Report 2016-141 Recommendation 16 Responses

Report 2016-141: Charter Schools: Some School Districts Improperly Authorized and Inadequately Monitored Out‑of‑District Charter Schools (Release Date: October 2017)

Recommendation #16 To: Acton-Agua Dulce Unified School District

To better ensure effective oversight of their charter schools' finances, Acton-Agua Dulce Unified should develop written procedures for reviewing charter schools' financial information and conducting annual oversight visits. These procedures should include relevant requirements from memorandums of understanding with the charter schools and best practices.

1-Year Agency Response

Procedures for reviewing charter schools' financial information and conducting annual oversight visits are contained in the District's charter school policy. AADUSD has a uniform budget and ADA analysis tool, and provides a detailed written response letter to the CEO and Charter Board President for each budget and ADA reporting period. Written letters include a requirement for the development of a detailed Fiscal Solvency Plan if charters meet "qualified" or "negative" status. (See policy, pages 9-12.)

Implementation Date: October 11, 2018.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The district provided a copy of its revised policy and of the spreadsheets that it uses to assess its charter schools' financial information. The spreadsheets contain instructions for assessing various financial indicators for the charter schools and it includes a sheet that summarizes the school's overall financial condition.

6-Month Agency Response

The District has developed a fiscal calendar that outlines dates for financial submissions and provides feedback at least twice a year. In addition, the District continues to work on developing a formal procedures outlining the District's practices for reviewing charter schools' financial information, presenting petitioners with any financial concerns, and conducting annual oversight visits. The District is in the first year of implementing Epicenter, an online program developed by the National Charter Schools Institute, to help streamline and standardize charter schools' reporting of financial information to the District, and to create consistency in the metrics the District uses to analyze charter schools' financial health.

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

The District has initiated the process of developing a formal written document outlining the District's practices and procedures for reviewing charter schools' financial information, presenting petitioners with any financial concerns, and conducting annual oversight visits. These procedural guidelines align with the District's charter school policies regarding academic and financial oversight. The District is also in the process of implementing Epicenter, an online program developed by the National Charter Schools Institute, to help streamline and standardize charter schools' reporting of financial information to the District, and to create consistency in the metrics the District uses to analyze charter schools' financial health.

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.