1. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Attendance Accounting and Audit Issues for School Districts and County Offices of Education California Consortium for Independent Study February 2, 2016 Wendi McCaskill, California Department of Education Arlene Matsuura, California Department of Education

2. TOM TORLAKSON State Superintendent of Public Instruction AGENDA Legislative Changes Traditional Independent Study Overview Independent Study Eligibility Agreements Work Assignments and Records Attendance Credit Attendance Reporting Apportionment Requirements Course Based Independent Study (CBIS) What Is It? Governing Board/Body requirements CBIS Requirements CBIS Agreement CBIS Issues Audits Audit Findings School Fiscal Services Division 2

3. TOM TORLAKSON State Superintendent of Public Instruction Legislative Changes 2015-16 –New course based option (Education Code Sections 51749.5, 51749.6) –County office of education comparative ratio is based on prior year ratio of ADA to FTEs for all other educational programs (Education Code Section 51745.6) –Ratio calculations no longer need to be calculated by grade span (Education Code Section 51745.6) –Students participating in home-based private instruction or independent study without classroom-based instruction do not have to meet the immunization requirements (Health and Safety Code Sections 120335, 120338, 120370, and 120375) School Fiscal Services Division 3

4. TOM TORLAKSON State Superintendent of Public Instruction Legislative Changes (con’t) –Classroom-based instruction is not currently defined for the purposes of immunization requirements –Even if students aren’t immunized, they still need to submit records indicating that they are not immunized –For 2015-16 the sample of students selected to test by the auditor when performing immunization procedures will exclude Students in independent study Students with an individualized education program that includes special education and related services School Fiscal Services Division 4

5. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Attendance Accounting School Fiscal Services Division 5

6. TOM TORLAKSON State Superintendent of Public Instruction Overview Minimum five day requirement to participate in independent study in order to generate ADA Attendance credit based on time value of work product submitted Time value determined by a certificated employee of the district Work must be submitted by established due dates in order to generate ADA For school districts time value must meet minimum day requirements School Fiscal Services Division 6

7. TOM TORLAKSON State Superintendent of Public Instruction Overview Independent study participation requires a master agreement to generate ADA Local education agencies must meet ADA to FTE ratio requirements ADA that exceeds the ADA to FTE ratio threshold cannot be claimed for funding There is a 10 percent cap on continuation education and opportunity education independent study ADA Independent study pupils cannot generate more than one day of attendance per pupil, per day School Fiscal Services Division 7

8. TOM TORLAKSON State Superintendent of Public Instruction Pupil Eligibility Pupils must meet residency requirements Pupils over 21 cannot generate independent study ADA Pupils that have not been continuously enrolled since their 18 th birthday can only generate independent study ADA until they are 19 Pupils with an IEP must have independent study included in IEP in order to participate Home and Hospital ADA cannot be generated through independent study Community day school pupils are not eligible for independent study School Fiscal Services Division 8

9. TOM TORLAKSON State Superintendent of Public Instruction Pupil Eligibility Students suspended or expelled are excluded from school, thus they are also excluded from independent study 10 percent cap on continuation and opportunity school pupils –Based on P-2 ADA –Cap does not apply to pupils who are pregnant or parenting as the primary caregiver –Cap is evaluated on a school site basis School Fiscal Services Division 9

10. TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreements Authorization to substitute performance or study for presence in classroom Agreement duration up to one year Required signatures: –Pupil –Parent, guardian or caregiver, unless student is 18 or officially emancipated –Certificated person responsible for supervising student’s independent study, i.e., the supervising teacher –Any other persons who have direct responsibility for providing assistance to pupil School Fiscal Services Division 10

11. TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreement Requirements Manner, time, frequency and place for submitting a pupil’s assignments and for reporting progress Objectives and methods of study for pupil’s work Methods used to evaluate pupil’s work Specific resources including materials and personnel made available to pupil Statement of policies regarding maximum length of time allowed between the assignment and the completion of assigned work Statement of policies regarding the number of missed assignments allowed prior to an evaluation School Fiscal Services Division 11

12. TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreement Requirements Duration of the agreement, including beginning and end dates not to exceed one year Statement of number of course credits or other measures of academic accomplishment to be earned upon completion. Statement that independent study is optional Statement that instruction may be provided only if pupil is offered a classroom alternative Signatures recorded prior to the commencement of independent study School Fiscal Services Division 12

13. TOM TORLAKSON State Superintendent of Public Instruction Master Written Agreement Requirements Required signatures: –Pupil –Parent, guardian or caregiver, unless student is 18 or officially emancipated –Certificated person responsible for supervising student’s independent study, i.e., the supervising teacher –Any other persons who have direct responsibility for providing assistance to pupil School Fiscal Services Division 13

14. TOM TORLAKSON State Superintendent of Public Instruction Work Assignments and Records Student Assignments –Representative samples of student’s regular work products need to be maintained –Sample work products need to correspond to assignments –CDE recommends at least one completed work product for each subject every two weeks –Nothing needs to be written on the work product –Student assignments and work records must be kept for 3 years School Fiscal Services Division 14

15. TOM TORLAKSON State Superintendent of Public Instruction Work Assignments and Records Teacher Record –Basis of apportionment credit for ADA –Basis of academic credit –Teacher should have record for each student under his/her supervision –Includes record of each assignment due date and meeting with student –Used in place of classroom attendance –Record of time value and academic credit –Must be kept for 3 years School Fiscal Services Division 15

16. TOM TORLAKSON State Superintendent of Public Instruction Attendance Credit Minimum Day –Time value for submitted work must be equivalent to the minimum day to generate attendance credit. –Students with an underlying enrollment category that is accounted for in whole days rather than a minimum day must complete an amount of work that would be equivalent to a whole day. –Attendance is in whole days or hours for continuation education –Cannot exceed one day of apportionment credit per day of instruction (combination of classroom and independent study) –Minimum day by grade span has not changed –Minimum day by grade span: TK and kindergarten = 180 minutes Grades 1-3 = 230 minutes Grades 4-12 = 240 minutes School Fiscal Services Division 16

17. TOM TORLAKSON State Superintendent of Public Instruction Attendance Credit Attendance Credit versus Academic Credit –Effort devoted to assigned work used for attendance credit –Effort is individually determined –Quality of achievement used for academic credit –Work sometimes needs to be reassigned for academic credit Teacher should include an explanatory note when the same assignment is reported for attendance credit more than once Ideally the supervising teacher is aware before the assignment is due that the student is not performing satisfactorily and can provide support School Fiscal Services Division 17

18. TOM TORLAKSON State Superintendent of Public Instruction Attendance Reporting Attendance is based on time value Attendance is reported in increments of days Independent study ratio of ADA to FTEs must be evaluated against comparative ratio of ADA to FTEs for all other educational programs If the independent study ratio exceeds the comparative ratio the difference is considered excess ADA Excess ADA does not generate funding Excess ADA is reported on a separate line in attendance reporting screen Eligible independent study ADA for school districts is reported with regular ADA through the Attendance School District entry screen in the Principal Apportionment Data Collection Software (PADC) School Fiscal Services Division 18

19. TOM TORLAKSON State Superintendent of Public Instruction Attendance Reporting Eligible independent study ADA for county offices of education is reported by pupil type through the Attendance COE entry screen or the Attendance District Funded County Programs entry screen in the PADC School Fiscal Services Division 19

20. TOM TORLAKSON State Superintendent of Public Instruction Apportionment Requirements Pupils must be residents of the county or immediately adjacent county to the county in which apportionment claim is reported Pupils must be enrolled and identified by grade level, program placement, and school of enrollment Equity in resources between participants in independent study and pupils who attend regular classes Pupil’s residency cannot be established based upon parent’s place of employment School Fiscal Services Division 20

21. TOM TORLAKSON State Superintendent of Public Instruction Apportionment Requirements Time value of work products must be determined by a certificated teacher Board adopted written policies which include: –Maximum length of time by grade level and type of program between date assignment is made and due date of assignment. –Number of allowed missed assignments before an evaluation is conducted. –Requirement that current written agreement meeting specific statutory requirements be maintained on file School Fiscal Services Division 21

22. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study (CBIS) School Fiscal Services Division 22

23. TOM TORLAKSON State Superintendent of Public Instruction What is Course Based Independent Study? New alternative method for operating and reporting independent study Begins with 2015-16 school year Authority is in Education Code Section 51749.5 and 51749.6 In general, replaces making time valued assignments with enrolling in an authorized “course” Attendance earned if all requirements are met and the pupil is making satisfactory progress ADA (which is basically enrollment) is reduced by the average statewide absence rate Reported separately from traditional independent study ADA Requires separate independent study ratio calculation Cleanup language may be necessary for program to operate effectively School Fiscal Services Division 23

24. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Policy Governing board/body must adopt independent study policies that comply with CBIS laws Governing board/body must annually certify CBIS courses to be the same rigor and quality as equivalent classroom-based courses and shall be aligned to all relevant content standards. Certification to include –Duration of course –Number of equivalent daily instructional minutes –Number of equivalent total instructional minutes –Number of course credits for each course School Fiscal Services Division 24

25. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Requirements Signed learning agreement completed and on file CBIS courses are taught by certificated teachers with appropriate subject matter credential, who meet the HQT requirements, and who are employed at the LEA Teacher may by employed at another LEA if there is an MOU to provide instruction for another LEA in which the pupil is enrolled. Pupils must meet applicable residency, enrollment, and age requirements Certificated employee and pupil must communicate in person, by telephone or other live visual or audio connection no less than twice per calendar month to assess satisfactory progress. A proctor must administer examinations (see Issues) Satisfactory educational progress must be made to stay enrolled in CBIS School Fiscal Services Division 25

26. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Requirements (con’t) Satisfactory educational progress includes: –Applicable statewide accountability measures –Completion of assignments, examinations or other indicators that evidence the pupil is working on assignments, learning required concepts, and making progress toward successful completion of course –Determined by certificated employee providing instruction. If satisfactory progress is not being made –Notification to pupil and parents –Conduct an evaluation to determine if alternative placement should be made –Maintain a written record of the unsatisfactory progress evaluation which is considered a mandatory interim record and must be maintained for 3 years Maintain written or computer-based evidence of satisfactory progress for each pupil and each course. Evidence shall include: –A grade book or summary document that lists all assignments, examinations and associated grades. School Fiscal Services Division 26

27. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Requirements (con’t) Statewide testing results shall be disaggregated for purposes of comparing results to pupils enrolled in classroom-based courses Pupil cannot be required to enroll in CBIS courses Independent Study Ratio (EC 47612.5) requirements must be met Pupils enrolled in CBIS courses must be offered the minimum annual total equivalent instructional minutes (can be combined with other modes of instruction) Pupils enrolled in CBIS courses, along with other courses, must met applicable minimum daily instructional minutes Courses for high school graduation or for admission to UC or State universities cannot be offered exclusively through independent study Pupils enrolled in these courses may not be assessed any prohibited fees Pupils cannot be prohibited from participating in these courses solely on the basis that the pupil does not have the materials, equipment, or internet access School Fiscal Services Division 27

28. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Requirements (con’t) To calculate ADA: –(A) For each schoolday, add combined daily instructional minutes for CBIS courses in which the pupil is enrolled –(B) For each schoolday, add combined daily instructional minutes of courses authorized by all other laws in which the pupil is enrolled and for which the pupil meets applicable attendance requirements –Add the sum of (A) and (B) and if minimum instructional time is met, all CBIS requirements are met, and pupil is making satisfactory progress, then credit with up to one school day of CBIS attendance No more than 1 ADA can be earned per pupil First 10 percent of total LEA ADA is computed as above School Fiscal Services Division 28

29. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Requirements (con’t) All CBIS ADA in excess of the first 10 percent is reduced by the statewide average absence for elementary (K-8) or high school (9-12) as calculated by the CDE for the prior fiscal year. The statewide average absence rate for 2015-16 is 4.5% for elementary(grades K-8) and 6.56% for high (grades 9-12) The statewide average absence rate for 2015-16 and calculation examples are posted to CDE’s web site at: http://www.cde.ca.gov/fg/aa/pa/pa1516rates.asp#absencerate School Fiscal Services Division 29

30. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Agreements Before enrolling in a CBIS course, each LEA shall provide pupil and/or parent with a written learning agreement that includes: –A summary of policies and procedures adopted by governing body –The duration of the enrolled course(s), duration of learning agreement, and number of course credits for each course(s) –Learning objectives and expectation for each course including a description of how satisfactory educational progress is measured and when a pupil evaluation is required –The specific resources, including materials and personnel, that will be available to the pupil –A statement that the pupil is not required to enroll in a CBIS course Learning agreement shall be signed by pupil, parent (if pupil under 18) and all certificated employees providing instruction before instruction may commence Learning agreement cannot exceed one school year Physical or electronic agreement maintained by LEA for at least 3 years or as appropriate for audit purposes School Fiscal Services Division 30

31. TOM TORLAKSON State Superintendent of Public Instruction Course Based Independent Study Issues Proctor and examinations are not clearly defined –Is a proctor a certificated teacher? –Is an examination any test taken to assess pupil’s learning? When combining classroom and CBIS instruction, ADA is reported as CBIS ADA which may skew the independent study ratio calculation If a certificated teacher provides both classroom and CBIS instruction, the teacher’s FTE will have to be allocated If an LEA has an MOU with another LEA, it would presumably be to provide a pupil with a course the first LEA doesn’t offer. Advise caution that this doesn’t conflict with the requirement that certain courses cannot be offered exclusively through independent study. As with the traditional independent study program, all requirements for CBIS must be met to earn attendance. School Fiscal Services Division 31

32. TOM TORLAKSON State Superintendent of Public Instruction References Independent study ADA; Education Code sections 46300 through 46300.7 Independent study program requirements and restrictions on apportionment—Education Code sections 51745 through 51749.3 General independent study provisions, standards, and charter specific provisions; California Code of Regulations, Title 5 Sections 11700 through 11705 Immunization requirements, Health and Safety Code Sections 120335, 120338, 120370, and 120375 Guide for Annual Audits of K-12 Local Education Agencies and State Compliance Reporting can be found at: http://eaap.ca.gov/audit-guide/current-audit-guide-booklet/ School Fiscal Services Division 32

33. TOM TORLAKSON State Superintendent of Public Instruction Audits School Fiscal Services Division 33

34. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings Number of independent study findings over last four years: School Fiscal Services Division 34 *EAAP – Education Audit Appeals Panel ** Six percent of 2014-15 reports (135) not yet submitted

35. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings 2014-15 independent study deficiencies: (total 58 ADA questioned) –16 noncompliant agreements (missing signatures, contract elements) –10 ADA claimed before signatures obtained –5 attendance errors or lack of attendance documentation –3 missing work samples –2 inconsistent or missing time value documentation –2 lacked educational activity documentation (charter) –1 independent study ADA exceeded continuation ed 10% cap –1 did not meet ratio School Fiscal Services Division 35

36. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Findings 2013-14 independent study deficiencies: (total 134 ADA questioned) –18 noncompliant agreements (missing signatures, contract elements) –12 ADA claimed before signatures obtained –3 missing work samples –1 attendance errors or lack of attendance documentation –1 did not meet ratio –1 things of value provided to IS students –1 no certificated teacher (online school supervised by attendance secretary) –1 lacked educational activity documentation (charter) –1 no agreement School Fiscal Services Division 36

37. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Education Audit Appeals Panel (EAAP) accepts informal and/or formal appeals Voluntary, informal summary review per EC 41344.1(d) –Decision made by EAAP Executive Officer –Basis for granting appeal – clearly constitutes substantial compliance School Fiscal Services Division 37

38. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Formal appeals per EC 41344(d) –Appeal heard by an Administrative Law Judge (ALJ) –Usually involves legal counsel, but an LEA can represent itself –Parties can reach a settlement but EAAP must accept the settlement –Basis for granting appeal – substantial compliance with all legal requirements, finding based on errors of fact or interpretation of law School Fiscal Services Division 38

39. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Summary of IS appeals filed School provided IS students things of value that it didn’t provide to classroom students (22 ADA) –Was not granted informal summary review relief –Did not file formal appeal – repaid full amount of finding Agreements were missing required elements, one agreement signed after student enrolled, six agreements missing a required signature, no evidence that teacher evaluated work (28 ADA) –Was not granted informal summary review relief –Pending formal appeal School Fiscal Services Division 39

40. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Summary of IS appeals filed Master agreement did not have maximum length of time between assignments, but school followed policy (1 ADA) –Granted informal summary review – reduced to 0 Missing semester agreements and work samples (13 ADA) –Was not granted informal summary review relief –Did not file formal appeal – repaid funds School Fiscal Services Division 40

41. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Summary of IS appeals filed Work samples did not have teacher date and initial, but contained evidence that teacher reviewed (22 ADA) –Granted informal summary review – reduced to 0 Several agreements were for one year rather than one semester (3 ADA) –Was not granted informal summary review relief –Reached settlement in formal appeal – reduced to 0 Agreements signed after school year (4 ADA) –Reached settlement on formal appeal to repay full amount over eight years – no interest School Fiscal Services Division 41

42. TOM TORLAKSON State Superintendent of Public Instruction Independent Study Audit Appeals Summary of IS appeals filed IS ratio exceeded ratio of all other programs (10 ADA) –Granted informal summary review – reduced by half –District hired teachers for new school, but enrollment at school did not occur so “all other programs” ratio was low Charter school did not have daily engagement records (8.5 ADA) –Was not granted informal summary review relief –Did not file formal appeal – repaid funds Synchronous online school took classroom attendance rather than use independent study agreements (1208 ADA over 7 years) –Settled 7 years of findings (over $8.1 million) for $818K payable over 8 years and school closed School Fiscal Services Division 42

43. TOM TORLAKSON State Superintendent of Public Instruction Acronyms ADA = Average Daily Attendance FTE = Full Time Equivalent IEP = Individualized Education Program IS = Independent Study CBIS = Course Based Independent Study COE = County Office of Education PADC = Principal Apportionment Data Collection LEA = Local Education Agency School Fiscal Services Division 43

44. TOM TORLAKSON State Superintendent of Public Instruction Thank you for participating! Contact Information: Wendi McCaskill 916-323-1333 wmccaskill@cde.ca.gov School Fiscal Services Division 44