Moreland School District Glen Ishiwata OyAlITY Education Since1851 Superintendent September 8, 2009

R1

Trustees should review and be knowledgeable of Education Code 35168 for K12 Response Recommendation 1--This recommendation will be implemented. A copy of Education Code 35168 will be added to the next regular communication with the Board of Trustees. It bears noting that the California Education Code 35168 was first enacted in 1976 and revised last in 1984. The amount of$500 has not been changed since 1984 and is out-of-date.

R2

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. Response Recommendation 2a - This recommendation will be implemented in our district. The Board of Trustees will be given a copy of Education Code 35168 before the next board meeting. 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 Recommendation 2b --The attached flow chart was developed using Education Code 35168 and the California School Accounting Manual. This document will be used to train board members and superintendent on inventory control requirements. The District will also take part in any and all comprehensive training on inventory control provided by the Santa Clara County Office of Education.

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 a proposed plan to resolve discrepancies. Response Recommendation 3--The Moreland School District performs their biennial inventory in every odd year. The inventory is performed in October, with data returned to the District by December of that year. District staff will report to the Board in April of each even year, the total value, reconciliation variances and the resolution plan to such variances.

R4

All K-12 school districts should reconcile the most current, full inventory with prior inventories, to identify missing items and potentiallosses/thefts. The results will enable the districts to implement safeguards to prevent future losses. Response Recommendation 4--In April of each even year (off biennial inventory) inventory information is submitted to sites and departments for review. The information is due back to the Business Office by June of that year. Information reviewed by site and departments shall review and reconcile to the previous year's biennial report. In the odd year the biennial report shall be reconciled to the previous year's inventory information. The reconciled information will be reported out to the board of trustees each April.

R7

To strengthen internal controls and ensure fiscal accountability, purchases made by the K-8 superintendents should be approved by the board 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 prior scrutiny. Credit card statements and a listing of disbursements should be provided to the board for approval. Response Recommendation 7--The superintendent of the Moreland School District does not have a credit card issued by the District. The District has two credit card holders - Assistant Superintendent, Business & Support Services and Office Manager. The President of the Board reviews credit card expenditures of the Office Manager during agenda setting meetings with the superintendent. The superintendent reviews credit card expenditures of the Assistant Superintendent, Business and Support Services. The District prepares monthly board reports on credit card purchases that appear on the first monthly agenda. These items along with a purchase order report for all purchases of the superintendent's department are detailed and appear under the consent agenda. If a Board member wishes to discuss an item on the consent calendar, it can be pulled and scrutinized. Sincerely, Robert Varich Board President Moreland School District "bysicallnventory ManagelDell, The purpose of taking aphysical inventory is to verify the physical existence of District property and equipmen Biennial Inventory by Outside firm Updated Report Record as Annual Site Review Reconcile part of (Apr/May) Differences Inventory Additions Annual Deletions Report to to Record Board of Trustees