Overview

The Citizens’ Bond Oversight Committee (CBOC) is required by Education Code to issue regular reports on the results of its activities. A report is required at least once a year. In addition, the Education Code requires the CBOC to advise the public as to whether the district followed the California Constitution Proposition 39 accountability requirements. Best practice is to include this annual compliance opinion in the CBOC’s annual report. The purpose of this FAQ is to provide a format for the Annual Compliance Opinion.

Legal Requirements

California Constitution Article XIIIA, Section 1(b):

“(3) Bonded indebtedness incurred by a school district, community college district, or county office of education for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities, approved by 55 percent of the voters of the district or county, as appropriate, voting on the proposition on or after the effective date of the measure adding this paragraph. This paragraph shall apply only if the proposition approved by the voters and resulting in the bonded indebtedness includes all the following accountability requirements:

(A) A requirement that the proceeds from the sale of the bonds be used only for the purposes specified in Article XIII A, Section 1(b)(3), and not for any other purpose, including teacher and administrator salaries and other school operating expenses.

(B) A list of the specific school facilities projects to be funded and certification that the school district board, community college board, or county office of education has evaluated safety, class size reduction, and information technology needs in developing that list.

(C) A requirement that the school district board, community college board, or county office of education conduct an annual, independent performance audit to ensure that the funds have been expended only on the specific projects listed.

(D) A requirement that the school district board, community college board, or county office of education conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for the school facilities projects.”

Education Code Section 15278 (b):

“The citizens’ oversight committee shall advise the public as to whether a school district or community college district is in compliance with the requirements of paragraph (3) of subdivision (b) of Section 1 of Article XIIIA of the California Constitution.”

Education Code 15280 (b):

“The citizens’ oversight committee shall issue regular reports on the results of its activities. A report shall be issued at least once a year.”

Annual Compliance Opinion

Best practice is to include the Annual Compliance Opinion in the CBOC’s annual report in the following format:

Annual Compliance Opinion Bond Measure XX, June 30, 202X

Approved by the XYZ District Citizens’ Bond Oversight Committee on xxxx yy,
__________________________________________________________________________________________

If one or more CBOC Member(s) takes exception to any of the findings of compliance or non-compliance that have been accepted by the majority of the CBOC Members for presentation in the Annual Compliance Opinion, that/those

Member(s) may, at their option, prepare a Minority Report which shall be appended to that Opinion. Such exceptions can include compliance items that Minority Member(s) believe should have been included or excluded. The Minority Report shall identify the specific compliance requirement(s), the differing opinion(s) of the dissenting Member(s), and, as they may choose, the explanation and/or justification for their dissent.

Note:  In regard bond expenditures only for the specific school facilities projects listed in the bond measure (item B above) the CBOC could report, “cannot be determined.” The language of the ballot measure project may be written in such general terms that the specific projects cannot be identified. The CBOC should explain why their opinion may be different than the opinion of the performance auditor.