Report 2017-104 Recommendation 1 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 #1 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 direct Montebello to submit a corrective action plan to address the issues identified in this report including balancing its budget, amending and adhering to its hiring procedures, and establishing adequate safeguards to ensure that policies related to bond proceeds, conflicts of interest, and the approval of expenditures are implemented and followed.

Annual Follow-Up Agency Response From October 2019

The District continues to work on its action plan to address issues identified in the audit report. The budget submitted for 2019/20 was approved by LACOE. The District continues to have vacancies at key positions within the district leadership. The District has provided no clear evidence or documentation that validates they are adhering to any hiring practices. The Districts Personnel Commission and the Governing Board have been resistant to amending any hiring practice protocols and continue to block or delay the hiring of key district leadership positions. The Districts Citizens Bond Oversight Committee has been active in the past year and meets regularly to review district bond expenditures. Bond audits are current. The District has indicated they are current with filing Conflict of Interest documents (Form 700), but District could produce no validation. District expenditures approvals appear on the Board agendas and are reviewed and approved regularly by the governing board.

  • Estimated Completion Date: tbd

California State Auditor's Assessment of Annual Follow-Up Status: Pending


1-Year Agency Response

While District has submitted a corrective action plan to address their budget issues, they continue to lack controls on hiring practices, ensuring adequate safeguards related to bond proceeds and other governance issues. 3 new Board members were elected in November 2018, but have not taken control of their governance. LACOE has provided additional Fiscal Expert staff to assist with addressing the concerns.

  • Estimated Completion Date: tbd
  • Response Date: December 2018

California State Auditor's Assessment of 1-Year Status: Pending


6-Month Agency Response

Fiscal Advisor still in place

  • Completion Date: January 2018
  • Response Date: June 2018

California State Auditor's Assessment of 6-Month Status: Pending

LACOE should instruct Montebello to submit a corrective action plan to address issues identified in this report including balancing its budget, amending and adhering to its hiring procedures, and establishing adequate safeguards to ensure that policies related to bond proceeds, conflicts of interest, and the approval of expenditures are implemented and followed.


60-Day Agency Response

Communicated with the district leadership during the budget approval process providing direction including the placement of a Fiscal Advisor in the district.

  • Completion Date: October 2017
  • Response Date: January 2018

California State Auditor's Assessment of 60-Day Status: Pending

LACOE provided us with its correspondence with Montebello on the various issues Montebello needs to address. LACOE should also instruct Montebello to submit a corrective action plan to address issues identified in this report including balancing its budget, amending and adhering to its hiring procedures, and establishing adequate safeguards to ensure that policies related to bond proceeds, conflicts of interest, and the approval of expenditures are implemented and followed.

  • Auditee did not address all aspects of the recommendation

All Recommendations in 2017-104

Agency responses received are posted verbatim.