December 30, 2025

2025 Leadership Accountibility Report

Joe Stephenshaw, Director
California Department of Finance
915 L Street
Sacramento, CA 95814

Dear Director Joe Stephenshaw,

In accordance with the State Leadership Accountability Act (Leadership Accountability), the Department of Education submits this report on the review of our internal control and monitoring systems for the biennial period ending December 31, 2025.

Should you have any questions please contact David Schapira, Chief of Staff, at (916) 324-1597, dschapira@cde.ca.gov.

Governance

Mission and Strategic Plan

The California Department of Education (CDE) oversees the state's diverse public school system, which is responsible for the education of nearly six million students in more than 10,000 schools with over 500,000 teachers, school employees, and administrators. The CDE is responsible for developing a statewide, comprehensive system of accountability and support that ensures Local Educational Agencies (LEAs) are informed, aligned with, and implementing federal and state education laws and regulations while simultaneously creating opportunities for innovation and transformation that improve public school programs and close opportunity and achievement gaps for California’s students. Additionally, the CDE oversees and maintains reporting responsibilities for the three state special schools, serving California’s students who are deaf, blind, and hard of hearing, and three diagnostic centers that assess student needs.

The mission of the CDE is to promote equity and educational excellence for all students, from early childhood through adulthood, through innovation and collaboration with educators, schools, families, and community partners to ensure that students thrive in, and contribute to, a multilingual, multicultural, and highly connected world.

The CDE’s goal is to transform public education by implementing strategic programs using the historic investments in education made by the state so that all California students will be socially, emotionally, and academically empowered to achieve lifelong success in an interconnected world. Critical and interrelated strategic priorities are to:

1. Accelerate achievement for all;
2. Build healthy, safe learning environments; and
3. Prepare students for bright futures.

The CDE’s objectives to achieve these strategic priorities include:

• Holding LEAs accountable for student achievement in all programs and for all groups of students
• Building local capacity to enable all students to achieve state standards
• Expanding and improving a system of recruiting, retaining, developing, and supporting teachers that instills excellence in every classroom with a special emphasis on diversifying the teacher workforce to reflect the diversity of our students
• Providing statewide leadership that promotes the effective use of technology to improve teaching and learning
• Increasing efficiency and effectiveness in administration of our public education system, including accurate and timely student record keeping, and good financial management practices
• Providing broader and more effective communications between the home, school, district, county, and state
• Establishing and fostering systems of school, home, and community resources that provide the physical, emotional, and intellectual support that each student needs to succeed
• Advocating for additional resources and flexibility, and providing statewide leadership that promotes good business practices so that California schools can target their resources to ensure success for all students
• Improving the effectiveness and efficiency of the Department through modernizing internal business systems and processes
  

Additionally, the State Superintendent of Public Instruction’s (State Superintendent) key initiatives for transforming California schools and other related priorities, informed by the necessity to close persistent opportunity/achievement gaps, include:

• Community Schools: It Takes a Village – Schools Can Be More Than Academics— A community school is a public school with community partnerships, that ensures pupil learning and whole-child and family development. This includes integrated support services, collaborative leadership, extended learning time, and best practices for educators and administrators.
• Statewide Literacy Campaign: Reading by 3rd Grade— The CDE has established two Literacy Co-Director positions to implement important literacy and biliteracy initiatives, including the California Literacy Roadmap that provides current and comprehensive, yet concise, guidance to help educators implement effective literacy instruction for all California students, as well as screening students K-2 for risk of reading difficulties, including dyslexia and ensuring early supports and interventions are provided to reduce future learning gaps.
• Universal Prekindergarten (UPK): Early Start for Greater Growth and Achievement— UPK brings together programs across early learning and Kindergarten through grade 12, relying heavily on transitional kindergarten and the California State Preschool Program. This year, CDE issued the PK–3 Learning Progressions which delineate the development of children’s language and literacy knowledge and skills from preschool through third grade and provide examples of a range of instructional approaches.
• Black Student Achievement— The Black Student Achievement Task Force recommends statewide policy and programs driven by research based and proven approaches to support the success of black students and to identify bright spots and best practices for establishing positive school climate to address disproportionate chronic absence, suspensions and expulsions of students of color. CDE has implemented a webinar series focused on best practices that meet the needs of black students.
• Closing the Digital Divide— The CDE has established a statewide broadband and education technology coordinator position to support the policy and statewide investments in broadband infrastructure and technology to close the homework/digital equity gap. This year, CDE convened the Artificial Intelligence (AI) Working Group, bringing together educators, students, experts, and educational partners to develop guidance and model policy for the safe, equitable, and effective use of AI in schools.
• Professional Learning: Supporting Our Teachers and Mentors— Proactive teacher support is key to success in the short and long term. Teachers are learning new technologies, engaging in educator trainings, and putting in the work to reach our students with a focus on literacy and mathematics given recent and upcoming adoptions of instructional materials.
• Mental Health Support: A Healthy Mind Is Essential for Learning— Recent years have taken a toll on our students, administrators, teachers, and support staff across the board, but we see disproportionate effects on students of color, English learners, and students of low socioeconomic status. CDE implements key whole-child priorities through
  school-based health, school safety, and health education programs.
• Universal meals: Nourishing Young Minds for Learning— Universal school meals provide the opportunity for all students to reach their full academic potential by fueling their brains and nurturing their social emotional needs for optimal learning. The California Universal Meals Program is designed to build on the foundations of the federal National School Lunch Program and School Breakfast Program and is intended to supplement, not replace.
• Antibias Education: Preventing, Addressing, and Eliminating Racism and Bias— Antibias education is designed to empower educators and students to confront hate, bigotry, racism, and bias rising in communities across the state and nation. The CDE leads a series of strategies including educator training grants, partnerships with community leaders, examination of policies, and virtual classroom sessions that leverage the power of education to create a more just society.
• Expanded Learning Programs: Education Outside of the Classroom— Expanded Learning refers to before school, after school, summer, and intersession learning experiences that develop the academic, social, emotional, and physical needs and interests of students. Expanded Learning opportunities should be hands-on engaging, student-centered, results-driven, involve community partners, and complement learning activities in the regular school day/year.
  

Control Environment

The CDE demonstrates its commitment to integrity and ethical values through an organizational structure that promotes a collaborative and inclusive professional climate. The CDE’s core values include a commitment to serve, leadership, integrity, professionalism, respect, open communication, positive supporting environment, and teamwork. Executive management conveys its priorities and organizational expectations through the establishment of policies and procedures, consistent practices, collaborative workgroups, leadership and executive management meetings, presentations to the field, and Department-wide communications and presentations.

The State Board of Education (SBE), established first by statute in 1852, then by amendment to the California Constitution in 1884, is the governing and policy-making body for academic standards, curriculum, instructional materials, assessments, and accountability for the CDE. The SBE consists of 11 members and is constitutionally authorized to appoint members of the executive leadership upon nomination by the State Superintendent.

The CDE is headed by the State Superintendent, Tony Thurmond, a state official elected by the people for a second four-year term in 2022. The CDE is organized into the following six operating branches that report directly to two Co-Chief Deputy Superintendents of Public Instruction: Dr. Ingrid Roberson (Chief Deputy Superintendent) and David Schapira (Chief Deputy Superintendent and Chief of Staff), who were nominated by the State Superintendent and appointed by the SBE:

1. Building Educational Success Together Branch: The Building Educational Success Together Branch develops curriculum frameworks; oversees the adoption of instructional materials; provides educational services and technical assistance to assist LEAs in ensuring all migratory, immigrant, and multilingual and English learner designated students receive equitable access to a meaningful education and implements federal Title I, Part C and Title III programs; provides oversight, coordination, and support for California’s three State Special Schools and three regional Diagnostic Centers; and provides leadership and guidance in professional learning statewide for teachers, administrators and other school leaders through Title II, Part A and Title I, Part A.
   
   
2. Opportunities for All Branch: The Opportunities for All Branch (OFAB) helps all students, starting with early learners, reach their academic potential and goals by providing the necessary support to early educators and providers. OFAB ensures that inclusion practices are established during classroom hours, before and after school, with quality expanded learning, and in early education programs. OFAB additionally supports and protects access to nutritious meals for children and adults in California to grow, learn, and thrive.
   
   
3. Student Success and Career Readiness Branch: The Student Success and Career Readiness Branch advances educational equity by overseeing statewide initiatives that support the whole child and prepare students for college, career, and life. The branch leads work across three divisions: the Student Achievement and Support Division, the Expanded Learning Division, and the Career and College Transition Division; and additionally oversees key whole-child priorities, including school-based health, school safety, and health education.
   
   
4. Information and Technology Branch: The Information and Technology Branch oversees and supports all internal and external technology and cybersecurity services to CDE headquarters, external facilities, the state special schools and diagnostic centers; manages multiple data collection systems including the California Longitudinal Pupil Data System (CALPADS); reports analysis, measurement and accountability of data through various dashboards and data portals; manages data sharing agreements with research organizations and various education segments; manages the development and administration for all statewide assessments; oversees computer science, artificial intelligence, education technology and broadband initiatives; and coordinates and conducts federal monitoring.
   
   
5. Legal, Audits, and Charters Branch: The Legal, Audits, and Charters Branch advises and represents the CDE, the State Superintendent, and the SBE; provides advice on legislation and legal matters regarding other governmental agencies and the state special schools; coordinates and conducts external and internal audits and audit-related services; reviews and processes civil rights complaints and appeals; investigates complaints involving state and federal categorical programs funded through the Consolidated Application; monitors compliance with the Uniform Complaint Procedures; and provides oversight, technical assistance and support on issues related to charter schools.
   
   
6. Operations and Administration Branch: The Operations and Administration Branch oversees the CDE's human resources, budget, accounting, and contracting operations; apportions state and federal resources to LEAs; and assists LEAs in the fiscal and business aspects of public-school operations, including school facilities and emergency services management.

Each branch provides direction to various divisions that administer the CDE’s processes and programs. In addition to the six branches, the CDE also has a Communications and Engagement Office responsible for external communications, awards, and engagement activities by CDE leadership, as well as a Government Affairs Division, responsible for legislative and budget engagement with the legislature and administrative entities under the California Governor.

The CDE’s structure allows the Department to appropriately address the varied responsibilities under its purview. However, the CDE’s executive management team responds to the changing needs of the state’s educational system, LEAs, community-based organizations, and the children served by modifying its organizational structure and responsibilities as necessary.

The CDE maintains a competent workforce by ensuring its hiring and recruiting practices conform to the California Department of Human Resources requirements. In addition, a variety of professional and general training courses and opportunities are provided to promote professional competencies and aid in the retention of CDE personnel and management.

Furthermore, the CDE administers an annual performance evaluation process that promotes organization-wide accountability and provides professional growth opportunities for all levels of staff and management.

The CDE management establishes effective systems of internal controls to ensure its goals and objectives are achieved. The internal control system is documented through policies and procedures at the department, branch, and division operational levels. Accountability is achieved through the CDE’s multi-level organizational reporting structure as well as regular internal and external assessments and audits.

Information and Communication

The CDE is responsible for the collection and processing of large amounts of information and strives to ensure that the collection, use, and communication of all information entrusted to it is relevant, reliable, and free from error. To this end, the CDE maintains a number of data collection systems employed to collect longitudinal, operational, and programmatic data. Additionally, the CDE utilizes the statewide accounting system, FI$Cal, to collect, process, and report fiscal information. The CDE management employs controls over its information systems that ensure the information is both complete and accurate. Furthermore, it maintains adequate separation of duties over essential functions and requires management review of key programmatic and operational information. Moreover, the CDE provides outreach, training, and technical assistance to grantees and contractors to ensure the information obtained from external sources and used by program and Department management is relevant to evaluate and improve the programs under its responsibility.

The CDE employs a number of methods for communicating information across and outside of the Department. For example, the CDE management communicates internally through email at every level, including Department-wide, to ensure quality information is disseminated appropriately to all levels of staff in a consistent manner, as appropriate. Important Department information and updates are conveyed through official communications approved by the State Superintendent or the Chief Deputy Superintendent(s). Additionally, the CDE engages in cross-collaborative workgroups, roundtables, webinars, all-staff meetings, leadership meetings, and executive meetings to share ideas, develop important policy direction, and convey information across all levels of the organization. Further, the CDE regularly presents information through webinars (often livestreamed on social media), town halls, and the public SBE meetings on various topics relevant to external stakeholders.
Moreover, the CDE provides critical LEA and school performance measures regarding California’s student population through the California School Dashboard and system of support, promoting both accountability and continuous improvement. The public can access these tools through the CDE internet site.

The CDE provides staff with several avenues to report inefficiencies and inappropriate actions within the organization. For example, the CDE maintains processes for employees to report personnel, labor, and discrimination concerns to its Office of Equal Opportunity and Labor Relations Office, as appropriate. Further, concerns regarding Department inefficiencies and inappropriate actions can be directly reported to the Audits and Investigations Division (A&I), and internal audits can be directly requested through the A&I’s Request for Assistance form.

Fraudulent activities or concerns that employees do not wish to convey directly to CDE management can be reported through the Whistleblower Hotline operated by the California State Auditor’s Office. This avenue for reporting concerns is advertised in breakrooms and common areas on all floors throughout the CDE buildings, and the CDE’s A&I Director annually sends an email regarding the Whistleblower Hotline to all staff.

Monitoring

The information included here discusses the entity-wide, continuous process to ensure internal control systems are working as intended. The role of the executive monitoring sponsor includes facilitating and verifying that the Department of Education monitoring practices are implemented and functioning. The responsibilities as the executive monitoring sponsor(s) have been given to: David Schapira, Chief Deputy Superintendent and Chief of Staff.

The CDE utilizes a variety of activities to ensure the effectiveness of internal controls throughout the various branches, divisions, and programs under its oversight. Specifically, divisions develop, implement, and maintain effective controls over the processes and programs under their responsibility. These controls include reconciliations, performance indicators, monitoring meetings, action plans, and ensuring appropriate management and supervisory review and approval. Furthermore, division managers periodically review the implemented controls for effectiveness. These reviews may result in management modifying the controls as necessary or requesting assistance from the Internal Audits Office (IAO) to conduct an audit of the identified risk areas. In addition, the IAO routinely selects CDE programs and processes for review based on an annual risk assessment. During these reviews, the IAO evaluates the program(s) or process(es) to determine whether controls are efficient, effective, and functioning as designed. Moreover, federal and state oversight agencies frequently conduct audits and reviews of the CDE's various divisions and programs, often on a periodic or annual basis. In turn, the CDE management carefully considers the results of both internal and external reviews to identify opportunities for continuous improvement.

Vulnerabilities identified by the executive management team through the CDE's biennial risk assessment process described in the "Risk Assessment" section of this report are assigned to responsible parties and monitored by the executive management team as described below.

The CDE's risk monitoring roles are defined and documented in the “CDE State Leadership Accountability Act Monitoring Procedures.” Specifically, the executive management team designates one or more responsible parties to address identified risks. The responsible parties communicate progress towards mitigating the vulnerabilities to the executive management team, and summarize their activities, progress, challenges, and anticipated accomplishments for the upcoming six-month period.

This information is reported to the executive management team biannually. Since the responsible parties are generally Division Directors and Deputy Superintendents, they are also responsible for communicating the changes to impacted staff and addressing feedback regarding the implemented controls.

Risk Assessment Process

The following personnel were involved in the Department of Education risk assessment process: executive management, middle management, and front line management.

The following methods were used to identify risks: brainstorming meetings, ongoing monitoring activities, audit/review results, other/prior risk assessments, questionnaires, consideration of potential fraud, and other.

The following criteria were used to rank risks: likelihood of occurrence, potential impact to mission/goals/objectives, timing of potential event, potential impact of remediation efforts, tolerance level for the type of risk, and other.

The CDE has several mechanisms to identify potential areas of risk to the Department and its mission. The executive management team (including the Chief Deputy Superintendents and Branch Deputy Superintendents) along with the applicable CDE Division Directors participate in biennial meetings to discuss departmental risks and to identify the most significant risks to the CDE as a whole. These risks are compiled in working documents that include the risk description, cause, and potential impacts to the CDE. The executive management team discusses and agrees upon a ranking of the impact (high, medium, or low) and the likelihood of occurrence (high, medium, or low) for each risk. The executive management team uses this information to determine the most significant risks that should be included in the SLAA report.

Further, the executive management team and division leadership meet regularly and discuss concerns and strategies to address any major issues as they arise.

Additionally, the A&I annually conducts a comprehensive department-wide risk assessment to identify internal and external risks at both the Department and division/program level. This risk assessment includes a questionnaire designed to acquire information regarding internal and external risks to departmental operations and objectives from CDE division directors, branch deputies, and state special school superintendents. The A&I considers the results of the risk assessment along with other factors to develop its annual audit plan. Additionally, a summary of high-risk survey responses are provided to the Chief Deputies for consideration.

Risks and Controls

Risk: Funding—Source, Levels

The CDE serves nearly six million students and their families through the administration of state and federal educational grants and programs designed to support California’s children from early childhood to adulthood. In addition to new education programs
created annually, often without adequate state operations funding and positions to administer and provide oversight, the volatility of federal and state dollars, capital gains, reduced administrative allocations, instability of the federal administration including threats of the proposed elimination of the U.S. Department of Education, impacts the CDE’s ability to effectively and timely administer and monitor program progress and compliance to legislative requirements. Additionally, the CDE lacks a robust, centralized grants management system to capture LEA funding and expenditure data to optimize state and federal coordination.

Control: Control 1

The CDE will monitor and prioritize vacant positions holistically in order of how critical it is that they are filled, including an analysis of the potential impact of not filling certain positions and the associated funding and/or salary savings. In addition, the CDE will amplify advocacy communications with external state and legislative leadership and take a proactive approach while navigating through the identified funding uncertainties.

Control: Control 2

The CDE’s Operations and Administration Branch will work with the Information Technology Branch to seek technology solutions through potential contracts with vendors as well as funding resources to develop and implement a comprehensive grants management system and increase department coordination and visibility around LEA fund planning and oversight.

Risk: Local Educational Agency and Provider Oversight

The California Department of Education (CDE) oversees the state's diverse and dynamic public school system, which is responsible for the education of nearly six million students in more than 10,000 schools. The CDE is responsible for providing oversight to ensure LEA
and other non-LEA grantees comply with the various laws and the requirements for proper expenditure of public funds. These responsibilities include (1) handling appeals of LEA Uniform Complaint Procedure decisions on complaints of discrimination, harassment, intimidation and bullying, (2) conducting audits of LEA and non-LEA Early Education and Nutrition program grantees to ensure program and fiscal compliance, and (3) programmatic monitoring of compliance with program requirements and grant terms and conditions. Declining Federal and State funding levels, staffing constraints, and an increased workload related to handling high-risk complaints and the auditing and monitoring of high-risk grant recipients creates a heightened risk around CDE’s ability to maintain the coverage necessary to process and remediate the complaints received, identify and address significant grantee non-compliance, and timely recover disallowed costs. Without adequate resources, particularly staffing, the CDE’s ability to provide effective oversight over all LEAs and providers and to timely respond to all complaints received is greatly impacted.

Control: Control 1

CDE will continue to advocate through the state’s budget process for additional staffing to address the increased complaint processing workload. To streamline the CDE’s ability to address the case workload overall, the CDE plans to combine two complaints units (the Categorical Complaint Management Unit and the Educational Equity Uniform Complaint Procedures Unit) to allow for easier
cross-training and caseload sharing to maximize the capacity for complaint processing and remediation in general. Additionally, the Legal Division will seek funding to establish a Uniform Complaint Process mediation program to allow for state-assisted informal complaint resolution which should result in a decrease in the number of complaints and appeals that require formal decision issuance, improving the unit’s ability to meet decision deadlines.

Control: Control 2

The CDE will advocate for additional positions and funding to increase the external audit presence, with continued focus on high-risk grant recipients. Increasing staff resources will enable the CDE to conduct more high-risk audits, assisting the CDE in achieving effective oversight, including identifying areas of significant non-compliance and disallowed costs and activities. This will provide the CDE programs and leadership with the information necessary to take action in recouping funds, administering sanctions or corrective actions, and providing effective outreach to prevent future non-compliance State-wide.

Risk: Staff—Key Person Dependence, Workforce Planning

CDE’s overarching goal is to transform public education so that all California students are socially, emotionally, and academically empowered to succeed in a connected, multicultural world. Achieving this transformation requires the thoughtful integration of new programs and strategies that support students, families, educators, and LEAs. Central to this effort is a highly skilled and empowered workforce capable of implementing innovative practices, addressing diverse student needs, and working effectively across systems. The anticipated loss of highly skilled and specialized staff through retirement and turnover presents a significant risk to the Department. If unaddressed, the impact may include inconsistent program implementation, reduced support for LEAs, delays in meeting state and federal requirements, and diminished progress toward statewide educational goals. By strategically investing in onboarding, professional development, succession planning, and staff resources, the Department ensures that its workforce is prepared to drive meaningful, equitable, and sustainable improvements in California schools.

Control: Control 1

Finalize and implement a comprehensive Workforce Development Plan, along with recruitment and retention practices, to strengthen CDE’s recruitment, development, and retention of a highly skilled and impactful workforce capable of driving meaningful and sustainable improvements in California schools.

Control: Control 2

Implement a streamlined hiring process with metrics to monitor time-to-fill and conduct periodic audits to ensure compliance with state policies, equitable practices, and alignment with the workforce plan goals.

Control: Control 3

Establish a comprehensive training program for all staff and leadership levels, encompassing onboarding, professional development, and role-specific skill-building. Ensure the program is regularly reviewed and updated to align with organizational priorities, evolving responsibilities, and applicable state requirements, supporting workforce readiness, accountability, and consistent performance across the Department.

Risk: Technology—Compatibility

The CDE Information and Technology Branch oversees and supports all internal and external technology and cybersecurity services for CDE headquarters, external facilities, the state special schools, and diagnostic centers. The CDE must implement modern information technology solutions to replace outdated systems and inefficient processes in order to effectively manage programs and conduct departmental operations; however, state procurement requirements, funding constraints, and the growing need for organizational change related to system development and formalized data governance present significant challenges that may delay implementation. These challenges are driven by inadequate and outdated internal business systems, insufficient funding for internal software applications, decentralized application development across divisions that limits interoperability and effective data governance, lack of written documentation for existing systems and policies, and limited resources to ensure staff receive appropriate training and certification in current database software and business
applications.

As a result of these challenges, the Department may experience reduced efficiency and workflow effectiveness, diminished ability to maximize the use of existing data, delays in the development and modernization of state-funded applications, unreliable systems for critical and mandated reporting, and an overall inability to effectively track and implement legislatively mandated technology solutions and departmental programs.

Control: Control 1

The CDE’s Project Management Office will continue to assess and prioritize outdated systems and technologies, collaborating across divisions to identify department-wide solutions and secure funding for modernization initiatives. In addition, CDE will invest in staff training on modern technologies, business applications, and tools to strengthen the organization’s internal knowledge base. CDE will continue to work with the California Department of Technology’s Office of Digital Innovation to identify and implement solutions that improve internal business operations.

Control: Control 2

The CDE Data Governance Office (DGO) will focus on the implementation of data governance in line with the CDE’s data strategy through the development, updating, and management of data access and use policies. The DGO will lead the Cross-Division Data Governance meetings to support department-wide data governance, management, and system interoperability. CDE will work with WestEd’s Data Integration Support Center to develop documentation, data security policies, and internal communications for CDE’s Azure Data Lake (data lake). The data lake allows CDE to aggregate data from multiple sources including CALPADS, data from outside entities, and the California School Directory. This modern infrastructure enables advanced analytics, reporting through PowerBI, and more flexible data management compared to the aging data warehouse systems currently in use. The data lake supports 20 different products across the organization and is central to numerous operational data transfers between the CDE and other entities and is used as the primary source of data files transferred to the California Cradle to Career (C2C) data system, which is the state-wide longitudinal data system.

Control: Control 3

The CDE will work department-wide to centralize application development and prioritize modernization of outdated internal and external facing technology systems. Risk can be mitigated by improving interoperability and ensuring timely upgrades of systems through a structured governance framework and established department-wide standards. Compliance checks and project milestones can be covered during quarterly modernization reviews, and monthly governance meetings to ensure projects stay on schedule, are properly documented, and ongoing support is provided in collaboration with department programs.

Conclusion

The Department of Education strives to reduce the risks inherent in our work and accepts the responsibility to continuously improve by addressing newly recognized risks and revising risk mitigation strategies as appropriate. I certify our internal control and monitoring systems are adequate to identify and address current and potential risks facing the organization.

Tony Thurmond, State Superintendent of Public Instruction

CC:

California Legislature [Senate, Assembly]
California State Auditor
California State Library
California State Controller
Director of California Department of Finance
Secretary of California Government Operations Agency