School districts: emergency apportionments: audits.

Existing law authorizes the governing board of a school district to request an emergency apportionment under certain circumstances and requires the school district, if it accepts the emergency apportionment, to agree to specified conditions. Existing law requires the Controller, or his or her designee, to cause an audit to be conducted of the books and accounts for the school district for the fiscal year in which the apportionments are disbursed and each year thereafter until the Controller determines, in consultation with the Superintendent of Public Instruction, that the school district is financially solvent, but in no event earlier than one year following the implementation of the required fiscal plan or later than the time the apportionment made is repaid, including interest. This bill would provide that if an audit finds that a school district has not complied with the conditions of apportionment that the school district has 2 years from the date of the final audit report to correct the deficiencies that led to the audit finding. The bill would authorize the Education Audit Appeals Panel to waive or reduce the reimbursement or penalty amount if specified determinations are made, but would require the school district to repay the reimbursement and penalty and waive the school district's right to appeal if the deficiencies are not corrected within 2 years. The bill would also provide that these provisions do not apply in specified circumstances.