(a) The Superintendent shall review and consider studies, reports, evaluations, or audits of the county office of education that contain evidence that the county office of education is demonstrating fiscal distress according to the standards and criteria adopted by the state board pursuant to Section 33127 or that contain a finding by an external reviewer that the county office of education is at moderate or high risk of intervention based on the most common indicators of school agencies needing intervention, as determined by the County Office Fiscal Crisis and Management Assistance Team. If those findings are made, the Superintendent shall investigate the financial condition of the county office of education and determine if the county office of education may be unable to meet its financial obligations for the current or two subsequent fiscal years, or should receive a qualified or negative interim financial certification pursuant to Section 1240. (b) If at any time during the fiscal year the Superintendent determines that the county office of education may be unable to meet its financial obligations for the current or two subsequent fiscal years, or if the county office has a qualified or negative certification pursuant to Section 1240, the Superintendent shall provide a written notice of going concern determination to the county board of education and the county superintendent of schools and the basis for the determination. The notification shall include the assumptions used in making the determination and shall be available to the public. The Superintendent shall take all actions that are necessary, including at least one of the following, to ensure that the county office of education meets its financial obligations: (1) Assign a fiscal expert, paid for by the Superintendent, to advise the county office of education on its financial problems. (2) Conduct a study of the financial and budgetary conditions of the county office of education that includes, but is not limited to, a review of the county office of educationâs internal controls. If in the course of this review, the Superintendent determines that their office requires analytical assistance or expertise that is not available through the county office, the Superintendent may employ, at the county office of educationâs expense, on a short-term basis, staff, including certified public accountants, to provide the assistance and expertise. (3) Direct the county office of education to submit a financial projection of all fund and cash balances of the county office of education as of June 30 of the current year and subsequent fiscal years as the Superintendent requires. (4) Require the county office of education to encumber all contracts and other obligations, to prepare appropriate cashflow analyses and monthly or quarterly budget revisions, and to appropriately record all receivables and payables. (5) Direct the county office of education to submit a proposal for addressing the fiscal conditions that resulted in the determination that the county office of education may not be able to meet its financial obligations. (6) Withhold compensation of the county board of education and the county superintendent of schools for failure to provide requested financial information. (c) If, after taking the actions identified in subdivision (a), the Superintendent determines that a county office of education will be unable to meet its financial obligations for the current or subsequent fiscal year or if a county office of education experiences a significant fiscal event that is determined by the Superintendent to have an immediate severe fiscal impact that will cause a county office of education to be unable to meet its financial obligations for the current or subsequent fiscal year, the Superintendent shall notify the county board of education, the county superintendent of schools, and the president of the state board, or the presidentâs designee, in writing of that determination
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