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Yuba County
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YUBA COUNTY
OFFICE OF EDUCATION
Review Report
AUDIT RESOLUTION PROCESS
Fiscal Year 2017-18 and Fiscal Year 2018-19
BETTY T. YEE
California State Controller
March 2021
BETTY T. YEE
California State Controller
March 3, 2021
Franciso Reveles, Ed.D., Superintendent
Yuba County Office of Education
935 14th Street
Marysville, CA 95901
Dear Dr. Reveles:
The State Controller’s Office reviewed the Yuba 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) 2017-18 and FY 2018-19.
Our review found that the Yuba COE followed its audit resolution process for FY 2017-18 and
FY 2018-19. As a result, the Yuba COE was in compliance with California Education Code
section 41020.
If you have any questions, please contact Joel James, Chief, Financial Audits Bureau, by
telephone at (916) 323-1573.
Sincerely,
Original signed by
MICHAEL REEVES, CPA
Acting Chief, Division of Audits
MR/as
cc: Halee Pomeroy, Assistant to the Superintendent
Yuba County Office of Education
Amy Nore, Communications Coordinator
Yuba County Office of Education
Violette Begley, Director of Fiscal Services
Yuba County Office of Education
Elizabeth Dearstyne, Director
School Fiscal Services Division
California Department of Education
Keith Smith, Administrator
School Fiscal Services Division
California Department of Education
Jeff Bell, Program Budget Manager
Education Systems Unit
California Department of Finance
Yuba County Office of Education Audit Resolution Process
Contents
Review Report
Summary ............................................................................................................................ 1
Background ........................................................................................................................ 1
Objective, Scope, and Methodology ................................................................................. 2
Conclusion .......................................................................................................................... 3
Views of Responsible Officials .......................................................................................... 3
Restricted Use .................................................................................................................... 3
Yuba County Office of Education Audit Resolution Process
Review Report
Summary The State Controller’s Office (SCO) reviewed Yuba 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) 2017-18 and FY 2018-19. Our review found that the Yuba COE
followed its audit resolution process for FY 2017-18 and FY 2018-19.
Background California Education Code section 41020(n) requires the State Controller
to annually select a sample 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.
In addition, 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 Yuba COE provides coordination of educational programs and
professional and financial supervision for five LEAs 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 program funds for
instructional materials, teacher misassignments, and school
accountability report cards. The county superintendents must also
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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Yuba County Office of Education Audit Resolution Process
Review the description of the correction or plan of correction and
determine its adequacy and, if the LEA’s 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)).
Objective, Scope, The objective of our review was limited to determining whether the Yuba
COE followed its audit resolution process for resolving LEA audit
and Methodology
exceptions in a manner consistent with California Education Code section
41020. Our review did not include an evaluation of the sufficiency of the
action taken by the LEA and the Yuba COE to address each exception, nor
did it assess the degree to which each exception was addressed.
The review period was FY 2017-18 and FY 2018-19.
To achieve our objective, we:
Verified that the Yuba COE addressed all attendance, inventory of
equipment, internal control, and miscellaneous exceptions. In
addition, we verified that the Yuba COE addressed any findings on
program funds for instructional materials, 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 the exception results were properly
quantified and addressed at a districtwide or countywide level;
Verified that the Yuba COE notified LEAs that they must submit
completed corrective action forms to the Yuba COE by March 15,
2019, and March 15, 2020, for FY 2017-18 and FY 2018-19,
respectively. Our review did not include an assessment of the LEAs’
progress in taking corrective action;
Verified that the Yuba COE required the LEAs to submit the
appropriate reporting forms to the SPI for any attendance-related
exceptions that affect state funding;
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Yuba County Office of Education Audit Resolution Process
Reviewed the letters of certification due on May 15, 2019, and
July 15, 2020, that the Yuba COE sent to the SPI and the SCO
regarding any resolved and unresolved audit exceptions;
Verified that the Yuba COE followed up with unresolved prior-year
audit exceptions that the SPI required the Yuba COE to conduct; and
Verified that the Yuba COE adjusted subsequent local property tax
requirements to correct audit exceptions related to LEA tax rates and
tax revenues.
Our review was conducted under the authority of California Education
Code section 41020(n).
Conclusion Our review found that the Yuba COE followed its audit resolution process
for FY 2017-18 and FY 2018-19. As a result, the Yuba COE was in
compliance with California Education Code section 41020 for
FY 2017-18 and FY 2018-19. We made no additional determination
regarding the Yuba COE’s audit resolution process beyond the scope of
the review outlined above.
Views of
We conducted an exit conference on January 22, 2021, and discussed our
Responsible review results with Violette Begley, Director of Fiscal Services, and
Officials Veronica Merenda, External Fiscal Coordinator. Ms. Begley and Ms.
Merenda agreed with the review results, declined a draft review report,
and agreed that we could issue the review report as final.
Restricted Use This review report is intended solely for the information and use of the
Yuba 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 review report, which is a matter of
public record and is available on the SCO website at www.sco.ca.gov.
Original signed by
MICHAEL REEVES, CPA
Acting Chief, Division of Audits
March 3, 2021
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State Controller’s Office
Division of Audits
Post Office Box 942850
Sacramento, CA 94250
http://www.sco.ca.gov
S21-COE-9004