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MONO 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
August 2023
MALIA M. COHEN
CALIFORNIA STATE CONTROLLER
August 28, 2023
Stacey Adler, Ph.D., County Superintendent of Schools
Mono County Office of Education
37 Emigrant Street, P.O. Box 477
Bridgeport, CA 93517
Dear Dr. Adler:
The State Controller’s Office reviewed the Mono 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 Mono COE followed its audit resolution process for FY 2019-20 and
FY 2020-21. As a result, the Mono COE substantially complied with Education Code
section 41020, except for the late submission of the FY 2019-20 and FY 2020-21 certifications
of corrective action.
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/rs
300 Capitol Mall, Suite 1850, Sacramento, CA 95814 | P.O. Box 942850, Sacramento, CA 94250 | Fax: 916.322.4404
sco.ca.gov
Ms. Stacey Adler
August 28, 2023
Page 2 of 2
cc: Didi Tergesen, Assistant Superintendent
Mono County Office of Education
Nnamdi Uzor, Assistant Superintendent
Special Education/SELPA
Mono County Office of Education
Tammy Nguyen, Assistant Superintendent
Educational Services
Mono County Office of Education
Jennifer Weston, Chief Business Officer
Mono 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
300 Capitol Mall, Suite 1850, Sacramento, CA 95814 | P.O. Box 942850, Sacramento, CA 94250 | Fax: 916.322.4404
sco.ca.gov
Mono 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
Finding and Recommendation .............................................................................................. 4
Attachment—Mono County Office of Education’s Response to Draft Review Report
Mono County Office of Education Audit Resolution Process
Review Report
Summary The State Controller’s Office (SCO) reviewed the Mono 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 Mono
COE followed its audit resolution process for FY 2019-20 and
FY 2020-21, except for the late submission of the certifications of
corrective action. This issue is described in the Finding and
Recommendation section of this report.
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 the schools that were reviewed.
The Mono COE provides coordination of educational programs and
professional and financial supervision for two 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
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Mono County Office of Education Audit Resolution Process
FY 2020-21 audit reports) of the subsequent year (Education Code
section 41020[j][2]);
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 41020.9 [b] and [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
section 41020(n), which authorizes the SCO to facilitate correction of the
Authority
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 Mono
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 Mono 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 Mono COE addressed all attendance, inventory
of equipment, internal control, and miscellaneous exceptions. In
addition, we verified that the Mono 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 Mono COE notified LEAs that they must submit
completed corrective action forms to the Mono COE by
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Mono County Office of Education Audit Resolution Process
March 15, 2021, and April 15, 2022, for FY 2019-20 and FY 2020-21,
respectively. Our review did not include an assessment of the LEAs’
progress in taking corrective action.
We verified that the Mono COE required the LEAs to submit the
appropriate reporting forms to the SSPI for any attendance-related
exceptions that affected state funding.
We reviewed the letters of certification due on July 15, 2021, and
June 15, 2022, that the Mono COE sent to the SSPI and the SCO
regarding any resolved and unresolved audit exceptions.
We verified that the Mono COE followed up with unresolved prior-
year audit exceptions that the SSPI had required the Mono COE to
conduct.
We verified that the Mono 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 Mono COE followed its audit resolution process
for FY 2019-20 and FY 2020-21. As a result, the Mono COE substantially
complied with Education Code section 41020 for FY 2019-20 and
FY 2020-21, except for the late submission of the FY 2019-20 and
FY 2020-21 Certification of Corrective Action forms. The Certification of
Corrective Action form for FY 2019-20, which was due to SSPI and SCO
by July 15, 2021, was received on August 27, 2021. The Certification of
Corrective Action form for FY 2020-21, which was due to SSPI and SCO
by June 15, 2022, was received on June 20, 2022. This issue is described
in the Finding and Recommendation section of this report.
We made no additional determination regarding the Mono COE’s audit
resolution process beyond the scope of the review outlined in this report.
Views of We issued a draft review report on April 3, 2023. Mono COE’s
Responsible representative responded by letter dated April 7, 2023. Mono COE agreed
Officials with the review results. This final review report includes Mono COE’s
response as an attachment.
Restricted Use This report is intended solely for the information and use of the Mono
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 and
is available on the SCO website at www.sco.ca.gov.
Original signed by
KIMBERLY TARVIN, CPA
Chief, Division of Audits
August 28, 2023
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Mono County Office of Education Audit Resolution Process
Finding and Recommendation
FINDING— The Mono COE’s Certification of Corrective Action forms for
Certification of FY 2019-20 and FY 2020-21 were submitted late. The form for
Corrective Action FY 2019-20, which was due to SSPI and SCO by July 15, 2021, was
received on August 27, 2021. The form for FY 2020-21, which was due to
forms submitted
SSPI and SCO by June 15, 2022, was received on June 20, 2022.
late
A lack of written policies and procedures combined with fewer staff and
turnover caused the Mono COE to submit the certifications after their due
dates.
Education Code section 41020(k) states:
(1) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that the county
superintendent of schools’ staff has reviewed all audits of local
educational agencies under the county superintendent of schools’
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.
(2) For audit reports for the 2020–21 fiscal year, the deadline for
certification referenced in paragraph (1) shall instead be filed no later
than June 15, 2022.
Education Code section 41020.9(b) states, in part:
Notwithstanding subdivision (h) of Section 41020 or subdivision (m) of
Section 47605, for audit reports for the 2019–20 fiscal year, a local
educational agency shall file an annual audit report with the county
superintendent of schools of the county in which the local educational
agency is located, the Superintendent, the Controller, and, if applicable,
to its chartering authority, by March 31, 2021, and notwithstanding
subdivision (k) of Section 41020, the county superintendent of schools
shall submit the required certification to the Superintendent and the
Controller by July 15, 2021.
Recommendation
We recommend that Mono COE:
Establish written policies and procedures to ensure compliance with
Education Code requirements and provide for continuity of
operations; and
Provide Certification of Corrective Action forms to the SCO and SSPI
by the due dates required by Education Code section 41020.
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Mono County Office of Education Audit Resolution Process
Attachment—
Mono County Office of Education’s
Response to Draft Review Report
State Controller’s Office
Division of Audits
Post Office Box 942850
Sacramento, CA 94250
www.sco.ca.gov
S23-COE-9005