I::OMAPRiETA I·joint. Union· School· District· I

R1

Trustees should review and be knowledgeable ofEducation Code 35168for K-12 and Education Code 81600for Community Colleges. Response: This recommendation will be implemented. We will be incorporating CSBA language into the Board of Education' spolicies and procedures and will incorporate areview of Education Code 35168 within the 2009-10 fiscal year.

R2

All Santa Clara County school board trustees and superintendents/chancellors should be required to review and understand Education Code 35168 and 81600 and BAM (Community College Budget and Accounting Manual) requirements for inventory control. Response: This recommendation will be implemented in the 2009-10 fiscal year when the Board addresses the Board policy update. For K-12 Districts, the COE should take the lead inproviding 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: This recommendation will be implemented. The SCCOE plans to launch the inventory tracking/fixed asset module of the Quintessential Software Systems in fiscal year 2009-10 and will offer training for interested districts.

R3

All Boards of Trustees should require apresentation on the results of their districts' biennial inventory, including total value, variances resulting from the reconciliation between past and current inventories and aproposed plan to resolve discrepancies. 10f3 9/18/2009 Response: This recommendation will be partially implemented. The results of the annual inventory are contained in the Combined Annual Financial Reports which are presented to the Board each year. However, with our current fiscal outlook it is doubtful that there are funds to commit personnel or contractor funds required to perform this work. This is not a high priority item, as we have had fairly low exposure to loss of inventory. Additionally, this level of full inventory is not mandated by Education Code. The California State Accounting Manual states that the California Department recommends an annual inventory, but goes on to quote the Federal Register that: A physical inventory of equipment shall be taken and the results reconciled with theproperty records at least once verv 2 vears to verifY 4 the existence, current utilization, and continued needfor the equipment. statistical samoling basis is acceptable .... (CSAM Procedure 410)

R4

All K-12 school districts should reconcile the most current, full inventory with prior inventories, to identifY missing items andpotential losses/thefts. The results will enable the districts to implement safeguards toprevent future losses. Response: this will be implemented in 09-10.

R5

See categories (A)(B)(C)(D): Response: Please see responses to recommendations 1and 3.

R7

To strengthen internal controls and ensurefiscal accountability, purchases made by the K-8 and K-J2 Superintendents should be approved by the Boards of Trustees prior topurchase. In the event an immediate purchase is required, post approval by the Board would ensure no conflicts of interest or abuses occur. • All K-8 and K-J2 District Boards of Trustees Response #7: The recommendation will be implemented by October 30,2009. Inventory purchases will be approved by the Board of Trustees prior to purchase. In the event an immediate purchase is required, post-approval by the Board will occur. Expenditures should bepresented separately from the Board's consent calendar to ensure proper scrutiny. Response: The recommendation will not be implemented because it is not warranted. If a Board member wishes to discuss an item on the consent calendar, he/she can and will request that the consent item in question be pulled and scrutinized. Credit card statements and a listing of disbursements should beprovided to the Boardfor approval. Response: This recommendation will be implemented by October 30,2009. The Superintendent will provide credit card statement on a monthly basis. 30f3