CA SB 1477

Title: School accountability: independent study, educational enrichment activities, oversight, and audit requirements.
Author: Angelique V. Ashby

Summary
SB 1477, as amended, Ashby. School accountability: independent study, educational enrichment activities, oversight, and audit requirements. (1) Under existing law, once the Controller or county superintendent of schools makes a final determination that specified audits performed by a certified public accountant or public accountant were not performed in substantial conformity with provisions of an audit guide, or that the audit reports do not conform to the provisions of an audit guide, the certified public accountant or public accountant is ineligible to conduct specified audits for 3 years. Existing law requires the Controller to notify each school district and county office of education of those certified public accountants or public accountants determined to be ineligible pursuant to these provisions.This bill would extend the above-described rules related to the ineligibility of the certified public accountant or public accountant to audits of a nonclassroom-based charter school, as provided, and would additionally require the Controller to notify charter schools of those certified public accountants or public accountants determined to be ineligible to conduct these audits, as provided.(2) 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.By January 31, 2025, 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 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, and the preparation of a letter to be included with the audit report, as specified.(3) Existing law prohibits a school district, county office of education, or charter school from being eligible to receive apportionments for independent study by pupils unless the local educational agency 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, 2025, this bill would authorize the State Department of Education to assess an administrative penalty of $10,000 on a local educational agency if an employee of the local educational agency, as part of the independent study written agreement, willfully states as true any material fact that the employee knows to be false.(4) Commencing July 1, 2025, 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 t

Status
Re-referred to Com. on APPR.

Bill Documents
CA SB 1477 - 04/15/24 - Amended Senate
04/15/24 - CA SB 1477 (04/15/24 - Amended Senate)