Chapter 13-399

Chapter 399

2013 -- S 0510

Enacted 07/15/13

A N A C T

RELATING TO EDUCATION - SCHOOL COMMITTEES AND SUPERINTENDENTS

Introduced By: Senators Jabour, Satchell, Metts, Picard, and Sheehan

Date Introduced: February 28, 2013

It is enacted by the General Assembly as follows:

SECTION 1. Section 16-2-9.4 of the General Laws in Chapter 16-2 entitled “School

Committees and Superintendents” is hereby amended to read as follows”

16-2-9.4. School district accounting compliance. -- (a) The office of auditor general

and the department of elementary and secondary education shall promulgate a uniform system of

accounting, including a chart of accounts based on the recommendations of the advisory council

on school finance, and require all accounts of the school districts, regional school districts, state

schools and charter schools to be kept in accordance therewith; provided, that in any case in

which the uniform system of accounting is not practicable, the office of auditor general in

conjunction with the department of elementary and secondary education shall determine the

manner in which the accounts shall be kept. The uniform system of accounting shall also include

a standardized budget process to ensure districts can annually assess investment priorities and

incorporate long range planning.

(b) For the purpose of securing a uniform system of accounting and a chart of accounts

the advisory council on school finances, as defined in § 16-2-9.2 may make such surveys of the

operation of any school districts, regional school district, state school or charter school as they

shall deem necessary.

school districts, regional school districts, state schools, and/or charter schools, shall implement a

regents-approved budget model, and use best practices established by the department of education

for long range planning, budget development, and budget administration and reporting.

(d) If any school district, regional school district, state school or charter school fails to

install and maintain the uniform system of accounting, including a chart of accounts and

approved budget model, or fails to keep its accounts and interdepartmental records, or refuses or

neglects to make the reports and to furnish the information in accordance with the method

prescribed by the office of auditor general and the department of education or hinders or prevents

the examination of accounts and financial records, the auditor general and the commissioner of

education and/or their respective designee(s) shall make a report to the superintendent of schools

of the local education agency, the school committee chairperson, the mayor or town manager, and

the president of the town council, and/or for a charter school, to the board of trustees or directors,

as applicable, in writing, specifying the nature and extent of the failure, refusal, neglect,

hindrance, or prevention, and the commissioner is hereby authorized and directed to review the

matter so reported. If the commissioner shall find that failure, refusal, neglect, hindrance, or

prevention exists and that the school district, regional school district, state school or charter

school should properly comply in the matter so reported, the commissioner shall direct the school

district, regional school district, state school or charter school, in writing, to so comply. If the

failure, refusal, neglect, hindrance, or prevention shall continue for a period of ten (10) days

following the written direction, the commissioner may request the board of education for

approval to withhold distribution of state aid to said school district, regional school district, state

school or charter school. The board shall hold a hearing and provide the subject school and/or

district notice and an opportunity to be heard at said hearing. After hearing thereon, the board

may authorize the commissioner to withhold the distribution of state aid to said school district,

regional school district, state school, or charter school, if the board determines such sanction is

appropriate.

(e) The department of elementary and secondary education in consultation with the

division of municipal finance shall conduct periodic reviews and analysis of school revenues and

expenses. The department shall also review and monitor compliance with the approved budget

model and best practices. The department shall identify those local education agencies considered

to be at risk of a year-end deficit or a structural deficit that could impact future years. Such

potential deficits shall be identified based on the periodic reviews, which may also include on-site

visits and reporting in accordance with the provisions of § 45-12-22.2. Potential deficits shall be

reported to the office of municipal finance, office of auditor general, superintendent, chairman of

the school committee, mayor or town manager, and the president of the town council, of the

applicable school district, regional school district, or state school, and/or for a charter school, to

the board of trustees or directors, as applicable.

SECTION 2. This act shall take effect upon passage.

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LC01589

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