Solano County Office of Education Report

Annual Review October 25, 2023 Solano County Office of Education Michael H. Fine Chief Executive Officer October 25, 2023 Lisette Estrella-Henderson, Superintendent Solano County Office of Education 5100 Business Center Drive Fairfield, CA 94534-1658 Dear Superintendent Estrella-Henderson: In June 2020, the Solano County Superintendent of Schools entered into an agreement with the Fiscal Crisis and Management Assistance Team (FCMAT) for FCMAT to perform the following: Prepare an initial analysis of the county office fiscal oversight provided to the Vallejo City Unified School District using FCMAT’s County Office Evaluation Tool, and make recommenda- tions for improvement, if any. The June 2020 study agreement also covers annual follow-up evaluations. This report contains the FCMAT study team’s findings and recommendations from the second annual evalu- ation of the Solano County Superintendent of Schools’ oversight of the Vallejo City Unified School District. FCMAT appreciates the opportunity to serve the Solano County Office of Education and extends thanks to its staff for their cooperation and assistance during this review. Sincerely, Michael H. Fine Chief Executive Officer Michael H. Fine • Chief Executive Officer 1300 17th Street – City Centre, Bakersfield, CA 93301-4533 • Tel. 661-636-4611 • Fax 661-636-4647 www.fcmat.org Table of Contents Table of Contents About FCMAT ...................................................................................................ii Introduction .......................................................................................................1 County Office Evaluation Tool .....................................................................3 Summary ...........................................................................................................4 Findings ............................................................................................................5 Conclusions and Recommendations ........................................................9 Appendices .....................................................................................................10 Appendix A: Trustee Definition ........................................................................................11 Appendix B: Vallejo City School District 2021-22 Annual Report of Financial Condition .............................................................................11 Appendix C: Study Agreement ........................................................................................12 Fiscal Crisis and Management Assistance Team Solano County Office of Education i About FCMAT FCMAT’s primary mission is to assist California’s local TK-12 educational agencies and community colleges to identify, prevent, and resolve financial, human resources and data management challenges. FCMAT pro- vides fiscal and data management assistance, professional development training, product development and other related school business and data services. FCMAT’s fiscal and management assistance services are used not just to help avert fiscal crisis, but to promote sound financial practices, support the training and development of chief business officials and help to create efficient organizational operations. FCMAT’s data management services are used to help local educational agencies (LEAs) meet state reporting responsibili- ties, improve data quality, and inform instructional program decisions. FCMAT may be requested to provide fiscal crisis or management assistance by a school district, charter school, community college, county office of education, the state superintendent of public instruction, or the Legislature. When a request or assignment is received, FCMAT assembles a study team that works closely with the LEA to define the scope of work, conduct on-site fieldwork and provide a written report with findings and recommendations to help resolve issues, overcome challenges and plan for the future. 90 80 70 60 50 40 30 20 10 0 FCMAT has continued to make adjustments in the types of support provided based on the changing dynamics of TK-14 LEAs and the implementation of major educational reforms. FCMAT also develops and provides numerous publications, software tools, workshops and professional learning opportunities to help LEAs operate more effectively and fulfill their fiscal oversight and data management responsibilities. The California School Information Services (CSIS) division of FCMAT assists the California Department of Education with the implementation of the California Longitudinal Pupil Achievement Data System (CALPADS). CSIS also hosts and maintains the Ed-Data website (www.ed-data.org) and provides technical expertise to the Ed-Data partnership: the California Department of Education, EdSource and FCMAT. FCMAT was created by Assembly Bill (AB) 1200 in 1992 to assist LEAs to meet and sustain their financial obligations. AB 107 in 1997 charged FCMAT with responsibility for CSIS and its statewide data management work. AB 1115 in 1999 codified CSIS’ mission. seidutS fo rebmuN AB 1840 Annual Evaluation Studies by Fiscal Year 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Fiscal Crisis and Management Assistance Team Solano County Office of Education ii AB 1840 Annual Evaluation AB 1200 is also a statewide plan for county offices of education and school districts to work together locally to improve fiscal procedures and accountability standards. AB 2756 (2004) provides specific responsibili- ties to FCMAT with regard to districts that have received emergency state loans. In January 2006, Senate Bill 430 (charter schools) and AB 1366 (community colleges) became law and expanded FCMAT’s services to those types of LEAs. On September 17, 2018 AB 1840 was signed into law. This legislation changed how fiscally insolvent dis- tricts are administered once an emergency appropriation has been made, shifting the former state-centric system to be more consistent with the principles of local control, and providing new responsibilities to FCMAT associated with the process. Since 1992, FCMAT has been engaged to perform more than 1,400 reviews for LEAs, including school districts, county offices of education, charter schools and community colleges. The Kern County Superintendent of Schools is the administrative agent for FCMAT. The team is led by Michael H. Fine, Chief Executive Officer, with funding derived through appropriations in the state budget and a modest fee sched- ule for charges to requesting agencies. Fiscal Crisis and Management Assistance Team Solano County Office of Education iii AB 1840 Annual Evaluation Introduction Background In September 2018, Governor Brown signed Assembly Bill (AB) 1840, making a significant change in how insolvent school districts are administered after they receive a state emergency appropriation. As part of that legislation, codified in Education Code (EC) 41326(l), the Fiscal Crisis and Management Assistance Team (FCMAT) was given the responsibility of reviewing the fiscal oversight performed by the county super- intendent of schools for any district receiving an emergency apportionment. FCMAT is required to report its findings to the state Legislature and to provide a copy of that report to the state Department of Finance, the superintendent of public instruction (SPI), and the president of the State Board of Education (SBE). This report is required to include findings regarding fiscal oversight actions that were or were not taken and may include recommendations for an appropriate legislative response to improve fiscal oversight of school districts. In the years following the initial FCMAT report on the fiscal oversight performed by the county superinten- dent, FCMAT will perform annual reviews until the district exits receivership. These reviews will assess the effectiveness of the county superintendent’s oversight and their involvement with the district, including during the period that led to the district’s declaration of insolvency. On June 21, 2004, Senate Bill (SB) 1190 (Chesbro, co-author Assembly Member Wiggins) was signed into law, authorizing the appointment of a state administrator and providing a $60 million emergency state loan to the Vallejo City Unified School District. The district drew $50 million of the $60 million loan amount on June 23, 2004. The SPI appointed a state administrator on June 23, 2004, who started full time in the district in July 2004. The state administrator assembled a team of individuals with expertise to assist in the district’s improvement efforts and to serve as a leadership cabinet. The district drew the remaining $10 mil- lion of the $60 million loan amount on May 29, 2007 and placed the funds in a special reserve fund for the payment of unresolved audit findings. County Office Evaluation Guidelines FCMAT entered into a study agreement with the Solano County Superintendent of Schools on June 18, 2020 for both the initial and annual evaluations required by EC 41326(l). A study team visited the county superintendent of schools’ office on August 27, 2020 for the initial evaluation, on March 17, 2022 for the first annual evaluation, and on August 30, 2023 for the current evaluation, to conduct interviews, collect data and review documents. Following fieldwork, the study team continued to review and analyze documents. This report is the result of those activities and actions related to the annual evaluation. FCMAT’s reports focus on systems and processes that may need improvement. Those that may be func- tioning well are generally not commented on in FCMAT’s reports. In writing its reports, FCMAT uses the Associated Press Stylebook, a comprehensive guide to usage and accepted style that emphasizes con- ciseness and clarity. In addition, this guide emphasizes plain language, discourages the use of jargon and capitalizes relatively few terms. Fiscal Crisis and Management Assistance Team Solano County Office of Education 1 AB 1840 Annual Evaluation Study Team The team was composed of the following members: Michelle Giacomini Nicolas Schweizer FCMAT Deputy Executive Officer FCMAT Consultant Misty Key Sheldon Smith FCMAT Consultant FCMAT Consultant John Lotze FCMAT Technical Writer Each team member reviewed the draft report to confirm accuracy and achieve consensus on the analysis. Fiscal Crisis and Management Assistance Team Solano County Office of Education 2 AB 1840 Annual Evaluation County Office Evaluation Tool The Fiscal Crisis and Management Assistance Team (FCMAT) has developed the County Office Evaluation Tool (COET) for the initial and annual evaluations to help assess the effectiveness of a county super- intendent of schools’ fiscal oversight and support of school districts that have received an emergency apportionment. The annual COET includes 12 questions and is intended to satisfy the requirements of Education Code (EC) 41326(l) for review and assessment of the county superintendent of schools’ fiscal oversight and support related to a school district’s recovery. The tool is focused on the status of the district’s recovery, the con- tinuing implementation of the long-range recovery plan (LRRP), the role of the administrator or trustee, the multiyear financial projection, and how the county superintendent is addressing elements that received an answer of “No” in the initial evaluation. FCMAT used the annual COET during interviews with multiple staff from both the district and the county superintendent’s office, and the trustee. The COET identifies the key review elements performed by the county superintendent of schools in its fiscal oversight and support of the district and their ability to communicate effectively with the trustee, district staff and board. FCMAT also gathered information through an initial document request before the on-site interviews. The FCMAT team’s conclusions are compiled in the report as a narrative, with recom- mendations noted as appropriate. In addition, the team addressed questions related to the overall imple- mentation of EC 41326(l) and made recommendations to support that process, including a restatement of the trustee’s specific roles and responsibilities. The county superintendent’s objective, supported by the trustee and other components of a recovery team (FCMAT, the California Department of Education and SBE), is to facilitate the full recovery and address the major elements of the LRRP of the Vallejo Unified School District so that it can govern independently, main- tain solvency, and effectively support the education of all students. County Office Name: Solano County Office of Education Date of Fieldwork: August 30, 2023 Fiscal Crisis and Management Assistance Team Solano County Office of Education 3 AB 1840 Annual Evaluation Summary The Solano County Superintendent of Schools provides fiscal oversight to all the county’s school districts as a result of the original AB 1200 legislation signed into law in 1991 and expressed in Article 2, Chapter 6 of Part 24 of the California Education Code, starting with Section 42120 and/or Section 1240(b). During the initial EC 41326(l) evaluation, FCMAT assessed the county superintendent of schools’ involve- ment with the district during its normal oversight responsibilities and specifically during the period that led to the district’s declaration of insolvency and beyond, up to and including the date of the evaluation. To do so, FCMAT reviewed documents prepared by the county superintendent’s staff, asked a series of ques- tions relating to the time leading up to the insolvency, and reviewed the county superintendent’s oversight practices. The annual evaluation focuses on the status of the district’s recovery, whether the district has made prog- ress since the last review, and how effectively the county superintendent supports the district’s staff, board, and trustee in that process. In addition, the annual review evaluates any area from the initial review listed as a “No” on the tool and determines if those issues continue to be addressed. The team’s findings indicate that the county superintendent is effective in supporting the district’s full recovery within the guidelines in the California Education Code and the findings and recommendations in the LRRP. The county trustee and the county superintendent have a firm understanding of the actions and procedural changes required for the district to exit from receivership. The trustee has cultivated and fostered the relationships and trust required for changing behavior, overseen the district’s actions as it has approved and implemented policy and procedural changes, and brought an optimistic outlook to the over- sight process. Both the trustee and the county superintendent of schools feel fully supported by each other. There are concerns regarding the district’s fiscal health. The district received a conditional budget approval letter for 2023-24 because it had a commitment of $22 million for the 2022-23 Local Control Funding Formula (LCFF) carryover. However, this amount was not applied consistently in the components of the fund balance of the multiyear projection. This suggests that the financial report does not fully include the actions and services from the district’s Local Control and Accountability Plan (LCAP). The district has an adequate reserve for economic uncertainties and the ability to meet its obligations for the budget and two subsequent fiscal years, but it also has deficit spending that needs to be addressed with ongoing budget solutions for it to stay solvent. FCMAT found that communication among the county superintendent, county superintendent’s staff, and the trustee in the current model of oversight was timely and consistent with a focus on district recovery. The county superintendent relies heavily on feedback from the trustee when making determinations about the district’s current and future solvency and its strategic decisions related to collective bargaining and resource allocation. The following section of this report focuses on the team’s implementation of the annual COET, including general findings and, in some cases, recommendations for improvement. All the areas assessed are listed below with an associated narrative. If a deficit in the area is material, it is noted in the narrative. Fiscal Crisis and Management Assistance Team Solano County Office of Education 4 AB 1840 Annual Evaluation Findings 1. Was the Long Range Recovery Plan (LRRP) developed by the administrator within the statutory timelines? Alternatively, has the county office of education (COE) adopted the FCMAT Compre- hensive Review in lieu of the LRRP? Have the plans been consistently updated by the trustee and/ or the COE? The district uses the FCMAT Comprehensive Review in lieu of the LRRP. Since the last visit, the trustee has been working with the district to assess progress and implemen- tation of the outstanding items on the comprehensive review. The comprehensive review is one of the standing agenda items in the monthly oversight meetings of the trustee and district and county superintendent staff. Respondents indicated that, between the monthly meetings, there is also much communication between the county superintendent of schools and the district regarding the issues identified in the comprehensive review. The trustee asks the district for documents to be gathered for any progress or updates that have occurred since the last visit. A tool was developed that shows progress on or completion of many deficiencies described in the comprehensive review. As of the last comprehensive review update in July 2023, many of the deficiencies relate to internal controls and addressing audit findings. 2. What role has the COE played in implementing the Long Range Recovery Plan? The county superintendent continues to actively support the district’s review of progress. In addi- tion, the California Collaborative for Educational Excellence (CCEE) has been engaged on behalf of the county superintendent to help improve student outcomes and increase student achievement. The trustee works closely with the district’s superintendent and its chief business official (CBO) on all areas of the comprehensive review and other relevant issues. In addition, the trustee, district staff and county superintendent’s staff meet monthly to review the district's progress in address- ing comprehensive review issues and other areas of need including fiscal, human resources, hiring process and layoffs. Because the district is not meeting its requirement to increase and improve services for high needs students and has significant carryover in its last LCAP as a result, status updates on the expenditures included in the LCAP and on LCAP development are now also part of the monthly meetings. 3. What process has the COE used to monitor the progress of implementing the LRRP or the FCMAT Comprehensive Review for the district? There is regular, ongoing conversation between the district and the county superintendent that pro- vides direction to the district while also monitoring its progress; this includes monthly meetings of the county superintendent with key county office and district staff, including the superintendent, the chief business official (CBO), assistant superintendent of human resources and, more recently, the director of categorical grants. The monthly meetings, as well as the meetings between the trustee and the district superintendent, show that the county superintendent is creating and implementing processes that support the use of the most recent comprehensive review as a measuring tool and guidance mechanism. Fiscal Crisis and Management Assistance Team Solano County Office of Education 5 AB 1840 Annual Evaluation 4. What role has the trustee played in maintaining the financial recovery plan in cooperation with the COE? The trustee has played a major part in the district’s recovery. The trustee works closely with the dis- trict’s superintendent and its CBO on the comprehensive review areas and attends meetings with district and county superintendent staff to review progress. The trustee also meets regularly with the county office CBO and its director of business services to align expectations. The trustee serves as a liaison between the county superintendent and the district, helping the county superintendent understand the district’s perspective and helping the district understand the county superinten- dent's concerns and recommendations. The trustee is positioned to ensure that the district superintendent and governing board avoid governance issues so they are not distracted from student achievement. The trustee represents the county superintendent’s operational interests well and acts as an effective steward to both agencies. 5. What is the status of the district’s budget in regard to deficit spending, fund balance, and reserve for economic uncertainties? The district has received a conditional approval of its 2023-24 adopted budget at the time of this report because of its carryover of supplemental and concentration grant funds in its LCAP and a concern that the actions and services listed in the LCAP do not reconcile with the budget or multiyear projection. The district’s 2023-24 adopted budget multiyear projection shows minimal current year unrestricted deficit spending but shows an $11.1 million deficit for 2024-25 and a $15.6 million deficit in 2025-26. The district’s unrestricted ending fund balance is projected to be $33.8 million in 2023-24, $22.7 million in 2024-25, and $7.1 million in 2025-26. The district’s Standardized Account Code Structure (SACS) multiyear projection shows the reserve for economic uncertainties at 4.68% for 2023-24, 3.50% for 2024-25, and 3.51% for 2025-26, but the amount of LCAP carryover obscures both these reserves and the amount of unrestricted deficit shown in the multiyear projection. The county superintendent’s adopted budget review shows that the district may not be able to satisfy its multiyear financial obligations without implementing ongo- ing budget solutions for fiscal years 2024-25 and 2025-26. This is because it will have a budget shortfall of $8.5 million in 2024-25 and $24.1 million in 2025-26 once the $25 million in one-time LCAP expenditures is added to the 2023-24 adopted budget and the 3% reserve for economic uncertainties is included. 6. What process does the COE use to assess cash flow? The county superintendent has an ongoing process for analyzing and monitoring the district’s cash by month, as well as for budget, interim and unaudited actual financial reports. Each month, the county superintendent of schools reviews posted transactions and upcoming cash needs to ensure adequate cash flow. The documents submitted by the county superintendent of schools indicate a reliable process for discerning details and documenting suggestions or corrections. Fiscal Crisis and Management Assistance Team Solano County Office of Education 6 AB 1840 Annual Evaluation 7. Has the COE fulfilled all of the statutory requirements for fiscal oversight in accordance with all applicable sections of the Education Code? The county superintendent continues to fulfill all the statutory requirements for fiscal oversight in accordance with the applicable Education Code sections. One potential area for the county superintendent to highlight, evidenced by the district’s LCAP carryover, is the communications and operating procedures between the district’s fiscal department and the program departments related to the LCAP. While reviewing past district LCAPs to investi- gate the cause of the district’s LCAP carryover history, FCMAT analyzed the expenditure tables for the fiscal years 2022-23 and 2023-24 LCAPs. It appears that the carryover started in 2021-22 when the district did not adequately identify all actual expenditures in its LCAP as contributing to meeting the needs of unduplicated students (those who are English learners, and/or foster youth, and/or who qualify for free or reduced-price meals). For example, in its 2022-23 LCAP, the district planned expenditures of approximately $42.4 million to meet these students’ needs but only entered spending of $21.2 million in the annual update sec- tion of its LCAP. Based on interviews and discussions, it appears more services were provided to students that could have been identified as eligible uses of supplemental and concentration grant funds that provide the specified LCAP actions and services. Reviewing LCAP data and ensuring the LCAP annual update accurately shows actual expenditures and services are cross-departmental tasks. The county superintendent’s inclusion of instructional leaders as part of the monthly meet- ings with the district should strengthen oversight in this area. In addition, exploring alternative ways to support district staff to ensure they are adequately completing the annual update section of the LCAP and thus avoiding any inaccuracies in carryover of supplemental and concentration grant funding could help the district increase and improve student achievement. 8. Has the COE performed timely evaluations of the trustee? The trustee received his annual evaluation in July 2023. The evaluation tool used includes both comments by the trustee and the county superintendent. 9. Is the trustee present at board meetings and closed sessions? Has the trustee used stay or re- scind authority and, if so, regarding what issue? The trustee is present at all board meetings and closed sessions. The trustee has a good working relationship with the district board, district administration, and county superintendent. Consequently, the trustee can provide direction and insight early in the decision-making process so issues do not arise that require the use of stay or rescind authority. Stay or rescind authority is typically used when either the district’s board or its staff has not coop- erated with the trustee’s direction or has approved actions that are not in the district’s operational or fiscal best interests. The trustee has not used stay or rescind authority, which indicates that the trustee is effective and that the district’s board and superintendent have a desire to exit from receivership. 10. What is the status of the district's recovery? The district’s I-Bank loan matures in January 2024, and its general fund loan matures in August 2024. At the time of FCMAT’s fieldwork, the district had received the fiscal systems audit draft Fiscal Crisis and Management Assistance Team Solano County Office of Education 7 AB 1840 Annual Evaluation report required by EC 41320.1(a)(4) before repayment of the loan. The district did not share the contents of the audit with the FCMAT review team; however, they have been shared with the county trustee. The district is working with the audit firm to fully understand draft statements and has com- municated to the county superintendent that they anticipate sharing the final report by the end of October 2023 . The district has a structural deficit and declining enrollment, and its LCAP carryover, if spent down fully in the current year as required by law, could result in insolvency in 2024-25. Student atten- dance and academic achievement results are poor, and the district needs to improve instruction. The district has developed a strategic plan with goals to improve attendance and achievement but has not yet developed a detailed plan to accomplish these goals. Declining enrollment continues to affect services to students. Although the district seems to be pre- pared to make reductions and improve services, there are no specific plans to do so. The district lacks capacity, especially in its fiscal department, and there is significant concern that when the trustee is no longer in place, support will no longer exist for both the district superinten- dent and the CBO. A number of consultants are assisting in a variety of matters, which does not help build capacity. An additional concern is that earlier in the year attendance was not being taken at some of the schools and this was not corrected until late in the year, which indicates weaknesses in leadership and processes. This issue should have been a top priority and should not have remained uncor- rected for as long as it did. 11. On or before October 31, has the governing board of the school district prepared a report on the financial condition of the school district, which the trustee has reviewed, and the county superin- tendent of schools has subsequently received a copy of? (Education Code Section 41321). Yes. On October 24, 2022, the district prepared the annual report on the financial condition of the school district, which the trustee reviewed and the county superintendent received a copy of. It is included in Appendix B of this report. 12. How has the county office addressed elements in the initial review that were designated as a "No" on the original assessment that was included in the final report? County superintendent of schools staff have continued to ensure that the areas identified as defi- ciencies in the initial review continue to be addressed in the fiscal review checklists and oversight documents. Fiscal Crisis and Management Assistance Team Solano County Office of Education 8 AB 1840 Annual Evaluation Conclusions and Recommendations The trustee has cultivated and fostered the relationships and trust required for changing behavior, has overseen the district’s actions as it has approved and implemented policy and procedural changes, and has brought an optimistic outlook to the oversight process. With the healthy relationship built by the trustee and district superintendent, the district’s governing board is better positioned to make difficult decisions that reduce school district expenses and address the struc- tural deficit. The next year will be critical as difficult decisions must be made. As stated earlier, the county superintendent’s 2023-24 adopted budget review shows that the district may not be able to satisfy its multiyear financial obligations without implementing ongoing budget solutions for fiscal years 2024-25 and 2025-26.In light of this, the county trustee should continue to facilitate and support the district, and the county superintendent of schools should continue to support the trustee and the district superintendent and board, in following the below recommendations related to district recovery. • Once the facility study is completed by the outside firm, make timely decisions so there is more efficient use of schools. Include consideration of closures, consolidations, and repur- posing, and perform an equity analysis as required by law. • Attempt to combine school populations so that schools are at or above 90% capacity. • Implement the audit recommendations from the fiscal systems audit required by EC 41320.1(a)(4) before repayment of the loan. • Clarify the assumptions used in the district’s multiyear financial projection. • Review and communicate the district’s budget development process to ensure that the district’s expenditure reductions provide the most efficient and appropriate facilities and education for all children and that the fiscal and operational benefits are understood by the board and community. • Continue to improve the district’s academic program using the county superintendent’s and CCEE’s recommendations so that the core academic programs serve all students. • Monitor the district’s LCAP development and expenditures, and continue to provide guid- ance to the district under the terms outlined in the Education Code. • Continue to provide guidance to the district regarding its average daily attendance collec- tion and tracking process. The next annual review will assess progress toward these goals. The transition from state to county administration as a result of AB 1840 continues to evolve. In part, the purpose of these annual reviews is to clarify the roles and responsibilities of all involved education partners so they can assist and support district recovery. This report attempts to assess the district’s recovery status and the essential support and oversight provided by the county superintendent of schools’ office, and establish the baseline for the next annual review, which will occur approximately one year from the publica- tion of this report. Fiscal Crisis and Management Assistance Team Solano County Office of Education 9 AB 1840 Annual Evaluation Appendices Appendix A: Trustee Definition Appendix B: 2021-22 Vallejo City Unified School District Annual Report of Financial Condition Appendix C: Study Agreement Fiscal Crisis and Management Assistance Team Solano County Office of Education 10 AB 1840 Annual Evaluation Appendix A: Trustee Definition Click here to view and download the trustee definition. Appendix B: Vallejo City School District 2021-22 Annual Report of Financial Condition Click here to view and download the annual report. Fiscal Crisis and Management Assistance Team Solano County Office of Education 11 AB 1840 Annual Evaluation A ppendix C: Study Agreement FISCAL CRISIS & MANAGEMENT ASSISTANCE TEAM STUDY AGREEMENT February 5, 2020 AMENDED STUDY AGREEMENT June 18, 2020 The Fiscal Crisis and Management Assistance Team (FCMAT), hereinafter referred to as the team, and the Solano County Office of Education, hereinafter referred to as the COE, mutually agree as follows: 1. BASIS OF AGREEMENT The team provides a variety of services to local education agencies (LEAs). In accordance with Education Code Section 41326(1), the team has been assigned to review the fiscal oversight performed by the COE specific to the district receiving an emergency apportionment. The team may include staff from FCMAT, county offices of education, the California Department of Education, or private contractors. All work shall be performed in accordance with the terms, standards and conditions of this agreement. FCMAT is required to report its findings to the Legislature and provide a copy of the report to the Department of Finance, the superintendent of public instruction, and the president of the State Board of Education. The county superintendent will receive a copy of the final report. The final report will also be published on the FCMAT website. 2. SCOPE OF THE WORK A. Scope and Objectives of the Study Prepare an initial analysis of the county office fiscal oversight provided to the Vallejo Unified School District using FCMAT’s County Office Evaluation Tool, and make recommendations for improvement, if any. B. Services and Products to be Provided 1. Orientation Meeting – The team will conduct an orientation session at the COE to brief COE management and supervisory personnel on the team’s procedures and the purpose and schedule of the study. 2. On-site Review – The team will conduct an on-site review at the COE office and at the Vallejo Unified School District if necessary. 3. Draft Report – Electronic copies of a draft report will be delivered to the county superintendent for review and comment. 4. Final Report – Electronic copies of the final report will be delivered to the county superintendent following completion of the review. Printed copies 1 Fiscal Crisis and Management Assistance Team Solano County Office of Education 12 AB 1840 Annual Evaluation are available from FCMAT upon request. 3. PROJECT PERSONNEL The FCMAT study team will include: A. Joel Montero FCMAT Retired CEO B. Nick Schweizer FCMAT Consultant C. Sheldon Smith FCMAT Consultant D. Misty Key FCMAT Consultant Other equally qualified staff or consultants will be substituted in the event one of the above individuals is unable to participate in the study. 4. PROJECT COSTS Pursuant to Education Code 41326(1) , costs for the study shall be as follows: A. All staff member and consultant daily rates and expenses will be covered by FCMAT’s state apportionment. B. Based on the elements noted in section 2A, the total cost of the services is $0. 5. RESPONSIBILITIES OF THE COE A. The COE will provide office and conference room space during on-site reviews. B. The COE will provide the following items: 1. Current or proposed detailed organizational charts. 2. Any documents requested on a supplemental list. Documents requested on the supplemental list should be provided to FCMAT only in electronic format; if only hard copies are available, they should be scanned by the COE and sent to FCMAT in electronic format. 3. Documents should be provided in advance of fieldwork; any delay in the receipt of the requested documents may affect the start date and/or completion date of the project. Upon approval of the signed study agreement, access will be provided to FCMAT’s online SharePoint document repository, where the COE will upload all requested documents. C. The county superintendent will review a draft copy of the report resulting from the study. Any comments regarding the accuracy of the data presented in the report or the practicability of the recommendations will be reviewed with the team 2 Fiscal Crisis and Management Assistance Team Solano County Office of Education 13 AB 1840 Annual Evaluation prior to completion of the final report. All such comments should be provided to the team within five working days after receipt of the draft. Pursuant to Education Code (EC) 45125.1(c), representatives of FCMAT will have limited contact with pupils. The COE shall take appropriate steps to comply with EC 45125.1(c). 6. PROJECT SCHEDULE Fieldwork will occur August 27, 2020. 7. COMMENCEMENT AND COMPLETION OF WORK The FCMAT team will work expeditiously to complete its work and deliver its report, subject to the cooperation of the COE and any other parties from which, in the team’s judgment, it must obtain information. Once the team has completed its fieldwork, it will proceed to prepare a draft report and a final report. The COE understands and agrees that FCMAT is a state agency and all FCMAT reports are published on the FCMAT website and made available to interested parties in state government. In the absence of extraordinary circumstances, FCMAT will not withhold preparation, publication and distribution of a report once fieldwork has been completed, and the COE shall not request that it do so. 8. INDEPENDENT CONTRACTOR FCMAT is an independent contractor and is not an employee or engaged in any manner with the COE. The manner in which FCMAT’s services are rendered shall be within its sole control and discretion. FCMAT representatives are not authorized to speak for, represent, or obligate the COE in any manner without prior express written authorization from an officer of the COE. 9. INSURANCE During the term of this agreement, FCMAT shall maintain liability insurance of not less than $1 million unless otherwise agreed upon in writing by the COE, automobile liability insurance in the amount required under California state law, and workers’ compensation as required under California state law. FCMAT shall provide certificates of insurance, with Solano County Office of Education named as additional insured, indicating applicable insurance coverages upon request prior to the commencement of on-site work. 10. HOLD HARMLESS FCMAT shall hold the COE, its board, officers, agents and employees harmless from all suits, claims and liabilities resulting from negligent acts or omissions of its board, officers, agents and employees undertaken under this agreement. Conversely, the COE shall hold FCMAT, its board, officers, agents and employees harmless from all suits, 3 Fiscal Crisis and Management Assistance Team Solano County Office of Education 14 AB 1840 Annual Evaluation claims and liabilities resulting from negligent acts or omissions of its board, officers, agents and employees undertaken under this agreement. 11. CONTACT PERSON Name: Lisette Estrella-Henderson Telephone: (707) 399-4400 E-Mail: LEHenderson@solanocoe.net SIGNED BY LISETTE ESTRELLA-HENDERSON MARCH 18, 2020 Lisette Estrella-Henderson Date County Superintendent, Solano COE February 5, 2020 Michael H. Fine Date Chief Executive Officer Fiscal Crisis and Management Assistance Team AMENDED STUDY AGREEMENT 6-18-2020 Lisette Estrella-Henderson Date County Superintendent, Solano COE June 18, 2020 Michael H. Fine Date Chief Executive Officer Fiscal Crisis and Management Assistance Team 4 Fiscal Crisis and Management Assistance Team Solano County Office of Education 15