SB 593

Bill Subjects

Abstract

(1) Existing law requires the Controller, in consultation with the Department of Finance and the State Department of Education, to develop a plan to review and report on financial and compliance audits, and, with representatives of other entities, to recommend the statements and other information to be included in the audit reports filed with the state by local educational agencies, and to propose the content of an audit guide. This bill would require the Controller to also consult with the California Charter Schools Association and the Charter Schools Development Center to recommend the statements and other information to be included in the audit reports filed with the state by local educational agencies, and to propose the content of an audit guide. (2) Existing law establishes a system of financing public elementary and secondary schools in this state. This system includes the apportionment of state funds to local educational agencies based, to a significant degree, on the average daily attendance of pupils as reported to the State Department of Education by those local educational agencies. Commencing July 1, 2022, this bill would require the department to provide a report, including specified data, to the Legislature relating to (A) the extent to which vulnerable pupil groups enroll in nonclassroom-based charter schools and the benefits of multitrack school calendars for those groups, and (B) the possible integration of the California Longitudinal Pupil Achievement Data System and the average daily attendance apportionment data system. (3) The Charter Schools Act of 1992 specifies the procedures for the submission, review, and approval or denial of a petition to establish a charter school. The act requires a petition for the establishment of a charter school to contain specified information, including a reasonably comprehensive description of the manner in which annual, independent financial audits will be conducted. Existing law, by not later than May 1 of each fiscal year, requires the governing board of each local educational agency to provide for an audit of the books and accounts of the local educational agency, as specified, or make arrangements with the county superintendent of schools to provide for that auditing. Existing law establishes a governing board to establish and administer a unit known as the County Office Fiscal Crisis and Management Team. Among other duties, this unit provides fiscal management assistance, at the request of any school district, charter school, county office of education, or community college district. By January 31, 2023, and by January 31 of each year thereafter, this bill would require the governing body of a charter school to review, at a public meeting as an item on the agenda, the annual audit of the charter school for the prior fiscal year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue. By imposing additional requirements on charter schools, the bill would impose a state-mandated local program. The bill would require the County Office Fiscal Crisis and Management Assistance Team (FCMAT) , on or before July 1, 2022, to offer, or select qualified trainers to offer, training, updated each fiscal year, for auditors of nonclassroom-based charter schools, as defined. The bill would require this training to relate to the review of charter school financial documents for a better understanding of the process of conducting an annual, independent financial audit and how to identify irregular practices and documents. The bill would authorize FCMAT or other approved trainers to charge training participants fees sufficient to cover the costs to FCMAT of developing and providing this training. The bill would prohibit an auditor of nonclassroom-based charter schools from performing any aspect of a nonclassroom-based charter school audit for the 2022–23 school year or thereafter before receiving the training. The bill would require an auditor of a nonclassroom-based charter school, when performing certain audits, to take certain actions, including the sampling of certain financial documents, the identification of transfers of funds or assets exceeding prescribed amounts, the identification of transactions that do not meet certain standards in accordance with the training provided pursuant to the bill, and the preparation of a letter to be included with the audit report, as specified. (4) Existing law prohibits a school district or county office of education from being eligible to receive apportionments for independent study by pupils unless the school district or county office has adopted written policies and implemented those policies in accordance with rules and regulations adopted by the Superintendent of Public Instruction, as specified, including a requirement that a current written agreement with specified content for each independent study pupil is maintained on file. Commencing July 1, 2022, this bill would require that an independent study written agreement to be signed under penalty of perjury. This provision would impose a state-mandated local program by imposing new duties on local educational agencies and by creating a new crime. (5) Existing law requires the independent study by each pupil to be coordinated, evaluated, and under the general supervision of an employee of the school district, charter school, or county office of education who possesses certain valid certification documents. Commencing July 1, 2022, this bill would define "general supervision" for those purposes. (6) Commencing July 1, 2022, this bill would require a school district, county office of education, or charter school to only enter into an agreement for the provision or arrangement of educational enrichment activities with a vendor that is vetted and approved pursuant to this bill. The bill would authorize a local educational agency to expend public funds for the provision or arrangement of educational enrichment activities, provided that all educational enrichment activities, materials, and programs are nonsectarian. The bill would require the governing board or body of a local educational agency, in approving any contract for vendor services for educational enrichment activities, to establish specified policies and procedures to ensure educational value, pupil safety, and fiscal reasonableness, and would further require the local educational agency to certify that vendor services for educational enrichment activities meet designated criteria. The bill would require approval of the policies and procedures established under the bill to be included in designated annual audit reports. The bill would require a vendor contract that will exceed $100,000 in a fiscal year to be approved by the governing board or body of the local educational agency in an open public meeting. The bill would also require any educational enrichment activity provided by a school to be approved and verified by the pupil's assigned teacher as relevant to specific educational assignments and educationally appropriate for that pupil. (7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.