School finance: emergency apportionments: compliance audits.

Existing law authorizes the governing board of a school district to request an emergency apportionment through the Superintendent of Public Instruction if the governing board of the school district determines during a fiscal year that its revenues are less than the amount necessary to meet its current year expenditure obligations. Under existing law, if a school district accepts an emergency apportionment, that acceptance constitutes agreement by the school district to numerous conditions, among which is an agreement that the Controller, or his or her designee, or an auditor selected by the school district and approved by the Controller shall conduct an annual audit of the books and accounts of the school district, as specified. This provision requires these audits to continue until the Controller determines, in consultation with the Superintendent, that the school district is financially solvent, but in no event earlier than one year following the implementation of the school district's fiscal plan or later than the time the apportionment is repaid, including interest. This bill, for an audit conducted by the Controller, or his or her designee, would require the Controller, the Superintendent, and the school district superintendent, or their respective designees, to meet before the audit to discuss the terms of the audit and the timeline under which it will proceed.