Report 2016-141 Recommendation 30 Responses

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

Recommendation #30 To: Antelope Valley Union High School District

To better ensure effective oversight of its charter schools' finances, Antelope Valley Union should place a district representative as a nonvoting member on each charter school's governing board.

Annual Follow-Up Agency Response From October 2022

The AVUHSD staff in charge of charter oversight attends Charter Board meetings whenever possible, and feels that this practice, in addition to receiving all Board agendas, Board minutes and Board attachments of the charter, as well as Board Member information relating to Experience and Conflict of Interest, provides our district with sufficient transparency and oversight of Charter School Governance, as it pertains to Charter Finances.

The Director of Fiscal and Business services as well as the Director of Categorical and Special Programs in charge of Charter School oversight attended the Desert Sands Board Mtg on June 24, 2019, where we received a schedule of all Desert Sands' Board Mtgs., scheduled for 2019-20. Desert Sands' Board members meet four times per year, with the next Board meeting scheduled for November 14, 2019, which will be attended by AVUHSD staff. We currently receive and review all Board Agendas, Minutes and corresponding attachments. Desert Sands' Board Meetings, Agendas and Minutes are posted on their Website as well.

Additionally, AVUHSD staff members visit the charter school as part of the consultation, feedback and oversight process and conclude the year with an annual visit that includes a comprehensive FCMAT analysis of the charter in all areas including but not limited to Fiscal and Business Operations. The results of the FCMAT analysis is shared annually with the AVUHSD Board of Trustees. Throughout the year, Charter Financial reports are submitted to the Director of Fiscal and Business Services, who conducts a fiscal analysis and provides feedback to the Charter as needed.

In respect to the actions referenced in this response, the AVUHSD believes that it ensures effective oversight of its charter school's finances by implementing a variety of checks and balances throughout the year in addition to attending the charter school's Board meetings.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

We stand by our recommendation that the district should exercise its right to place a district representative as a nonvoting member on each charter school's governing board. As noted in Figure 3 of the audit report, a school district we reviewed waited nine months for its district representative to be appointed to the governing board of one of its charter schools. During that time, the charter school's governing board entered into a questionable lease and did not report that lease to the district, thus exacerbating the charter school's financial issues. Therefore, we believe that Antelope Valley Union could ensure timely oversight of its charter schools by placing a district representative on each charter school's governing board.

Annual Follow-Up Agency Response From October 2019

The AVUHSD staff in charge of charter oversight attends Charter Board meetings whenever possible, and feels that this practice, in addition to receiving all Board agendas, Board minutes and Board attachments of the charter, as well as Board Member information relating to Experience and Conflict of Interest, provides our district with sufficient transparency and oversight of Charter School Governance, as it pertains to Charter Finances.

The Director of Fiscal and Business services as well as the Director of Categorical and Special Programs in charge of Charter School oversight attended the Desert Sands Board Mtg on June 24, 2019, where we received a schedule of all Desert Sands' Board Mtgs., scheduled for 2019-20. Desert Sands' Board members meet four times per year, with the next Board meeting scheduled for November 14, 2019, which will be attended by AVUHSD staff. We currently receive and review all Board Agendas, Minutes and corresponding attachments. Desert Sands' Board Meetings, Agendas and Minutes are posted on their Website as well.

Additionally, AVUHSD staff members visit the charter school as part of the consultation, feedback and oversight process and conclude the year with an annual visit that includes a comprehensive FCMAT analysis of the charter in all areas including but not limited to Fiscal and Business Operations. The results of the FCMAT analysis is shared annually with the AVUHSD Board of Trustees. Throughout the year, Charter Financial reports are submitted to the Director of Fiscal and Business Services, who conducts a fiscal analysis and provides feedback to the Charter as needed.

In respect to the actions referenced in this response, the AVUHSD believes that it ensures effective oversight of its charter school's finances by implementing a variety of checks and balances throughout the year in addition to attending the charter school's Board meetings.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

We stand by our recommendation that the district should exercise its right to place a district representative as a nonvoting member on each charter school's governing board. As noted in Figure 3 of the audit report, a school district we reviewed waited nine months for its district representative to be appointed to the governing board of one of its charter schools. During that time, the charter school's governing board entered into a questionable lease and did not report that lease to the district, thus exacerbating the charter school's financial issues. Therefore, we believe that Antelope Valley Union could ensure timely oversight of its charter schools by placing a district representative on each charter school's governing board.

1-Year Agency Response

As per AVUHSD Board Policy revised February 7, 2018, the Superintendent or designee shall attend meetings of the charter school board whenever possible and shall periodically meet with a representative of the charter school. See attachment (Charter Oversight BP 0420.41). As per current Board approved MOU language, the AVUHSD Superintendent or designee reserves the right to place a district representative as a non-voting member on each charter school's governing board. See Attached (MOU section VII subsection B).

At this time, the AVUHSD ensures effective oversight of its charter schools' finances by collaborating and meeting regularly with charter representatives and attending Board meetings whenever possible throughout the school year.

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

The district's memorandum of understanding states that it reserves the right to appoint a voting member to the Board of Directors of the nonprofit public benefit corporation to represent its interests. However, we believe that the district should exercise its right to place a district representative in order to ensure the representative's ability to attend all charter schools board meetings, including those that are not public. As noted in Figure 3 of the audit report, a school district we reviewed waited nine months for its district representative to be appointed to the governing board of one of its charter schools. During that time, the charter school's governing board entered into a questionable lease and did not report that lease to the district, thus exacerbating the charter school's financial issues.

6-Month Agency Response

The AVUHSD's Board of Trustees adopted proposed updates and revisions to Board Policy/Administrative Regulations for Charter oversight, authorization, renewal, and revocation on February 7, 2018. (See Attachments). These revisions align with the California School Board Association's recommendations and include the following language regarding oversight of finances pertaining to the charter governing board.

The Superintendent or designee shall attend meetings of the charter school board whenever possible and shall periodically meet with a representative of the charter school. (AVUHSD Board Policy, 0420.41(a) adopted on February 7, 2018)

District staff in collaboration with Educational Services and the Superintendent have consulted with Desert Sands three times so far this school year (See attachments) and has scheduled an annual oversight visit on April 18, 2018 using a checklist aligned to FCMAT. District staff in collaboration with Educational Services and the Superintendent will create a schedule to attend DSCHS Board Meetings. For any follow-up questions, contact Julianne Vela- Director of Categorical and Special Programs- jvela@avhsd.org -(661) 952-2249.

California State Auditor's Assessment of 6-Month Status: Pending

Per Antelope Valley Union's response, its implementation of this recommendation is currently pending.

60-Day Agency Response

The AVUHSD is considering an alternative option to placing a district representative as a non-voting member on the charter schools governing board. The AVUHSD may adopt similar protocol and Board Policy/ MOU language that resembles the policy and MOU language of the Los Angeles County Office of Education's Governing Board. "For all regular and special meetings of the governing board and all standing committee meetings, the Charter School shall provide the AVUHSD with written notification of the meeting, including a copy of the posted agenda, which shall be posted on the Charter School's website no less than 72 hours prior to a regular meeting and no less than 24 hours prior to a special meeting, in compliance with the Americans with Disabilities Act." Within ten (10) working days of board meetings, the Charter School shall provide the AVUHSD with an audio recording of the meeting and all materials provided to the governing board by its administration, contractors, or the public including approved previous meeting minutes. Once approved by the Charter School's governing board, the Charter School shall provide the AVUHSD with a copy of the minutes of the meeting within ten (10) calendar days. All policies, policy changes, and approved meeting minutes shall be posted on the Charter School's website no more than 30 days after each meeting." For any follow-up questions, contact Julianne Vela- Director of Categorical and Special Programs- jvela@avhsd.org -(661) 952-2249.

California State Auditor's Assessment of 60-Day Status: Pending

Per Antelope Valley Union's response, its implementation of this recommendation is currently pending.

All Recommendations in 2016-141

Agency responses received are posted verbatim.