Cal. Education Code § 22206

(a) As often as the board determines necessary, it may audit or cause to be audited the records of any public agency. (b) The board may excuse any audit finding provided all of the following conditions are met: (1) The audit finding relates to a period of time prior to July 1, 2002. (2) The audit finding identifies an issue that is not in compliance with the provisions of this part with respect to creditable service or creditable compensation. (3) The noncompliance would not have existed if the service and compensation crediting changes that shall become operative on July 1, 2002, as a result of legislation enacted during the second year of the 1999–2000 Regular Session, had been operative during the period of time investigated in the audit. (4) The audit finding was included in an audit report issued on or after January 1, 2001. (5) Excusing the audit finding will not have an adverse effect on the integrity of the retirement fund. (c) The board’s authority pursuant to subdivision (b) shall extend to service and compensation issues identified through activities outside the audit function that address compliance with the provisions of this part.