Report 2016-141 Recommendation 15 Responses
Report 2016-141: Charter Schools: Some School Districts Improperly Authorized and Inadequately Monitored Out‑of‑District Charter Schools (Release Date: October 2017)
Recommendation #15 To: Acton-Agua Dulce Unified School District
To ensure compliance with state law, Acton-Agua Dulce Unified should immediately track its actual costs for providing oversight and verify that its oversight fees do not exceed legal limits.
Annual Follow-Up Agency Response From October 2021
The District tracks its actual costs for providing oversight and its oversight fees do not exceed legal limits. A copy of the District's procedures for tacking oversight costs and charging charter schools for direct costs or their share of indirect costs is being provided with these responses. The Superior Court considered these procedures, concluded that they satisfy state law, and approved them for the District's use.
- Completion Date: August 2021
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Acton-Agua Dulce Unified provided a copy of the referenced settlement agreement, which allows the district to charge its oversight costs as direct costs and/or as a percentage of Average Daily Attendance (ADA). The district also provided a copy of a completed Fiscal Crisis & Management Assistance Team "Charter School Annual Oversight Checklist," which demonstrates that the district is ensuring that its charter schools' have the ability to track ADA for this purpose. If it follows this process for tracking costs, the district will be able to ensure its oversight fees do not exceed legal limits.
Annual Follow-Up Agency Response From October 2020
Revisions to current policy to be fully implemented following Board review.
- Completion Date: December 2020
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
The district failed to provide evidence supporting its assertions.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
Annual Follow-Up Agency Response From November 2019
Per the District's MOUs and the Education Code, the District charges up to the equivalent of 1% of a charter school's ADA revenue for the costs of oversight. The District separately tracks salaries and benefits for District staff when they are engaging in charter school oversight. The District also separately tracks expenditures on third-party services like professional consultants and auditors for the purposes of charter school oversight. The District pays these oversight costs out of the District's general fund over the course of the school year as the costs are incurred and then receives oversight fees from charter schools at the end of the school year or shortly after the close of the school year.
- Completion Date: September 2017
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
The district did not provide any new evidence to support its assertions, as a result, we stand by our previous assessment:
We note on page 27 of our audit report that none of the three school districts we visited tracked their actual costs of providing oversight. Although the district is now asserting that it fully implemented this recommendation in September 2017, before the publication date of our audit, it has not provided any evidence to support its assertion. Moreover, the district stated in its 60-day and 6-month responses that its implementation of the recommendation was still in progress. Specifically, the district noted that its "Assistant Superintendent of Business Services continues to review the district's financial oversight practices and is developing procedures to track oversight expenses".
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
1-Year Agency Response
The District tracks salaries and benefits for staff or staff time related to charter school oversight as a separate account code. Other charter oversight-related expenses, like third-party consultants, are identified as charter oversight expenditures. This allows the District to track its actual costs for providing oversight and verify that its oversight fees are legally compliant.
- Completion Date: September 2017
- Response Date: October 2018
California State Auditor's Assessment of 1-Year Status: No Action Taken
We note on page 27 of our audit report that none of the three school districts we visited tracked their actual costs of providing oversight. Although the district is now asserting that it fully implemented this recommendation in September 2017, before the publication date of our audit, it has not provided any evidence to support its assertion. Moreover, the district stated in its 60-day and 6-month responses that its implementation of the recommendation was still in progress. Specifically, the district noted that its "Assistant Superintendent of Business Services continues to review the district's financial oversight practices and is developing procedures to track oversight expenses."
6-Month Agency Response
The Assistant Superintendent of Business Services continues to review the district's financial oversight practices and developing procedures to track oversight expenses.
- Estimated Completion Date: June 2018
- Response Date: June 2018
California State Auditor's Assessment of 6-Month Status: Pending
Per Acton-Agua Dulce Unified's response, its implementation of this recommendation is currently pending.
60-Day Agency Response
Our new Assistant Superintendent of Business Services is reviewing financial oversight practices and determining the best way to track oversight expenses. Once new procedures are developed, we will include the updates in the charter school policy.
- Estimated Completion Date: May 2018
- Response Date: February 2018
California State Auditor's Assessment of 60-Day Status: Pending
Per Acton-Agua Dulce Unified's response, its implementation of this recommendation is currently pending.
All Recommendations in 2016-141
Agency responses received are posted verbatim.