Report 2017-104 Recommendation 4 Responses
Report 2017-104: Montebello Unified School District: County Superintendent Intervention Is Necessary to Address Its Weak Financial Management and Governance (Release Date: November 2017)
Recommendation #4 To: Los Angeles County Office of Education
To ensure that Montebello takes the steps necessary to prevent state intervention and regain its positive financial certification, the county superintendent should ensure that Montebello implements all of the recommendations detailed in the report.
Annual Follow-Up Agency Response From September 2023
MUSD has filed a positive certification at the FY 22/23 1st and 2nd interim periods, and although severely deficit spending, has indicated in their FY 23/24 budget submission, they will meet the required reserve amounts of 3 percent in the current and subsequent two fiscal years, demonstrating they have regained and continue to maintain a positive certification. A better financial position of MUSD will be known after the FY 23/24 1st Interim period. As previously noted, MUSD has been directed to submit a board-approved fiscal stabilization plan in an effort to curtail their projected level of deficit spending.
- Estimated Completion Date: ongoing
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2022
As stated in the above responses, MUSD has filed a positive certification at the FY 21/22 2nd interim period, and although severely deficit spending, has indicated in their FY 22/23 budget submission that they will meet the required reserve amounts of 3 percent in the current and subsequent two out years, demonstrating they have regained and continue to maintain a positive certification. A better financial position of MUSD will be known after the FY 22/23 1st Interim period.
- Estimated Completion Date: Unknown
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2021
The District continues to work on its action plan to address the issues identified in the audit report. However, due to the COVID-19 pandemic, the District has focused on the reopening of schools. District expenditures appear on the Board agenda and are reviewed by the LACOE Fiscal Advisor. The vacancies and appointments of Interim Superintendent and Interim Assistant Superintendent of Business Services hinder the District's progress towards fully implementing the recommendations.
- Estimated Completion Date: TBD
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2020
The district continues to work on its action plan to address issues identified in the audit report. In April 2020, the district contracted consultants to provide ongoing training to the governing board and to assist district personnel with bond oversight functions. A study session was held during a regular meeting of the district's governing board. The district's unwillingness to permanently fill the vacancy of the Assistant Superintendent of Business Services has caused LACOE to suspend Montebello's efforts to refinance the sale of general obligation bonds and to cease negotiations on the sale/development/ lease of surplus property. Although Bond audits are current, the Citizens Bond Oversight Committee has not met sense October 2019. District expenditure approvals appear on the Board agenda and are reviewed in advance by the LACOE Fiscal Expert. Questionable expenditures are requested to be pulled from the agenda and discussed prior to being presented to the governing board for approval at a later meeting.
- Estimated Completion Date: TBD
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2019
The District continues work on implementation of the recommendations. LACOE's Fiscal Advisor and Fiscal Expert Team has been working with the District to implement the recommendations. However, they have been met with resistance in working with district staff. Main obstacle continues to be the Governing Board and District Superintendent. On October 16, 2019, the District presented an update to the Governing Board on recommendations related to the Adult School Program. LACOE cannot validate the recommendations had been implemented. In November 2019, the District will present to the Governing Board updates on the financial and bond activity recommendations. An update on human resources related recommendation has not been scheduled
- Estimated Completion Date: tbd
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
The district has not implemented all recommendations detailed in the report. The previous governing board has prevented the district from addressing all the recommendations. LACOE has provided additional fiscal experts to assist with addressing the recommendations within the detailed report.
- Estimated Completion Date: tbd
- Response Date: December 2018
California State Auditor's Assessment of 1-Year Status: Pending
6-Month Agency Response
Superintendent and Board of Education continue to work together in addressing all the recommendations in the CSA Report. Progress is being made and it is expected all items will be addressed by November 2, 2018.
- Estimated Completion Date: November 2, 2018
- Response Date: May 2018
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The Governing Board of the District has passed resolutions to implement the fiscal stabilization plan and to work cooperatively with the LACOPE Fiscal Expert. Will provide copies of Board Resolutions under separate email cover.
- Estimated Completion Date: July 2018
- Response Date: January 2018
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2017-104
Agency responses received are posted verbatim.