s}

Executive Order N-26-20, the last full month was February 2020 for P-2 ADA.

34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 2015-16 2016-17 2017-18 2018-19 2019-20

Enrollment Compared to Average Daily Attendance

Governance

The District is governed by a Board of Trustees consisting of five members and one student

member. The regular members are elected to staggered four-year terms every two years.

“Students First” Guiding Principle

The District is dedicated to putting students first by providing effective initial instruction

that leads to engagement and mastery, access to challenging curricula, safe and healthy

learning environments focusing on a positive transformational culture, transparent systems

of support, and fostering parent and community involvement.

The 2019-20 student enrollment was 38,553. 57.8% of our students qualify as low income

and 21.1% are identified as English Learners, and 506 of our students are Foster Youth or

Homeless Youth. The Local Control and Accountability Plan (LCAP) is a direct reflection

of the efforts to involve all stakeholders in a parallel process of continuous review, report,

reach-out, and revise.

The District continues to provide 21st Century learning to all students in order to support

their choices for college and career. Through efforts with local universities, the District

welcomed Compact for Success cohort students, now university graduates, as credentialed

teachers fulfilling the promise to guarantee former Compact Scholars employment if they

go into the field of education. The District’s primary objective is to provide the community

with quality education for each student.

In 2019-20, the District continued to implement actions and services to support students

improve their opportunities. The District revisited the LCAP by reaching out to

stakeholders through five engagement sessions in trustee areas in early 2019. The feedback

received in these sessions was critical to the development and implementation of the

2019-20 LCAP. The majority of the actions and services remained the same; however,

based on stakeholder input, the District added supports to increase student attendance and

minimize chronic absenteeism. Additional, community feedback emphasized the need to

address career readiness for students. Actions and services to support College and Career

Technical Education and Attendance supports were added to the 2019-20 plan.

The District’s LCAP Goals:

 LCAP Goal 1: Teaching and Learning

 LCAP Goal 2: Student Social Emotional Well-Being and Positive

Transformational Culture

 LCAP Goal 3: Fostering Parent and Community Involvement

6.

Overview of the Financial Statements

This annual report consists of three parts: (1) management's discussion and analysis (this

section); (2) the financial statements; and (3) required supplementary information.

The remainder of the MD&A highlights the structure and contents of each of the

statements.

The financial statements include two kinds of statements that present different views of the

District: district-wide financial statements and fund financial statements. The financial

statements also include notes that explain some of the information in the statements and

provide more detail.

The first two statements are district-wide financial statements that provide both short-term

and long-term information about the District's overall financial position. The Statement of

Net Position includes all of the District's assets and liabilities and deferred outflows and

inflows of resources. All current year revenues and expenses are accounted for in the

Statement of Activities regardless of when cash is received or paid. The

District's activities are divided into two categories:

● Governmental activities – Most of the District's basic services are included here, such

as regular and special education, transportation, and administration. State support from

Local Control Funding Formula (LCFF) and categorical apportionments finance most

of these activities.

● Fiduciary activities – The District is the trustee, or fiduciary, for funds held on behalf

of others, like our funds for associated student body activities, scholarships, employee

retiree benefits, and pensions. The District's fiduciary activities are reported in the

Statement of Fiduciary Net Position. The activity is excluded from the District's other

financial statements because the District cannot use these assets to finance its

operations. The District is responsible for ensuring that the assets reported in these

funds are used for their intended purposes.

The statements are followed by a section of required supplementary information that

further explains and supports the financial statements with a comparison of the District's

budget for the year.

District-wide Financial Position

The Statement of Net Position is a district-wide financial statement that reports all that the

District owns (assets) and owes (liabilities). District assets are displayed at book value

including buildings, land and equipment, and related depreciation. Land is accounted for

at purchase cost, not market value, and is not depreciated. Many of the school sites have

low values because the district acquired the land many decades ago. School buildings are

valued at their historical construction cost less depreciation.

The District’s net position was $96,499,110 at June 30, 2020, as reflected in the table

below. Of this amount, $(631,358,192) was unrestricted. Restricted net position is

reported separately to show legal constraints from debt covenants and enabling legislation

that limit the Governing Board’s ability to use that new position for day‐to‐day operations.

Our analysis below, in summary form, focuses on the net position and change in net

position of the District's governmental activities.

Statement of Net Position

Net Pension Liability (NPL)

At year end, the District had a net pension liability of $516,761,000 as a result of the

implementation of GASB Statement No. 68.

2020 2019

Assets

Current and other assets $ 545,227,877 $ 296,707,722

Capital assets 793,686,164 989,029,267

Total Assets 1,338,914,041 1,285,736,989 Deferred Outlfows of Resources 168,870,218 189,262,113 Liabilities

Current liabilities 59,822,821 29,568,033 Long-term obligations 763,058,957 785,722,211 Net pension liability 516,761,000 551,414,000 Total Liabilities 1,339,642,778 1,366,704,244 Deferred Inflows of Resources 71,642,371 33,335,038 Net Position

Net investment in capital assets 672,255,651 486,096,387

Restricted 55,601,651 212,474,954

Unrestricted (631,358,192) (623,611,521)

Total Net Position $ 96,499,110 $ 74,959,820 Governmental Activities

8.

Statement of Activities

2020

2019

Revenues

Program revenues:

Charges for services

$

5,020,549

$

3,060,261

Operating grants and contributions

111,326,186

128,909,625

Capital grants and contributions

4,662

63,589

General revenues:

Federal and State aid not restricted

306,126,388

305,483,250

Property Taxes

159,746,806

155,567,850

Other general revenues

12,909,877

12,110,216

Total Revenues

595,134,468

605,194,791

Expenses

Instruction

321,828,018

379,251,443

Instruction-related services

88,112,194

87,666,125

Pupil services

56,133,403

59,728,088

General administration

33,869,659

36,868,104

Plant services

43,215,954

37,987,165

Interest on long-term obligations

19,893,406

22,867,396

Other

10,542,544

11,053,784

Total Expenses

573,595,178

635,422,105

Change in Net Position

$

21,539,290

$

(30,227,314)

10.

Fund Financial Statements

The fund financial statements provide more detailed information about the District's most

significant funds. A fund consists of a self-balancing set of accounts that the District uses

to track specific sources of funding and spending on particular programs:

 Some funds are required by State law and by bond covenants.

 The District establishes other funds to control and manage money for particular

purposes (such as cafeteria funds) or to show that it is properly using certain

revenues (such as community facility funds).

The District has two kinds of funds:

 Governmental Funds - Most of the District's basic services are included in

governmental funds, which focus on (1) how cash, and other financial assets that

can be readily converted to cash, flow in and out; and (2) the balances left at

year-end that are available for spyear-ending. Consequently, the governmental funds

statements provide a detailed short-term view that helps you determine whether

there are more or fewer financial resources that can be spent in the near future to

finance the District's programs. Because this information does not encompass the

additional long-term focus of the district-wide statements, we provide additional

information at the bottom of the governmental funds statements that explain the

relationship (or differences) between them.

 Fiduciary and Agency Funds - The District is the trustee, or fiduciary, for assets

that belong to others, such as the scholarship fund and student activities funds. The

District is responsible for ensuring that the assets reported in these funds are used

only for their intended purposes and by those to whom the assets belong. All of the

District's fiduciary activities are reported in a separate statement of fiduciary net

position and a statement of changes in fiduciary net position. We exclude these

activities from the district-wide financial statements because the District cannot use

these assets to finance its operations.

General Fund Financial and Budgetary Highlights

The General Fund accounts for the primary operations of the District. The District’s initial

budget is adopted by July 1. Over the course of the year, the District’s budget is revised

several times to account for revised and new categorical funding appropriations and related

expenditures, and to update budgets for prior year carryover amounts. Additionally, the

District is required to prepare expenditure reports and must include multi-year projections

at least twice a year. The following table summarizes the General Fund budget to actual

information for the year ended June 30, 2020:

The net revenue increase between Adopted and Year-End Estimated Budget was

$10,408,298, due to current year budgets for categorical funds, which are budgeted as grant

award documents are received. Also, the budgets for prior year unspent restricted and

unrestricted program funds (carryover) are appropriated in September after the Unaudited

Actuals are approved by the Board of Trustees, such as carryover for Title I and Title II. In

addition, the Adopted Budget did not include grant funds such as Title IV – Student

Support and Academic Enrichment. The net increase to the total expenditure budget

between Adopted and Year-End Estimated Budget was $11,048.801, due to revisions to

set up expenditures related to the carryover and grant funds described above, which are

budgeted after July 1 as grant award documents are received and school site plans are

approved.

District Reserves and Net Ending Balance

Revenues that have not been expended during a budget year are carried over for

expenditure in the subsequent year and are identified as the District’s “Net Ending

Balance.” Included within the projected net ending balance is a “reserve for economic

uncertainties.” The State requires per Education Code 42127 that school districts of our

size retain an amount equal to 2% of our budgeted Total General Fund expenditures to

cover unforeseen shortfalls in revenues or expenditures greater than budget. Also included

in the net ending balance are carryover balances that originated from sources that can only

be used for specific purposes. These “restricted” resources can only be spent on the

purposes determined by the grantor, and the balances in these accounts carry the same

restrictions as the originating revenue. The District also has the option of committing or

assigning the ending balance. Committing funds requires the Board of Trustees to designate

the funds for any purpose by a majority vote at a Board meeting. Once the funds are

committed, the amounts cannot be used for any other purpose unless the Board takes action

to remove or change the constraints for the committed funds. Assigned ending balances are

constrained by the District’s intent, but are neither restricted nor committed. An example

of assignment is designating the ending balance to be used for a future textbook adoption.

Revised Estimated

Adopted Budget Actuals Actuals 8-Oct-19 22-Jun-20 14-Sep-20

Total Revenues 483,435,845 493,844,143 491,110,495 Total Expenditures 478,726,617 489,775,418 464,195,148 Total Other Sources/(Uses) (103,623) (181,022) (173,930) Net Change 4,605,605 3,887,703 26,741,417

12.

The chart below represents the District’s financial analysis of its Governmental and

Fiduciary Funds:

CAPITAL ASSET AND DISTRICT INDEBTEDNESS

Capital Projects

At June 30, 2020 , the District had $973,686,164 in a broad range of capital assets (net of

depreciation), including land, buildings, furniture and equipment. This amount represents

a net decrease (including additions, deductions, and depreciation) of $15,343,103 from last

year.

This year's activity as referenced in Note 4 include several completed and restated in

progress construction projects for modernization and site improvements and the acquisition

of vehicles and equipment. The District will use general obligation bond proceeds, CFD

(Community Facilities District) special taxes, redevelopment funds and developer fees

(Statutory Level I fees) for construction and modernization of existing school facilities.

Ending Fund Balances 30-Jun-20 30-Jun-19 Difference

Fund 01 General 27,559,788 818,371 26,741,417 Fund 11 Adult Education 6,523,847 2,720,007 3,803,840 Fund 13 Cafeteria 2,304,639 347,189 1,957,450 Fund 14 Deferred Maintenance 20,768 136,098 (115,330) Fund 21 Building 43,117,641 46,212,602 (3,094,961) Fund 25 Capital Facilities 8,128,019 5,873,955 2,254,064 Fund 35 County School Facilities 18,330,608 18,472,249 (141,641) Fund 40 Special Reserve for Capital

Outlay 6,753,677 13,418,773 (6,665,096)

Fund 49 Capital Projects for Blended

Component Units 176,165,166 163,610,916 12,554,250 Fund 51 Bond Interest and Redemption 25,216,010 24,008,494 1,207,517 Fund 73 Fiduciary 30,490 36,247 (5,757)

2020 2019

Land and construction in progress $ 190,971,876 $ 180,403,601

Buildings and Improvements 771,712,577 789,143,057

Furniture and Equipment 11,001,711 19,482,609

Total $ 973,686,164 $ 989,029,267 Governmental Acivities

District Indebtedness

At the end of this year, the District had $763,058,957 in long-term obligations versus

$785,722,211 last year.

The state limits the amount of general obligation debt that districts can issue based on the

assessed value of all taxable property within the District’s boundaries. The District’s

outstanding general obligation debt is below this statutorily-imposed limit.

Other obligations include certificates of participation, qualified zone academy bonds, lease

revenue bonds, compensated absences payable, capital leases, early retirement incentive,

and net other postemployment benefits liability. We present more detailed information

regarding our long-term obligations in Note 5 of the financial statements.

Financial Outlook

The district’s fiscal recovery efforts over the last few years assisted in the stabilization and

restoration of the financial position and related reserves. A significant portion of the

increase in the 2019-20 General Fund’s fund balance was due to the one-time cost savings

from closures of school sites. The district is now in a similar situation as many other

districts within the State where the challenges of significant declining student enrollment,

average daily attendance percentages, and unduplicated student group percentages have an

impact on the overall financial operations. These are all key variables that impact the

District’s basis for State, Federal, and Local revenues. There are also cost pressures that

are impacting the out year financial projections specifically in the areas of employer

pension costs and increased contributions from the Unrestricted General Fund to meet

student needs in the Special Education program and facilities requirements with the

Routine Restricted Maintenance program. Multi-year budget projections will continue to

be evaluated and revised upon updates from the Governor and State Department of

Finance, particularly with the recent impacts of COVID-19.

2020 2019

General obligation bonds (including accreted interest and

premium) $ 440,953,153 $ 452,644,500

Certificates of participation (including premium) 28,663,045 31,734,849 Special tax revenue bonds (including premium) 47,909,087 54,131,473

Lease revenue bonds 31,200,000 32,700,000

Qualified zone academy bonds 6,860,000 7,205,000

Capitalized lease obligations 5,217,381 12,805,088

Compensated absences 8,667,530 9,270,134

Early retirement incentive 15,235,215 19,044,019

Net other postemployment benefits (OPEB) liability 178,353,546 166,187,148

Total $ 763,058,957 $ 785,722,211 Governmental Activities

14.

In looking ahead, the 2020-21 State Enacted Budget included significant revenue budget

revisions in comparison to what had been released by the Governor in May 2020. This

shielded school districts from additional revenue cuts during the pandemic but relied on

deferrals of the State apportionments. The inclusion of deferrals for the Local Control

Funding Formula apportionments for the months of February to June 2021 resulted in an

approximate delay of $70 million for the school district. This new financial variable

required the district to evaluate short-term working capital financing options to meet the

day-to-day cash flow obligations. Based on the Board of Trustee’s approval in December

2020, the district will be pursuing a Tax Revenue and Anticipation Note (TRAN) issuance

via the California School Financing Authority (CSFA) in either March or April 2021. The

recent release of the Governor’s 2021-22 Budget Proposal reflects a pay down of

approximately two-thirds of this deferral. Therefore, this will be a State obligation that

will need to be monitored in the near future. In addition, the district will need to monitor

federal aid from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and

the second tranche of COVID-19 relief funds from Washington, D.C. in order address and

mitigate student learning loss during the pandemic.

COVID-19 Impacts

As referenced in Note 13, on March 13, 2020, California Governor Gavin Newsom issued

Executive Order N-26-20, proclaiming a State of Emergency to exist in California as a

result of the threat of the COVID-19 virus, and providing that if any California school

districts, county offices of education, and charter schools (each a “Local Educational

Agency” or “LEA”) closes its schools to address COVID-19, the LEA will continue to

receive state funding during the period of closure. The District closed schools effective

Monday, March 16, 2020, with school scheduled to resume April 6, 2020.

On March 17, 2020, the District announced that beginning March 18, 2020 through April 3,

2020, all of the District’s school sites and offices would be closed with minimal site staff.

The Governor also signed Senate Bill 117 (“SB 117”) as urgency legislation effective

immediately. For purposes of school district funding for fiscal year 2019-20, SB 117 limits

the average daily attendance reported to the California Department of Education to include

the full school months from July 1, 2019, to February 29, 2020. This condensed ADA

period applies to school districts that comply with Executive Order N-26-20. SB 117

further states the intent of the State Legislature that a school district’s employees and

contractors be paid during the period of a school closure due to COVID-19. SB 117 also

waived instructional time penalties that would otherwise accrue, as long as the school

district superintendent, county superintendent or charter school administrator certify that

the closure due to COVID-19 caused the school district to fall below applicable

instructional time requirements. While SB 117 provided some immediate relief to school

districts, the short-term and long-term impacts of the COVID-19 outbreak are unknown as

the situation continues to evolve.

On March 19, 2020, the Governor issued Executive Order N-33-20, a State-wide stay at

home order to protect the health and well-being of all Californians and to establish

consistency across the State in order to slow the spread of COVID-19. Such order went

into effect immediately.

The District has monitored guidelines and regulations from state and local agencies

regarding COVID-19 and will continue to do so. On June 22, 2020, staff presented to the

Board of Trustees a 2020-2021 School Year Opening Plan. The Plan indicated a shared

common purpose/goal to open the 2020-2021 school year on August 3, 2020 with detailed

plans to address a variety of educational and operational options. The Plan included

information regarding health and safety considerations (including, for example, social

distancing in classrooms), systems and equity, operational considerations, financial

considerations, approaches for diverse learners, and student scheduling options. Additional

updates were provided to the Board on July 27, 2020, September 14, 2020, September 28,

2020, and November 9, 2020 on the status of re-opening schools and the Learning

Continuity Plan.

SWEETWATER UNION HIGH SCHOOL DISTRICT STATEMENT OF NET POSITION

June 30, 2020

See accompanying notes to financial statements.

Governmental Activities

ASSETS

Cash and investments (Note 2) $ 283,116,298 Receivables 80,753,889 Prepaid expenses 610,146 Stores inventory 747,544 Non-depreciable capital assets (Note 4) 190,971,876 Depreciable capital assets, net of accumulated

depreciation (Note 4) 782,714,288 Total assets 1,338,914,041

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows of resources - pensions (Notes 8 and 9) 138,799,441 Deferred outflows of resources - OPEB (Note 6) 13,149,381 Deferred loss from refunding of debt 16,921,396 Total deferred outflows of resources 168,870,218

LIABILITIES

Accounts payable 53,457,115 Unearned revenue 6,365,706 Long-term liabilities (Note 5):

Due within one year 38,781,921 Due after one year 1,241,038,036 Total liabilities 1,339,642,778

DEFERRED INFLOWS OF RESOURCES

Deferred inflows of resources - pensions (Notes 8 and 9) 64,611,000 Deferred inflows of resources - OPEB (Note 6) 7,031,371 Total deferred inflows of resources 71,642,371

NET POSITION

Net investment in capital assets 672,255,651 Restricted:

Legally restricted programs 15,386,818 Capital projects 14,998,823 Debt service 25,216,010 Unrestricted (631,358,192)

SWEETWATER UNION HIGH SCHOOL DISTRICT STATEMENT OF ACTIVITIES

For the Year Ended June 30, 2020

See accompanying notes to financial statements.

17.

Net (Expense) Revenues and Change in Program Revenues Net Position Charges Operating Capital

for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities Governmental activities:

Instruction $ 321,828,018 $ 2,646,589 $ 66,486,039 $ 4,662 $ (252,690,728) Instruction-related services:

Instructional supervision and administration 32,130,979 888,221 11,007,243 - (20,235,515) Instructional library, media and

technology 10,997,553 2,025 624,399 - (10,371,129) School site administration 44,983,662 37,929 6,447,956 - (38,497,777) Pupil services:

Home-to-school transportation 8,843,743 - 49,442 - (8,794,301) Food services 12,829,270 783,959 12,680,120 - 634,809 All other pupil services 34,460,390 157,250 6,818,452 - (27,484,688) General administration:

Centralized data processing 13,825,591 - 1,283,430 - (12,542,161) All other general administration 20,044,068 158,033 2,192,625 - (17,693,410) Plant services 43,215,954 23,788 1,597,109 - (41,595,057) Ancillary services 7,959,063 256,985 671,738 - (7,030,340) Community services 204,056 - - - (204,056) Interest on long-term liabilities 19,893,406 - - - (19,893,406) Other outgo 65,7702,379,425 1,467,633 (846,022)- Total governmental activities $ 5,020,549573,595,178 $ 111,326,186$ 4,662$ (457,243,781)

General revenues: Taxes and subventions:

Taxes levied for general purposes 102,388,628 Taxes levied for debt service 29,420,114 Taxes levied for other specific purposes 30,938,064 Federal and state aid not restricted to specific purposes 306,126,388 Interest and investment earnings 5,265,558

Miscellaneous 4,644,319

Total general revenues 478,783,071

Change in net position 21,539,290

Net position, July 1, 2019 74,959,820 Net position, June 30, 2020 $ 96,499,110

SWEETWATER UNION HIGH SCHOOL DISTRICT BALANCE SHEET

GOVERNMENTAL FUNDS June 30, 2020

See accompanying notes to financial statements.

Capital Projects for

Blended

Components All Total

General Building Units Non-Major Governmental

Fund Fund Fund Funds Funds

ASSETS

Cash and investments:

Cash in County Treasury $ 4,651,710 $ 43,000,514 $ 178,311,834 $ 48,981,080 $ 274,945,138 Cash on hand and in banks 1,500,120 - - 31,504 1,531,624 Revolving cash fund 139,802 - - 14,480 154,282 With Fiscal Agent/Trustee 4,743,125 330,624 65,538 1,345,967 6,485,254 Receivables 25,315,399 183,403 739,522 5,014,431 31,252,755 Due from grantor government 49,501,134 - - - 49,501,134 Prepaid expenditures 610,146 - - - 610,146 Due from other funds 4,365,335 129,231 5,659,651 19,342,663 29,496,880 Stores inventory 531,106 - 216,438- 747,544 Total assets $ 43,643,77291,357,877 $ 184,776,545$ 74,946,563$ 394,724,757$

LIABILITIES AND FUND BALANCES

Liabilities:

Accounts payable $ 19,062,053 $ 421,950 $ 2,887,870 $ 3,572,304 $ 25,944,177 Due to grantor governments 18,797,831 - - - 18,797,831 Unearned revenue 6,358,064 - - 7,642 6,365,706 Due to other funds 104,18119,580,141 5,723,509 4,089,049 29,496,880 Total liabilities 526,13163,798,089 8,611,379 7,668,995 80,604,594 Fund balances: Nonspendable 1,281,054 - - 230,918 1,511,972 Restricted 6,537,564 43,117,641 176,165,166 67,025,882 292,846,253 Committed - - - 20,768 20,768 Assigned 5,200,000 - - - 5,200,000 Unassigned 14,541,170 - - 14,541,170- Total fund balances 43,117,64127,559,788 176,165,166 67,277,568 314,120,163 Total liabilities and fund balances $ 43,643,77291,357,877 $ 184,776,545$ 74,946,563$ 394,724,757$

SWEETWATER UNION HIGH SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION

June 30, 2020

(Continued)

19.

Total fund balances - Governmental Funds $ 314,120,163

net position are different because:

resources and, therefore, are not reported as assets in governmental funds. The cost of the assets is $1,263,223,767

and the accumulated depreciation is $289,537,603 (Note 4). 973,686,164

period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at June 30, 2020 consisted of (Note 5):

General Obligation Bonds (395,759,333) Accreted interest (23,285,077) Unamortized premium - GO Bonds (21,908,743) Special tax revenue bonds (44,010,000) Unamortized premium - Revenue Bonds (3,899,087) Lease revenue bonds (31,200,000) Qualified Zone Academy Bonds (6,860,000) Certificates of Participation (25,545,000) Unamoritzed premium - COPs (3,118,045) Capital Leases (5,217,381) Early Retirement Incentives (15,235,215) Net pension liability (Notes 8 & 9) (516,761,000) Total OPEB liability (note 6) (178,353,546) Compensated absences (8,667,530)

(1,279,819,957)

in the period they are incurred. In the government-wide

statements, they are categorized as deffered outflows and 16,921,396 are amortized over the life of the debt.

recognized until the period in which it matures and is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. Interest accrued on long-term

liabilities at June 30, 2020 is. (8,715,107) Amounts reported for governmental activities in the statement of

Capital assets used for governmental activities are not financial

Long-term liabilities are not due and payable in the current

Losses on refundings of debt are recognized as expenditures

SWEETWATER UNION HIGH SCHOOL DISTRICT

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION

June 30, 2020

See accompanying notes to financial statements.

relating to pensions and other postemployment benefits (OPEB) are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions and OPEB are reported (Notes 6, 8 and 9).

Deferred outflows of resources relating to pensions 138,799,441 Deferred outflows of resources relating to OPEB 13,149,381 Deferred inflows of resources relating to pensions (64,611,000) Deferred inflows of resources relating to OPEB (7,031,371)

80,306,451

Total net position - governmental activities $ 96,499,110 In government funds, deferred outflows and inflows of resource

SWEETWATER UNION HIGH SCHOOL DISTRICT

STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS

For the Year Ended June 30, 2020

See accompanying notes to financial statements.

21.

Capital Projects for

Blended

Components All Total General Building Units Non-Major Governmental

Fund Fund Fund Funds Funds

Revenues:

Local Control Funding Formula (LCFF):

State apportionment $ 299,905,204 $ - $ - $ - $ 299,905,204 Local sources 99,253,600 - - 99,253,600- Total LCFF 399,158,804 - - 399,158,804- Federal sources 21,546,856 - - 12,754,594 34,301,450 Other state sources 41,718,887 - - 16,928,268 58,647,155 Other local sources 898,03328,685,948 32,274,127 35,549,657 97,407,765 Total revenues 898,033491,110,495 32,274,127 65,232,519 589,515,174 Expenditures: Current: Certificated salaries 208,161,099 - - 4,624,699 212,785,798 Classified salaries 70,166,792 288,065 302,622 7,528,992 78,286,471 Employee benefits 132,719,405 123,108 130,500 5,149,505 138,122,518 Books and supplies 11,364,279 4,272 12,686 5,401,999 16,783,236 Contract services and operating

expenditures 34,588,415 86,498 229,068 1,761,214 36,665,195 Other outgo 1,431,052 - - 948,373 2,379,425 Capital outlay 126,064 3,491,051 7,147,611 6,149,376 16,914,102 Debt service: Principal retirement 6,142,951 - 8,495,000 10,696,788 25,334,739 Interest 135,385 3,563,529- 20,043,267 23,742,181 Total expenditures 3,992,994464,835,442 19,881,016 62,304,213 551,013,665 Excess (deficiency) of revenues

over (under) expenditures (3,094,961)26,275,053 12,393,111 2,928,306 38,501,509 Other financing sources (uses):

Transfers in 640,294 - 161,139 12,791 814,224 Transfers out (173,930) - (640,294)- (814,224)

Total other financing

sources (uses) 466,364 161,139- (627,503) -Net change in fund balances 26,741,417 (3,094,961) 12,554,250 2,300,803 38,501,509 Fund balances, July 1, 2019 46,212,602818,371 163,610,916 64,976,765 275,618,654 Fund balances, June 30, 2020 $ 43,117,64127,559,788 $ 176,165,166$ 67,277,568$ 314,120,163$