15-272. Duties of department of education for uniform system of financial records

A. The department of education shall advise and consult with the auditor general in the preparation and implementation of a uniform system of financial records.

B. The state board of education, on report from the auditor general, shall determine whether school districts are maintaining the uniform system of financial records. If the state board of education determines that a school district is not in compliance with the uniform system of financial records or has failed to correct a deficiency within ninety days after receiving notice from the auditor general, the state board of education shall direct the superintendent of public instruction to withhold up to ten per cent of the portion of state monies to the school district for each violation from the date of the determination until such time as the auditor general reports compliance with the uniform system of financial records. The auditor general and the department of education shall assist the school district to achieve compliance during such period.

C. The general budget limit and maintenance and operations section of the budget for the current year and for the budget year if the school district is not in compliance before the end of the current year, shall be reduced by the amount determined in subsection B until the state board of education determines that the school district is in compliance.

D. If compliance is determined by the state board of education in the same year as the determination of noncompliance or in the first year after the fiscal year of the determination of noncompliance, the resulting adjustment to budgeted maintenance and operations and to the general budget limit may be applied to the fiscal year of the determination of noncompliance equal to the amount adjusted in that fiscal year or to the current year equal to the amount adjusted in the current year. Previously withheld monies that resulted from the determination of noncompliance shall be returned in the year compliance is determined.

15-272. Duties of department of education for uniform system of financial records

A. The department of education shall advise and consult with the auditor general in the preparation and implementation of a uniform system of financial records.

B. The state board of education, on report from the auditor general, shall determine whether school districts are maintaining the uniform system of financial records. If the state board of education determines that a school district is not in compliance with the uniform system of financial records or has failed to correct a deficiency within ninety days after receiving notice from the auditor general, the state board of education shall direct the superintendent of public instruction to withhold up to ten per cent of the portion of state monies to the school district for each violation from the date of the determination until such time as the auditor general reports compliance with the uniform system of financial records. The auditor general and the department of education shall assist the school district to achieve compliance during such period.

C. The general budget limit and maintenance and operations section of the budget for the current year and for the budget year if the school district is not in compliance before the end of the current year, shall be reduced by the amount determined in subsection B until the state board of education determines that the school district is in compliance.

D. If compliance is determined by the state board of education in the same year as the determination of noncompliance or in the first year after the fiscal year of the determination of noncompliance, the resulting adjustment to budgeted maintenance and operations and to the general budget limit may be applied to the fiscal year of the determination of noncompliance equal to the amount adjusted in that fiscal year or to the current year equal to the amount adjusted in the current year. Previously withheld monies that resulted from the determination of noncompliance shall be returned in the year compliance is determined.