The free public schools of the State shall be maintained and supported by such moneys as shall be appropriated from time to
time by the General Assembly, local school tax revenues generated and payments received in accordance with this title, payments
received in accordance with Chapters 4, 5 and 6 of this title, and appropriated and nonappropriated special funds otherwise
authorized or legally acquired. Funds appropriated or otherwise allocated to the Department of Education on behalf of the
public schools of this State shall be administered by the Department in accordance with this title or other applicable state
or federal laws and regulations.
32 Del. Laws, c. 160, § 58; 35 Del. Laws, c. 158, § 1; 36 Del. Laws, c. 207, § 1; Code 1935, § 2704; 14 Del. C. 1953, § 1501; 56 Del. Laws, c. 299; 57 Del. Laws, c. 113; 71 Del. Laws, c. 180, § 86.;
§ 1502. Disbursements.
Such appropriations as are made by the General Assembly for the free public schools, and such money as is received from the
federal government for school purposes under any law shall be paid by the State Treasurer in accordance with the items of
the official state school budget and with the appropriations of the General Assembly therefor, as required by the Department
of Education; but such payments shall be made only upon orders of the said Department of Education, signed by its Secretary
or the Secretary's designee.
Code 1915, § 2311; 32 Del. Laws, c. 160, § 63; Code 1935, § 2707; 14 Del. C. 1953, § 1504; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 180, §§ 87, 89A.;
§ 1503. Limitation on terms of contracts.
No contract for public school purposes that is predicated on the availability of state funds shall be made to extend beyond
the fiscal year covered by the current appropriation of the General Assembly in effect at the time of the making of such contract,
unless all of the funds required to satisfy the obligation are available for encumbrance, or a cancellation provision should
funds not be subsequently appropriated is included in the original contract. This provision does not apply to contracts involving
the expenditure of moneys raised by bond issues or advance purchase orders for instructional materials duly authorized by
the Secretary of Finance.
32 Del. Laws, c. 160, § 64; 32 Del. Laws, c. 180, § 1; Code 1935, § 2708; 14 Del. C. 1953, § 1505; 71 Del. Laws, c. 180, §§ 87A, 89A.;
§ 1504. Audit.
(a) The Auditor of Accounts shall each year as soon as possible after July 1 audit the business and financial transactions,
records, and accounts of the Department of Education, the State Board of Education, the Delaware Center for Education Technology,
the Delaware Advisory Council for Career and Vocational Education, and the boards of education of the school districts.
(b) The Auditor of Accounts shall publish the results of such audit and shall also mention the name of any person who has
made within the last year a gift to said funds, with the amount or value thereof.
(c) In order to ensure that authorized position complements are not exceeded, the Auditor of Accounts is directed to incorporate
an examination of the number of authorized positions versus the number of actual positions a district has employed as part
of the regular, annual audit review for all public school district audits that commence on or after July 1, 1991. This position
audit function shall include, in addition to formula salary positions, an examination of positions and associated "option
units" authorized by the Secretary of Education under any appropriation.
(d) Any discrepancy found by the Auditor of Accounts which has resulted in a local school district expending more general
funds than it was entitled to during the fiscal year being audited shall be promptly reported to the Director of the Office
of Management and Budget, the Controller General and the Secretary of Education. Upon review and determination as to the
status of the questioned expenditure, the Director of the Office of Management and Budget, Controller General and the local
school district Board of Education shall develop and certify a written repayment plan.
(e) The local school district may choose to make the required General Fund reimbursement from its local current operating
expense account or by agreeing not to utilize a current year General Fund appropriation for which it is otherwise eligible
based on unit entitlements. Reimbursements required by this section shall be transacted during the fiscal year in which the
over-expenditure is discovered unless the Director of the Office of Management and Budget and the Controller General agree
that the timing of the discovery or the potential impact on the affected district is such that satisfying the obligation in
part or in its entirety should be deferred until the next ensuing fiscal year.
(f) In order to assist the Auditor of Accounts in the performance of this function local school districts are instructed to
maintain records and make them available in a format that will facilitate this review.
Code 1915, c. 71; 32 Del. Laws, c. 160, § 49; Code 1935, § 2710; 14 Del. C. 1953, § 1506; 57 Del. Laws, c. 113; 68 Del. Laws, c. 84, § 195; 71 Del. Laws, c. 180, §§ 88, 88A-88C, 89A; 75 Del. Laws, c. 88, § 21(7).;
§ 1505. Unauthorized expenditures.
The Auditor of Accounts may withhold approval of any voucher or bill or order for money of a school district whenever such
district shall have failed to comply with this title in the expenditure of its moneys, until such district shall make good
such failure.
32 Del. Laws, c. 160, § 5; 33 Del. Laws, c. 167, § 1; Code 1935, § 2711; 14 Del. C. 1953, § 1507; 57 Del. Laws, c. 113; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 180, § 89A.;
§ 1506. Limitation on use of tax revenues.
No tax revenues of the State, or of any political subdivision thereof, or of any school district, shall be used for the free
public education of pupils living in the State on real property exempt from taxes levied on real property. The limitations
of this section shall not apply to pupils living on real property owned by the State or any of its political subdivisions,
or by the federal government where such real property is used for nonmilitary housing, or where such real estate is exempt
from such taxes on account of the use of such property for charitable, educational or religious purposes.
14 Del. C. 1953, § 1508; 51 Del. Laws, c. 183; 71 Del. Laws, c. 180, § 89A.;
§ 1507. School district financial position reports.
(a) Beginning with the fiscal year ending June 30, 1997, all public school districts, including vocational-technical school
districts, both sometimes referred to herein as "district," are required to submit to the Secretary of Education, 3 financial
position reports, 1 on or before February 1, 1 on or before May 1 and 1 on or before August 31 of each year. The format of
the reports shall be as prescribed by the Secretary consistent with the provisions of this section, and also shall establish
that the school district has sufficient year-end carryover balances, including any non-state funded share, to fund at least
1 month of local payroll for the next ensuing fiscal year.
The financial position report due by February 1 shall project a school district's current fiscal year ending balance in its
local current expense revenue accounts after taking into consideration all remaining local operating obligations that can
be reasonably estimated. To the extent that a district has General Fund balances in their Division III Equalization Accounts,
Division II--All Other Costs and Energy Accounts, or in an approved cash option account, such balances may be identified as
offsets to any local obligation. If the financial position report shows a deficit occurring prior to the close of the current
fiscal year, the district shall indicate what steps it will take to assure that its obligations are satisfied in the current
fiscal year. If the financial position report shows a current expense deficit for the current fiscal year, or a surplus that
is less than the amount required to satisfy 1 month's full local payroll and other operating obligations for the ensuing fiscal
year, the district shall also indicate what steps it plans to take in the ensuing fiscal year to assure that its future year-end
balance will be sufficient to cover at least this amount.
The financial position report due by May 1 shall project a school district's current fiscal year ending balance in its local
current expense revenue accounts after taking into consideration all remaining local operating obligations that can be reasonably
estimated. To the extent that a district has General Fund balances in their Division III Equalization Accounts, Division II--All
Other Costs and Energy Accounts, or in an approved cash option account, such balances may be identified as offsets to any
local obligation. If the financial position report shows a deficit occurring prior to the close of the current fiscal year,
the district shall indicate what steps it will take to assure that its obligations are satisfied in the current fiscal year.
If the financial position report shows a current expense deficit for the current fiscal year, or a surplus that is less than
the amount required to satisfy 1 month's full local payroll and other operating obligations for the ensuing fiscal year, the
district shall also indicate what steps it plans to take in the ensuing fiscal year to assure that its future year-end balance
will be sufficient to cover at least this amount.
The financial position report due on or before August 31 of the ensuing fiscal year shall be focused exclusively on local
district payroll obligations through and including the October 15 payroll cycle. This report shall compare the district's
year-end current expense balances from the previous fiscal year, and its preliminary Division III Equalization appropriation
for the current year (which amount shall be based on 90% of the Division III amount earned in the previous fiscal year), with
the district's projected local salary obligations through October 15. To the extent that this report shows a deficit, the
district shall report what steps it will take to meet its payroll obligations through October 15. If the August 31 report
projects an October 15 surplus that is less than the amount required to cover 1 month's full local payroll cycle, the district
shall also indicate what steps it plans to take to attempt to assure that such a minimum balance will be in place in the subsequent
fiscal year.
Whenever the August 31 report shows that a district will be unable to meet all or some of its payroll obligations through
October 15, the district may meet those obligations by requesting from the Secretary of Education with the approval of the
Secretary of Finance and the Director of the Office of Management and Budget an advance of state funds in an amount sufficient
to cover the district's payroll obligations through October 15. Upon such request and approval, the Secretary of Finance shall
cause to have the requested funds advanced to the district, and the district shall reimburse the State for those funds no
later than November 15 of the same year. In addition, the district shall pay an amount to the State for interest defined as
the average rate of return on state investments during the period of the loan.
The financial position report shall have been reviewed and approved by the school board of each reorganized school district
and be made a part of the public record of that school district. Three copies of each report shall be submitted to the Secretary
of Education by the dates specified above. The Secretary of Education shall provide copies of the submitted reports to the
Director of the Office of Management and Budget and the Controller General within 5 working days.
(b) Notwithstanding any provision in this Code to the contrary, a minimum of 25% of all projected state funding to any school
district, including a vocational-technical school district shall be withheld until the submission of the financial position
report required to be filed on or before August 31 pursuant to the provisions of subsection (a) of this section, and the acceptance
thereof as satisfactory in the sole discretion of the Secretary of Education, and the certification of the school district's
unit count in accordance with this Code and any rule or regulation promulgated in accordance therewith.
(c) If a school district materially alters its financial position after providing any report required by this section, the
school district shall provide financial impact statements to the Department of Education, the Office of Management and Budget
and the Office of the Controller General, specifying the nature of such change and its impact upon its previously filed financial
position report.
(d) Any school district that fails to comply with this section or any provision herein shall be subject to review, including
all of its books and financial records, by the Department of Education, the Office of Management and Budget and the Office
of the Controller General in order to determine whether the school district is financially stable.
68 Del. Laws, c. 84, § 190; 68 Del. Laws, c. 290, § 228; 69 Del. Laws, c. 39, § 1; 69 Del. Laws, c. 291, § 293; 70 Del. Laws, c. 329, § 1; 71 Del. Laws, c. 180, §§ 89, 89A; 71 Del. Laws, c. 194, § 1; 73 Del. Laws, c. 312, § 276; 75 Del. Laws, c. 88, § 21(7); 75 Del. Laws, c. 439, § 7; 76 Del. Laws, c. 280, § 422.;
§ 1507A. Christina School District financial position reports.
Repealed by 75 Del. Laws, c. 439, § 8, effective Aug. 17, 2006.
§ 1508. Citizen oversight of district finances.
The Department of Education shall promulgate regulations by November 1, 2009, establishing procedures for appointment of citizen
budget oversight committees for each of the public school districts and charter schools. These committees shall have full
access either electronically or in hard-copy format to all financial documents and financial information in the possession
of the school districts they are assigned to oversee, with redactions permitted only to protect confidential personal information
regarding students or employees. Oversight committees shall have representation from parents, educators, and taxpayers residing
in each of the public school districts, provided that in the case of charter schools membership on oversight committees shall
consist of parents of students enrolled in the charter school, educators at the charter school, and representatives of the
Delaware Department of Education. Where possible, oversight committees shall contain at least 2 members with formal educational
or vocational backgrounds amenable to oversight of school district financial statements. The Department of Education shall
provide training to committee members. The Department shall also promulgate regulations by November 1, 2009, dictating uniformity
and transparency in the financial recording and bookkeeping practices of the school districts and charter schools.
77 Del. Laws, c. 197, § 1.;
§ 1509. Transparency of district finances.
Each district and charter school shall post on its web site by September 1, 2009, and every 3 months thereafter a check register
indicating the recipient of each check issued by the school district or charter school, the amount of the check, and identifying
information regarding the check sufficient to permit members of the public to seek additional information regarding the payment
in question. The only information excepted from inclusion in this database shall be records that would not constitute public
records under § 10002(g) of Title 29, and records for which the disclosure would violate any federal or state law.
77 Del. Laws, c. 197, § 1.;
§ 1510. Department oversight of district spending.
By December 1, 2009, the Department of Education shall promulgate regulations that set goals for Delaware school districts
and charter schools with respect to the percentage of cumulative revenues that shall be used for instruction and instruction-related
expenditures, as those terms are used by the National Center for Education Statistics or its successor organization. In promulgating
regulations, the Department shall consider incorporation of spending that has a direct educational impact on students but
is not reflected in existing NCES categories. The Department of Education shall gather statistics reflecting schools' status
with respect to the goals established under this section, and shall promulgate annual reports describing schools' status with
respect to those goals.
The free public schools of the State shall be maintained and supported by such moneys as shall be appropriated from time to
time by the General Assembly, local school tax revenues generated and payments received in accordance with this title, payments
received in accordance with Chapters 4, 5 and 6 of this title, and appropriated and nonappropriated special funds otherwise
authorized or legally acquired. Funds appropriated or otherwise allocated to the Department of Education on behalf of the
public schools of this State shall be administered by the Department in accordance with this title or other applicable state
or federal laws and regulations.
32 Del. Laws, c. 160, § 58; 35 Del. Laws, c. 158, § 1; 36 Del. Laws, c. 207, § 1; Code 1935, § 2704; 14 Del. C. 1953, § 1501; 56 Del. Laws, c. 299; 57 Del. Laws, c. 113; 71 Del. Laws, c. 180, § 86.;
§ 1502. Disbursements.
Such appropriations as are made by the General Assembly for the free public schools, and such money as is received from the
federal government for school purposes under any law shall be paid by the State Treasurer in accordance with the items of
the official state school budget and with the appropriations of the General Assembly therefor, as required by the Department
of Education; but such payments shall be made only upon orders of the said Department of Education, signed by its Secretary
or the Secretary's designee.
Code 1915, § 2311; 32 Del. Laws, c. 160, § 63; Code 1935, § 2707; 14 Del. C. 1953, § 1504; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 180, §§ 87, 89A.;
§ 1503. Limitation on terms of contracts.
No contract for public school purposes that is predicated on the availability of state funds shall be made to extend beyond
the fiscal year covered by the current appropriation of the General Assembly in effect at the time of the making of such contract,
unless all of the funds required to satisfy the obligation are available for encumbrance, or a cancellation provision should
funds not be subsequently appropriated is included in the original contract. This provision does not apply to contracts involving
the expenditure of moneys raised by bond issues or advance purchase orders for instructional materials duly authorized by
the Secretary of Finance.
32 Del. Laws, c. 160, § 64; 32 Del. Laws, c. 180, § 1; Code 1935, § 2708; 14 Del. C. 1953, § 1505; 71 Del. Laws, c. 180, §§ 87A, 89A.;
§ 1504. Audit.
(a) The Auditor of Accounts shall each year as soon as possible after July 1 audit the business and financial transactions,
records, and accounts of the Department of Education, the State Board of Education, the Delaware Center for Education Technology,
the Delaware Advisory Council for Career and Vocational Education, and the boards of education of the school districts.
(b) The Auditor of Accounts shall publish the results of such audit and shall also mention the name of any person who has
made within the last year a gift to said funds, with the amount or value thereof.
(c) In order to ensure that authorized position complements are not exceeded, the Auditor of Accounts is directed to incorporate
an examination of the number of authorized positions versus the number of actual positions a district has employed as part
of the regular, annual audit review for all public school district audits that commence on or after July 1, 1991. This position
audit function shall include, in addition to formula salary positions, an examination of positions and associated "option
units" authorized by the Secretary of Education under any appropriation.
(d) Any discrepancy found by the Auditor of Accounts which has resulted in a local school district expending more general
funds than it was entitled to during the fiscal year being audited shall be promptly reported to the Director of the Office
of Management and Budget, the Controller General and the Secretary of Education. Upon review and determination as to the
status of the questioned expenditure, the Director of the Office of Management and Budget, Controller General and the local
school district Board of Education shall develop and certify a written repayment plan.
(e) The local school district may choose to make the required General Fund reimbursement from its local current operating
expense account or by agreeing not to utilize a current year General Fund appropriation for which it is otherwise eligible
based on unit entitlements. Reimbursements required by this section shall be transacted during the fiscal year in which the
over-expenditure is discovered unless the Director of the Office of Management and Budget and the Controller General agree
that the timing of the discovery or the potential impact on the affected district is such that satisfying the obligation in
part or in its entirety should be deferred until the next ensuing fiscal year.
(f) In order to assist the Auditor of Accounts in the performance of this function local school districts are instructed to
maintain records and make them available in a format that will facilitate this review.
Code 1915, c. 71; 32 Del. Laws, c. 160, § 49; Code 1935, § 2710; 14 Del. C. 1953, § 1506; 57 Del. Laws, c. 113; 68 Del. Laws, c. 84, § 195; 71 Del. Laws, c. 180, §§ 88, 88A-88C, 89A; 75 Del. Laws, c. 88, § 21(7).;
§ 1505. Unauthorized expenditures.
The Auditor of Accounts may withhold approval of any voucher or bill or order for money of a school district whenever such
district shall have failed to comply with this title in the expenditure of its moneys, until such district shall make good
such failure.
32 Del. Laws, c. 160, § 5; 33 Del. Laws, c. 167, § 1; Code 1935, § 2711; 14 Del. C. 1953, § 1507; 57 Del. Laws, c. 113; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 180, § 89A.;
§ 1506. Limitation on use of tax revenues.
No tax revenues of the State, or of any political subdivision thereof, or of any school district, shall be used for the free
public education of pupils living in the State on real property exempt from taxes levied on real property. The limitations
of this section shall not apply to pupils living on real property owned by the State or any of its political subdivisions,
or by the federal government where such real property is used for nonmilitary housing, or where such real estate is exempt
from such taxes on account of the use of such property for charitable, educational or religious purposes.
14 Del. C. 1953, § 1508; 51 Del. Laws, c. 183; 71 Del. Laws, c. 180, § 89A.;
§ 1507. School district financial position reports.
(a) Beginning with the fiscal year ending June 30, 1997, all public school districts, including vocational-technical school
districts, both sometimes referred to herein as "district," are required to submit to the Secretary of Education, 3 financial
position reports, 1 on or before February 1, 1 on or before May 1 and 1 on or before August 31 of each year. The format of
the reports shall be as prescribed by the Secretary consistent with the provisions of this section, and also shall establish
that the school district has sufficient year-end carryover balances, including any non-state funded share, to fund at least
1 month of local payroll for the next ensuing fiscal year.
The financial position report due by February 1 shall project a school district's current fiscal year ending balance in its
local current expense revenue accounts after taking into consideration all remaining local operating obligations that can
be reasonably estimated. To the extent that a district has General Fund balances in their Division III Equalization Accounts,
Division II--All Other Costs and Energy Accounts, or in an approved cash option account, such balances may be identified as
offsets to any local obligation. If the financial position report shows a deficit occurring prior to the close of the current
fiscal year, the district shall indicate what steps it will take to assure that its obligations are satisfied in the current
fiscal year. If the financial position report shows a current expense deficit for the current fiscal year, or a surplus that
is less than the amount required to satisfy 1 month's full local payroll and other operating obligations for the ensuing fiscal
year, the district shall also indicate what steps it plans to take in the ensuing fiscal year to assure that its future year-end
balance will be sufficient to cover at least this amount.
The financial position report due by May 1 shall project a school district's current fiscal year ending balance in its local
current expense revenue accounts after taking into consideration all remaining local operating obligations that can be reasonably
estimated. To the extent that a district has General Fund balances in their Division III Equalization Accounts, Division II--All
Other Costs and Energy Accounts, or in an approved cash option account, such balances may be identified as offsets to any
local obligation. If the financial position report shows a deficit occurring prior to the close of the current fiscal year,
the district shall indicate what steps it will take to assure that its obligations are satisfied in the current fiscal year.
If the financial position report shows a current expense deficit for the current fiscal year, or a surplus that is less than
the amount required to satisfy 1 month's full local payroll and other operating obligations for the ensuing fiscal year, the
district shall also indicate what steps it plans to take in the ensuing fiscal year to assure that its future year-end balance
will be sufficient to cover at least this amount.
The financial position report due on or before August 31 of the ensuing fiscal year shall be focused exclusively on local
district payroll obligations through and including the October 15 payroll cycle. This report shall compare the district's
year-end current expense balances from the previous fiscal year, and its preliminary Division III Equalization appropriation
for the current year (which amount shall be based on 90% of the Division III amount earned in the previous fiscal year), with
the district's projected local salary obligations through October 15. To the extent that this report shows a deficit, the
district shall report what steps it will take to meet its payroll obligations through October 15. If the August 31 report
projects an October 15 surplus that is less than the amount required to cover 1 month's full local payroll cycle, the district
shall also indicate what steps it plans to take to attempt to assure that such a minimum balance will be in place in the subsequent
fiscal year.
Whenever the August 31 report shows that a district will be unable to meet all or some of its payroll obligations through
October 15, the district may meet those obligations by requesting from the Secretary of Education with the approval of the
Secretary of Finance and the Director of the Office of Management and Budget an advance of state funds in an amount sufficient
to cover the district's payroll obligations through October 15. Upon such request and approval, the Secretary of Finance shall
cause to have the requested funds advanced to the district, and the district shall reimburse the State for those funds no
later than November 15 of the same year. In addition, the district shall pay an amount to the State for interest defined as
the average rate of return on state investments during the period of the loan.
The financial position report shall have been reviewed and approved by the school board of each reorganized school district
and be made a part of the public record of that school district. Three copies of each report shall be submitted to the Secretary
of Education by the dates specified above. The Secretary of Education shall provide copies of the submitted reports to the
Director of the Office of Management and Budget and the Controller General within 5 working days.
(b) Notwithstanding any provision in this Code to the contrary, a minimum of 25% of all projected state funding to any school
district, including a vocational-technical school district shall be withheld until the submission of the financial position
report required to be filed on or before August 31 pursuant to the provisions of subsection (a) of this section, and the acceptance
thereof as satisfactory in the sole discretion of the Secretary of Education, and the certification of the school district's
unit count in accordance with this Code and any rule or regulation promulgated in accordance therewith.
(c) If a school district materially alters its financial position after providing any report required by this section, the
school district shall provide financial impact statements to the Department of Education, the Office of Management and Budget
and the Office of the Controller General, specifying the nature of such change and its impact upon its previously filed financial
position report.
(d) Any school district that fails to comply with this section or any provision herein shall be subject to review, including
all of its books and financial records, by the Department of Education, the Office of Management and Budget and the Office
of the Controller General in order to determine whether the school district is financially stable.
68 Del. Laws, c. 84, § 190; 68 Del. Laws, c. 290, § 228; 69 Del. Laws, c. 39, § 1; 69 Del. Laws, c. 291, § 293; 70 Del. Laws, c. 329, § 1; 71 Del. Laws, c. 180, §§ 89, 89A; 71 Del. Laws, c. 194, § 1; 73 Del. Laws, c. 312, § 276; 75 Del. Laws, c. 88, § 21(7); 75 Del. Laws, c. 439, § 7; 76 Del. Laws, c. 280, § 422.;
§ 1507A. Christina School District financial position reports.
Repealed by 75 Del. Laws, c. 439, § 8, effective Aug. 17, 2006.
§ 1508. Citizen oversight of district finances.
The Department of Education shall promulgate regulations by November 1, 2009, establishing procedures for appointment of citizen
budget oversight committees for each of the public school districts and charter schools. These committees shall have full
access either electronically or in hard-copy format to all financial documents and financial information in the possession
of the school districts they are assigned to oversee, with redactions permitted only to protect confidential personal information
regarding students or employees. Oversight committees shall have representation from parents, educators, and taxpayers residing
in each of the public school districts, provided that in the case of charter schools membership on oversight committees shall
consist of parents of students enrolled in the charter school, educators at the charter school, and representatives of the
Delaware Department of Education. Where possible, oversight committees shall contain at least 2 members with formal educational
or vocational backgrounds amenable to oversight of school district financial statements. The Department of Education shall
provide training to committee members. The Department shall also promulgate regulations by November 1, 2009, dictating uniformity
and transparency in the financial recording and bookkeeping practices of the school districts and charter schools.
77 Del. Laws, c. 197, § 1.;
§ 1509. Transparency of district finances.
Each district and charter school shall post on its web site by September 1, 2009, and every 3 months thereafter a check register
indicating the recipient of each check issued by the school district or charter school, the amount of the check, and identifying
information regarding the check sufficient to permit members of the public to seek additional information regarding the payment
in question. The only information excepted from inclusion in this database shall be records that would not constitute public
records under § 10002(g) of Title 29, and records for which the disclosure would violate any federal or state law.
77 Del. Laws, c. 197, § 1.;
§ 1510. Department oversight of district spending.
By December 1, 2009, the Department of Education shall promulgate regulations that set goals for Delaware school districts
and charter schools with respect to the percentage of cumulative revenues that shall be used for instruction and instruction-related
expenditures, as those terms are used by the National Center for Education Statistics or its successor organization. In promulgating
regulations, the Department shall consider incorporation of spending that has a direct educational impact on students but
is not reflected in existing NCES categories. The Department of Education shall gather statistics reflecting schools' status
with respect to the goals established under this section, and shall promulgate annual reports describing schools' status with
respect to those goals.
The free public schools of the State shall be maintained and supported by such moneys as shall be appropriated from time to
time by the General Assembly, local school tax revenues generated and payments received in accordance with this title, payments
received in accordance with Chapters 4, 5 and 6 of this title, and appropriated and nonappropriated special funds otherwise
authorized or legally acquired. Funds appropriated or otherwise allocated to the Department of Education on behalf of the
public schools of this State shall be administered by the Department in accordance with this title or other applicable state
or federal laws and regulations.
32 Del. Laws, c. 160, § 58; 35 Del. Laws, c. 158, § 1; 36 Del. Laws, c. 207, § 1; Code 1935, § 2704; 14 Del. C. 1953, § 1501; 56 Del. Laws, c. 299; 57 Del. Laws, c. 113; 71 Del. Laws, c. 180, § 86.;
§ 1502. Disbursements.
Such appropriations as are made by the General Assembly for the free public schools, and such money as is received from the
federal government for school purposes under any law shall be paid by the State Treasurer in accordance with the items of
the official state school budget and with the appropriations of the General Assembly therefor, as required by the Department
of Education; but such payments shall be made only upon orders of the said Department of Education, signed by its Secretary
or the Secretary's designee.
Code 1915, § 2311; 32 Del. Laws, c. 160, § 63; Code 1935, § 2707; 14 Del. C. 1953, § 1504; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 180, §§ 87, 89A.;
§ 1503. Limitation on terms of contracts.
No contract for public school purposes that is predicated on the availability of state funds shall be made to extend beyond
the fiscal year covered by the current appropriation of the General Assembly in effect at the time of the making of such contract,
unless all of the funds required to satisfy the obligation are available for encumbrance, or a cancellation provision should
funds not be subsequently appropriated is included in the original contract. This provision does not apply to contracts involving
the expenditure of moneys raised by bond issues or advance purchase orders for instructional materials duly authorized by
the Secretary of Finance.
32 Del. Laws, c. 160, § 64; 32 Del. Laws, c. 180, § 1; Code 1935, § 2708; 14 Del. C. 1953, § 1505; 71 Del. Laws, c. 180, §§ 87A, 89A.;
§ 1504. Audit.
(a) The Auditor of Accounts shall each year as soon as possible after July 1 audit the business and financial transactions,
records, and accounts of the Department of Education, the State Board of Education, the Delaware Center for Education Technology,
the Delaware Advisory Council for Career and Vocational Education, and the boards of education of the school districts.
(b) The Auditor of Accounts shall publish the results of such audit and shall also mention the name of any person who has
made within the last year a gift to said funds, with the amount or value thereof.
(c) In order to ensure that authorized position complements are not exceeded, the Auditor of Accounts is directed to incorporate
an examination of the number of authorized positions versus the number of actual positions a district has employed as part
of the regular, annual audit review for all public school district audits that commence on or after July 1, 1991. This position
audit function shall include, in addition to formula salary positions, an examination of positions and associated "option
units" authorized by the Secretary of Education under any appropriation.
(d) Any discrepancy found by the Auditor of Accounts which has resulted in a local school district expending more general
funds than it was entitled to during the fiscal year being audited shall be promptly reported to the Director of the Office
of Management and Budget, the Controller General and the Secretary of Education. Upon review and determination as to the
status of the questioned expenditure, the Director of the Office of Management and Budget, Controller General and the local
school district Board of Education shall develop and certify a written repayment plan.
(e) The local school district may choose to make the required General Fund reimbursement from its local current operating
expense account or by agreeing not to utilize a current year General Fund appropriation for which it is otherwise eligible
based on unit entitlements. Reimbursements required by this section shall be transacted during the fiscal year in which the
over-expenditure is discovered unless the Director of the Office of Management and Budget and the Controller General agree
that the timing of the discovery or the potential impact on the affected district is such that satisfying the obligation in
part or in its entirety should be deferred until the next ensuing fiscal year.
(f) In order to assist the Auditor of Accounts in the performance of this function local school districts are instructed to
maintain records and make them available in a format that will facilitate this review.
Code 1915, c. 71; 32 Del. Laws, c. 160, § 49; Code 1935, § 2710; 14 Del. C. 1953, § 1506; 57 Del. Laws, c. 113; 68 Del. Laws, c. 84, § 195; 71 Del. Laws, c. 180, §§ 88, 88A-88C, 89A; 75 Del. Laws, c. 88, § 21(7).;
§ 1505. Unauthorized expenditures.
The Auditor of Accounts may withhold approval of any voucher or bill or order for money of a school district whenever such
district shall have failed to comply with this title in the expenditure of its moneys, until such district shall make good
such failure.
32 Del. Laws, c. 160, § 5; 33 Del. Laws, c. 167, § 1; Code 1935, § 2711; 14 Del. C. 1953, § 1507; 57 Del. Laws, c. 113; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 180, § 89A.;
§ 1506. Limitation on use of tax revenues.
No tax revenues of the State, or of any political subdivision thereof, or of any school district, shall be used for the free
public education of pupils living in the State on real property exempt from taxes levied on real property. The limitations
of this section shall not apply to pupils living on real property owned by the State or any of its political subdivisions,
or by the federal government where such real property is used for nonmilitary housing, or where such real estate is exempt
from such taxes on account of the use of such property for charitable, educational or religious purposes.
14 Del. C. 1953, § 1508; 51 Del. Laws, c. 183; 71 Del. Laws, c. 180, § 89A.;
§ 1507. School district financial position reports.
(a) Beginning with the fiscal year ending June 30, 1997, all public school districts, including vocational-technical school
districts, both sometimes referred to herein as "district," are required to submit to the Secretary of Education, 3 financial
position reports, 1 on or before February 1, 1 on or before May 1 and 1 on or before August 31 of each year. The format of
the reports shall be as prescribed by the Secretary consistent with the provisions of this section, and also shall establish
that the school district has sufficient year-end carryover balances, including any non-state funded share, to fund at least
1 month of local payroll for the next ensuing fiscal year.
The financial position report due by February 1 shall project a school district's current fiscal year ending balance in its
local current expense revenue accounts after taking into consideration all remaining local operating obligations that can
be reasonably estimated. To the extent that a district has General Fund balances in their Division III Equalization Accounts,
Division II--All Other Costs and Energy Accounts, or in an approved cash option account, such balances may be identified as
offsets to any local obligation. If the financial position report shows a deficit occurring prior to the close of the current
fiscal year, the district shall indicate what steps it will take to assure that its obligations are satisfied in the current
fiscal year. If the financial position report shows a current expense deficit for the current fiscal year, or a surplus that
is less than the amount required to satisfy 1 month's full local payroll and other operating obligations for the ensuing fiscal
year, the district shall also indicate what steps it plans to take in the ensuing fiscal year to assure that its future year-end
balance will be sufficient to cover at least this amount.
The financial position report due by May 1 shall project a school district's current fiscal year ending balance in its local
current expense revenue accounts after taking into consideration all remaining local operating obligations that can be reasonably
estimated. To the extent that a district has General Fund balances in their Division III Equalization Accounts, Division II--All
Other Costs and Energy Accounts, or in an approved cash option account, such balances may be identified as offsets to any
local obligation. If the financial position report shows a deficit occurring prior to the close of the current fiscal year,
the district shall indicate what steps it will take to assure that its obligations are satisfied in the current fiscal year.
If the financial position report shows a current expense deficit for the current fiscal year, or a surplus that is less than
the amount required to satisfy 1 month's full local payroll and other operating obligations for the ensuing fiscal year, the
district shall also indicate what steps it plans to take in the ensuing fiscal year to assure that its future year-end balance
will be sufficient to cover at least this amount.
The financial position report due on or before August 31 of the ensuing fiscal year shall be focused exclusively on local
district payroll obligations through and including the October 15 payroll cycle. This report shall compare the district's
year-end current expense balances from the previous fiscal year, and its preliminary Division III Equalization appropriation
for the current year (which amount shall be based on 90% of the Division III amount earned in the previous fiscal year), with
the district's projected local salary obligations through October 15. To the extent that this report shows a deficit, the
district shall report what steps it will take to meet its payroll obligations through October 15. If the August 31 report
projects an October 15 surplus that is less than the amount required to cover 1 month's full local payroll cycle, the district
shall also indicate what steps it plans to take to attempt to assure that such a minimum balance will be in place in the subsequent
fiscal year.
Whenever the August 31 report shows that a district will be unable to meet all or some of its payroll obligations through
October 15, the district may meet those obligations by requesting from the Secretary of Education with the approval of the
Secretary of Finance and the Director of the Office of Management and Budget an advance of state funds in an amount sufficient
to cover the district's payroll obligations through October 15. Upon such request and approval, the Secretary of Finance shall
cause to have the requested funds advanced to the district, and the district shall reimburse the State for those funds no
later than November 15 of the same year. In addition, the district shall pay an amount to the State for interest defined as
the average rate of return on state investments during the period of the loan.
The financial position report shall have been reviewed and approved by the school board of each reorganized school district
and be made a part of the public record of that school district. Three copies of each report shall be submitted to the Secretary
of Education by the dates specified above. The Secretary of Education shall provide copies of the submitted reports to the
Director of the Office of Management and Budget and the Controller General within 5 working days.
(b) Notwithstanding any provision in this Code to the contrary, a minimum of 25% of all projected state funding to any school
district, including a vocational-technical school district shall be withheld until the submission of the financial position
report required to be filed on or before August 31 pursuant to the provisions of subsection (a) of this section, and the acceptance
thereof as satisfactory in the sole discretion of the Secretary of Education, and the certification of the school district's
unit count in accordance with this Code and any rule or regulation promulgated in accordance therewith.
(c) If a school district materially alters its financial position after providing any report required by this section, the
school district shall provide financial impact statements to the Department of Education, the Office of Management and Budget
and the Office of the Controller General, specifying the nature of such change and its impact upon its previously filed financial
position report.
(d) Any school district that fails to comply with this section or any provision herein shall be subject to review, including
all of its books and financial records, by the Department of Education, the Office of Management and Budget and the Office
of the Controller General in order to determine whether the school district is financially stable.
68 Del. Laws, c. 84, § 190; 68 Del. Laws, c. 290, § 228; 69 Del. Laws, c. 39, § 1; 69 Del. Laws, c. 291, § 293; 70 Del. Laws, c. 329, § 1; 71 Del. Laws, c. 180, §§ 89, 89A; 71 Del. Laws, c. 194, § 1; 73 Del. Laws, c. 312, § 276; 75 Del. Laws, c. 88, § 21(7); 75 Del. Laws, c. 439, § 7; 76 Del. Laws, c. 280, § 422.;
§ 1507A. Christina School District financial position reports.
Repealed by 75 Del. Laws, c. 439, § 8, effective Aug. 17, 2006.
§ 1508. Citizen oversight of district finances.
The Department of Education shall promulgate regulations by November 1, 2009, establishing procedures for appointment of citizen
budget oversight committees for each of the public school districts and charter schools. These committees shall have full
access either electronically or in hard-copy format to all financial documents and financial information in the possession
of the school districts they are assigned to oversee, with redactions permitted only to protect confidential personal information
regarding students or employees. Oversight committees shall have representation from parents, educators, and taxpayers residing
in each of the public school districts, provided that in the case of charter schools membership on oversight committees shall
consist of parents of students enrolled in the charter school, educators at the charter school, and representatives of the
Delaware Department of Education. Where possible, oversight committees shall contain at least 2 members with formal educational
or vocational backgrounds amenable to oversight of school district financial statements. The Department of Education shall
provide training to committee members. The Department shall also promulgate regulations by November 1, 2009, dictating uniformity
and transparency in the financial recording and bookkeeping practices of the school districts and charter schools.
77 Del. Laws, c. 197, § 1.;
§ 1509. Transparency of district finances.
Each district and charter school shall post on its web site by September 1, 2009, and every 3 months thereafter a check register
indicating the recipient of each check issued by the school district or charter school, the amount of the check, and identifying
information regarding the check sufficient to permit members of the public to seek additional information regarding the payment
in question. The only information excepted from inclusion in this database shall be records that would not constitute public
records under § 10002(g) of Title 29, and records for which the disclosure would violate any federal or state law.
77 Del. Laws, c. 197, § 1.;
§ 1510. Department oversight of district spending.
By December 1, 2009, the Department of Education shall promulgate regulations that set goals for Delaware school districts
and charter schools with respect to the percentage of cumulative revenues that shall be used for instruction and instruction-related
expenditures, as those terms are used by the National Center for Education Statistics or its successor organization. In promulgating
regulations, the Department shall consider incorporation of spending that has a direct educational impact on students but
is not reflected in existing NCES categories. The Department of Education shall gather statistics reflecting schools' status
with respect to the goals established under this section, and shall promulgate annual reports describing schools' status with
respect to those goals.
