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LAKE COUNTY OFFICE OF
EDUCATION
Review Report
AUDIT RESOLUTION PROCESS
Fiscal Year 2018-19 and Fiscal Year 2019-20
M M. C
ALIA OHEN
California State Controller
February 2023
M M. C
ALIA OHEN
California State Controller
February 1, 2023
Brock Falkenberg, County Superintendent of Schools
Lake County Office of Education
1152 S. Main Street
Lakeport, CA 95453
Dear Mr. Falkenberg:
The State Controller’s Office reviewed the Lake 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) 2018-19 and FY 2019-20.
Our review found that the Lake COE followed its audit resolution process for FY 2018-19 and
FY 2019-20. As a result, the Lake 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
KIMBERLY TARVIN, CPA
Chief, Division of Audits
KT/ac
cc: Norma Alvarado, Director of Fiscal Services
Lake 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
Christopher Ferguson, Program Budget Manager
Education Systems Unit
California Department of Finance
Lake 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
Lake County Office of Education Audit Resolution Process
Review Report
Summary The State Controller’s Office (SCO) reviewed the Lake 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) 2018-19 and FY 2019-20. Our review found that the Lake COE
followed its audit resolution process for FY 2018-19 and FY 2019-20.
Background Education Code section 41020(n) requires the SCO 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 State Superintendent of Public
Instruction (SSPI) and the county superintendents of the schools that were
reviewed.
In addition, Education Code section 41020(n) states that the SCO shall
require auditors to categorize audit exceptions in the audit report in such a
manner that both the county superintendent of schools and the SSPI can
discern the exceptions for which it is their responsibility to ensure that the
LEAs take action to correct.
The Lake COE provides coordination of educational programs and
professional and financial supervision for six 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
(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 (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 Education Code
section 42238.02, as implemented by section 42238.03, and
independent study (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
(Education Code section 41020[j][2]);
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Lake 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 (Education Code section 41020[j][3]);
By July 15 of the subsequent year, certify to the SSPI 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 SSPI for processing (Education Code
sections 41020.9[b] and 41020.9[c]);
Review LEAs’ unresolved prior-year audit exceptions when the
California Department of Education defers to the county (Education
Code section 41020[l]); and
Adjust subsequent local property tax requirements to correct audit
exceptions relating to LEA tax rates and tax revenues (Education Code
section 41020[o]).
Objective, Scope, The objective of our review was limited to determining whether the Lake
COE followed its audit resolution process for resolving LEA audit
and Methodology
exceptions in a manner consistent with Education Code section 41020.
Our review did not include an evaluation of the sufficiency of the action
taken by the LEA and the Lake COE to address each exception, nor did it
assess the degree to which each exception was addressed.
The review period was FY 2018-19 and FY 2019-20.
To achieve our objective, we performed the following procedures:
We verified that the Lake COE addressed all attendance, inventory of
equipment, internal control, and miscellaneous exceptions. In
addition, we verified that the Lake 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.
We verified that the Lake COE notified LEAs that they must submit
completed corrective action forms to the Lake COE by March 15,
2020, and March 15, 2021, for FY 2018-19 and FY 2019-20,
respectively. Our review did not include an assessment of the LEAs’
progress in taking corrective action.
We verified that the Lake COE required the LEAs to submit the
appropriate reporting forms to the SSPI for any attendance-related
exceptions that affected state funding.
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Lake County Office of Education Audit Resolution Process
We reviewed the letters of certification due on July 15, 2020, and
July 15, 2021, that the Lake COE sent to the SSPI and the SCO
regarding any resolved and unresolved audit exceptions.
We verified that the Lake COE followed up with unresolved prior-
year audit exceptions that the SSPI had required the Lake COE to
conduct.
We verified that the Lake 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 Education Code
section 41020(n).
Conclusion Our review found that the Lake COE followed its audit resolution process
for FY 2018-19 and FY 2019-20. As a result, the Lake COE was in
compliance with Education Code section 41020 for FY 2018-19 and
FY 2019-20. We made no additional determination regarding the Lake
COE’s audit resolution process beyond the scope of the review outlined
above.
Views of We discussed our review results with Lake COE’s representatives during
Responsible an exit conference conducted on December 19, 2022. At the exit
conference, the Lake COE representative agreed with our results.
Officials
Restricted Use This review report is intended solely for the information and use of the
Lake 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
KIMBERLY TARVIN, CPA
Chief, Division of Audits
February 1, 2023
-3-
State Controller’s Office
Division of Audits
Post Office Box 942850
Sacramento, CA 94250
http://www.sco.ca.gov
S22-COE-9003