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Findings and Recommendations 7 findings
F1
Community colleges and K-12 boards of trustees are responsible for inventory control. However, after interviewing ALL board of trustee presidents it was evident they were unaware of their obligations under the law. LASDResponse The district agrees with thefinding that boards are responsible for inventory control. However, we believe our board is generally aware of its obligations under the law.
Related Recommendations (1)
R1
Trustees should review and be knowledgeable of Education Code 35168 for K-12 and Education Code 81600 for community colleges to ensure complete implementation. LASDResponse The recommendation has not yet been implemented but willbe implemented beginning in the 2009-10 fiscal year. A copy of EC35168 has been shared with our board. Additionally, the district business manager willreview EC35168 with the board of trustees annually as part of the presentation of the unaudited actuals for the prior year. During that presentation the business manager willalso provide an update on the value of district inventory as well as comment on any reconciliations done during the prior year. Itbears noting that EC35168 wasfirst enacted in1976 and revised in1984. The threshold of $500 has not changed since 1984 and isout-of-date.
F2
No trustees or superintendents/chancellors have been trained in inventory control. Inventory control training for board members and superintendents isnot mandated by the State, resulting in alack of familiarity and inconsistent application of inventory requirements by many districts. LASDResponse The district agrees with thefinding that inventory control training isnot mandated by the state. We are not familiar with application of inventory requirements inother districts; however, inour district the majority of board members have been trained ininventory control.
Related Recommendations (1)
R2
All Santa Clara County school board trustees and superintendents/chancellors should be required to review and understand EC35168.....requirements for inventory control. For K-12 districts, the COEshould take the lead in providing comprehensive training on inventory control, in conjunction with the release of the new inventory tracking module within QSSspearheaded by the COE. LASDResponse The recommendation has not yet been implemented but the district expects it to be implemented during the 2009-10 fiscal year. Asstated above, the district board of trustees was given acopy of EC35168at the August 31, 2009 board meeting. The Santa ClaraCounty Office of Education plans to implement the inventory tracking/fixed assets module of the Quintessential Software Systems during the 2009-10fiscal year and offer training for interested districts.
F3
All district superintendents, chancellors and district staff report incomplete inventory information to their boards. This results in lack of knowledge about the value and size of their inventory. LASDResponse The district agrees with thefinding.
Related Recommendations (1)
R3
All Boards of Trustees should require apresentation on the results of their districts' biennial inventory, including total value, variances resulting from reconciliation between past and current inventories and aproposed plan to resolve discrepancies. LASDResponse See response to recommendation 1. As stated inour response to the grand jury's report last year, the district's annual financial report contains the value of all capital assets. With our current financial outlook itisdoubtful there willbefunds to commit personnel or contractor funds 1 Response to2008-09 Santa Clara County Civil Grand Jury Report required to perform abiennial inventory of all items valued at $500 or more. Thisisnot a high priority item, as we have had fairly low exposure to loss of inventory. Additionally, this level offull inventory isnot mandated by Education Codeas the grand jury report seems to imply. The California State Accounting Manual states that the California Department of Education recommends an annual inventory, but goes on to quote the Federal Register that: /lAphysical inventory of equipment shall be taken and the results reconciled with the property records at least once every 2 years to verify the existence, current utilization, and continued needfor the equipment. Astatistical samplinq basis isacceptable ... (CSAM Procedure 410). /I
F4
all K-12 districts fail to understand the need to reconcile inventories from previous years to the latest inventory update. Without reconciliation, the opportunity to: identify lost, missing or stolen items, take preventive measures, and obtain timely reimbursement may be lost. LASDResponse The district disagrees with thefinding. The district recognizes the need to reconcile inventories, but may not have the resources to perform inventories and reconciliations asfrequently asthe grand jury suggests.
Related Recommendations (1)
R4
All K-12 school districts should reconcile the most current, full inventory with prior inventories, to identify missing items and potential losses/thefts. The results will enable the districts to implement safeguards to prevent future losses. LASDResponse The recommendation has not yet been implemented but will be implemented during the 2009-10 fiscal year and biennially thereafter.
F5
Many K-12 districts are not following requirements for inventory control asstated in EC35168, and/or their own policies and procedures. A) Not applicable to LASD. B) LASDlacks Board Policy or Administrative Regulations regarding inventory, and/or failed to delegate inventory responsibility. C) LASDisnot tracking all items valued above $500 asrequired by EC35168. D) LASDdoes not conduct inventory on abiennial basisas required by Education Code. LASDResponse The district agrees with thefinding.
Related Recommendations (1)
R5
B) Board Policies/Administrative Regulations should be implemented, assigning inventory control responsibilities and training the superintendent, business manager, or appropriate designee. The district should ensure that policies remain current and in compliance. The district should provide training for staff responsible for inventory. C) LASDboard should fully implement the tracking requirements for equipment with current market value above $500 and provide training for staff responsible for inventory. D) LASDboard should conduct inventory at least biennially and track all parameters asspecified in EC35168. The district should provide training for staff responsible for inventory. LASDResponse B) The recommendation hasnot yet been implemented, but will be implemented during the 2009-10 fiscal year. Thedistrict will update its policies and administrative regulations where appropriate, review them annually in order to stay current, and provide staff training as needed. C) The recommendation has not yet been implemented, but will be implemented during the 2009-10 fiscal year including the training of staff asneeded. D) The recommendation has not yet been implemented, but will be implemented starting in the 2009-10 fiscal year. Thereafter, the district will perform biennial inventories for all items valued on or above $500. 2
F6
Not applicable. LASD Response Not applicable.
Related Recommendations (1)
R6
No recommendation. LASD Response No response.
F7
There isa potential for abuse in K-g and K-12 districts when those who report to superintendents approve credit card transactions and purchase orders made by their superintendent. LASD Response The district agrees with thefinding.
Related Recommendations (1)
R7
To strengthen internal controls and ensure fiscal accountability, purchases made by.....superintendents should be approved by the Board of Trustees prior to purchase. Inthe event an immediate purchase isrequired, post-approval by the Board would ensure no conflicts of interest or abuses occur. Expenditures should be presented separately from the Board's consent calendar to ensure proper scrutiny. Credit card statements and alisting of disbursements should be provided to the Board for approval. LASD Response Currently allcredit card purchases are reviewed carefully by the district business manager and one member of hisstaff. The district agrees that additional controls and procedures are needed. Given that the board of trustees meets only once ortwice a month, it willbe difficult to ask the board to approve superintendent expenditures ahead of time. Thedistrict willnot implement the recommendation that superintendent expenditures be separate from the board's consent calendar, because if a board member wishes to discuss an item on the consent calendar itcan be pulled and scrutinized. Therecommendation to provide credit card statements and a listing of disbursements willbe implemented during the 2009-10 fiscal year. Responses prepared by the administration and governing board of LosAltos School District. q-/tJ-09 (Date) 3
No Responses Found 2
Government entities assigned to respond to this report. No response documents have been linked in our database.
Los Altos Elementary School District
School District
Santa Clara County County Superintendent of Schools
Elected County Office