Report 2016-129 Recommendation 13 Responses

Report 2016-129: K-12 High Speed Network: Improved Budgeting, Greater Transparency, and Increased Oversight Are Needed to Ensure That the Network Is Providing Reliable Services at the Lowest Cost to the State (Release Date: May 2017)

Recommendation #13 To: Imperial County Office of Education

To ensure efficient use of state funds, ICOE should conduct a cost and benefit analysis of its memorandum of understanding with the Butte County Office of Education to determine whether it represents the most cost-effective approach to providing the program activities it covers.

1-Year Agency Response

ICOE has taken steps to implement this recommendation. ICOE and Education have agreed to which roles ICOE will perform related to statewide level E-rate support. ICOE has developed an RFP to procure quotes from contractors for E-rate subject matter expertise and support. ICOE will not be contracting with Butte County Office of Education for E-rate support services beyond June, 2018. ICOE and CDE will jointly select a contractor to provide training, advisement, consulting and reporting functions during 2018-19. Decisions related to E-rate support services in future years will be informed by the lessons ICOE and CDE learn in 2018-19.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

As we note in our audit report, our primary concern with ICOE's contract with the Butte County Office of Education (Butte) for E-Rate support services was that the contract included costs for Butte's overhead and administration, despite the fact that the contracted employee did not appear to rely on Butte's office resources in performing the agreed upon work. Based on the actions ICOE has taken in ending its contractual relationship with Butte, we conclude ICOE concurs with our finding and has determined the contract did not represent the most efficient use of state funds. In pursuing its new agreement for services, however, ICOE should ensure that agreement does not include any similar unnecessary costs.

6-Month Agency Response

ICOE has taken steps to implement this recommendation. ICOE plans to develop an RFQ that will assist in assessing other means of accomplishing the work currently undertaken by Butte County Office of Education. The results will be utilized in ICOE's cost-benefit analysis to determine whether the current approach to providing E-rate support to school districts across the State is sound or whether there are other more effective means to accomplishing this support.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

ICOE has held conversations with Butte COE relative to the partnership and support role Butte COE has played, as well as the services provided to the K12HSN program by Butte COE. The services required have changed over time and a review of the current deliverables is appropriate. ICOE, in conjunction with Education, will determine the appropriate scope of work and explore alternative scenarios for providing the needed activities and services. Either the Network Implementation Committee, a third party consultant, or an internal team will conduct an analysis of the potential alternatives for meeting the program goals and the costs applicable to each option. The results of the cost-benefit analysis will be provided in a future response

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2016-129

Agency responses received are posted verbatim.