Report 2018-131 All Recommendation Responses

Report 2018-131: Alum Rock Union Elementary School District: The District and Its Board Must Improve Governance and Operations to Effectively Serve the Community (Release Date: May 2019)

Recommendation #1 To: Alum Rock Union Elementary School District

To ensure that it selects the most qualified firms at fair and reasonable prices to perform its contracted architectural services and construction management services, the board should follow the requirements of state law and its own policies in such selections.

1-Year Agency Response

On February 13, 2020, the Board adopted BP 3311, which states in part, the Board has determined that it is in the best interest of the district to require a competitive bidding process in the selection of architectural services, construction management services and program management services when the contract cost (including any addenda or amendment) of such services exceeds contract limits specified in PCC 20111, and as annually adjusted by the Superintendent of Public Instruction.

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

Along with its updated board policy, the district provided documentation of additional policies pertaining to competitive bidding for architectural services, construction management services, and program management services.

6-Month Agency Response

On Nov. 14, 2019 Board approved update of Board Policy 3311 (Business and Non-instructional Operations, Bids) Board Agenda Item 8.03 page 38 Board Book. Also, Board approved update to Board Policy 3312 (Business and Non-instructional Operations, Contracts) Item 8.04 page 47 Board Book.

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

The District did not provide evidence that its board approved changes to district policies to ensure that the board follows the law and its own policies when it selects firms to perform contracted architectural and construction management services.

60-Day Agency Response

1.Update Board Policies (3000 series (Business Operations) and 7000 series (Facilities), and Board Bylaws (9000 series);

2.Board Governance Training re: contracting requirements and processes;

3.Development and implementation of Board Governance Handbook re: role of the Board in the administration and oversight of the District; and

4.Staff training re: contracting requirements and processes.

Note: 9000 Series of Board Policies will be completed by end of Sept. 2019

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

Recommendation #2 To: Alum Rock Union Elementary School District

To preclude a situation where a contractor oversees its own work, the board should enact a policy by August 2019 to prohibit contracting with the same entity for construction management and program management services.

Annual Follow-Up Agency Response From November 2021

Board policy BP 3312 has been updated to reflect the following language, "The District shall not enter into a contract for construction management services or program management services where compensation is based on a percentage of construction costs or bonds issued. Contracts for construction management services or program management services shall stipulate compensation on a not-to-exceed basis. The District shall not use the same firm for program and construction management services." Below is the link to the board policy. https://simbli.eboardsolutions.com/Policy/ViewPolicy.aspx?S=36030683&revid=RrkDbyvhxam3l5KvL8XJfw==&ptid=amIgTZiB9plushNjl6WXhfiOQ==&secid=y1ZW0qRGjEafuplusqEjNeK2Q==&PG=6&IRP=0

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

We have assessed this recommendation as fully implemented based on the district's response and the evidence it provided.

Annual Follow-Up Agency Response From November 2020

The district did not formally respond to this recommendation to address our annual follow-up inquiry. However, it provided a document containing revisions to its policy.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

The document that the district provided includes a provision prohibiting the district from contracting with the same entity for construction management and program management services. However, the board's current policy as presented on the district's website does not include this prohibition.

1-Year Agency Response

On February 13, 2020, the Board adopted BP 3312, which states in part, the District shall not enter into a contract for construction management services or program management services where compensation is based on a percentage of construction costs or bonds issued. Contracts for construction management services or program management services shall stipulate compensation on a not-to-exceed basis. The District shall not use the same firm for program and construction management services.

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

The board policy referenced does not specifically prohibit contracting with the same entity for construction management and program management services. The district did provide a recent request for proposals for program management services for construction projects that included a provision prohibiting the awarded firm from also being awarded a contract for construction management services. However, this provision does not fully address our recommendation.

6-Month Agency Response

Agency did not submit a six month response for this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of this recommendation as pending.

60-Day Agency Response

1.Update Board Policies (3000 series (Business Operations) and 7000 series (Facilities), and Board Bylaws (9000 series);

2.Board Governance Training re: contracting requirements and processes; and

3.Staff training re: contracting requirements and processes.

Note: 9000 Series will be completed by end of September 2019.

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

Recommendation #3 To: Alum Rock Union Elementary School District

To strengthen its ability to oversee district expenditures, the board should require the district by August 2019 to prepare monthly summaries that report the total amounts it paid to each of its contractors, along with descriptions of the purpose of those payments, and to include the summaries with the monthly warrant lists it provides to the board.

Annual Follow-Up Agency Response From August 2023

Per our previous discussion, the QSS system does not provide the level of detail as prescribed in the recommendation. Staff would have to manually create reports on a monthly basis to satisfy the criteria which would be too onerous for the District. As an alternative, the District provides access to hard copies of invoices to any board members who wish to inspect them. Supporting documents will be sent to Mr. Boone.

California State Auditor's Assessment of Annual Follow-Up Status: Resolved

The report that the district provided shows that it summarized the amounts paid to its contractors, but it did not show the purposes of the payments. In its response, the district indicates that it was not feasible to include the purpose of the payments because of the limitations of its system. However, the district's practice is to make its hardcopy invoices available for board member inspection, and it provided evidence of an example in which a board member was able to arrange an appointment with the district to review specific invoices. Accordingly, we have assessed the status of this response as resolved.

Annual Follow-Up Agency Response From November 2021

Evidence of the report that is presented to the Board on a monthly basis has been sent to Mr. Brian Boone on 11/16/21.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

The report that the district provided shows that it summarized the amounts paid to its vendors, but the summary does not include descriptions of the purpose of those payments.

1-Year Agency Response

On May 22, 2020, the District provided Mr. Boone with the monthly warrant report that is presented to the Board each month.

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

The example that the district provided shows that it summarized the amounts paid to its vendors, but the summary does not include descriptions of the purpose of those payments.

6-Month Agency Response

As of July 2019, we have prepared summaries of vendor warrants as recommended. An example of these summaries can be found in the Nov. 2019 Board Book, under Consent Calendar Item 12.09 pp. 205 to 226.

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

The example that the district provided shows that it summarized the amounts paid to its vendors, but the summary does not include descriptions of the purpose of those payments.

60-Day Agency Response

1.Update Board Policies (3000 series (Business Operations)), and Board Bylaws (9000 series) re: agenda requirements;

2.Implementation by Administration.

Note: 9000 Series will be completed by end of September 2019.

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

Recommendation #4 To: Alum Rock Union Elementary School District

To ensure proper oversight of construction costs, the district should stop using payment terms for construction management and program management services that base fees on a percentage of construction costs or bonds issued.

1-Year Agency Response

On February 13, 2020, the Board adopted BP 3312, which states in part, the District shall not enter into a contract for construction management services or program management services where compensation is based on a percentage of construction costs or bonds issued. Contracts for construction management services or program management services shall stipulate compensation on a not-to-exceed basis. The District shall not use the same firm for program and construction management services.

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

The district fully addressed this recommendation, although the last sentence in its response pertains to a different recommendation.

6-Month Agency Response

The Board move to terminate all construction contracts with Del Terra in December 2018. This is reflected on the minutes for the Dec. 2018 meeting items 8.05 and 8.06 pages 9 and 10 of the minutes for the meeting. Link to the minutes will be sent to Brian Boone.

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

In addition to terminating its construction contracts with Del Terra, the board considered adopting changes to its board policy to be explicit about not entering into contracts for construction management services or program management services where compensation is based on a percentage of construction costs or bonds issued. However, the district did not provide evidence that the board formally adopted those changes.

60-Day Agency Response

1. Staff is in process of updating BP and AR to stop using payment terms for construction management and program management services that that base fees on a percentage of construction costs or bonds issues.

Note: The District will complete this when The Board Policies in 3000 series are completed.

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

Recommendation #5 To: Alum Rock Union Elementary School District

By November 2019, the district should develop contract monitoring procedures with defined staff roles and responsibilities, including retaining evidence of monitoring efforts. The district should also train its staff to follow these procedures.

1-Year Agency Response

On November 25, 2020, District provided Mr. Boone with the written procedures for contract monitoring.

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

Similar to our assessment of the district's six-month response, we continue to assess this recommendation as partially implemented because the district's procedures appear to be in draft form, and the district did not provide evidence that it trained its staff on the procedures.

6-Month Agency Response

Staff has implemented contract monitoring procedures. Evidence will be submitted to Mr. Boone.

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

We assessed the response status as partially implemented because the district's procedures appear to be in draft form, and the district did not provide evidence that it trained its staff on the procedures.

60-Day Agency Response

1.Update Board Policies (3000 series (Business Operations) and develop Administrative Regulation to implement these procedures I items #1 and #2.

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

Recommendation #6 To: Alum Rock Union Elementary School District

By November 2019, the district should develop procedures specifying a designated location for staff to retain contracts and related documentation and identifying those staff who are responsible for ensuring that these documents are stored appropriately. The district should also train staff to follow these procedures.

Annual Follow-Up Agency Response From October 2020

This District is currently working with the County Office of Education (COE) to be able to utilize the COE's electronic repository system. Once the District has access to the system, COE will provide District's staff the necessary training.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

1-Year Agency Response

On January 31, 2020, the District completed its transition to the Santa Clara County Office of Education (SCCOE) Financial and Payroll system. The District has engaged with SCCOE to be able to utilize its electronic repository system, as well.

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

6-Month Agency Response

Agency did not provide a six-month response on the implementation status of this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of this recommendation as pending.

60-Day Agency Response

1.Review District staff positions and Board Bylaw 9270 re: Designated Positions and disclosure requirements to determine whether all positions have been properly designated;

2.Review consultants for District to determine whether consultant should be designated as subject to District's code for disclosing financial interests.

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

The district's response does not address our recommendation. We look forward to the district's six-month response for clarification on its efforts to develop procedures pertaining to retention of contract documentation.

Recommendation #7 To: Alum Rock Union Elementary School District

By November 2019, the district should work with the county office to ensure that its new financial system includes unique identifiers for contract payment authorization documents.

Annual Follow-Up Agency Response From November 2020

The district did not formally respond to this recommendation to address our annual follow-up inquiry. Instead, it provided an email from the district's director of fiscal services to district staff in October 2019 informing them that the district's new system was available to accept fiscal year 2019-20 requisitions.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

The information provided by the district did not address our recommendation that its new financial system include unique identifiers for contract payment authorization documents.

1-Year Agency Response

On January 31, 2020, the District completed its transition to the Santa Clara County Office of Education (SCCOE) Financial and Payroll System.

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

The district's response does not address our recommendation that its new system include unique identifiers for contract payment authorization documents.

6-Month Agency Response

The district is in the final steps of the process of transferring to the Santa Clara County Office of Education financial system. This will be fully implemented by January 2020. We will send evidence of the staff participating in this process.

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

60-Day Agency Response

District staff is currently working with Santa Clara County Office of Education to ensure that its new financial system includes unique identifiers for contract payment authorization documents.

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

Recommendation #8 To: Alum Rock Union Elementary School District

To identify its contracted personnel's potential conflicts of interest, the district should develop and implement a process by November 2019 to assess whether contracted personnel should be classified as consultants and are therefore subject to the district's code for disclosing financial interests.

Annual Follow-Up Agency Response From November 2021

Evidence has been sent to Mr. Brian Boone on 11/17/21.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

The district provided its procedures for completing and filing Form 700s along with its conflict-of-interest code and other documentation. However, the information provided by the district does not describe a process for assessing whether contracted personnel should be classified as consultants subject to the district's code for disclosing financial interests.

Annual Follow-Up Agency Response From November 2020

The district did not provide a response to this recommendation. However, it provided documentation to support its actions to address the recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

The documentation provided by the district did not specifically address our recommendation to the district to implement a process by November 2019 to assess whether contracted personnel should be classified as consultants and are therefore subject to the district's code for disclosing financial interests.

1-Year Agency Response

On May 22, 2020, the District provided Mr. Boone with the written procedures for completing Form 700.

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

Although the district provided its procedures for completing and filing Form 700s, that information did not describe a process for assessing whether contracted personnel should be classified as consultants subject to the district's code for disclosing financial interests.

6-Month Agency Response

District did not provide a six month response to this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of this recommendation as pending.

60-Day Agency Response

Business staff is currently working with the General Counsel to update all procedures involving Form 700.

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

Recommendation #9 To: Alum Rock Union Elementary School District

The district should immediately follow its conflict-of-interest code to ensure that all required individuals file Forms 700.

Annual Follow-Up Agency Response From November 2021

Evidence has been sent to Mr. Brian Boone on 11/17/21.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

We have assessed the status of this recommendation as pending. The district will need to fully implement Recommendation 8 before it can demonstrate that it is following its conflict-of-interest code for contracted personnel.

Annual Follow-Up Agency Response From November 2020

The district did not formally respond to this recommendation to address our follow-up inquiry. Instead, it provided documentation to support its actions.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

We have assessed the status of this recommendation as pending. The district will need to fully implement Recommendation 8 before it can demonstrate that it is following its conflict-of-interest code for contracted personnel.

1-Year Agency Response

District enforced the completion of form 700 to all appropriate individuals. Evidence submitted.

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

Although the district provided evidence that it reminded individuals to file Form 700s, it did not address the component of our recommendation specifically pertaining to contracted personnel who should be classified as consultants subject to the district's code for disclosing financial interests.

6-Month Agency Response

The district did not provide a six-month response to this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of this recommendation as pending.

60-Day Agency Response

District Staff will ensure that all appropriate individuals will complete and file Form 700.

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

Recommendation #10 To: Alum Rock Union Elementary School District

To ensure compliance with the requirements of the Brown Act for quorums, the board should declare publicly at future board meetings whether a quorum of board members is present before it takes any action.

1-Year Agency Response

Beginning with the January 2020 Board Meeting, Board President publicly establishes quorum before any decisions are made. See January 16, 2020 Board Minutes as sample.

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

The board meeting minutes provided by the district for its January 2020 meeting show that the board president publicly declared a quorum.

6-Month Agency Response

Agency did not provide a six-month response to this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of this recommendation as pending.

60-Day Agency Response

1.Update Board Bylaws (9000 series) as appropriate to include this procedure in applicable Bylaws;

2.Board Governance Training.

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

Recommendation #11 To: Alum Rock Union Elementary School District

To ensure compliance with government transparency laws, the board should request training in and adhere to Brown Act requirements and other state law by August 2019. It should also ensure that the district's general counsel is sufficiently knowledgeable to properly advise the board about these requirements.

6-Month Agency Response

The Alum Rock Board of Trustees held a Special Board meeting on September 7, 2019 to receive Brown Act training. Minutes from the meeting will be submitted as evidence.

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

60-Day Agency Response

1.Special Board meeting/workshop for Brown Act training session.

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

Recommendation #12 To: Alum Rock Union Elementary School District

To ensure compliance with government transparency laws in future meetings, the board should ensure that it publicly identifies all parties involved in real estate negotiations prior to entering closed sessions.

1-Year Agency Response

The district has not been in Real Estate negotiations since 2014.

California State Auditor's Assessment of 1-Year Status: No Action Taken

The district's response indicates that it has not taken any action on this recommendation because it has not been involved in real estate negotiations since 2014. However, as we state on Page 25 of the audit report, we identified one instance in fiscal year 2016-17 when the board failed to announce the people with whom its negotiators may negotiate before entering closed session.

6-Month Agency Response

Agency did not provide a six month response to this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1.Special Board meeting/workshop for Brown Act training session.

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

Recommendation #13 To: Alum Rock Union Elementary School District

To increase board member accountability at future meetings, the district should adhere to state law and its policies by reducing board member stipends when members fail to attend board meetings.

6-Month Agency Response

Board approved updated Board Bylaw 9250 and Exhibit 9250 regarding Remuneration, Reimbursement and Other Benefits. This update specifically states that Board members will be remunerated according to their attendance to board meetings within the month. Evidence that will be submitted includes Board Agenda, Minutes, and email.

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

We determined that this recommendation has been fully implemented. The district indicated that it had one instance of a board member who failed to attend meetings in September 2019, and it provided evidence that this board member's stipend was reduced for that month.

60-Day Agency Response

1.Update Board Bylaw 9250 (Remuneration, Reimbursement And Other Benefits);

2.Prepare and send advisory to all Board Members re: BB 9250 and Education Code 35120 requirements.

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

Although board members are aware of the updated bylaws, the district has not yet provided examples of instances in which it reduced stipends when members failed to attend board meetings.

Recommendation #14 To: Alum Rock Union Elementary School District

To ensure compliance with government transparency laws, the district should train staff by August 2019 on the timing requirements of the Brown Act pertaining to publicizing board meeting agendas.

Annual Follow-Up Agency Response From November 2020

The district did not provide a response to this recommendation. However, it provided documentation to support its actions to address the recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The district provided evidence of a special board meeting in September 2019 in which it received training on the Brown Act, including timing requirements pertaining to publicizing board meeting agendas. In its one-year response, the district indicated that district staff were also in attendance at this training.

1-Year Agency Response

Appropriate staff participated in Board Study Session when this topic was addressed with the board.

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

The district did not provide any evidence to support its response.

6-Month Agency Response

Staff publicizes agenda following Brown Act requirements. See district website.

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

Although its website demonstrates that the district is publicizing its board meeting agendas, the district did not provide any evidence that it trained staff on the timing requirements of the Brown Act for publicizing those agendas.

60-Day Agency Response

1.Training to staff on Brown Act requirements re: agenda posting and requirements.

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

The district did not provide any evidence of the training that it provided to staff. Accordingly, we have assessed the implementation status of this recommendation as pending.

Recommendation for Legislative Action

To ensure that school district boards are knowledgeable about the ethical principles and laws that public officials must follow, the Legislature should amend state law to require members of school district boards who are compensated for their services to receive ethics training once every two years.

Description of Legislative Action

AB 2158 (Fong, 2022) would include in the definition of "local agency" a school district, county office of education, and charter school for purposes of ethics training requirements and would include in the definition of "local agency official" a member of the governing board of a school district, a county board of education, or the governing body of a charter school, whether or not the member receives any type of compensation, salary, or stipend or reimbursement for actual and necessary expenses incurred in the performance of official duties. As of June 17, 2022, this bill was pending in the senate committee on appropriations.

California State Auditor's Assessment of Annual Follow-Up Status: Legislation Introduced

As of June 17, 2022, this bill was pending in the senate committee on appropriations.

Description of Legislative Action

As of May 23, 2021, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

As of May 23, 2020, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 1-Year Status: No Action Taken

Description of Legislative Action

As of November 2019, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 6-Month Status: No Action Taken

Description of Legislative Action

The Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #16 To: Alum Rock Union Elementary School District

To comply with district policy and improve transparency, the board should work with district staff to evaluate law firm proposals against criteria when it next contracts for a general counsel. Further, the board should publicly report the results of its evaluation.

6-Month Agency Response

Board followed up steps in recommendation #16 as evidenced during Special Board Meeting on May 9, 2019. Evidence will be submitted to Mr. Boone.

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

The district provided its board meeting agenda and meeting minutes from its May 2019 board meeting where it evaluated competing legal firms to become the district's next general counsel. The minutes indicate that the board worked with district staff to develop a scoring mechanism to evaluate the competing firms. Further, these publicly-available minutes show the results of the district's evaluation.

60-Day Agency Response

1. The selection of the new general counsel for the district followed best practices. Staff issued RFP. Firms were vetted by the CBO and Asst. Sup of HR for paper accuracy. Interviews with firms were held during a public meeting and selection of firm was conducted during a public meeting.

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

The district did not provide any evidence pertaining to the evaluation process it described. Accordingly, we have assessed the implementation status of this recommendation as pending.

Recommendation #17 To: Alum Rock Union Elementary School District

To ensure that it provides a clear strategic direction for the district, the board should develop a vision and establish goals for the district by November 2019 and regularly monitor progress toward achieving these goals, as district policy requires.

Annual Follow-Up Agency Response From November 2022

The District's Board approved the strategic plan on June 23, 2022. Supporting documents have been submitted to the State Auditor's office.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From October 2020

The ARUSD Board is still working on the district goals at this point.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

1-Year Agency Response

The ARUESD Board of Education held a Special Board Meeting on May 21, 2020 to review the Board Governance Handbook and to draft the Vision and mission statements for the district.

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

6-Month Agency Response

Agency did not provide a six-month response to this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1.Board Governance training, workshops and retreats.

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

Recommendation #18 To: Alum Rock Union Elementary School District

To provide additional transparency and ensure that its performance is meeting the needs of the district, the board should conduct an annual self-evaluation by November 2019 and publicize the results.

1-Year Agency Response

The Alum Rock Union Elementary School District board went through the self-evaluation process during the month of November, 2019. The results and the analysis were reported and published during the December 2019 board meeting.

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

The district provided a copy of its board self-evaluation and made this document publicly available on its website.

6-Month Agency Response

Board completed its self-evaluation by Nov. 2019. Evidence will be submitted to Mr. Boone.

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

Although the board conducted a self-evaluation, the district did not provide evidence that the results were publicized.

60-Day Agency Response

1.Board Governance training, workshops and retreats; to be included in Board Governance Handbook.

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

Recommendation #19 To: Alum Rock Union Elementary School District

To increase the board's accountability and ensure the prudent spending of district funds, the board should implement procedures by August 2019 requiring that its members document on their requests for reimbursement how their travel complies with district policy.

1-Year Agency Response

The ARUESD Board of Education reviewed and approved Board Bylaw 9250 during the Nov. 14, 2019 meeting.

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

The board's updated bylaw does not directly address the recommendation to require its members to document on their reimbursement requests how their travel complies with district policy.

6-Month Agency Response

Agency did not provide a six-month response on the implementation status of this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1.Board Governance training, workshops and retreats; to be included in Board Governance Handbook.

2.Amend Board Bylaw 9250 (Remuneration, Reimbursement And Other Benefits) to include this requirement.

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

Recommendation #20 To: Alum Rock Union Elementary School District

To improve organizational stability and increase transparency, the board should comply with district policy pertaining to other operational practices, including appointing a new board president only during its annual organizational meeting unless otherwise required to do so by policy, and limiting extensions of board meeting ending times to the single instance allowed per meeting.

1-Year Agency Response

ARUESD board of education elected its new Board President during the December 2018 and the December 2019 Regular Board meetings. For the past two years, there have been no board attempts to re-organize the duly elected board officials. Evidence of the new stability may be found on the minutes for the past two years.

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

Although the district's response addressed only the issue of appointing a new board president, minutes from its recent board meetings demonstrate that the board complied with district policy pertaining to other operational practices.

6-Month Agency Response

Agency did not provide a six-month response on the implementation status of this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1.Amend Board Bylaws (9000 series) as appropriate to include these requirements;

2.Include these requirements in the Board Governance Handbook to be developed.

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

Recommendation #21 To: Alum Rock Union Elementary School District

To assess whether the superintendent's performance aligns with the board's expectations, the board should provide timely annual performance evaluations in an appropriate format. Further, the district's human resources department should maintain copies of these evaluations.

1-Year Agency Response

ARUESD Board conducted Superintendent evaluation on July 11, 2019. This item was placed for Closed Session, item 2.04, discussion during the July 11, 2019 Regular Board Meeting.

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

The district's human resources department provided a copy of the Superintendent's performance evaluation for 2018-19. As noted in the response, the board discussed the evaluation with the superintendent on July 11, 2019. Although this discussion took place after the evaluation's due date of June 30, 2019, we conclude that the board provided a substantially timely evaluation.

6-Month Agency Response

The Board completed Superintendent's Evaluation in September 12, 2019. Board agenda and minutes will be sent to Mr. Boone as evidence.

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

The district directed us to board meeting minutes documenting that the board approved an evaluation instrument for the superintendent's 2019-20 evaluation. However, the minutes do not specify whether the evaluation was actually conducted. Further, the district did not provide us with the instrument's format. Consequently, the district has not demonstrated that the board is providing timely annual evaluations of the superintendent's performance in an appropriate format.

60-Day Agency Response

1.Amend Board Policy 2121 (Superintendent's Contract) and Board Bylaws (9000 series) as appropriate to specify these requirements;

2.Include these requirements in the Board Governance Handbook to be developed.

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

Recommendation #22 To: Alum Rock Union Elementary School District

To demonstrate its commitment to improving its governance over the district's operations, the board should immediately direct district staff to track and prioritize the implementation of the remaining outstanding recommendations from the FCMAT audit report. The board should also direct staff to analyze the recommendations relating to its terminated contracts with Del Terra, identify those recommendations that will continue to be relevant after the appointment of a new construction manager and a new program manager, and implement policies to strengthen the district's monitoring of those contractors. The board should then monitor the status of the recommendations to ensure their implementation.

Annual Follow-Up Agency Response From November 2020

The district did not provide a response to this recommendation. However, it provided documentation to support its actions to address the recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

The district provided the same spreadsheet that it shared with us at its one-year response showing that it began tracking the implementation status of the FCMAT recommendations. However, the district also provided this same spreadsheet back in May 2019, which we reference on pages 64 and 65 of our audit report. In addition, the other documentation that the district provided did not specifically address our recommendation. Consequently, it is unclear what additional action, if any, the district has taken to continue implementing the remaining FCMAT recommendations.

1-Year Agency Response

Board followed up on FCMAT recommendation relating to the Del Terra contracts. Board took action on the September 12, 2019 Board Meeting. Item 3.01.

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

The district provided a spreadsheet with its response showing that it began tracking the implementation status of the FCMAT recommendations. However, the district provided this same spreadsheet to us back in May 2019, which we reference on pages 64 and 65 of our audit report. Consequently, it is unclear what additional action, if any, the district has taken one year later to continue implementing the remaining recommendations.

6-Month Agency Response

Agency did not provide a six-month response on the implementation status of this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1.Direction to Administration and Staff.

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

The district's response does not provide any information about the specific direction given to its administration and staff. Further, the response does not address whether the board will be monitoring the status of the recommendations from the FCMAT audit report. Accordingly, we have assessed the implementation status of this recommendation as pending.

Recommendation #23 To: Alum Rock Union Elementary School District

To ensure that the bond committee receives the assistance it requests from the district to perform its oversight duties, the board should create a policy by August 2019 requiring district staff to document the assistance they provide to the bond committee and to regularly report to the board on the nature and frequency of this assistance.

6-Month Agency Response

AR 7214 supports recommendation #23 regarding support for CBOC. Evidence will be submitted to Mr. Boone.

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

60-Day Agency Response

1.Amend Administrative Regulation 7214 (General Obligation Bonds) to incorporate requirements.

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

Recommendation #24 To: Alum Rock Union Elementary School District

To reinforce the ethical principles, laws, and policies that the board must follow, the district should establish a policy by July 2019 to provide biennial training to board members on ethics, applicable government transparency, conflict-of-interest requirements, and district policies.

1-Year Agency Response

Board re-established the practice of the biennial board training regarding Ethics during the February 28, Special Board Study Session. Board Bylaw 9270 updated on November 10, 2016.

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

Although the district provided training to its board in February 2019 addressing the topics in our recommendation, the policy it references does not require it to provide biennial training to its board, which is what we recommended.

6-Month Agency Response

Agency did not provide a six-month response to this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1.Amend Board Bylaws (9000 series) to incorporate requirements.

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

Recommendation #25 To: Alum Rock Union Elementary School District

To ensure that the bond committee receives timely and accurate information from the annual audits of the district's bond funds, the district should immediately begin to monitor the progress of the audits and prioritize their completion within nine months after the end of each fiscal year.

1-Year Agency Response

On May 22, 2022, The District provided Mr. Boone with both the bond financial and performance audit reports for fiscal year 2018-19.

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

The audit reports provided by the district appear to indicate that the audits were completed within nine months after the end of fiscal year 2018-19.

6-Month Agency Response

Agency did not provide a six-month response on the implementation status of this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1. District staff is working closely with its independent auditor to ensure that audit reports for the bonds program are provided timely the CBOC.

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

The district did not provide any evidence of its efforts to ensure the timeliness of the bond fund audits, so we have assessed the implementation status of this recommendation as pending.

Recommendation #26 To: Alum Rock Union Elementary School District

To ensure that the bond committee includes representatives from all required constituencies, the district should verify and document representation of the committee members that the board appoints.

Annual Follow-Up Agency Response From November 2021

Evidence was submitted to Mr. Brian Boone on 11/18/21.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

To support its response, the district provided its application template for bond committee members and a listing of its 2020-21 bond committee members. However, neither document addresses our recommendation that the district verify and document representation of the committee members that the board appointed.

Annual Follow-Up Agency Response From November 2020

The district did not provide a response to this recommendation. However, it provided documentation to support its actions to address the recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

To support its actions to implement the recommendation, the district provided copies of applications for two new members of its bond committee that identified their constituencies. However, the district did not demonstrate how it verified the constituency of either member or whether it maintained documentation of its verification. Without this information, the district cannot fully support that its committee members belong to the constituencies that they are required to represent.

1-Year Agency Response

On May 22, 2020, the District provided Mr. Boone with a list of committee members, which shows that up until February 2020, it was fully seated. The committee is currently working on filling one vacant seat.

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

The district's response does not show that it has implemented this recommendation. Although it provided a list of current committee members, the district did not demonstrate how it verified the constituency of each member and maintained documentation of its verification. Without this information, the district cannot fully support that its committee members belong to the constituencies that they are supposed to represent.

6-Month Agency Response

The district did not provide a six month response to this recommendation.

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

The district did not submit a six-month response to this recommendation. We continue to assess the status of the recommendation as pending.

60-Day Agency Response

1. The district has designated staff to review all applications before presenting to the Board for their consideration.

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

The district's response does not address documenting the constituencies of appointed committee members. In addition, the district did not provide evidence of the nature of review performed by its designated staff and whether that review includes verifying the constituencies. Therefore, we have assessed the implementation status of this recommendation as pending.

Recommendation #27 To: Alum Rock Union Elementary School District

To fulfill requirements in state law and district policy for presenting actual cost information of bond sales, the district should ensure that the board provides this information after each future bond issuance. If the district intends to rely on its financial advisor to present this information, the district should modify its contract with the advisor to explicitly require the advisor to present this information.

6-Month Agency Response

Board Policy 7214 supports recommendation regarding the cost of sale of bonds. Evidence will be submitted to Mr. Boone.

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

60-Day Agency Response

1.Amend Board Policies (7000 series (Facilities)) and Administrative Regulations to incorporate requirements.

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

Recommendation #28 To: Alum Rock Union Elementary School District

To ensure that district staff have appropriate guidance when awarding contracts under emergency conditions, the district should create and implement by November 2019 policies and procedures describing the protocol for awarding emergency contracts, including the use of the district's standard contracting forms. The district should also train staff to follow these policies and procedures.

Annual Follow-Up Agency Response From November 2021

Board Policy 3311 and evidence of training have been sent to Mr. Brian Boone.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

The district provided a copy of its updated policy pertaining to awarding contracts under emergency conditions. However, that policy and the training materials it provided do not specifically address the use of the district's standard contracting forms for emergency contracts.

Annual Follow-Up Agency Response From November 2020

The district did not provide a response to this recommendation. However, it provided documentation to support its actions to address the recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although the district updated its policies to include the awarding of emergency contracts, these policies do not include guidance for using the district's standard contracting forms. Further, the district did not provide any evidence that it trained its staff on these policies.

1-Year Agency Response

On May 22, 2020, the District provided Mr.Boone with AR 3311 and BP 3312, which addressed this recommendation.

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

Although the district updated its policies to include the awarding of emergency contracts, these policies do not include guidance for using the district's standard contracting forms. Further, the district did not provide any evidence that it trained its staff on these policies.

6-Month Agency Response

BP 3311 also covers recommendation #28 regarding emergency contracts.

This Board Policy was updated in the Nov. 2019 meeting. Evidence will be sent to Mr. Boone.

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

Although the district provided us with the updated board policy, it did not provide evidence that this policy was approved by the board. Further, the district did not demonstrate that it trained its staff on the updated policy.

60-Day Agency Response

1.Amend Board Policies (3000 series) and Board Bylaws (9000) to incorporate requirements;

2.Board Governance Training.

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

Although the district's response refers to board governance training, our recommendation specifies that the district train its staff on the policies and procedures that it plans to implement.

Recommendation #29 To: Alum Rock Union Elementary School District

To reinforce the governance standards that district policy requires board members to adhere to, the board should develop a code of conduct for board members to follow and adopt it at a public meeting by July 2019. The board should review and update this code of conduct each year as needed to reaffirm its commitment to the district's governance standards.

60-Day Agency Response

1.Board to consider adoption of a Code of Conduct;

2.Include Code of Conduct into Board Governance Handbook to be developed by the Board.

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

The district adopted a code of conduct in June 2019.

All Recommendations in 2018-131

Agency responses received are posted verbatim.