Santa Clara County Civil Grand Jury by

Note: Missing finding numbers detected: F5, F6

Comments 6

• CO1 Page 1
  Community colleges and K-12 boards of trustees are responsible for inventory control. Hmvever, after interviewing ALL board of trustee presidents it was evident they were unaware oftneir obligations under the law. Response to Finding 1 CUHSD agrees in part with Finding Number 1. CUBSD agrees that K-12 boards of trustees are responsible for inventory control. However, CUHSD disagrees with Finding Number 1in that CUHSD has inadequate information regarding other Boards of Trustees Presidents.
• CO2 Page 2
  No trustees or superintendents have been trained in inventory control. Inventory control training for board members and superintendents is not mandated by the State, resulting in a lack of familiarity and inconsistent application of inventory requirements by many districts. Response to Finding 2 CUHSD disagrees with Finding Number 2 in that CUHSD has inadequate information regarding other school districts.
• CO3 Page 3
  With the exception of Santa Clara Unified and Los Gatos Unified School Districts, all K 12districts 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. Response to Finding 4 CUHSD disagrees with Finding Number 4 as the District reconciles it's current inventory against prior year inventory.
• CO4 Page 2
  All district superintendents, and district staff report incomplete inventory information to their boards. This results in lack of knowledge about the value and size of their inventory. Response to Finding Number 3 The District disagrees with Finding Number 3 in that CUHSD has inadequate information regarding other school districts. CUHSD further disagrees as the District is in compliance with Education code section 35168 and maintains an inventory of all items valued in excess of $500.
• CO5 Page 3
  There is a potential for abuse in K-8 and K-12 districts when those who report to superintendents approve credit card transactions and purchase orders made by their superintendent. Response to Finding Number 7 The District agrees with Finding Number 7.
• CO6 Page 1
  Finding 1 Community colleges and K-12 boards of trustees are responsible for inventory control. Hmvever, after interviewing ALL board of trustee presidents it was evident they were unaware oftneir obligations under the law. Response to Finding 1 CUHSD agrees in part with Finding Number 1. CUBSD agrees that K-12 boards of trustees are responsible for inventory control. However, CUHSD disagrees with Finding Number 1in that CUHSD has inadequate information regarding other Boards of Trustees Presidents. Recommendation 1 Trustees should review and be knowledgeable of Education Code 35168 for K-12 to ensure complete implementation . ••oymonHlgn:;cnool BranhamHighSchool CamdenCommunityDaySchool DelMarHighSchool LeighHighSchool ProspectHighSchool WestmontHighSchool M.Madalinski,Principal T. Utic,Principal M.Madalinski,Principal J. Russell,Principal D.Hope,Principal D.Burbank,Principal o.Hege,Principal 626-3404 626-3407 626-3409 626-3403 626-3405 626-3408 626-3406 AN EQUAL OPPORTUNITY EMPLOYER Response to Recommendation 1 CUHSD has implemented Recommendation 1. Finding 2 No trustees or superintendents have been trained in inventory control. Inventory control training for board members and superintendents is not mandated by the State, resulting in a lack of familiarity and inconsistent application of inventory requirements by many districts. Response to Finding 2 CUHSD disagrees with Finding Number 2 in that CUHSD has inadequate information regarding other school districts. Recommendation 2 All Santa Clara County school board trustees and superintendents should be required to review and understand Education Code 35168 and BAM requirements for inventory control. For K-12 districts, the COE should take the lead in providing comprehensive training on inventory control, in conjunction with the release of the new inventory tracking module within Quintessential Software Systems spearheaded by the COE. Response to Recommendation Number 2 CUHSD has implemented Recommendation 2 by reviewing Education Code 35168 with our Board of Trustees. The recommendation requires further analysis as pertains to the COE taking the lead in providing comprehensive training on inventory control, in conjunction with the release of the new inventory tracking module within Quintessential Software Systems. The CUHSD will work with the COE during the 2009-2010 school year to understand the COE's plan. Finding 3 All district superintendents, and district staff report incomplete inventory information to their boards. This results in lack of knowledge about the value and size of their inventory. Response to Finding Number 3 The District disagrees with Finding Number 3 in that CUHSD has inadequate information regarding other school districts. CUHSD further disagrees as the District is in compliance with Education code section 35168 and maintains an inventory of all items valued in excess of $500. Recommendation 3 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 a proposed plan to resolve discrepancies. Response to Recommendation Number 3 CUHSD will implement Recommendation Number 3 prior to the end of school year 2009-2010. Finding 4 With the exception of Santa Clara Unified and Los Gatos Unified School Districts, all K 12districts 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. Response to Finding 4 CUHSD disagrees with Finding Number 4 as the District reconciles it's current inventory against prior year inventory. Recommendation 4 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 districts to implement safeguards to prevent future losses. Response to Recommendation Number 4 CUHSD has implemented Recommendation Number 4. Finding 7 There is a potential for abuse in K-8 and K-12 districts when those who report to superintendents approve credit card transactions and purchase orders made by their superintendent. Response to Finding Number 7 The District agrees with Finding Number 7. Recommendation 7 To strengthen internal controls and ensure fiscal accountability, purchases made by K-8 and K-12 Superintendents should be approved by the Boards of Trustees prior to purchase. In the event an immediate purchase is required, 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. Response to Recommendation Number 7. CUHSD will implement Recommendation Number 7by the end of school year 2009 2010. Sincerely, Patrick K. Gaffney Deputy Superintendent

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