Report 2016-141 Recommendation 44 Responses
Report 2016-141: Charter Schools: Some School Districts Improperly Authorized and Inadequately Monitored Out‑of‑District Charter Schools (Release Date: October 2017)
Recommendation #44 To: New Jerusalem Elementary School District
To better ensure effective oversight of its charter schools' finances, New Jerusalem should place a district representative as a nonvoting member on each charter school's governing board.
Annual Follow-Up Agency Response From October 2022
We have placed a district representative, Alpana Carey onto the last remaining charter board, Pacific Charter Institute.
- Completion Date: December 2021
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
New Jerusalem provided meeting minutes showing that one of its district representatives was voted to the board of its charter school, Pacific Charter Institute.
Annual Follow-Up Agency Response From October 2021
Due to covid, we had delays in getting a board member seated on the final independent school board, Valley View. We have identified two candidates, one of which will be selected by Valley View next month and be seated in December.
- Estimated Completion Date: December 2021
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Per New Jerusalem Elementary School District's response, it will not fully implement this recommendation until December 2021.
Annual Follow-Up Agency Response From October 2020
The district will be placing a representative on the only remaining board for which it does not have a current representative; Valley View Charter Prep. The representative will be placed at their December board meeting.
- Estimated Completion Date: 12/19/2020
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Per the district's response, it will not fully implement this recommendation until December 2020.
Annual Follow-Up Agency Response From October 2019
The District is monitoring the agendas of the governing boards of the independent charter schools it authorized. The operating memorandums of understanding between the District and each independent charter school require the charter school to provide the agenda and board packet to the District in advance of the meeting, and the District ensures it receives and reviews the agendas prior to the meeting. When questions arise regarding agenda items, the District contacts the charter school directly. At this time, the District has not placed a district representative as a nonvoting member on each independent charter school's governing board upon the advice of its legal counsel. California law does not permit nonvoting members on the governing boards of nonprofit corporations, pursuant to Corporations Code section 5047. There are also concerns regarding potential conflicts of interest when a District representative serves on the governing board of an organization over which the District exercises oversight authority.
The District's Board of Trustees is the governing board of the dependent charter schools supported by District.
California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement
We stand by our recommendation that New Jerusalem should exercise its right to place a district representative as a nonvoting member on each charter school's governing board. As noted in Figure 3 of the audit report, New Jerusalem waited nine months for its district representative to be appointed to the governing board of one of its charter schools. During that time, the charter school's governing board entered into a questionable lease and did not report that lease to the district, thus exacerbating the charter school's financial issues. Therefore, we believe that New Jerusalem could ensure timely oversight of its charter schools by placing a district representative on each charter school's governing board.
1-Year Agency Response
The District is monitoring the agendas of the governing boards of the independent charter schools it authorized. The operating memorandums of understanding between the District and each independent charter school require the charter school to provide the agenda and board packet to the District in advance of the meeting, and the District ensures it receives and reviews the agendas prior to the meeting. When questions arise regarding agenda items, the District contacts the charter school directly. At this time, the District has not placed a district representative as a nonvoting member on each independent charter school's governing board upon the advice of its legal counsel. California law does not permit nonvoting members on the governing boards of nonprofit corporations, pursuant to Corporations Code section 5047. There are also concerns regarding potential conflicts of interest when a District representative serves on the governing board of an organization over which the District exercises oversight authority.
The District's Board of Trustees is the governing board of the dependent charter schools supported by District.
- Response Date: October 2018
California State Auditor's Assessment of 1-Year Status: No Action Taken
The district notes that California Corporations Code section 5047 prevents it from implementing this recommendation with regard to nonvoting board members. However, California Education Code section 47604(b) also allows districts to place a representative on the board of directors of their charter schools' nonprofit public benefit corporations. Thus, we believe that districts can still place a district representative on a charter school's board.
6-Month Agency Response
The district has developed policies which will allow for the placement of a district representative on each charter school's governing board.
- Estimated Completion Date: July 1, 2018
- Response Date: April 2018
California State Auditor's Assessment of 6-Month Status: Pending
Per New Jerusalem's response, its implementation of this recommendation is currently pending.
60-Day Agency Response
The district currently has a member on the board of most of the charter schools they have approved. The district will work with the remaining charter schools to place a member on their board.
- Estimated Completion Date: April 2018
- Response Date: February 2018
California State Auditor's Assessment of 60-Day Status: Pending
Per New Jerusalem's response, its implementation of this recommendation is currently pending.
All Recommendations in 2016-141
Agency responses received are posted verbatim.