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INYO COUNTY
OFFICE OF EDUCATION
Review Report
AUDIT RESOLUTION PROCESS
Fiscal Year 2019-20 and Fiscal Year 2020-21
M M. C
ALIA OHEN
California State Controller
May 2023
M M. C
ALIA OHEN
California State Controller
May 1, 2023
Barry D. Simpson, County Superintendent of Schools
Inyo County Office of Education
166 Grandview Drive
Bishop, CA 93514
Dear Mr. Simpson:
The State Controller’s Office reviewed the Inyo 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) 2019-20 and FY 2020-21.
Our review found that the Inyo COE followed its audit resolution process for FY 2019-20 and
FY 2020-21. As a result, the Inyo COE was in compliance with 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: Tom Snyder, Deputy Superintendent
Inyo 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
Inyo County Office of Education Audit Resolution Process
Contents
Review Report
Summary ............................................................................................................................ 1
Background ........................................................................................................................ 1
Review Authority ............................................................................................................... 2
Objective, Scope, and Methodology ................................................................................. 2
Conclusion .......................................................................................................................... 3
Views of Responsible Officials .......................................................................................... 3
Restricted Use .................................................................................................................... 3
Inyo County Office of Education Audit Resolution Process
Review Report
Summary The State Controller’s Office (SCO) reviewed the Inyo 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) 2019-20 and FY 2020-21. Our review found that the Inyo COE
followed its audit resolution process for FY 2019-20 and FY 2020-21.
Background Education Code section 41020(n) directs the SCO to require that auditors
categorize audit exceptions in the audit report in such a manner that both
the county superintendent of schools and the State Superintendent of
Public Instruction (SSPI) can discern which exceptions it is their
responsibility to ensure that the LEAs correct. In addition, 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 SSPI and the county superintendents of schools that were
reviewed.
The Inyo 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 (April 15, 2022, for
FY 2020-21 audit reports) of the subsequent year (Education Code
section 41020[j][2]);
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Inyo 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 (June 15, 2022, for FY 2020-21 audit reports) 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[b] and 41020[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]).
We conducted this review in accordance with Education Code
Review Authority
section 41020(n), which authorizes the SCO to facilitate correction of the
exceptions identified by audits issued pursuant to this section. In addition,
Government Code section 12410 provides the SCO with general authority
to audit the disbursement of state money for correctness, legality, and
sufficient provisions of law.
Objective, Scope, The objective of our review was limited to determining whether the Inyo
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 Inyo COE to address each exception, nor did it assess
the degree to which each exception was addressed.
The review period was FY 2019-20 and FY 2020-21.
To achieve our objective, we performed the following procedures:
We verified that the Inyo COE addressed all attendance, inventory of
equipment, internal control, and miscellaneous exceptions. In
addition, we verified that the Inyo 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 Inyo COE notified LEAs that they must submit
completed corrective action forms to the Inyo COE by March 15,
2021, and April 15, 2022, for FY 2019-20 and FY 2020-21,
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Inyo County Office of Education Audit Resolution Process
respectively. Our review did not include an assessment of the LEAs’
progress in taking corrective action.
We verified that the Inyo COE required the LEAs to submit the
appropriate reporting forms to the SSPI for any attendance-related
exceptions that affect state funding.
We reviewed the letters of certification due on July 15, 2021, and
June 15, 2022, that the Inyo COE sent to the SSPI and the SCO
regarding any resolved and unresolved audit exceptions.
We verified that the Inyo COE followed up with unresolved prior-year
audit exceptions that the SSPI required the Inyo COE to conduct.
We verified that the Inyo 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 Inyo COE followed its audit resolution process
for FY 2019-20 and FY 2020-21. As a result, the Inyo COE was in
compliance with Education Code section 41020 for FY 2019-20 and
FY 2020-21. We made no additional determination regarding the Inyo
COE’s audit resolution process beyond the scope of the review outlined in
this report.
Views of We discussed our review results with the Inyo COE’s representatives
Responsible during an exit conference conducted on January 23, 2023. At the exit
Officials conference, the Inyo COE’s representatives agreed with the review results,
and we issued the final review report.
Restricted Use This report is intended solely for the information and use of the Inyo 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 intended
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
May 1, 2023
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State Controller’s Office
Division of Audits
Post Office Box 942850
Sacramento, CA 94250
http://www.sco.ca.gov
S23-COE-9004