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Trinity County
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TRINITY COUNTY
OFFICE OF EDUCATION
Report of Review
AUDIT RESOLUTION PROCESS
Fiscal Year 2013-14 and Fiscal Year 2014-15
BETTY T. YEE
California State Controller
February 2017
BETTY T. YEE
California State Controller
February 21, 2017
Bettina A. Blackwell, County Superintendent of Schools
Trinity County Office of Education
201 Memorial Drive
Weaverville, CA 96093
Dear Ms. Blackwell:
The State Controller’s Office (SCO) reviewed the Trinity County Office of Education’s (COE)
audit resolution process for local education agency (LEA) exceptions noted in the annual audit
reports. The review covered fiscal year (FY) 2013-14 and FY 2014-15.
Our review found that the Trinity COE followed its audit resolution process for FY 2013-14, but
did not follow its audit resolution process for FY 2014-15. As a result, the Trinity COE was not
in compliance with California Education Code section 41020 for FY 2014-15. Trinity COE did
not review its LEA audit report findings for FY 2014-15 and submitted late to the SCO an
unsigned Certification of Corrective Action form for FY 2014-15. The form was dated May 24,
2016, and was received past the May 15 due date.
If you have any questions, please contact Jim L. Spano, Chief, Financial Audits Bureau, by
telephone at (916) 323-5849.
Sincerely,
Original signed by
JEFFREY V. BROWNFIELD, CPA
Chief, Division of Audits
JVB/rg
cc: Gretchen Deichler, Chief Business Official
Trinity County Office of Education
Peter Foggiato, Director
School Fiscal Services Division
California Department of Education
Raquel Tucker, Education Fiscal Services Consultant
School Fiscal Services Division
California Department of Education
Thomas Todd, Assistant Program Budget Manager
Education Systems
California Department of Finance
Trinity County Office of Education Audit Resolution Process
Contents
Review Report
Summary ............................................................................................................................ 1
Background ........................................................................................................................ 1
Objectives, Scope, and Methodology ............................................................................... 2
Conclusion .......................................................................................................................... 3
Views of Responsible Officials .......................................................................................... 3
Restricted Use .................................................................................................................... 3
Findings and Recommendations ........................................................................................... 4
Trinity County Office of Education Audit Resolution Process
Review Report
Summary The State Controller’s Office (SCO) reviewed the Trinity County Office
of Education’s (COE) audit resolution process for local education agency
(LEA) exceptions noted in the annual audit reports for fiscal year
(FY) 2013-14 and FY 2014-15. Our review found that the Trinity COE
followed its audit resolution process for FY 2013-14 but did not follow its
audit resolution process for FY 2014-15.
Background California Education Code section 41020(n) requires the State Controller
to annually select a sampling of county superintendents of schools for
which the SCO will perform a follow-up review of the audit resolution
process. Results of these reviews will be reported to the Superintendent of
Public Instruction (SPI) and the county superintendents of the schools that
were reviewed.
Furthermore, California 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 SPI can discern the exceptions for which it is their
responsibility to ensure that the LEAs take action to correct.
The Trinity COE provides coordination of educational programs and
professional and financial supervision for ten LEAs for FY 2013-14 and
nine LEAs for FY 2014-15 under its jurisdiction. In addition, the county
superintendent of schools maintains special schools and programs
countywide, independent of the LEAs.
County superintendents of schools are required to do the following:
Review, for each of their school districts, 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
(California Education Code section 41020(i)(1));
Review audit exceptions related to the use of instructional materials
program funds, teacher misassignments, and school accountability
report cards. The county superintendents also must determine whether
the exceptions have been corrected or an acceptable plan of correction
has been developed (California Education Code section 41020(i)(2));
Review audit exceptions related to attendance, inventory of equipment,
internal control, and other miscellaneous exceptions. Attendance
exceptions or issues must include those related to local control funding
formula allocations pursuant to California Education Code section
42238.02, as implemented by section 42238.03, and independent study
(California Education Code section 41020(j)(1));
Notify the LEA, and request that the governing board of the LEA
provide to the county superintendent of schools, a description of the
correction or plan of correction by March 15 of the subsequent year
(California Education Code section 41020(j)(2));
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Trinity County Office of Education Audit Resolution Process
Review the description of the correction or plan of correction and
determine its adequacy and, if its response was not adequate, require
the LEA to resubmit that portion of its response that is inadequate
(California Education Code section 41020(j)(3));
By May 15 of the subsequent year, certify to the SPI and the SCO that
the county has reviewed all applicable exceptions, and state that all
exceptions have been corrected, or that an acceptable plan for
correction has been submitted by the LEA to the county superintendent,
except as noted in the certification. In addition, identify by LEA any
attendance-related exceptions or exceptions involving State funds, and
require the LEA to submit the appropriate reporting forms to the SPI
for processing (California Education Code section 41020(k));
Review LEAs’ unresolved prior year audit exceptions when the
California Department of Education defers to the county (California
Education Code section 41020(l)); and
Adjust subsequent local property tax requirements to correct audit
exceptions relating to LEA tax rates and tax revenues (California
Education Code section 41020(o)).
Objectives, Scope, Our review was conducted under the authority of California Education
Code section 41020(n). Our review scope was limited to determining
and Methodology
whether or not the Trinity COE followed its audit resolution process in
resolving LEA audit exceptions. Our review did not include an evaluation
of the sufficiency of the action taken by the LEA and the Trinity 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 Trinity COE addressed all attendance, inventory of
equipment, internal control, and miscellaneous exceptions. In addition,
we verified whether the Trinity COE addressed any findings on
instructional-materials program funds, teacher misassignments, and
school accountability report cards. 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 whether the Trinity COE notified LEAs that they must
submit completed corrective action forms to the Trinity COE by
March 15, 2015, and March 15, 2016, for FY 2013-14 and
FY 2014-15, respectively. Our review did not include an assessment of
the LEAs’ progress with respect to taking corrective action;
Verifying whether the Trinity COE required the LEAs to submit the
appropriate reporting forms to the SPI for any attendance-related
exceptions that affect State funding;
Reviewing the letters of certification due on May 15, 2015, and
May 15, 2016, that the Trinity COE sent to the SPI and the SCO with
respect to any resolved and unresolved audit exceptions;
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Trinity County Office of Education Audit Resolution Process
Verifying whether the Trinity COE followed up with unresolved prior
year audit exceptions the SPI required the Trinity COE to conduct; and
Verifying whether the Trinity COE adjusted subsequent local property
tax requirements to correct audit exceptions related to LEA tax rates
and tax revenues.
Conclusion Our review found that the Trinity COE followed its audit resolution
process for FY 2013-14, but did not follow its audit resolution process for
FY 2014-15. As a result, the Trinity COE was not in compliance with
California Education Code section 41020 for FY 2014-15. Trinity COE
did not review its LEA audit report findings for FY 2014-15 and submitted
late to the SCO an unsigned certification of corrective action form for
FY 2014-15. The form was dated May 24, 2016, and was received past the
May 15 due date.
Views of We discussed our conclusion and review findings with Gretchen Deichler,
Chief Business Official, Trinity COE, at a telephone exit conference held
Responsible
on January 17, 2017. Ms. Deichler agreed with the conclusion and review
Officials
findings, declined a draft report, and agreed that the report could be issued
as final.
This report is intended solely for the information and use of the Trinity
Restricted Use
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, CPA
Chief, Division of Audits
February 21, 2017
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Trinity County Office of Education Audit Resolution Process
Findings and Recommendations
FINDING 1— The Trinity COE did not review the FY 2014-15 audit reports and audit
LEA audit reports exceptions for all of its LEAs regarding findings related to attendance,
and findings not inventory of equipment, internal control, and other miscellaneous
exceptions. The Trinity COE did not have documentation for an audit
reviewed for
resolution process followed with its LEAs for FY 2014-15.
FY 2014-15
The Trinity COE chief business official stated that, with a switch of
calendar systems in 2014, scheduled projects and tasks that would
otherwise have been performed, including the review of LEA audit
reports, were missing from the calendar schedule and thus were not
performed.
California Education Code section 41020, as applied to FY 2014-15,
states, in part:
(j) Upon submission of the final audit report to the governing board of
each local educational agency and subsequent receipt of the audit by the
county superintendent of schools having jurisdiction over the local
educational agency, the county office of education shall do all of the
following:
(1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited to, those
related to local control funding formula allocations pursuant to Section
42238.02, as implemented by Section 42238.03, and independent study.
(2) If a description of the correction or plan of correction has not been
provided as part of the audit required by this section, then the county
superintendent of schools shall notify the local educational agency and
request the governing board of the local educational agency to provide
to the county superintendent of schools a description of the corrections
or plan of correction by March 15.
(3) Review the description of correction or plan of correction and
determine its adequacy. If the description of the correction or plan of
correction is not adequate, the county superintendent of schools shall
require the local educational agency to resubmit that portion of its
response that is inadequate.
Recommendation
Trinity COE should ensure compliance with the California Education
Code section 41020 by reviewing LEA audit reports and exceptions,
ensure that the LEAs have submitted a description of the correction or plan
of correction, and review the corrections or plans of correction to
determine adequacy.
FINDING 2— The certification of corrective action submitted by Trinity COE to the SCO
Certification of and the SPI for the FY 2014-15 audit findings of its LEAs was unsigned,
corrective action dated May 24, 2016, and submitted past the May 15 due date. All county
superintendents of schools are required to submit a certification that the
for FY 2014-15 was
audit reports and findings of its LEAs have been reviewed and the
not signed and
exceptions have been corrected or an acceptable plan of correction has
submitted late
been submitted.
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Trinity County Office of Education Audit Resolution Process
The COE’s chief business official stated that an incorrect copy of the
certification was sent to the SCO and the SPI.
California Education Code section 41020, states in part:
(k) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that his or her
staff has reviewed all audits of local educational agencies under his or
her jurisdiction for the prior fiscal year, that all exceptions that the county
superintendent was required to review were reviewed, and that all of
those exceptions, except as otherwise noted in the certification, have
been corrected by the local educational agency or that an acceptable plan
of correction has been submitted to the county superintendent of schools.
In addition, the county superintendent shall identify, by local educational
agency, any attendance-related audit exception or exceptions involving
state funds, and require the local educational agency to which the audit
exceptions were directed to submit appropriate reporting forms for
processing by the Superintendent.
Recommendation
The Trinity COE should ensure compliance with California Education
Code section 41020 by ensuring that the Certification of Corrective Action
Resolution of Audit Findings is prepared, signed, and submitted to the
SCO and SPI by the May 15 due date.
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State Controller’s Office
Division of Audits
Post Office Box 942850
Sacramento, CA 94250-5874
http://www.sco.ca.gov
S17-COE-9006