Education Code § 41020.8

41020.8.

(a) Notwithstanding any other law, the auditor conducting an annual audit pursuant to Section 41020 shall, upon request, provide pertinent financial and compliance information related to the circumstances listed in subdivision (b) to specified entities as follows:

(1) To the county superintendent of schools for a school district or educational joint powers authority within the county superintendent of schools’ jurisdiction.

(2) To the chartering authority of a charter school or to the county superintendent of schools for a charter school if the county superintendent of schools is not the chartering authority.

(3) To the Superintendent and the Controller for any local educational agency.

(b) The circumstances described in subdivision (a) include all of the following:

(1) The local educational agency has a financial audit finding, an audit finding for a material weakness or significant deficiency in internal controls, or a material noncompliance finding, including an apportionment significant audit exception.

(2) The audit of a local educational agency contains an audit opinion other than unmodified.

(3) The audit has included a statement that there is substantial doubt about the local educational agency’s ability to continue as a going concern for a reasonable period of time.

(4) A determination has been made that a school district or educational joint powers authority may not be able to meet its obligations of the current or subsequent fiscal year pursuant to Section 42127.6.

(5) There is evidence that a school district is showing fiscal distress under the standards and criteria adopted in Section 33127 pursuant to paragraph (1) of subdivision (a) of Section 42127.6.

(6) A school district has a negative unrestricted fund balance or negative cash balance pursuant to Section 42127.5.

(7) A school district has received an emergency apportionment pursuant to Article 2 (commencing with Section 41320) or Article 2.5 (commencing with Section 41325) of Chapter 3 of Part 24 of Division 3 of Title 2.

(8) The budget of a school district, educational joint powers authority, or county superintendent of schools is disapproved or a school district or county superintendent of schools has received a negative certification on any budget or interim financial report, as defined in Sections 1240, 1622, 42127, and 42131, during the current or preceding fiscal year.

(c) Information provided by an auditor to a chartering authority, a county superintendent of schools, the Controller, or the Superintendent pursuant to this section shall be submitted simultaneously to the named school district, educational joint powers authority, charter school, or county superintendent of schools, as applicable, and shall not constitute a violation of auditor-client confidentiality.