School districts, county offices of education, and local agencies: financial postings.

(1) Existing law requires, not later than May 1 of each fiscal year, each county superintendent of schools to provide for an audit of all funds under their jurisdiction and control, and requires the governing board of each local educational agency to either provide for an audit of the books and accounts of the local educational agency or make arrangements with the county superintendent of schools having jurisdiction over the local educational agency to provide for that auditing. Existing law requires, by January 31 of each year, the governing body of each local educational agency to review, at a public meeting, the annual audit of the local educational agency for the prior year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue. This bill would require governing boards of school districts and county superintendents of schools to post their annual audit report on their internet websites within 30 days of the report being filed with the county superintendent of schools or formally received by the governing board, as specified. The bill would impose a civil penalty of $1,000 on a school district or county superintendent of schools that fails to post the report within that time period and would authorize the Superintendent of Public Instruction to assess this penalty upon a finding of that violation, or upon receipt of a valid complaint from a member of the public of that violation, as prescribed. (2) Existing law requires, within 7 months after the close of each fiscal year or within the time prescribed by the Controller, whichever is later, the officer of each local agency, as defined, who has charge of the financial records to furnish to the Controller a report of all the financial transactions of the local agency during the preceding fiscal year, as specified. Existing law requires the report to contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, as specified, and to state certain information, including the aggregate income during the preceding fiscal year. Existing law requires the legislative body, upon completion of the report, to either post the report in a conspicuous location on its internet website or to cause copies of the report to be prepared and the clerk of the legislative body to furnish a copy to any person requesting it, as specified. This bill would require a local agency, as defined, that maintains an internet website to post its audited financial statements, or its annual comprehensive financial report, on its internet website within 30 days of the date that the statements or report are formally received, approved, or accepted by the legislative body of the local agency, as specified. The bill would impose a civil penalty of $1,000 on a local agency that fails to post the report within that time period and would authorize the Controller to assess this penalty upon a finding of that violation, or upon receipt of a valid complaint from a member of the public of that violation, as prescribed. The bill would require penalties collected pursuant that provision to be deposited into the Local Agency Transparency Fund, which the bill would create in the State Treasury, to be available upon appropriation for the administrative costs of the Controller in enforcing the provision. By imposing additional duties on school districts, county superintendents of schools, and local agencies, the bill would impose a state-mandated local program. (3) The bill would include findings and declarations related to these provisions. (4) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.