SENATE BILL NO. 1428
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S1428..........................................................by EDUCATION
SCHOOL DISTRICTS - Amends existing law relating to fiscal affairs of school
districts to revise the date on which audit reports are due; to provide for
a penalty for noncompliance; to provide for appeal to the State Board of
Education; to require school districts to respond to the State Department
of Education's inquiries regarding an audit report within a time certain;
to provide a penalty for failure to respond within the time limit
specified; and to provide for appeal to the State Board of Education.
02/11 Senate intro - 1st rdg - to printing
02/12 Rpt prt - to Educ
02/19 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Coiner, Gannon
Floor Sponsor - Goedde
Title apvd - to House
02/26 House intro - 1st rdg - to Educ
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/11 3rd rdg - PASSED - 63-5-2
AYES -- Anderson, Andrus, Bayer, Bedke, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
Lake, LeFavour, Loertscher, Mathews, McGeachin, Mortimer, Moyle,
Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Ruchti,
Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08), Shirley,
Shively, Smith(30), Smith(24), Stevenson, Thomas, Trail, Vander
Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- Barrett, Luker, Marriott, Nielsen, Thayn
Absent and excused -- Roberts, Snodgrass
Floor Sponsor - Patrick
Title apvd - to Senate
03/12 To enrol
03/13 Rpt enrol - Pres signed - Sp signed
03/14 To Governor
03/17 Governor signed
Session Law Chapter 160
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE SENATE
SENATE BILL NO. 1428
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO FISCAL AFFAIRS OF SCHOOL DISTRICTS; AMENDING SECTION 33-701, IDAHO
3 CODE, TO REVISE THE DATE ON WHICH AUDIT REPORTS ARE DUE, TO PROVIDE A PEN-
4 ALTY FOR NONCOMPLIANCE, TO PROVIDE FOR APPEAL TO THE STATE BOARD OF EDUCA-
5 TION, TO REQUIRE SCHOOL DISTRICTS TO RESPOND TO THE STATE DEPARTMENT OF
6 EDUCATION'S INQUIRIES REGARDING AN AUDIT REPORT WITHIN A TIME CERTAIN, TO
7 PROVIDE A PENALTY FOR FAILURE TO RESPOND WITHIN THE TIME LIMIT SPECIFIED
8 AND TO PROVIDE FOR APPEAL TO THE STATE BOARD OF EDUCATION.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 33-701, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 33-701. FISCAL YEAR -- PAYMENT AND ACCOUNTING OF FUNDS. The fiscal year
13 of each school district shall be a period of twelve (12) months commencing on
14 the first day of July in each year.
15 The board of trustees of each school district shall have the following
16 powers and duties:
17 1. To determine and order paid all lawful expenses for salaries, wages
18 and purchases, whether or not there be money in the treasury for payment of
19 warrants drawn against any fund of the district. Warrants shall be signed by
20 the treasurer of the district and countersigned by the chairman or vice-chair-
21 man of the board of trustees.
22 Whenever any school district has sufficient funds on deposit to do so, it
23 may pay any allowed claim for salaries, wages or purchases by regular bank
24 check signed by the treasurer or assistant treasurer of the district and coun-
25 tersigned by the chairman, or vice-chairman, of the board of trustees.
26 The total amount of warrants or orders for warrants drawn on any fund,
27 together with disbursements from such fund in any other manner made, shall not
28 exceed ninety-five percent (95%) of the estimated income and revenue accrued
29 or accruing to such fund for the same school year, until such income and reve-
30 nue shall have been paid into the treasury to the credit of the district;
31 2. To invest all or part of any plant facilities reserve fund, or any
32 fund accumulated for the payment of interest on, and the redemption of, out-
33 standing bonds, or other obligations of the district in bonds or certificates
34 of indebtedness of the United States of America, or in bonds or investments
35 permitted by sections 67-1210 and 67-1210A, Idaho Code, or warrants of the
36 state of Idaho, or in warrants or tax anticipation notes of any county or
37 school district of the state of Idaho, when such investments shall be due and
38 payable on or before the date any plant facilities reserve fund shall be
39 required to be expended or any bonds or other obligations, or interest
40 thereon, of the investing district shall become payable.
41 Whenever in the judgment of the board of trustees, the proceeds of any
42 bond issue should be temporarily invested pending the expenditure of such pro-
43 ceeds for the purposes for which such bonds were issued, the proceeds may be
2
1 invested in the manner and form hereinabove prescribed. Any interest, or prof-
2 its accruing from such investments shall be used for the purposes for which
3 the bonds were issued. Unless otherwise provided by law, any interest or prof-
4 its accruing from the investment of any funds shall be credited to the general
5 fund of the district;
6 3. To insure any schoolhouse and other property, and the district,
7 against any loss by fire, casualty, or liability, and the board, its officers
8 and employees, and to preserve its property for the benefit of the district.
9 In case of loss of any insured property, any proceeds from insurance:
10 (a) May be expended in constructing a temporary or permanent structure,
11 but no sum greater than the insurance proceeds shall be so expended except
12 upon approval of a majority of the school district electors voting in an
13 election called for that purpose; or
14 (b) May be placed in and made a part of the school plant facilities
15 reserve fund of the district, if the district has such a fund; or
16 (c) May be placed in a separate account in the bond interest and redemp-
17 tion fund of the district to repay any kind of obligation incurred by the
18 district in replacing or restoring the property for which the insurance
19 proceeds were received, and shall not be included in the computations of
20 bond and bond interest levies as provided in section 33-802A, Idaho Code.
21 If the proceeds of any insurance received by a school district by reason
22 of loss on real property shall be less than five thousand dollars ($5,000),
23 such proceeds may be credited to the general fund of the district;
24 4. To pay from the general fund of the district the expense of any member
25 of the board incurred while traveling on the business of the board, or attend-
26 ing any meeting called by the state board of education or by the state super-
27 intendent of public instruction, or attending any annual or special meetings
28 of the state school trustees association, and to pay the membership fee of the
29 board of trustees in said association. Whenever any member of the board of
30 trustees resides at such distance from the meeting place of the board as to
31 require, in the judgment of the board, such member to incur extraordinary
32 expense in traveling from his home to and from said meeting place, the board
33 may approve payment to such member of the extraordinary expense incurred in
34 attending any meeting of the board.
35 For the purpose of this paragraph, the term "expense" or "extraordinary
36 expense" shall include allowance for mileage or actual travel expense incur-
37 red;
38 5. To prepare, or cause to be prepared and published, in the manner here-
39 inafter prescribed, within one hundred twenty (120) days from the last day of
40 each fiscal year, an annual statement of financial condition and report of the
41 school district as of the end of such fiscal year in a form prescribed by the
42 state superintendent of public instruction. Such annual statement shall
43 include, but not be limited to, the amounts of money budgeted and received and
44 from what sources, and the amounts budgeted and expended for salaries and
45 other expenses by category. Salaries may be reported in gross amount. Each
46 school district shall have available at the administrative office, upon
47 request, a full and complete list of vendors and the amount paid to each and a
48 list of the number of teachers paid at each of the several stated gross salary
49 levels in effect in the district.
50 Nothing herein provided shall be construed as limiting any school district
51 as to any additional or supplementary statements and reports it may elect to
52 make for the purpose of informing the public of its financial operations,
53 either as to form, content, method, or frequency; and if all the information
54 required herein to be published shall have been published as provided herein
55 at regular intervals during the fiscal year covering successive portions of
3
1 the fiscal year, then such information may be omitted from the annual state-
2 ment of financial condition and report for such portions of the fiscal year as
3 already have been reported.
4 The annual statement of financial condition and report shall be published
5 within the time above prescribed in one (1) issue of a newspaper printed and
6 published within the district, or, if there be none, then in a newspaper as
7 provided in section 60-106, Idaho Code, published within the district, or, if
8 there be none, then in a newspaper as provided in section 60-106, Idaho Code,
9 in the county in which the school district is located, or, if more than one
10 (1) newspaper is published in said district or county, then in the newspaper
11 most likely to give best general notice of the contents of such annual state-
12 ment of financial condition and report to the residents of said district; pro-
13 vided, that if no newspaper is published in the district or county, then such
14 statement of financial condition and report shall be published in a newspaper
15 as provided in section 60-106, Idaho Code, most likely to give best general
16 notice of the contents to the residents of said district.
17 The chairman, clerk and treasurer of each school district shall certify
18 the annual statement of financial condition and report to be true and correct,
19 and the certification shall be included in each published statement.
20 In the event the board of trustees of any school district shall fail to
21 prepare or cause to be prepared or to publish the annual statement of finan-
22 cial condition and report as herein required, the state superintendent of pub-
23 lic instruction shall cause the same to be prepared and published, and the
24 cost thereof shall be an obligation of the school district. One (1) copy of
25 the annual statement of financial condition and report shall be retained in
26 the office of the clerk of the board of school trustees, where the same shall
27 be open at all times to examination and inspection by any person;
28 6. To cause to be made a full and complete audit of the financial state-
29 ments of the district as required in section 67-450B, Idaho Code.
30 The auditor shall be employed on written contract.
31 One (1) copy of the audit report shall be filed with the state department
32 of education, after its acceptance by the board of trustees, but not later
33 than October 15 November 10. If the audit report is not received by the state
34 department of education by November 10, the department may withhold all or a
35 portion of the district's November 15 distribution made pursuant to section
36 33-1009, Idaho Code, for noncompliance with the audit report deadline. Pro-
37 vided however, a district may appeal to the state board of education for
38 reconsideration, in which case the state board of education may reinstate or
39 adjust the funds withheld.
40 In the event the state department of education requests further explana-
41 tion or additional information regarding a school district's audit report,
42 such school district shall provide a full and complete response to the state
43 department of education within thirty (30) days of receipt of the state
44 department's request. If a school district fails to respond within the thirty
45 (30) day time limit, the state department of education may withhold all or a
46 portion of the district's next scheduled distribution to be made pursuant to
47 section 33-1009, Idaho Code. Provided however, a district may appeal to the
48 state board of education for reconsideration, in which case the state board of
49 education may reinstate or adjust the funds withheld;
50 7. To file annually with the state department of education such financial
51 and statistical reports as said state superintendent of public instruction may
52 require;
53 8. To order and have destroyed any canceled check or warrant, or any form
54 of claim or voucher which has been paid, at any time after five (5) years from
55 the date the same was canceled and paid;
4
1 9. To review the school district budget periodically and make appropriate
2 budget adjustments to reflect the availability of funds and the requirements
3 of the school district. Any person or persons proposing a budget adjustment
4 under this section shall notify in writing each member of the board of
5 trustees one (1) week prior to the meeting at which such proposal will be
6 made. Prior to the final vote on such a proposal, notice shall be posted and
7 published once, as prescribed in section 33-402, Idaho Code. A budget adjust-
8 ment shall not be approved unless voted affirmatively by sixty percent (60%)
9 of the members of the board of trustees. Such amended budgets shall be submit-
10 ted to the state superintendent of public instruction;
11 10. To invest any money coming into the hands of the school district in
12 investments permitted by section 67-1210, Idaho Code. Unless otherwise pro-
13 vided by law, any interest or profits accruing from the investment of any
14 funds shall be credited to the general fund of the district.
STATEMENT OF PURPOSE
RS 17905
Currently, Idaho statute contains no penalty for local school
districts being non-responsive to audit inquiries from the
Department of Education on results of their required annual
outside audit. This bill will give the Department the ability to
withhold funds from non-responsive school districts. It inserts
an appeal process to the State Board of Education for resolution
of conflict. Also, the date required for submission of audits is
too close to fiscal year end for compliance; this change would
give districts 26 additional days to submit the required report.
FISCAL IMPACT
Audit followup will require some additional correspondence but
the estimated cost will be minimal since the initial work is
already being done.
Contact
Name: John Goedde
Phone: 332-1321
STATEMENT OF PURPOSE/FISCAL NOTE S 1428