(a) County offices of education shall conduct a review of their budgets at Interim Report time in accordance with the following criteria and standards and supplemental information (beginning with section 15481) and supplemental information (beginning with section 15493). The SSPI will review the county office's Interim Report using the criteria and standards.

(b) The county superintendent of schools shall submit two interim reports to its governing board during each fiscal year. Both interim reports shall be reviewed by the county board of education and approved by the county superintendent of schools, who shall certify whether their county office of education is able to meet its financial obligations for the remainder of the fiscal year and, based on current forecast, for two subsequent fiscal years. The certification shall be based on the criteria and standards and shall be classified as positive, qualified, or negative.

(c) The review includes an analysis of eight criteria, with standards, and supplemental information about the status of the budget at Interim Report time. The eight criteria are fund and cash balances, reserves, deficit spending, ADA, local control funding formula (LCFF) revenue, salaries and benefits, other revenues and expenditures, and facilities maintenance. Each of these criteria has a standard by which it is measured. In addition to the criteria and standards, the review must identify additional information regarding contingent liabilities, use of one-time revenues for ongoing expenditures, contingent revenues, contributions, long-term commitments, unfunded liabilities, temporary interfund borrowings, the status of labor agreements, and the status of other funds. Deviations from the standards must be explained, and may affect the interim certification.