Santa Clara County Grand Jury • 2008-2009

SEP 2 ZaDY David H.yamasa September 8, 2009 Chief Executive Officer/CI

Published: September 08, 2009 4 pages
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Findings and Recommendations 7 findings

F1
Community colleges and K-J2 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. SCCOE Response: SCCOE agrees that Boards are responsible for inventory control. However SCCOE is not in the position to know whether Board members are aware of their 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. SCCOE Response: This recommendation will be implemented. SCCOE is incorporating California School Boards Association (CSBA) language into the Board of Education's policies and procedures and will incorporate a review of Education Code 35168 within ,the 2009-10 fiscal year.
F2
No trustees or s.uperintendents/chancellors have been trained in inventory control. Inventory control trainingfor board members and superintendents is not mandated by the State, resulting in a lack offamiliarity and inconsistent application of inventory requirements by many districts. SCCOE Response: SCCOE agrees that inventory control training for board members and superintendents is not mandated by the state. The SCCOE is not in the position to know if trustees· and superintendents have been trained.
Related Recommendations (1)
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. SCCOE Response: This recommendation will be implemented in the 2009-10 fiscal year. SCCOE is incorporating CSBA language into the Board of Education's policies and procedures and will incorporate areview of Education Code 35168 within the 2009-10 fiscal year. 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. SCCOE Response: This recommendation will be implemented. 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.
F3
All district superintendents, chancellors and district staff report incomplete inventory information to their boards. This results inlack of knowledge about the value and size of their inventory. 10f3 SCCOE Response: We disagree. SCCOE has not seen the data, and consequently is not in the position to determine which boards have a lack of knowledge about the value and size of their inventory.
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 the reconciliation between past and current inventories and aproposed plan to resolve discrepancies. SCCOE 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 SCCOE Board each year.
F4
With the exception of Santa Clara Unified and Los Gatos Unified School Districts, all K-I2 districtsjail 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, takepreventive measures, and obtain timely reimbursement may be lost. SCCOE Response: Based upon the information contained inthe matrix, the SCCOE is not required to respond to this finding.
Related Recommendations (1)
R4
All K-I2 school districts should reconcile the most current, full inventory withprior inventories, to identify missing items and potentiallosseslthefts. The results will enable the districts to implement safeguards toprevent future losses. SCCOE Response: Based upon the information contained inthe matrix, the SCCOE is not required to respond to this finding.
F5
Many K-I2 Districts are notfollowing requirements for inventory control as stated inEducation 35168, and/or their ownpolicies: SCCOE Response: Based upon the information contained in the matrix, the SCCOE is not required to respond to this finding.
Related Recommendations (1)
R5
See categories (A)(B)(C)(D): SCCOE Response: Based upon the information contained inthe matrix, the SCCOE is not required to respond to this finding.
F6
Some school districts observed by the Grand Jury had a demonstrated understanding of the needfor inventory control. Best practices include documenting and following aprocess, conforming to the Education Code requirements, andperforming reconciliation toprior inventories. Thefollowing districts are to be commended on their bestpractices: • Fremont Union School District • Los Gatos Elementary District 20f3 • Moreland School District • Orchard School District • Santa Clara Unified School District SCCOE Response: Based upon the information contained in the matrix, the SCCOE is not required to respond to this finding.
No recommendations for this finding
F7
There is apotential for abuse inK-8 and K-I2 districts when those who report to superintendents approve credit card transactions andpurchase orders made by their superintendent. SCCOE Response: We agree there is potential for abuse when appropriate internal controls are not established and followed.
Related Recommendations (1)
R7
To strengthen internal controls and ensure fiscal accountability, purchases made by the K-8 and K-I2 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. SCCOE Response: This recommendation will not be implemented because it is unreasonable. Given that the board only meets once or twice each month it is not practical to require advance approval for all purchases. The SCCOE will analyze the feasibility of implementing post-approval action by the board. Expenditures should bepresented separately from the Board's consent calendar to ensure proper scrutiny. SCCOE Response: The recommendation will not be implemented because it is not warranted. Board members can request that any consent item be moved to study action for discussion and review. Credit card statements and a listing of disbursements should beprovided to the Board for approval. SCCOE Response: This recommendation will be implemented by January, 2010. The County Superintendent will provide the credit card statement and the monthly financial report which details disbursements. These items will be submitted to the board for approval. 30f3

No Responses Found 1

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