Report 2016-141 Recommendation 29 Responses

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

Recommendation #29 To: Antelope Valley Union High School District

To better ensure effective oversight of its charter schools' finances, Antelope Valley Union should develop written procedures for addressing financial concerns, such as a charter school's failure to meet the minimum reserve requirement established in the district's memorandum of understanding with the charter school.

1-Year Agency Response

AVUHSD staff in collaboration with Educational Services, Business Services and the Superintendent have developed written procedures for addressing financial concerns, including but not limited to a charter's failure to meet the minimum reserve requirement. These written procedures correspond to current MOU language that includes relevant requirements regarding minimum reserve requirements and follow-up procedures. See Attachments ( Charter School Fiscal Oversight Procedures- section 3 subsection c., and MOU pgs. 10-11).

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

Antelope Valley Union provided a copy of its written procedures for addressing financial concerns, such as a charter school's failure to meet the minimum reserve requirements.

6-Month Agency Response

District staff in collaboration with Educational Services, Business Services and the Superintendent are in the process of developing written procedures for addressing financial concerns, including but not limited to a charter's failure to meet the minimum reserve requirement. These written procedures will be incorporated into corresponding MOU language with the charters that include relevant requirements and best practices.

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's is in the process of developing a standard MOU with charters as a condition of approval for new petitions and renewal petitions. The revised charter MOU, once Board approved, will include written procedures for addressing financial concerns, such as failure to meet the minimum reserve requirement and significant changes in budget and enrollment that represent significant changes from assumptions and projections to actuals. The AVUHSD may include the internal use of supplementary financial tools such as the "Charter Budget Review Sheet," and the "California Charter School Financial Performance Measures," to guide financial reviews and develop timely feedback processes to charters that include corrective actions and next steps. 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.