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Audit Process


In order to ensure compliance with both the Public School Finance Act of 1994 (PSFA of 1994) and the Public School Transportation Fund (PSTF), each school district receiving funds under these programs is subject to an audit by the School Auditing Office.

Each compliance audit conducted by the School Auditing Office includes a review of district provided documentation to support the data submitted by the district in both the Student October Count data submission (PSFA of 1994) and the CDE-40 transportation claim form data submission (PSTF).

Historically these audits have been conducted every one to four years, the frequency of which being primarily determined by the overall size of a given district’s student population. Beginning with calendar year 2016, the School Auditing Office began implementing a risk-based audit approach. The primary purpose of implementing this approach has been to increase the frequency by which all districts are audited in order to provide more “real time” feedback in cases where a district is out of compliance resulting in audit adjustments and/or exceptions. Further, this approach is anticipated to reduce the workload impact to districts associated with preparing audit documentation and responding to audit questions.

The risk-based audit approach used to determine the district’s pupil count sample: 

  • Each funded student is included in a sampling sub-population, which has predetermined sampling criteria.
  • Sub-populations are determined based on district reporting in Student October and include:
    • Unique student/course types and requirement exceptions
    • Online Students
    • Preschool Students
      • Special Education
      • CPP
    • K-8 students
    • 9-12 students
  • Districts are required to provide all applicable audit documentation for the selected students.

The overall process is outlined in the following document:
School Auditing Office Audit Process (PDF)