Reference is to the bill as introduced.
Amend the bill, as and if amended, Section 59-20-90(C), as contained in SECTION 1, pages 1-2, by deleting the item in its entirety and inserting:
/ (C) 'Fiscal watch' is
the first level and lowest level of concern.
(1)(a)
The State Superintendent of Education shall declare
fiscal watch if:
(ai)
he determines, within his discretion, that a
district declared to be in fiscal watch has not acted reasonably
to eliminate or correct practices or conditions that prompted
the declaration and has determined that a state of fiscal watch
is necessary to prevent further decline; and upon
review of the district's annual audit, the department determines
financial practices occurring outside of acceptable accounting
standards exist;
(ii)
the district submits an annual audit more than
sixty days after the December first deadline provided in Section
59-17-100;
(biii) there
is any type of ongoing, related investigation by any state or
federal law enforcement agency or any other investigatory agency
of the State;
(iv)
an outside, independent auditing firm declares
that a school district's financial records are unauditable;
or
(v)
the department identifies significant
deficiencies, material weaknesses, direct and material legal
noncompliance, or management letter comments which, in the
opinion of the department, the aggregate effect of the reported
issues has, or could have, a significant effect on the financial
condition of the district.
(b)
If a district meets the criteria in (A), the
State Superintendent shall declare a fiscal watch only after
prior notification with the district board chairman and district
superintendent, who must begin immediate consultation with the
chief financial officer of the district. The watch notification
must include steps the district may take to avoid the
declaration.
(2)
After prior written notification with the district
board chairman and superintendent, the State Superintendent
of Education may declare fiscal watch if:
(a)
an independent, outside auditing firm notifies the
department that the district is not operating under generally
accepted accounting principles; or
(b)
the district does not maintain a general reserve fund of
at least one month of general fund operating expenditures of the
previous two completed fiscal years, or has not made progress
in increasing the general reserve fund balance in accordance
with department guidelines to meet at least one month of general
fund operating expenditures within the previous two completed
fiscal years. /
Renumber sections to conform.
Amend title to conform.