Bill Text: OR SB27 | 2011 | Regular Session | Enrolled
Bill Title: Relating to audits of education districts; declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2011-06-22 - Effective date, July 1, 2011. [SB27 Detail]
Download: Oregon-2011-SB27-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
Senate Bill 27
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Superintendent of Public
Instruction Susan Castillo for Department of Education)
CHAPTER ................
AN ACT
Relating to audits of education districts; amending ORS 327.137,
328.465 and 328.467; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 328.465 is amended to read:
328.465. (1) All { - common and union high - } school
district boards { + and education service district boards + }
shall cause to have prepared an annual audit of the books and
accounts of the { + school + } district { + or education
service district + } in the manner set forth in subsection (2) or
(3) of this section. The audit { - statements - }
{ + reports + } must be filed with the administrative office for
the county { + in which the administrative office of the
district is located + } on or before November 1 of the year in
which the audit is conducted.
(2) The { - district school board - } { + school district
board or education service district board + } may contract for
its audit with the administrative office for the county in which
the administrative office of the school district { + or
education service district + } is located. The administrative
office for the county shall secure the services of accountants
who shall audit the books and accounts of the districts and file
with the administrative office for the county a statement setting
forth the financial condition of each district. A copy of the
audit report of the district shall be sent to the appropriate
{ - district - } board { + of the district + }. Each district,
upon receipt of billing from the administrative office for the
county, shall pay its share of the audit costs.
(3) { - The district board may employ - } { + A school
district board or an education service district board may
contract with + } accountants to audit the books and accounts of
the district.
(4) Accountants { - employed under - } { + under contract
as described in + } subsection (2) or (3) of this section must be
selected from the roster of authorized municipal accountants
maintained by the Oregon Board of Accountancy under ORS 297.670.
(5) The audit required by this section { - shall - }
{ + must + } include an audit of those factors that are used to
Enrolled Senate Bill 27 (SB 27-INTRO) Page 1
compute the State School Fund distribution under ORS
{ + 327.011, + } 327.013 { + or 327.019 + }.
SECTION 2. ORS 328.467 is amended to read:
328.467. (1)(a) In performing an audit required under ORS
328.465, the accountant under contract with { - the school
district or county - } { + a county, a school district board or
an education service district board + } shall determine whether
the school district { + or education service district + } has:
(A) Followed generally accepted accounting principles in
reporting the district's financial condition and operations; and
(B) Substantially complied with legal requirements in
conducting the district's financial affairs.
(b) The determination shall be included in the { + audit + }
report as required by ORS 297.465.
(2) Upon receipt of the audit report, the school district board
{ + or education service district board + } shall determine the
measures the board considers necessary to correct any
deficiencies disclosed in the audit report. The board shall adopt
a resolution setting forth any corrective measures the board
proposes and the period of time estimated to complete the
measures.
(3) Within 60 days after { - a school district files a copy
of its - } { + the + } audit report { + is filed + } with the
Secretary of State { - or - } { + and + } the Department of
Education, a copy of the resolution prepared under subsection (2)
of this section { - shall - } { + must + } also be filed.
Upon receipt of the audit report and the resolution, the
Secretary of State and the Department of Education
{ - shall - } { + must + } either acknowledge the { - school
district board's - } plans { + of the school district board or
education service district board + } to correct deficiencies
cited in the audit report or notify the { - school district - }
board of those deficiencies that, if not corrected, could result
in the withholding of funds under this section. At the request of
{ - the school district - } { + a + } board, the Secretary of
State or the Department of Education shall make suggestions for
correcting those deficiencies. If the { - school district - }
board does not agree with the notification by the Secretary of
State or the Department of Education, the board shall be granted
an opportunity for a conference regarding the notification, audit
determinations or corrective measures to be taken.
(4) If the Secretary of State or the Department of Education
concurs with the determination made under subsection (1) of this
section in two successive audits of the same school district
{ + or education service district + } and determines that the
school district board { + or education service district
board + } has not taken adequate action to correct the
deficiencies cited in the notifications given under subsection
(3) of this section, the Secretary of State or the Department of
Education may certify those facts to the Superintendent of Public
Instruction. The certificate of the Secretary of State or the
Department of Education shall be issued only after notice,
opportunity to be heard and hearing pursuant to the provisions of
ORS chapter 183 governing contested cases. The hearing shall be
held within the jurisdiction of the { - school - } district.
(5)(a) Upon receipt of a certificate from the Secretary of
State or the Department of Education under subsection (4) of this
section, the Superintendent of Public Instruction shall withhold
from distribution to the school district { + or education
service district + } 10 percent of the payments from the State
Enrolled Senate Bill 27 (SB 27-INTRO) Page 2
School Fund otherwise to be distributed to the { - school - }
district under ORS 327.008.
(b) The moneys withheld shall be disbursed to the school
district { + or education service district + } after the
Superintendent of Public Instruction has received notice from the
Secretary of State or the Department of Education that the school
district board { + or education service district board + }:
(A) Has taken action to ensure that the { - school - }
district will follow generally accepted accounting principles in
reporting the district's financial condition and operations; and
(B) Will ensure that the { - school - } district
substantially complies with legal requirements in conducting the
district's financial affairs.
(6) The Secretary of State or the Department of Education may
not issue a certificate under subsection (4) of this section for
failure to follow generally accepted accounting principles if a
school district { + or an education service district + } has
followed accounting practices authorized by state law.
(7) As used in this section, 'generally accepted accounting
principles' means those accounting principles sanctioned by
recognized authoritative bodies such as the Governmental
Accounting Standards Board, the Financial Accounting Standards
Board or their successors.
SECTION 3. ORS 327.137 is amended to read:
327.137. (1) Every common or union high school district { + or
education service district + } shall file a copy of its audit
report with the Department of Education within six months of the
end of the fiscal year for which the audit is required. If the
audit report, as submitted to the district, fails to provide the
detail necessary for the computation required in the
administration of ORS 327.006 to 327.133, 327.348, 327.355,
327.357, 327.360, 327.731, 328.542 and 530.115 and this section,
the district shall submit the necessary information on forms
provided by the department within the time prescribed for filing
the audit in this section. Any district failing to file a copy of
its { + audit + } report under this section or ORS 327.133 shall
not receive any payments from the State School Fund until such
reports are filed.
(2) Notwithstanding the timeline provided by this section and
pursuant to rules adopted by the State Board of Education, the
Superintendent of Public Instruction may waive a reporting date
or specify an alternative date to provide the audit report or
information if a human-created disaster or a natural disaster
affects the ability of a { + school + } district { + or an
education service district + } to provide the audit report or
information by a specified date.
SECTION 4. ORS 327.137, as amended by section 15, chapter 846,
Oregon Laws 2007, and section 7, chapter 184, Oregon Laws 2009,
is amended to read:
327.137. (1) Every common or union high school district { + or
education service district + } shall file a copy of its audit
report with the Department of Education within six months of the
end of the fiscal year for which the audit is required. If the
audit report, as submitted to the district, fails to provide the
detail necessary for the computation required in the
administration of ORS 327.006 to 327.133, 327.348, 327.731,
328.542 and 530.115 and this section, the district shall submit
the necessary information on forms provided by the department
within the time prescribed for filing the audit in this section.
Any district failing to file a copy of its { + audit + } report
Enrolled Senate Bill 27 (SB 27-INTRO) Page 3
under this section or ORS 327.133 shall not receive any payments
from the State School Fund until such reports are filed.
(2) Notwithstanding the timeline provided by this section and
pursuant to rules adopted by the State Board of Education, the
Superintendent of Public Instruction may waive a reporting date
or specify an alternative date to provide the audit report or
information if a human-created disaster or a natural disaster
affects the ability of a { + school + } district { + or an
education service district + } to provide the audit report or
information by a specified date.
SECTION 5. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect July 1,
2011. + }
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Passed by Senate April 13, 2011
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 1, 2011
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Enrolled Senate Bill 27 (SB 27-INTRO) Page 4
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 27 (SB 27-INTRO) Page 5
