Bill Text: CA AB1377 | 2009-2010 | Regular Session | Amended

California Assembly Bill 1377 (Prior Session Legislation)

Bill Title: School districts: state receivership: audits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1377 Detail]

Download: California-2009-AB1377-Amended.html

BILL NUMBER: AB 1377	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2009

INTRODUCED BY   Assembly Member Swanson

                        FEBRUARY 27, 2009

   An act to add Section 41020.9 to the Education Code, relating to
school districts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1377, as amended, Swanson. School districts: state
receivership: audits.
   Existing law requires the Superintendent of Public Instruction to
assume all the rights, duties, and powers of the governing board of
specified school districts in order to ensure the return  to
  of  the district  of   to
 fiscal solvency.  Existing law authorizes the payment of
emergency apportionments to school districts experiencing financial
difficulties and the appointment of a trustee by the Superintendent
to monitor and review the operation of the district.  Existing
law also requires each county superintendent of schools to provide
for an audit of all funds under his or her jurisdiction and control,
not later than the first day of May of each fiscal year, and the
governing board of each local educational agency to provide for an
audit of the books and accounts of the local educational agency.
   This bill would provide that, if  a trustee has been appointed
by  the Superintendent  is required  to
 assume control   monitor and review the
operation  of a school district  receiving an emergency
apportionment  , and the Controller, or his or her designee, is
required to cause an audit to be conducted of the books and accounts
of the district instead of the annual audit described above, the
Superintendent  shall   is required to 
allow the district  an appropriate period of time in which to
address the audit findings   180 days  before
penalties are assessed against the district for  any
 discrepancies that are discovered by the audit. 
   The bill also would require that, to the extent that the school
district implements corrections to an apportionment significant audit
exception or finding during the 180-day period specified above, and
those corrections result in a reduction in the required repayment,
penalty, or other fiscal impact recommended in or resulting from the
audit report, the school district would only be liable for that part
of an audit exception or finding remaining after the corrections are
made.  
   The bill would prohibit the repayment of an apportionment
significant audit exception or payment of a penalty arising from an
audit exception for a fiscal year other than the fiscal year for
which that audit was conducted or the fiscal year prior to the fiscal
year for which the audit is conducted. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 41020.9 is added to the Education Code, to
read: 
   41020.9.  Notwithstanding any other provision of law, if the
Superintendent is required to assume control of a school district in
order to ensure the return to the district of fiscal solvency and the
Controller, or his or her designee, causes an audit to be conducted
of the books and accounts of the district, instead of the audit
required by Section 41020, the district Superintendent shall allow
the shall an appropriate period of time in which to address the audit
findings before penalties are assessed for any discrepancies that
are discovered by the audit. 
    41020.9.   Notwithstanding any other provision of law:
   (a) If a trustee has been appointed over a school district
pursuant to subdivision (a) of Section 41320.1 and an audit is
conducted pursuant to subdivision (d) of Section 41320.1 for the
fiscal year in which the apportionments made pursuant to Section
41320 are disbursed, the Superintendent shall allow the school
district a period of 180 days from the date upon which the final
audit report is received by the district, during which the school
district may implement corrections to an apportionment significant
audit exception or finding related to requirements of state awards or
apportionments, including, but not necessarily limited to,
conditions of apportionment, before the school district is required
to repay the apportionment significant audit exception or to pay a
penalty arising from an audit exception made by the audit.
   (b) To the extent that the school district implements corrections
to an apportionment significant audit exception or finding during the
180-day period specified in subdivision (a), and those corrections
result in a reduction in the required repayment, penalty, or other
fiscal impact recommended in or resulting from the audit report, then
the school district shall only be liable for that part of the audit
exception or finding remaining after the corrections are made.
   (c) No repayment of an apportionment significant audit exception
or payment of a penalty arising from an audit exception made in the
audit conducted pursuant to subdivision (d) of Section 41320.1 for
the fiscal year in which the apportionments made pursuant to Section
41320 are disbursed shall be made or assessed against a school
district if those findings are related to a fiscal year other than
the fiscal year for which the audit is conducted or the fiscal year
prior to the fiscal year for which the audit is conducted.
   (d) For the purposes of the deadlines specified in Section 41344
or 41344.1, the date on which a local educational agency receives a
final audit report shall be deemed to be 180 days following the date
upon which the school district receives the final report of the audit
conducted pursuant to subdivision (d) of Section 41320.1 for the
fiscal year in which the apportionments made pursuant to Section
41320 are disbursed.