Report 2014-135R Recommendation 2 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 #2 To: Magnolia Educational and Research Foundation
To ensure the CMO fees it charges to its academies are accurate, the Foundation should develop procedures to ensure that CMO fees are accurately calculated and recorded, including performing regular reconciliations of the CMO fees recorded in the Foundation's and academies' general ledgers.
6-Month Agency Response
The organization has implemented a cost allocation methodology that has been reviewed by external consultants and approved by Magnolia's board. Cost allocation is reconciled on a monthly basis.
- Completion Date: October 2015
- Response Date: November 2015
California State Auditor's Assessment of 6-Month Status: Fully Implemented
60-Day Agency Response
The organization has implemented a cost allocation methodology that has been reviewed by external consultants and approved by Magnolia's board. Magnolia staff is in the process of reconciling the month of June 2015, and starting July 1, 2015, The cost allocation will be reconciled on a monthly basis by the external back office service provider. The finance department is currently working with the back office service provider to draft the new policies and procedures relating to the CMO allocation and reconciliation.
- Estimated Completion Date: 08/15/2015
- Response Date: July 2015
California State Auditor's Assessment of 60-Day Status: Pending
Agency responses received are posted verbatim.