Cal. Educ. Code § 14501 — Financial and Compliance Audits

(a) As used in this chapter, “financial and compliance audit” shall be consistent with the definition provided in the generally accepted government auditing standards promulgated by the United States Government Accountability Office. Financial and compliance audits conducted under this chapter shall fulfill federal single audit requirements.

(b) For purposes of this chapter, the following definitions apply:

(1) “Compliance audit” means an audit that ascertains and verifies whether or not funds provided through apportionment, contract, or grant, either federal or state, have been properly disbursed and expended as required by law or regulation, or both, and includes the verification of each of the following:

(A) Expenditure of funds in accordance with the local control and accountability plan adopted pursuant to Article 4.5 (commencing with Section 52059.5) of Chapter 6.1 of Part 28 of Division 4 of Title 2.

(B) The reporting requirements for the sufficiency of textbooks or instructional materials, or both, as defined in Section 60119.

(C) Teacher misassignments pursuant to Section 44258.9.

(D) The accuracy of information reported on the School Accountability Report Card required by Section 33126.

(2) “Educational joint powers authority” means an entity described in subdivision (a) of Section 41023 that is formed pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).

(3) “Local educational agency” means a school district, educational joint powers authority, charter school, or county superintendent of schools.

(c) The requirements set forth in subparagraphs (B) to (D), inclusive, of paragraph (1) of subdivision (b) shall be added to the audit guide requirements pursuant to subdivision (b) of Section 14502.1.