Section 16-6B-4

Financial accountability.

In addition to providing quality instruction in classrooms, all local boards of education must be fiscally accountable. The local boards of education shall be required to provide annually financial documents, including but not limited to annual budgets and financial statements which are cost center based (school, area vocational/technical center), program based (regular education, special education, vocational education, etc.), and funding source based (local, state and federal). Just as local boards of education may be in need of assistance based on student achievement, they may also be in an unsound fiscal condition. The State Board of Education is directed to require, approve and audit budgets, financial statements, and other reports which may be deemed necessary to assess the financial stability of each local board of education. If a local board of education is determined to have submitted a fiscally unsound budget, the State Department of Education will provide assistance to complete and submit a revised budget. If during the assistance in preparing a revised budget the State Superintendent of Education determines that the local board of education is in an unsound fiscal position, a person or persons will be appointed by the State Superintendent of Education to advise the day-to-day financial operations of the local board of education. If after a reasonable period of time the State Superintendent of Education determines that the local board of education is still in an unsound fiscal condition, a request will be made to the State Board of Education for the direct control of the fiscal operation of the local board of education. Upon approval by the State Board of Education, the State Superintendent of Education will appoint an individual to be chief financial officer to manage the fiscal operation of the local board of education. The chief financial officer shall perform his or her duties in accordance with rules and regulations established by the State Board of Education in concert with applicable Alabama law. Persons appointed by the State Superintendent of Education to serve as chief financial officer to manage the fiscal operation of a local board of education shall be required to give bond with a surety company authorized to do business in Alabama and shall not be required to receive approval of the local superintendent to expend monies as provided in Sections 16-8-33 and 16-11-6. The State Superintendent of Education shall have the authority to review decisions of the chief financial officer and the local board of education pursuant to Section 16-4-8.

(Acts 1995, No. 95-313, p. 620, §4.)