Today's Law As Amended

PDF |Add To My Favorites |Track Bill | print page

SB-593 Nonclassroom-based charter schools: audit requirements.(2021-2022)

As Amends the Law Today


 Section 47612.8 is added to the Education Code, to read:

 (a) (1) On or before July 1, 2022, the County Office Fiscal Crisis and Management Assistance Team (FCMAT) shall begin offering training, updated each fiscal year, for auditors of nonclassroom-based charter schools. This training shall relate to the review of charter school financial documents for a better understanding of the process of conducting an annual, independent financial audit and how to identify irregular practices and documents.
(2) An auditor of nonclassroom-based charter schools shall not perform any aspect of a nonclassroom-based charter school audit for the 2022–23 school year or thereafter before receiving training provided pursuant to paragraph (1).
(3) FCMAT shall apply to have the training provided pursuant to paragraph (1) count toward continuing education requirements for auditors, provided that overall continuing education requirements for those auditors are not increased.
(4) FCMAT shall be authorized to charge training participants fees sufficient to cover the costs to FCMAT of developing and providing training pursuant to paragraph (1).
(b) An auditor of a nonclassroom-based charter school, when performing an audit described in Section 41020 or subparagraph (I) of paragraph (5) of subdivision (c) of Section 47605, shall do all of the following:
(1) (A) Contact a random sample, to be selected by the auditor, of parents or guardians of pupils, emancipated pupils, or other custodians of pupils enrolled in the charter school to verify their enrollment.
(B) As part of the random sample of documents selected and reviewed by the auditor under this subdivision, the sampling of credit card statements, debit card statements, other electronic payment methods and media, and bank statements of the charter school shall be subject to an enhanced materiality standard deemed appropriate pursuant to the process described in Section 14502.1.
(2) Identify in the audit report any transfers of funds or assets to other individuals or organizations that exceed one million dollars ($1,000,000) or 10 percent of the charter school’s budget, whichever is less, together with a written explanation from the school regarding the school purpose for each such expenditure.
(3) Identify any other transaction that is irregular, as defined in the training provided pursuant to paragraph (1) of subdivision (a).
(4) Include a letter with the audit report discussing any concerns or findings of the auditor relating to factors arising from the auditor’s activities under this subdivision, or arising from the lack of those factors, together with a response by the charter school if the charter school chooses to make a response.
(c) For purposes of this section:
(1) “Auditor of a nonclassroom-based school” means any certified public accountant assigned to a nonclassroom-based charter school audit, as described in Section 41020 or subparagraph (I) of paragraph (5) of subdivision (c) of Section 47605.
(2) “Nonclassroom-based charter school” means a charter school that offers nonclassroom-based instruction pursuant to paragraph (2) of subdivision (e) of Section 47612.5 for more than 20 percent of the instructional time offered by the charter school.