Report 2014-135R Recommendation 1 Responses

Report 2014-135R: Magnolia Science Academies: Although the Financial Condition of These Charter Schools Has Improved, Their Financial Controls Still Need to Be Strengthened (Release Date: May 2015)

Recommendation #1 To: Magnolia Educational and Research Foundation

Consistent with their charter petition terms, the Foundation should ensure that each academy maintains the minimum required cash reserve.

Agency Response*

The organization has been monitoring the minimum required cash reserves for all of the schools, and has kept track of all operating expenditures and revenues in order to maintain minimum cash reserves. The organization monitors cash balance on a daily basis to ensure that cash balances are adequate and on monthly basis to ensure compliance with minimum reserves in accordance with the charter requirements.

  • Response Type†: 6-Month
  • Completion Date: October 2015
  • Response Date: November 2015

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

The organization has been monitoring the minimum required cash reserves for all of the schools, and has kept track of all operating expenditures and revenues in order to maintain minimum cash reserves. As part of this process, the organization is redrafting the policies and procedures manual to reflect the current changes and requirements. It is expected that the revised policies and procedures manual will be completed by October 30, 2015.

  • Response Type†: 60-Day
  • Estimated Completion Date: 10/30/2015
  • Response Date: July 2015

California State Auditor's Assessment of Status: Pending


All Recommendations in 2014-135R

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.


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