Napa County

NAPA COUNTY OFFICE OF EDUCATION Report of Review AUDIT RESOLUTION PROCESS Fiscal Year (FY) 2005-06 and FY 2006-07 J C OHN HIANG California State Controller June 2009 June 24, 2009 Barbara Nemko, Ph.D. County Superintendent of Schools Napa County Office of Education 2121 Imola Avenue Napa, CA 94559 Dear Dr. Nemko: The State Controller’s Office reviewed the Napa County Office of Education’s (COE) audit resolution process for local education agency exceptions noted in the annual audit reports. The review covered fiscal year (FY) 2005-06 and FY 2006-07. Our review disclosed that the Napa COE followed its audit resolution process for FY 2005-06 and FY 2006-07. As a result, the Napa COE was in compliance with Education Code section 41020. If you have any questions, please contact Casandra Moore-Hudnall, Chief, Financial Audits Bureau, at (916) 322-4846. Sincerely, Original signed by JEFFREY V. BROWNFIELD Chief, Division of Audits JVB/vb cc: Joshua Schultz, Director of Business Services Napa County Office of Education Julie Viesca, Director of Fiscal Services Napa County Office of Education Scott Hannan, Director School Fiscal Services Division California Department of Education Arlene Matsuura, Education Fiscal Services Consultant School Fiscal Services Division California Department of Education Dan Troy, Principal Program Budget Analyst Education Systems, Department of Finance Napa County Office of Education Audit Resolution Process Contents Review Report Summary ............................................................................................................................ 1 Background ........................................................................................................................ 1 Objective, Scope, and Methodology ................................................................................. 2 Conclusion .......................................................................................................................... 2 Views of Responsible Officials .......................................................................................... 3 Restricted Use .................................................................................................................... 3 Napa County Office of Education Audit Resolution Process Review Report Summary The State Controller’s Office (SCO) reviewed the Napa County Office of Education’s (COE) audit resolution process for local education agency exceptions noted in the annual audit reports for fiscal year (FY) 2005-06 and FY 2006-07. Our review disclosed that the Napa COE followed its audit resolution process for FY 2005-06 and FY 2006-07. Background Education Code section 41020(n) requires the State Controller to annually select a sampling of county superintendents of schools to perform a follow-up review of the audit resolution process. Results of these reviews are reported to the Superintendent of Public Instruction and the county superintendents of the schools that were reviewed. Furthermore, Education Code section 41020(n) states that the State Controller shall require auditors to categorize audit exceptions in the audit report in such a manner that both the county superintendent of schools and the Superintendent of Public Instruction (SPI) can discern which exceptions they are responsible for ensuring correction of by a local education agency. The Napa COE provides coordination of educational programs and professional and financial supervision for five local education agencies under its direct jurisdiction. In addition, the county superintendent of schools maintains special schools and programs countywide independent of the local education agencies. County superintendents of schools are required to do the following: Review, for each of their school districts, the audit exceptions relating to attendance, inventory of equipment, internal control, and any miscellaneous items, and determine whether the findings have been corrected or an acceptable plan of correction has been developed (Education Code section 41020(i)); Review audit exceptions related to attendance exceptions or issues that shall include, but are not limited to, those related to revenue limits, adult education, and independent study (Education Code section 41020(j)(1)); Notify the local education agency and request the governing board of the local education agency to provide to the county superintendent of schools a description of the correction or plan of correction by March 15 (Education Code section 41020(j)(2)); Review the description of the correction or plan of correction and determine its adequacy and, if its response was not adequate, require the local education agency to resubmit a portion of its response (Education Code section 41020(j)(3)); and -1- Napa County Office of Education Audit Resolution Process By May 15, certify to the SPI and the SCO that the county has reviewed all applicable exceptions, and state that all exceptions have been corrected or an acceptable plan for correction has been submitted by the local education agency to the county superintendent, except as noted in the certification. In addition, identify by local education agency any attendance-related exceptions or exceptions involving state funds, and require the local education agency to submit the appropriate reporting forms to the SPI for processing (Education Code section 41020(k)). Objective, Our review was conducted under the authority of Education Code section 41020(n). Our review scope was limited to determining whether or not Scope, and the Napa COE followed its audit resolution process in resolving audit Methodology exceptions. Our review did not include an evaluation of the sufficiency of the action taken by the local education agency and the Napa COE to address each exception, nor did it assess the degree to which each exception was addressed. Specifically, our review was limited to the following procedures. Verifying that the Napa COE addressed all attendance, inventory of equipment, internal control, and miscellaneous exceptions. However, with respect to exceptions based on sample items, our review did not include a determination of whether or not the exception results were properly quantified and addressed at a districtwide or countywide level; Verifying that the Napa COE notified local education agencies that they must submit completed corrective action forms to the Napa COE by March 15, 2006, and March 15, 2007, for FY 2005-06 and FY 2006-07, respectively. Our review did not include an assessment of the local education agencies’ progress with respect to taking corrective action; Verifying that the Napa COE required the local education agencies to submit the appropriate reporting forms to the SPI for any attendance- related exceptions that affect state funding; and Reviewing the May 15, 2006 and May 15, 2007 letters of certification that the Napa COE sent to the SPI and the SCO with respect to any resolved and unresolved audit exceptions. Conclusion Our review disclosed that the Napa County Office of Education (COE) followed its audit resolution process for FY 2005-06 and FY 2006-07. As a result, the Napa COE was in compliance with Education Code section 41020 for FY 2005-06 and FY 2006-07. We made no additional determination regarding the Napa COE’s audit resolution process beyond the scope of the review outlined above. -2- Napa County Office of Education Audit Resolution Process Views of We discussed our conclusion with Joshua Schultz, Director of Business Services, and Julie Viesca, Director of Fiscal Services, Napa COE, at an Responsible exit conference held on March 25, 2009. The COE representatives Officials generally agreed with the conclusion and authorized issuance of the final report. Restricted Use This report is intended solely for the information and use of the Napa COE, the California Department of Education, the California Department of Finance, and the SCO; it is not intended to be and should not be used by anyone other than these specified parties. This restriction is not meant to limit distribution of this report, which is a matter of public record. Original signed by JEFFREY V. BROWNFIELD Chief, Division of Audits June 24, 2009 -3- State Controller’s Office Division of Audits Post Office Box 942850 Sacramento, California 94250-5874 http://www.sco.ca.gov S09-COE-002