Bond Audits

  • Bond Audits

    Prior to November 8, 2000, State law required school district general obligation bond measures to achieve a minimum 2/3 voter approval.  The District’s $2.4 billion Proposition BB bond measure was authorized under that law when 71.12% of voters approved the measure on April 8, 1997.  

    On November 8, 2000, Proposition 39 became effective; Proposition 39 is a statute that, among other things, allows passage of school and community college bond measures so long as a minimum 55% voter approval rate is achieved at the election.  The District received voter approval for four of its bond measures (K, R, Y and Q) under Proposition 39 as follows: 

     

    Bond Measure

    Date of Election

    Voter Approval Rate

    Authorization

    K

    November 5, 2002

    68.08%

    $3.35 billion

    R

    March 2, 2004

    63.70%

    $3.87 billion

    Y

    November 8, 2005

    66.09%

    $3.985 billion

    Q

    November 4, 2008

    69%

    $7.00 billion

     

    One of the requirements under Proposition 39 is that an annual bond spending audit be completed to determine if bond proceeds were spent in accordance with the specific project list contained in the respective bond measure.  The bond audits posted on this website are the bond spending audits required under Proposition 39.  Even though Proposition BB did not contain a specific project list, the District includes BB expenditures in the annual bond audits so that a comprehensive overview of bond program expenditures across all bond measures is provided. 

    The type of bond spending audit undertaken for purposes of Proposition 39 is a so-called “agreed-upon procedures” audit whereby the District and the auditor agree that certain tasks will be undertaken by the auditor such that the District will be in compliance with its oversight responsibilities with respect to expenditure of bond proceeds.  This type of audit is different from the type of audit undertaken in connection with the District's Comprehensive Annual Financial Report where standards and rules contained in Government Auditing Standards and Standards and Procedures for Audits of California K-12 Local Educational Agencies.  The “agreed-upon procedures” audit is the type routinely used to conduct the audit.  

    Additional information on the District’s overall construction and modernization bond program as well as the activities of the Citizen’s Bond Oversight Committee required under Proposition 39 can be located on the Facilities Division’s website at http://www.laschools.org/.

    Additional information on the District’s issuance of general obligation bonds is provided in the Annual Debt Report prepared by the Chief Financial Officer. 

    Agreed Upon Procedures 

    Proposition BB


    Measure K 

    Measure R

    Measure Y