California Code of Regulations › Title 2 - Administration › Division 2 - Financial Operations › Chapter 3 - Department of General Services › Subchapter 4 - Office of Public School Construction › Group 1 - State Allocation Board › Subgroup 5.5 - Regulations Relating to the Leroy F. Greene School Facilities Act of 1998: (School Facility Program) › Article 11 - Miscellaneous School Facility Program Requirements › Section 1859.106 - Program Accountability Expenditure Audit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The projects will be audited to assure that the
							 expenditures incurred by the district were made in accordance with the
							 provisions of Education Code Section
							 17072.35
							 for new construction projects, Section
							 1859.120 for Joint-Use Projects,
							 Section 1859.140 for Critically Overcrowded
							 School projects, Section
							 1859.160 for Charter School
							 projects, and Education Code Section
							 17074.25
							 and Section
							 1859.79.2 for modernization
							 projects. The audit will also assure that the district complied with all site
							 acquisition guidelines as provided in Education Code Sections
							 17072.13
							 and
							 17072.14
							 and Sections
							 1859.74,
							 1859.74.1,
							 1859.74.2,
							 1859.74.3,
							 1859.74.4,
							 1859.75 and
							 1859.75.1.
An adjustment in the SFP grant will be made for the
							 following:
(a) The difference in the
						  value of the site, relocation costs, DTSC fees, and hazardous waste/materials
						  removal costs that were used to determine the New Construction Additional Grant
						  and the actual amount paid by the district for the site, relocation costs, DTSC
						  fees, and hazardous waste/materials removal costs. For applications received on
						  or after January 1, 2004, the adjustment may be made regardless of whether the
						  hazardous waste/materials removal costs were requested on the application for
						  funding.
(b) For any insurance
						  proceeds collectable by the district for displaced facilities and net proceeds
						  available from the disposition of displaced facilities pursuant to Sections
						  1859.82.1(d) and
						  1859.82.2(d).
(c) For any project that received funding
						  pursuant to 1859.71.4(c) or 1859.78.1(b), 50 percent of one-fourth of one
						  percent of the difference between the original Total Projected Bond
						  Apportionment and the newly calculated amount.
(d) Any adjustments made pursuant to this
						  Section will be made only if sufficient bond authority is available for the
						  adjustment. If an Unfunded List has been created by the Board, then any
						  adjustments made pursuant to this Section will be placed on the Unfunded
						  List.
When the OPSC receives the final expenditure report
							 from the district on Form SAB 50-06, an audit of the expenditures by the OPSC
							 shall commence within two years of the report. If the district is not notified
							 by the OPSC within the two-year period that an audit will be made, there will
							 be no audit of the project by the OPSC and the expenditures reported by the
							 district shall be deemed appropriate. If the district has been notified that an
							 audit of the expenditures will be made by the OPSC, the OPSC shall complete the
							 audit within six months of the notification, unless additional information
							 requested from the district has not been received.
Districts shall be required to maintain all
							 appropriate records that support all district certifications and expenditures
							 for all costs associated with SFP, Charter School, and Joint-Use projects for a
							 period of not less than four years from the date the notice of completion is
							 filed for the project in order to allow other agencies, including, without
							 limitation, the Bureau of State Audits and the State Controller to perform
							 their audit responsibilities.
The district is responsible to substantiate
							 expenditures from the Joint-Use Partner(s) financial contribution pursuant to
							 Section 1859.127 and from other local
							 sources.
Should the OPSC conduct an audit of the district
							 certifications or the expenditures for the project and make a finding that some
							 or all of the expenditures were not made in accordance with the provisions of
							 Education Code Section
							 17072.35
							 for new construction projects, Section
							 1859.120 for Joint-Use Projects,
							 Section 1859.140 for Critically Overcrowded
							 School projects, Section
							 1859.160 for Charter School
							 projects, Education Code Section
							 17074.25
							 and Section
							 1859.79.2 for modernization
							 projects, and Education Code Sections
							 17072.13
							 and
							 17072.14
							 for projects with additional costs imposed by the DTSC, the OPSC shall
							 recommend to the Board that the apportionment be adjusted based on the audit
							 findings.
Should the CDE make a finding that a project did not
							 meet the standards that were adopted by the CDE pursuant to Education Code
							 Section
							 17251(b) and
							 (c) when the district had self-certified that
							 the project met those standards pursuant to Education Code Section
							 17070.50(b),
							 the Board may request that the CDE make a recommendation that the apportionment
							 for the project be adjusted based on the CDE finding. Any adjustment in the
							 apportionment shall be based on the percentage of space in the project that the
							 CDE determined did not meet those standards.
If title to special education program facilities is
							 transferred between a school district and a county office of education pursuant
							 to Education Code Sections
							 17071.75(b)(2) and
							 (f), the receiving School District shall
							 remit payment to the State within 60 days or up to five years, pursuant to an
							 approved repayment schedule, as requested by the School District. If a
							 repayment schedule is requested, it shall be in equal installments and shall
							 include interest at the same rate as that earned on the State's Pooled Money
							 Investment Account on the date a repayment schedule is approved by the Board.
							 The repayment amount shall be determined by prorating the Financial Hardship
							 assistance received on the initial Apportionment for the transferred
							 facilities, including site acquisition costs apportioned for any land
							 transferred, by the percentage of building area being transferred divided by
							 the total amount of building area approved on the initial Application
							 containing the transfer of facilities, if all of the following conditions are
							 met:
(a) The transferred facilities
						  were constructed with State funds under Chapter 12.5.
(b) Transfer of the facilities took place
						  within ten years of initial occupancy.
(c) The School District that initially
						  acquired or constructed the transferred facilities had approved Financial
						  Hardship status at the time of Apportionment of the project.
(d) The School District receiving the
						  facility did not have approved Financial Hardship status at either the time of
						  the title transfer or the time that the adjustment request is submitted to the
						  OPSC.
1. New
							 section filed 12-3-98 as an emergency; operative 12-3-98 (Register 98, No. 49).
							 A Certificate of Compliance must be transmitted to OAL by 4-2-99 or emergency
							 language will be repealed by operation of law on the following
							 day.
2. New section refiled 3-31-99 as an emergency; operative
							 3-31-99 (Register 99, No. 14). A Certificate of Compliance must be transmitted
							 to OAL by 7-29-99 or emergency language will be repealed by operation of law on
							 the following day.
3. New section refiled 7-29-99 as an emergency;
							 operative 7-29-99 (Register 99, No. 31). A Certificate of Compliance must be
							 transmitted to OAL by 11-26-99 or emergency language will be repealed by
							 operation of law on the following day.
4. Certificate of Compliance
							 as to 7-29-99 order, including amendment of section and NOTE, transmitted to
							 OAL 8-26-99 and filed 10-8-99 (Register 99, No. 41).
5. Amendment of
							 third paragraph filed 3-13-2000; operative 4-12-2000 (Register 2000, No.
							 11).
6. Amendment filed 6-26-2000; operative 6-26-2000 pursuant to
							 Government Code section
							 11343.4(d)
							 (Register 2000, No. 26).
7. Amendment of section and NOTE filed
							 4-10-2002; operative 4-10-2002 pursuant to Government Code section
							 11343.4
							 (Register 2002, No. 15).
8. Amendment of section and NOTE filed
							 11-4-2002 as an emergency; operative 11-4-2002 (Register 2002, No. 45).
							 Pursuant to Education Code section
							 17070.35 a
							 Certificate of Compliance must be transmitted to OAL by 11-4-2003 or emergency
							 language will be repealed by operation of law on the following
							 day.
9. Amendment of section and NOTE filed 2-13-2003 as an
							 emergency pursuant to Education Code section
							 17078.64(b);
							 operative 2-13-2003 (Register 2003, No. 7). A Certificate of Compliance must be
							 transmitted to OAL by 6-13-2003 or emergency language will be repealed by
							 operation of law on the following day.
10. Amendment of first
							 paragraph and penultimate paragraph filed 5-1-2003 as an emergency; operative
							 5-1-2003 (Register 2003, No. 18). A Certificate of Compliance must be
							 transmitted to OAL by 8-29-2003 or emergency language will be repealed by
							 operation of law on the following day.
11. Amendment of section and
							 NOTE refiled 6-13-2003 as an emergency; operative 6-13-2003 (Register 2003, No.
							 24). A Certificate of Compliance must be transmitted to OAL by 10-13-2003 or
							 emergency language will be repealed by operation of law on the following
							 day.
12. Amendment of first paragraph and penultimate paragraph
							 refiled 8-29-2003 as an emergency; operative 8-29-2003 (Register 2003, No. 35).
							 A Certificate of Compliance must be transmitted to OAL by 12-29-2003 or
							 emergency language will be repealed by operation of law on the following
							 day.
13. Amendment of section and NOTE refiled 10-9-2003 as an
							 emergency; operative 10-9-2003 (Register 2003, No. 41). A Certificate of
							 Compliance must be transmitted to OAL by 2-6-2004 or emergency language will be
							 repealed by operation of law on the following day.
14. Certificate
							 of Compliance as to 11-4-2002 order transmitted to OAL 11-4-2003 and filed
							 12-19-2003 (Register 2003, No. 51).
15. Amendment of first paragraph
							 and subsection (c) refiled 12-22-2003 as an emergency; operative 12-22-2003
							 (Register 2003, No. 52). A Certificate of Compliance must be transmitted to OAL
							 by 4-20-2004 or emergency language will be repealed by operation of law on the
							 following day.
16. Certificate of Compliance as to 10-9-2003 order
							 transmitted to OAL 2-6-2004 and filed 3-23-2004 (Register 2004, No.
							 13).
17. Certificate of Compliance as to 12-22-2003 order
							 transmitted to OAL 4-19-2004 and filed 5-25-2004 (Register 2004, No.
							 22).
18. Amendment of section and NOTE filed 2-3-2005; operative
							 2-3-2005 pursuant to Government Code section
							 11343.4
							 (Register 2005, No. 5).
19. Amendment of last two paragraphs of
							 subsection (b) filed 1-8-2007 as an emergency; operative 1-8-2007 (Register
							 2007, No. 2). A Certificate of Compliance must be transmitted to OAL by
							 5-8-2007 or emergency language will be repealed by operation of law on the
							 following day.
20. Certificate of Compliance as to 1-8-2007 order
							 transmitted to OAL 5-8-2007 and filed 6-20-2007 (Register 2007, No.
							 25).
21. Amendment filed 1-7-2008; operative 2-6-2008 (Register
							 2008, No. 2).
22. New subsections (c) and (d) and amendment of NOTE
							 filed 3-26-2012 as an emergency; operative 3-26-2012 (Register 2012, No. 13). A
							 Certificate of Compliance must be transmitted to OAL by 9-24-2012 or emergency
							 language will be repealed by operation of law on the following
							 day.
23. Certificate of Compliance as to 3-26-2012 order transmitted
							 to OAL 8-21-2012 and filed 10-2-2012 (Register 2012, No. 40).
24.
							 Repealer and new subsection (b) filed 8-31-2020 as an emergency; operative
							 8-31-2020 (Register 2020, No. 36). Emergency expiration extended 60 days
							 (Executive Order N-40-20) plus an additional 60 days (Executive Order N-66-20).
							 A Certificate of Compliance must be transmitted to OAL by 6-29-2021 or
							 emergency language will be repealed by operation of law on the following
							 day.
25. Certificate of Compliance as to 8-30-2020 order transmitted
							 to OAL 5-5-2021 and filed 6-16-2021 (Register 2021, No.
							 25).
Note: Authority cited: Section
								17070.35,
								Education Code. Reference: Sections
								17070.35,
								17070.50,
								17071.75,
								17072.13,
								17072.14,
								17072.18,
								17072.35,
								17074.25,
								17076.10,
								17077.40,
								17078.52
								and
								17251,
								Education Code; and Section
								1771.3, Labor
								Code.