Report 2016-141 Recommendation 31 Responses

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

Recommendation #31 To: Antelope Valley Union High School District

To better ensure effective oversight of its charter schools' finances, Antelope Valley Union should provide charter schools with written feedback and recommendations for improving their financial operations after completing its financial reviews and annual oversight visits.

1-Year Agency Response

The AVUHSD staff, in collaboration with Educational Services, Business Services, Facilities, Personnel Services, Student Services and the Superintendent conducts annual charter onsite visits, and interviews charter staff using the Fiscal Crisis & Management Team (FCMAT) checklist. After the visit, the AVUHSD staff,in collaboration with Educational Services, Business Services, Facilities, Personnel Services, Student Services and the Superintendent provides its charter schools and its Board with a FCMAT Report that includes written findings and recommendations for improving financial and academic operations as needed. See Attachments- (AVUHSD Charter School Annual Oversight Checklist-DSPCS-FCMAT and DSPCS Annual Board Report).

Board Policy 0420.41 revised (February 7, 2018) on Charter Oversight states the following:

The Board shall monitor the fiscal condition of the charter school based on any financial information obtained from the charter school, including, but not limited to, the charter school's preliminary budget, annual update of the school's LCAP, first and second interim financial reports, and final unaudited report for the full prior year. See Attachment (BP 0420.41 Pg 2 highlighted text, DSPCS Petition- Appendices A and D and DSPCS Renewal Staff Report, Pg 10).

Current MOU language with AVUHSD approved charters include oversight sections that address financial monitoring and timely response to the Charter School's finances. See attachment (DSPCS MOU) Pg 4, section B Oversight, subsections 2,5,9.

The AVUHSD staff in collaboration with Business Services developed written Fiscal Oversight Procedures that correspond to current BP and MOU language to further shore up fiscal oversight of its charter schools. See attachment (Charter School Fiscal Oversight Procedures).

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

Antelope Valley Union provided a copy of a completed Fiscal Crisis & Management Team (FCMAT) checklist that it provided to one of its charter schools and its Board.

6-Month Agency Response

District staff in collaboration with Educational Services, Business Services and the Superintendent will provide charter schools with written feedback and recommendations for improving their financial operations as needed after completing its financial reviews from the FCMAT aligned checklist during annual oversight visits, and also from financial reports received throughout the school year. Newly adopted Board policy (February 7, 2018) on Charter Oversight states the following:

The Board shall monitor the fiscal condition of the charter school based on any financial information obtained from the charter school, including, but not limited to, the charter school's preliminary budget, annual update of the school's LCAP, first and second interim financial reports, and final unaudited report for the full prior year. (Education Code 47604.32, 47604.33, 47606.5)

Future MOU language with AVUHSD approved charters will include sections that address written feedback with recommendations for improving financial operationsas needed. 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 will develop written procedures expressed in proposed Board Policy-Admin Rules and Regulations and subsequent MOU's that include written feedback and recommendations for improving financial operations that may include a timeline for the internal use of supplementary financial tools such as the "Annual Oversight Checklist," the "Charter Budget Review Sheet," and the "California Charter School Financial Performance Measures," to guide financial reviews and to guide the development of timely feedback communications and processes that include timelines for corrective actions and next steps for charters. 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.