TOM TORLAKSON State Superintendent of Public Instruction Independent Study Attendance Accounting, ADA Ratios, and Other Audit Issues California Consortium for Independent Study November 17, 2014 Wendi McCaskill, California Department of Education Arlene Matsuura, California Department of Education Barrett Snider, Capitol Advisors Group

TOM TORLAKSON State Superintendent of Public Instruction AGENDA Legislative Changes Attendance Accounting Overview Independent Study Eligibility Agreements Work Assignments and Records Attendance Credit Attendance Reporting Apportionment Requirements ADA to FTE Ratio Overview Issues Comparative Ratio Independent Study Ratio Ratio Evaluation and ADA Reporting Legal Compliance Audits Audit Findings Records to Maintain School Fiscal Services Division 2

TOM TORLAKSON State Superintendent of Public Instruction Legislative Changes –Ratios calculated by grade span (Education Code Section (a)(1)) –Comparative grade span ratios can be negotiated (Education Code Section (a)(2)) –Independent study agreements can cover one year (Education Code Section 51747(c)(5)) –Signed agreements can be maintained electronically (Education Code Section 51747) –Pupil work products need not be dated and signed (Education Code Section ) –New course based option (Education Code Sections , ) School Fiscal Services Division 3

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Attendance Accounting School Fiscal Services Division 4

TOM TORLAKSON State Superintendent of Public Instruction Overview Minimum five day requirement to participate in independent study in order to generate ADA (except for charter schools) Attendance credit based on time value of work product submitted Time value determined by a certificated employee of the district Work must be submitted by established due dates in order to generate ADA For school districts time value must meet minimum day requirements School Fiscal Services Division 5

TOM TORLAKSON State Superintendent of Public Instruction Overview Independent study participation requires a master agreement to generate ADA Local education agencies must meet ADA to FTE ratio requirements. ADA that exceeds the ADA to FTE ratio threshold cannot be claimed for funding There is a 10 percent cap on continuation education and opportunity education independent study ADA Independent study pupils cannot generate more than one day of attendance per pupil, per day School Fiscal Services Division 6

TOM TORLAKSON State Superintendent of Public Instruction Pupil Eligibility Pupils must meet residency requirements Pupils over 21 cannot generate independent study ADA Pupils that have not been continuously enrolled since their 18 th birthday can only generate independent study ADA until they are 19 Pupils with an IEP must have independent study included in IEP in order to participate Home and Hospital ADA cannot be generated through independent study Community day school pupils are not eligible for independent study School Fiscal Services Division 7

TOM TORLAKSON State Superintendent of Public Instruction Pupil Eligibility Students suspended or expelled are excluded from school, thus they are also excluded from independent study 10 percent cap on continuation and opportunity school pupils –Based on P-2 ADA –Cap does not apply to pupils who are pregnant or parenting as the primary caregiver –Cap is evaluated on a school site basis School Fiscal Services Division 8

TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreements Authorization to substitute performance or study for presence in classroom Agreement duration up to one year Required signatures: –Pupil –Parent, guardian or caregiver, unless student is 18 or officially emancipated –Certificated person responsible for supervising student’s independent study, i.e., the supervising teacher –Any other persons who have direct responsibility for providing assistance to pupil School Fiscal Services Division 9

TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreement Requirements Manner, time, frequency and place for submitting a pupil’s assignments and for reporting progress Objectives and methods of study for pupil’s work Methods used to evaluate pupil’s work Specific resources including materials and personnel made available to pupil Statement of policies regarding maximum length of time allowed between the assignment and the completion of assigned work Statement of policies regarding the number of missed assignments allowed prior to an evaluation School Fiscal Services Division 10

TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreement Requirements Duration of the agreement, including beginning and end dates not to exceed one year Statement of number of course credits or other measures of academic accomplishment to be earned upon completion. Statement that independent study is optional Statement that instruction may be provided only if pupil is offered a classroom alternative Signatures recorded prior to the commencement of independent study School Fiscal Services Division 11

TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreement Requirements Required signatures: –Pupil –Parent, guardian or caregiver, unless student is 18 or officially emancipated –Certificated person responsible for supervising student’s independent study, i.e., the supervising teacher –Any other persons who have direct responsibility for providing assistance to pupil School Fiscal Services Division 12

TOM TORLAKSON State Superintendent of Public Instruction Work Assignments and Records Student Assignments –Representative samples of student’s regular work products need to be maintained –Sample work products need to correspond to assignments –CDE recommends at least one completed work product for each subject every two weeks –Nothing needs to be written on the work product –Student assignments and work records must be kept for 3 years School Fiscal Services Division 13

TOM TORLAKSON State Superintendent of Public Instruction Work Assignments and Records Teacher Record –Basis of apportionment credit for ADA –Basis of academic credit –Teacher should have record for each student under his/her supervision –Includes record of each assignment due date and meeting with student –Used in place of classroom attendance –Record of time value and academic credit –Must be kept for 3 years School Fiscal Services Division 14

TOM TORLAKSON State Superintendent of Public Instruction Attendance Credit Minimum Day –Time value for submitted work must be equivalent to the minimum day to generate attendance credit. –Students with an underlying enrollment category that is accounted for in whole days rather than a minimum day must complete an amount of work that would be equivalent to a whole day. –Attendance is in whole days or hours for continuation education –Cannot exceed one day of apportionment credit per day of instruction (combination of classroom and independent study) –Minimum day by grade span has not changed –Minimum day by grade span: TK and kindergarten = 180 minutes Grades 1-3 = 230 minutes Grades 4-12 = 240 minutes School Fiscal Services Division 15

TOM TORLAKSON State Superintendent of Public Instruction Attendance Credit Attendance Credit versus Academic Credit –Effort devoted to assigned work used for attendance credit –Effort is individually determined –Quality of achievement used for academic credit –Work sometimes needs to be reassigned for academic credit Teacher should include an explanatory note when the same assignment is reported for attendance credit more than once Ideally the supervising teacher is aware before the assignment is due that the student is not performing satisfactorily and can provide support School Fiscal Services Division 16

TOM TORLAKSON State Superintendent of Public Instruction Attendance Reporting Attendance is based on time value Attendance is reported in increments of days Independent study ratio of ADA to FTEs must be evaluated against comparative ratio of ADA to FTEs for all other educational programs If the independent study ratio exceeds the comparative ratio the difference is considered excess ADA Excess ADA does not generate funding Excess ADA is reported on a separate line in attendance reporting screen Eligible independent study ADA for school districts is reported with regular ADA through the Attendance School District entry screen in the Principal Apportionment Data Collection Software (PADC) School Fiscal Services Division 17

TOM TORLAKSON State Superintendent of Public Instruction Attendance Reporting Eligible independent study ADA for charter schools is non classroom based ADA and is reported through one of four Charter School Attendance entry screens in the PADC: –Attendance Charter School, –Attendance Charter School-All Charter District –Attendance Charter Funded County Programs –Attendance COE Charter School Eligible independent study ADA for county offices of education is reported by pupil type through the Attendance COE entry screen or the Attendance District Funded County Programs entry screen in the PADC School Fiscal Services Division 18

TOM TORLAKSON State Superintendent of Public Instruction Apportionment Requirements Pupils must be residents of the county or immediately adjacent county to the county in which apportionment claim is reported Pupils must be enrolled and identified by grade level, program placement, and school of enrollment Equity in resources between participants in independent study and pupils who attend regular classes Pupil’s residency cannot be established based upon parent’s place of employment School Fiscal Services Division 19

TOM TORLAKSON State Superintendent of Public Instruction Apportionment Requirements Time value of work products must be determined by a certificated teacher Board adopted written policies which include: –Maximum length of time by grade level and type of program between date assignment is made and due date of assignment. –Number of allowed missed assignments before an evaluation is conducted. –Requirement that current written agreement meeting specific statutory requirements be maintained on file School Fiscal Services Division 20

TOM TORLAKSON State Superintendent of Public Instruction Ratio of Average Daily Attendance to Full Time Equivalent Certificated Employees School Fiscal Services Division 21

TOM TORLAKSON State Superintendent of Public Instruction Overview Pursuant to statute the grade span ratio of IS ADA to IS FTE employees serving IS should not exceed the grade span ratio of ADA to FTE employees for all other educational programs offered by that LEA Each LEA participating in independent study must: –Determine a comparative ratio of ADA to FTE certificated employees for all other educational programs –Determine its ratio of independent study ADA to FTE certificated employees providing direct independent study instruction –Evaluate whether the independent study ADA to FTE ratio meets or exceeds the comparative ADA to FTE ratio School Fiscal Services Division 22

TOM TORLAKSON State Superintendent of Public Instruction Overview ADA for independent study pupils that exceeds the ratio cannot be claimed for the purpose of apportionment Although not reported for the purpose of apportionment, excess IS ADA should be reported through attendance accounting software School Fiscal Services Division 23

TOM TORLAKSON State Superintendent of Public Instruction Issues Statute now requires ratios to be calculated by grade span The ratio calculation becomes more complicated when teachers serving independent study pupils teach across grade spans Some LEAs have found that their overall independent study ratio based on all grade spans combined is lower than their comparative ratio but when calculated by grade span, some grade spans exceed the comparative grade span ratio School Fiscal Services Division 24

TOM TORLAKSON State Superintendent of Public Instruction Comparative Ratio Negotiated through collective bargaining –Must specifically state that the ratio negotiated is the comparative ratio to be used for independent study Calculated ratio –ADA to be reported at P-2, excluding ADA for pupils over 18, except charter schools Special day class ADA Necessary small school ADA School Fiscal Services Division 25

TOM TORLAKSON State Superintendent of Public Instruction Comparative Ratio Calculated Ratio (cont.) –FTE Exclude FTE certificated employees who exclusively provide IS instruction Exclude FTE certificated employees who teach full time special day classes Exclude FTE certificated employees who services supplement direct instruction Exclude FTE certificated employees who teach in necessary small schools Ratio of largest unified school district 25:1 –Applies to charter schools School Fiscal Services Division 26

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Ratio Once the comparative ratio is determined, LEA should determine ADA to FTE ratio For each grade span compute total units of full time IS ADA –Exclude ADA generated by pupils over the age of 18, except charter schools –Exclude IS ADA generated by pupils enrolled in special day class full time –Exclude IS ADA generated by pupils in necessary small schools School Fiscal Services Division 27

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Ratio For each grade span compute total IS FTE certificated employees –Exclude FTE certificated employees who exclusively provide instruction to pupils over 18 –Exclude FTE certificated employees who teach full time special day classes –Exclude FTE certificated employees who services supplement direct instruction –Exclude FTE certificated employees who teach in necessary small schools School Fiscal Services Division 28

TOM TORLAKSON State Superintendent of Public Instruction Ratio Evaluation and ADA Reporting Each LEA must evaluate its comparative ADA to FTE ratio against its independent study ADA to independent study FTE ratio for each of the grade spans to determine whether the LEA has excess ADA If the comparative ratio of ADA to FTE is the same or greater than the ratio of independent study ADA to independent study FTE the LEA does not have excess ADA and can include all of their independent study ADA in the ADA reported for the purpose of apportionment. School Fiscal Services Division 29

TOM TORLAKSON State Superintendent of Public Instruction Ratio Evaluation and ADA Reporting If the comparative ratio of ADA to FTE is less that the ratio of independent study ADA to independent study FTE the LEA has excess ADA Excess ADA must be excluded from ADA reported for the purpose of apportionment Excess ADA must be reported separately through attendance reporting data entry screens School Fiscal Services Division 30

TOM TORLAKSON State Superintendent of Public Instruction Legal Compliance School Fiscal Services Division 31

TOM TORLAKSON State Superintendent of Public Instruction Legal Compliance Issues Board Policy and Administrative Regulations must be consistent with current law Independent study must be coordinated, evaluated, and generally supervised by a teacher employed by the LEA Student must be student of the LEA Classroom option is required Instructional material provisions must be equitable School Fiscal Services Division 32

TOM TORLAKSON State Superintendent of Public Instruction References Independent study ADA; Education Code sections through Independent study program requirements and restrictions on apportionment—Education Code sections through General independent study provisions, standards, and charter specific provisions; California Code of Regulations, Title 5 Sections through Chapter 8 of the CDE Independent Study Operations Manual can be found at: School Fiscal Services Division 33

TOM TORLAKSON State Superintendent of Public Instruction Audits School Fiscal Services Division 34

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings Number of independent study findings over last three years: Relatively low number of findings considering over 1800 audit reports are received School Fiscal Services Division 35 *EAAP – Education Audit Appeals Panel

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings independent study deficiencies: (total 237 ADA questioned) –24 noncompliant agreements (missing signatures, contract elements) –3 attendance errors or lack of attendance documentation –1 did not meet ratio –1 lacked education activity documentation –1 missing work samples –1 year long rather than semester contracts –1 classroom instructional minutes not met, defaulting to independent study School Fiscal Services Division 36

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings independent study deficiencies (total 286 ADA questioned) –19 noncompliant agreements (missing signatures, contract elements) –7 attendance errors or lack of attendance documentation –4 did not meet ratio –3 missing work samples not initialed –1 lacked education activity documentation –1 work samples not maintained –1 residency requirements not met –1 classroom instructional minutes not met, defaulting to independent study School Fiscal Services Division 37

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings independent study deficiencies (total 398 ADA in question) –19 noncompliant agreements (missing signatures, contract elements) –12 attendance errors or lack of attendance documentation –4 did not meet ratio –2 lacked education activity documentation –2 missing teacher initials on work samples –2 agreements exceeded one semester –3 classroom instructional minutes not met, defaulting to independent study School Fiscal Services Division 38

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings Reduction in audit findings over 15 years –In – over 10% of the reports contained an independent study finding 114 independent study audit findings out of 1056 LEAs –In – less than 2% of the reports contained an independent study finding 29 independent study audit findings out of 1807 LEAs School Fiscal Services Division 39

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Informal or formal appeals of state audit findings may be submitted to the Education Audit Appeals Panel (EAAP) Voluntary, informal summary review per EC (d) –Submit letter to EAAP requesting a summary review within 30 days of receiving certification from the State Controller’s Office (SCO) –Intended to provide a method to request an appeal without incurring substantial cost –Decision made by EAAP Executive Officer –Basis for granting appeal – clearly constitutes substantial compliance School Fiscal Services Division 40

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Voluntary, informal summary review per EC (d) (cont.) –Substantial compliance means: Near complete satisfaction of all material requirements of a funding program that provide an educational benefit substantially consistent with the program’s purpose. A minor or inadvertent noncompliance may be grounds for a finding of substantial compliance provided that the LEA acted in good faith to comply with the conditions established in law or regulations. School Fiscal Services Division 41

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Formal appeals per EC 41344(d) –Submit letter to EAAP requesting formal appeal within 60 days of receiving the audit report certification or within 30 days of receiving a determination on an informal summary review. –Usually involves legal counsel, but an LEA can represent itself –Appeal subject to administrative adjudication process Hearing scheduled before an Administrative Law Judge (ALJ) ALJ provides EAAP with proposed decision; EAAP makes final decision School Fiscal Services Division 42

TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Formal appeals per EC 41344(d) (cont.) –Parties to appeal are typically the LEA, the SCO, the Department of Finance, and occasionally the Department of Education –Parties can reach a settlement but EAAP must accept the settlement –Basis for granting appeal – substantial compliance with all legal requirements, finding based on errors of fact or interpretation of law School Fiscal Services Division 43

TOM TORLAKSON State Superintendent of Public Instruction Record Retention Independent study attendance records fall under 5 CCR §16025 Class 3 -Disposable Records 5 CCR §16025 All records not classified as Class 1 -Permanent or Class 2 -Optional shall be classified as Class 3 -Disposable, including but not limited to detail records relating to: –(a) Records Basic to Audit, including those relating to attendance, average daily attendance, or a business or financial transaction (purchase orders, invoices, warrants, ledger sheets, cancelled checks and stubs, student body and cafeteria fund records, etc.), and detail records used in the preparation of any other report. Teachers' registers may be classified as Class 3 -Disposable only if all information required in Section 432 is retained in other records or if the General Record pages are removed from the register and are classified as Class 1 -Permanent. –(b) Periodic Reports, including daily, weekly, and monthly reports, bulletins and instructions. School Fiscal Services Division 44

TOM TORLAKSON State Superintendent of Public Instruction Record Retention Retention Period 5 CCR §16026 A Class 3 -Disposable record shall not be destroyed until after the third July 1 succeeding the completion of the audit required by Education Code Section or of any other legally required audit, or after the ending date of any retention period required by any agency other than the State of California, whichever date is later. A continuing record shall not be destroyed until the fourth year after it has been classified as Class 3 -Disposable. Record Retention References –5 CCR §16020 through 5 CCR §16026 Record Retention References for Pupil Records –5 CCR §450 School Fiscal Services Division 45

TOM TORLAKSON State Superintendent of Public Instruction Acronyms ADA = Average Daily Attendance FTE = Full Time Equivalent IEP = Individualized Education Program IS = Independent Study COE = County Office of Education PADA = Principal Apportionment Data Collection LEA = Local Education Agency School Fiscal Services Division 46

TOM TORLAKSON State Superintendent of Public Instruction Thank you for participating! Contact Information: Arlene Matsuura Wendi McCaskill School Fiscal Services Division 47