(a) For 2021–22 fiscal year audits, the Controller shall include instructions in the audit guide required by Section 14502.1 that include procedures for determining all of the following for local educational agencies that receive apportionments under Section 43521:
(1) Compliance with clause (iii) of subparagraph (B) of paragraph (2) of subdivision (c) of Section 43521.
(2) Compliance with subdivisions (c), (d), and (e) of Section 43522.
(3) Compliance with submitting to the department the expenditure report required pursuant to subdivision (c).
(b) (1) For a local educational agency with audit findings of noncompliance pursuant to subdivision (c) of Section 43522, the Superintendent shall withhold from the local educational agency’s principal apportionment an amount equal to the amount of expenditures that are noncompliant pursuant to subdivision (c) of Section 43522.
(2) For a local educational agency with audit findings of noncompliance pursuant to subdivision (d) of Section 43522, the Superintendent shall withhold from the local educational agency’s principal apportionment an amount equal to the amount of expenditures that are noncompliant pursuant to subdivision (d) of Section 43522.
(c) Local educational agencies receiving apportionments under Section 43521 shall report final expenditures of those apportioned funds to the department by December 1, 2022, and the Superintendent shall initiate collection proceedings for unexpended funds. A local educational agency that does not submit the expenditure report shall forfeit all funds apportioned pursuant to Section 43521.
(Added by Stats. 2021, Ch. 10, Sec. 2. (AB 86) Effective March 5, 2021. Inoperative June 30, 2023. Repealed as of January 1, 2024, pursuant to Section 43525.)