School accountability: Office of the Education Inspector General: school financial and performance audits: charter school authorization, oversight, funding, operations, networks, and contracting: data systems: local educational agency contractor background checks.

Assembly Members Muratsuchi and Garcia have introduced comprehensive legislation to strengthen financial oversight and accountability across California's education system through enhanced audit requirements, centralized monitoring, and stricter controls on nonclassroom-based instruction.

The bill establishes the Office of the Education Inspector General to conduct audits and investigations of local educational agencies while implementing more rigorous standards for financial audits. Starting in 2027-28, auditors must complete 24 hours of continuing education in governmental accounting and demonstrate prior experience with educational audits. The legislation also requires charter schools to report financial data consistently with school districts and mandates that chartering authorities verify enrollment, attendance, and expenditure data for nonclassroom-based programs.

Key provisions include requiring approval for charter school contracts exceeding $100,000, prohibiting the allocation of discretionary enrichment funds to parents, and limiting nonclassroom-based charter school authorization by smaller districts. The bill introduces stricter oversight of charter school networks and establishes the Charter Authorizing Support Team to develop uniform authorizing practices.

The legislation mandates integration of the state's student data and attendance systems by 2030 to enhance monitoring capabilities. It also revises funding determination processes for nonclassroom-based instruction, requiring charter schools to meet specific thresholds for teacher compensation and instructional expenditures to receive full funding.

For audit compliance, the bill expands requirements for supplemental information in audit reports, including detailed schedules of enrollment, attendance, payments, and compensation. It strengthens contractor background check requirements and establishes procedures for investigating audit delays and exceptions.

The reforms aim to promote fiscal responsibility while maintaining educational quality through standardized oversight practices and enhanced transparency in the use of public education funds.