Full Text of SB0226 96th General Assembly
SB0226ham001 96TH GENERAL ASSEMBLY
|
Public Policy & Accountability for Education Committee
Filed: 5/20/2009
|
|
09600SB0226ham001 |
|
LRB096 08010 NHT 26993 a |
|
| 1 |
| AMENDMENT TO SENATE BILL 226
| 2 |
| AMENDMENT NO. ______. Amend Senate Bill 226 by replacing | 3 |
| everything after the enacting clause with the following:
| 4 |
| "Section 5. The School Code is amended by changing Sections | 5 |
| 1A-8, 3-7, 3-15.5, 10-9, 10-22.45, 23-3, and 23-6 and by adding | 6 |
| Sections 10-16.9, 10-17b, 10-17c, 10-17d, 10-20.46, 23-5.5, | 7 |
| 34-18.37, 34-18.38, 34-18.39, 34-18.40, and 34-18.41 as | 8 |
| follows:
| 9 |
| (105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
| 10 |
| Sec. 1A-8. Powers of the Board in Assisting Districts | 11 |
| Deemed in Financial
Difficulties. To promote the financial | 12 |
| integrity of school districts, the
State Board of Education | 13 |
| shall be provided the necessary powers to promote
sound | 14 |
| financial management and continue operation of the public | 15 |
| schools.
| 16 |
| The State Superintendent of Education may require a school |
|
|
|
09600SB0226ham001 |
- 2 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| district, including any district subject to Article 34A of this | 2 |
| Code, to share financial information relevant to a proper | 3 |
| investigation of the district's financial condition and the | 4 |
| delivery of appropriate State financial, technical, and | 5 |
| consulting services to the district if the district (i) has | 6 |
| been designated, through the State Board of Education's School | 7 |
| District Financial Profile System, as on financial warning or | 8 |
| financial watch status, (ii) has failed to file an annual | 9 |
| financial report, annual budget, deficit reduction plan, or | 10 |
| other financial information as required by law, or (iii) has | 11 |
| been identified, through the district's annual audit or other | 12 |
| financial and management information, as in serious financial | 13 |
| difficulty in the current or next school year. In addition to | 14 |
| financial, technical, and consulting services provided by the | 15 |
| State Board of Education, at the request of a school district, | 16 |
| the State Superintendent may provide for an independent | 17 |
| financial consultant to assist the district review its | 18 |
| financial condition and options.
| 19 |
| The State Board of Education, after proper investigation of | 20 |
| a district's
financial condition, may certify that a district, | 21 |
| including any district
subject to Article 34A, is in financial | 22 |
| difficulty
when any of the following conditions occur:
| 23 |
| (1) The district has issued school or teacher orders | 24 |
| for wages as permitted in Sections
8-16, 32-7.2 and 34-76 | 25 |
| of this Code;
| 26 |
| (2) The district has issued tax anticipation warrants |
|
|
|
09600SB0226ham001 |
- 3 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| or tax
anticipation notes in anticipation of a second | 2 |
| year's taxes when warrants or
notes in anticipation of | 3 |
| current year taxes are still outstanding, as
authorized by | 4 |
| Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has | 5 |
| issued short-term debt against 2 future revenue sources, | 6 |
| such as, but not limited to, tax anticipation warrants and | 7 |
| general State Aid certificates or tax anticipation | 8 |
| warrants and revenue anticipation notes;
| 9 |
| (3) The district has for 2 consecutive years shown an | 10 |
| excess
of expenditures and other financing uses over | 11 |
| revenues and other financing
sources and beginning fund | 12 |
| balances on its annual financial report for the
aggregate | 13 |
| totals of the Educational, Operations and Maintenance,
| 14 |
| Transportation, and Working Cash Funds;
| 15 |
| (4) The district refuses to provide financial | 16 |
| information or cooperate with the State Superintendent in | 17 |
| an investigation of the district's financial condition.
| 18 |
| No school district shall be certified by the State Board of | 19 |
| Education to be in financial difficulty by
reason of any of the | 20 |
| above circumstances (i) arising as a result of the failure
of | 21 |
| the county to make any distribution of property tax money due | 22 |
| the district
at the time such distribution is due ; (ii) arising | 23 |
| as a result of the inability of the State to disburse | 24 |
| reimbursements authorized under Sections 14-7.02, 14-7.02b, | 25 |
| 14-7.03, 14-13.01, 18-3, 18-11, 18-4.3, and 29-5 for receipt by | 26 |
| the school district no later than June 30th of each year ; or |
|
|
|
09600SB0226ham001 |
- 4 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| (iii) if the district clearly demonstrates
to the satisfaction | 2 |
| of the State Board of Education at the time of its
| 3 |
| determination that such condition no longer exists. If the | 4 |
| State Board of
Education certifies that a district in a city | 5 |
| with 500,000 inhabitants or
more is in financial difficulty, | 6 |
| the State Board shall so notify the
Governor and the Mayor of | 7 |
| the city in which the district is located. The
State Board of | 8 |
| Education may require school districts certified in
financial | 9 |
| difficulty, except those districts subject to Article 34A, to
| 10 |
| develop, adopt and submit a financial plan within 45 days after
| 11 |
| certification of financial difficulty. The financial plan | 12 |
| shall be
developed according to guidelines presented to the | 13 |
| district by the State
Board of Education within 14 days of | 14 |
| certification. Such guidelines shall
address the specific | 15 |
| nature of each district's financial difficulties. Any
proposed | 16 |
| budget of the district shall be consistent with the financial | 17 |
| plan
submitted to and
approved by the State Board of Education.
| 18 |
| A district certified to be in financial difficulty, other | 19 |
| than a district
subject to Article 34A, shall report to the | 20 |
| State Board of Education at
such times and in such manner as | 21 |
| the State Board may direct, concerning the
district's | 22 |
| compliance with each financial plan. The State Board may review
| 23 |
| the district's operations, obtain budgetary data and financial | 24 |
| statements,
require the district to produce reports, and have | 25 |
| access to any other
information in the possession of the | 26 |
| district that it deems relevant. The
State Board may issue |
|
|
|
09600SB0226ham001 |
- 5 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| recommendations or directives within its powers to
the district | 2 |
| to assist in compliance with the financial plan. The district
| 3 |
| shall produce such budgetary data, financial statements, | 4 |
| reports and other
information and comply with such directives. | 5 |
| If the State Board of Education
determines that a district has | 6 |
| failed to comply with its financial plan, the
State Board of | 7 |
| Education may rescind approval of the plan and appoint a
| 8 |
| Financial Oversight Panel for the district as provided in | 9 |
| Section 1B-4. This
action shall be taken only after the | 10 |
| district has been given notice and an
opportunity to appear | 11 |
| before the State Board of Education to discuss its
failure to | 12 |
| comply with its financial plan.
| 13 |
| No bonds, notes, teachers orders, tax anticipation | 14 |
| warrants or other
evidences of indebtedness shall be issued or | 15 |
| sold by a school district or
be legally binding upon or | 16 |
| enforceable against a local board of education
of a district | 17 |
| certified to be in financial difficulty unless and until the
| 18 |
| financial plan required under this Section has been approved by | 19 |
| the State
Board of Education.
| 20 |
| Any financial watch list distributed by the State Board of | 21 |
| Education
pursuant to this Section shall designate those school | 22 |
| districts on the
watch list that would not otherwise be on the | 23 |
| watch list were it not for the
inability or refusal of the | 24 |
| State of Illinois to make timely
disbursements of any payments | 25 |
| due school districts or to fully reimburse
school districts for | 26 |
| mandated categorical programs pursuant to
reimbursement |
|
|
|
09600SB0226ham001 |
- 6 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| formulas provided in this School Code.
| 2 |
| (Source: P.A. 94-234, eff. 7-1-06 .)
| 3 |
| (105 ILCS 5/3-7) (from Ch. 122, par. 3-7)
| 4 |
| Sec. 3-7. Failure to prepare and forward information.
If | 5 |
| the trustees of schools of any township in Class II county | 6 |
| school
units, or any school district which forms a part of a | 7 |
| Class II county
school unit but which is not subject to the | 8 |
| jurisdiction of the trustees of
schools of any township in | 9 |
| which such district is located, or any
school district in any | 10 |
| Class I county school units fail to
prepare and forward or | 11 |
| cause to be prepared and forwarded to the regional
| 12 |
| superintendent of schools, reports required by this Act, the | 13 |
| regional
superintendent of schools shall furnish such | 14 |
| information or he shall
employ a person or persons to furnish | 15 |
| such information, as far as
practicable. Such person shall have | 16 |
| access to the books, records and
papers of the school district | 17 |
| to enable him or them to prepare such
reports, and the school | 18 |
| district shall permit such person or persons to
examine such | 19 |
| books, records and papers at such time and such place as
such | 20 |
| person or persons may desire for the purpose aforesaid. For | 21 |
| such
services the regional superintendent of schools shall bill | 22 |
| the district an
amount to cover the cost of preparation of such | 23 |
| reports if he employs a
person to prepare such reports.
| 24 |
| Each school district shall, as of June 30 of each year, | 25 |
| cause an audit
of its accounts to be made by a person lawfully |
|
|
|
09600SB0226ham001 |
- 7 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| qualified to practice
public accounting as regulated by the | 2 |
| Illinois Public Accounting Act. Such
audit shall include (i) | 3 |
| development of a risk assessment of internal controls, (ii) an | 4 |
| annual review and update of the risk assessment, and (iii) an | 5 |
| annual management letter that analyzes significant risk | 6 |
| assessment findings, recommends changes for strengthening | 7 |
| controls and reducing identified risks, and specifies | 8 |
| timeframes for implementation of these recommendations, as | 9 |
| well as financial statements of the district applicable to the
| 10 |
| type of records required by other sections of this Act and in | 11 |
| addition
shall set forth the scope of audit and shall include | 12 |
| the professional
opinion signed by the auditor, or if such an | 13 |
| opinion is denied by the
auditor, shall set forth the reasons | 14 |
| for such denial. Each school district
shall on or before | 15 |
| October 15 of each year, submit an original and one copy
of the | 16 |
| such audit to the regional superintendent of schools in the | 17 |
| educational
service region having jurisdiction in which case | 18 |
| the regional
superintendent of schools shall be relieved of | 19 |
| responsibility in regard to
the accounts of the school | 20 |
| district. If any school district fails to supply
the regional | 21 |
| superintendent of schools with a copy of such audit report on
| 22 |
| or before October 15, or within such time extended by the | 23 |
| regional
superintendent of schools from that date, not to | 24 |
| exceed 60 days, then it
shall be the responsibility of the | 25 |
| regional superintendent of schools
having jurisdiction to | 26 |
| cause such audit to be made by employing an
accountant licensed |
|
|
|
09600SB0226ham001 |
- 8 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| to practice in the State of Illinois to conduct such
audit and | 2 |
| shall bill the district for such services, or shall with the
| 3 |
| personnel of his office make such audit to his satisfaction and | 4 |
| bill the
district for such service. In the latter case, if the | 5 |
| audit is made by
personnel employed in the office of the | 6 |
| regional superintendent of schools
having jurisdiction, then | 7 |
| the regional superintendent of schools shall not
be relieved of | 8 |
| the responsibility as to the accountability of the school
| 9 |
| district. The copy of the audit shall be forwarded by the | 10 |
| regional
superintendent to the State Board of Education on or | 11 |
| before November 15 of
each year and shall be filed by the State | 12 |
| Board of Education. Beginning on July 1, 2010, all school | 13 |
| districts shall utilize a competitive request for proposals | 14 |
| process at least once every 5 years when contracting for such | 15 |
| an annual audit.
| 16 |
| Each school district that is the administrative district | 17 |
| for several
school districts operating under a joint agreement | 18 |
| as authorized by this
Act shall, as of June 30 each year, cause | 19 |
| an audit of the accounts of the
joint agreement to be made by a | 20 |
| person lawfully qualified to practice
public accounting as | 21 |
| regulated by the Illinois Public Accounting Act. Such
audit | 22 |
| shall include (i) development of a risk assessment of internal | 23 |
| controls, (ii) an annual review and update of the risk | 24 |
| assessment, and (iii) an annual management letter that analyzes | 25 |
| significant risk assessment findings, recommends changes for | 26 |
| strengthening controls and reducing identified risks, and |
|
|
|
09600SB0226ham001 |
- 9 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| specifies timeframes for implementation of these | 2 |
| recommendations, as well as financial statements of the | 3 |
| operation of the joint
agreement applicable to the type of | 4 |
| records required by this Act and, in
addition, shall set forth | 5 |
| the scope of the audit and shall include the
professional | 6 |
| opinion signed by the auditor, or if such an opinion is
denied, | 7 |
| the auditor shall set forth the reason for such denial. Each
| 8 |
| administrative district of a joint agreement shall on or before | 9 |
| October 15
each year, submit an original and one copy of such | 10 |
| audit to the regional
superintendent of schools in the | 11 |
| educational service region having
jurisdiction in which case | 12 |
| the regional superintendent of schools shall be
relieved of | 13 |
| responsibility in regard to the accounts of the joint
| 14 |
| agreement. The copy of the audit shall be forwarded by the | 15 |
| regional
superintendent to the State Board of Education on or | 16 |
| before November 15 of
each year and shall be filed by the State | 17 |
| Board of Education. The cost of
such an audit shall be | 18 |
| apportioned among and paid by the several districts
who are | 19 |
| parties to the joint agreement, in the same manner as
other | 20 |
| costs and expenses accruing to the districts jointly. Beginning | 21 |
| on July 1, 2010, all school districts operating under a joint | 22 |
| agreement shall utilize a competitive request for proposals | 23 |
| process at least once every 5 years when contracting for such | 24 |
| an annual audit.
| 25 |
| The State Board of Education shall determine the adequacy
| 26 |
| of the audits. All audits shall be kept on file in the office |
|
|
|
09600SB0226ham001 |
- 10 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| of the
State Board of Education.
| 2 |
| (Source: P.A. 86-1441; 87-473 .)
| 3 |
| (105 ILCS 5/3-15.5) (from Ch. 122, par. 3-15.5)
| 4 |
| Sec. 3-15.5. Removal of school board members. To remove any | 5 |
| member of a school board from office for willful wilful failure | 6 |
| to
perform his or her official duties , after an investigation | 7 |
| that results in such claims being substantiated. Within 10 days | 8 |
| after completing an investigation of a board member, regardless | 9 |
| of the outcome of the investigation, the regional | 10 |
| superintendent of schools shall send a written report of his or | 11 |
| her investigation and findings to (i) the appropriate State's | 12 |
| Attorney if criminal activity is suspected, (ii) the school | 13 |
| board president and superintendent of the school district | 14 |
| identified or referenced in the findings, (iii) the person who | 15 |
| made a report resulting in an investigation, if any, and (iv) | 16 |
| the person who is the subject of the investigation .
| 17 |
| (Source: Laws 1961, p. 31.)
| 18 |
| (105 ILCS 5/10-9) (from Ch. 122, par. 10-9)
| 19 |
| Sec. 10-9. Interest of board member or general counsel in | 20 |
| contracts.
| 21 |
| (a) No school board member shall be interested, directly or | 22 |
| indirectly,
in his own name or in the name of any other person, | 23 |
| association, trust or
corporation, in any contract, work or | 24 |
| business of the district or in the
sale of any article, |
|
|
|
09600SB0226ham001 |
- 11 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| whenever the expense, price or consideration of the
contract, | 2 |
| work, business or sale is paid either from the treasury or by | 3 |
| any
assessment levied by any statute or ordinance. No school | 4 |
| board member or general counsel
shall be interested, directly | 5 |
| or indirectly, in the purchase of any
property which (1) | 6 |
| belongs to the district, or (2) is sold for taxes or
| 7 |
| assessments, or (3) is sold by virtue of legal process at the | 8 |
| suit of
the district.
| 9 |
| (b) However, any board member may provide materials, | 10 |
| merchandise,
property, services or labor, if:
| 11 |
| A. the contract is with a person, firm, partnership, | 12 |
| association,
corporation or cooperative association in | 13 |
| which the board member has
less than a 7 1/2% share in the | 14 |
| ownership; and
| 15 |
| B. such interested board member publicly discloses the | 16 |
| nature and
extent of his interest prior to or during | 17 |
| deliberations concerning the
proposed award of the | 18 |
| contract; and
| 19 |
| C. such interested board member abstains from voting on | 20 |
| the award of
the contract, though he shall be considered | 21 |
| present for the purposes of
establishing a quorum; and
| 22 |
| D. such contract is approved by a majority vote of | 23 |
| those board
members presently holding office; and
| 24 |
| E. the contract is awarded after sealed bids to the | 25 |
| lowest
responsible bidder if the amount of the contract | 26 |
| exceeds $1500,
or
awarded without bidding if the amount of |
|
|
|
09600SB0226ham001 |
- 12 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| the contract is less than
$1500; and
| 2 |
| F. the award of the contract would not cause the | 3 |
| aggregate amount of
all such contracts so awarded to the | 4 |
| same person, firm, association,
partnership, corporation | 5 |
| or cooperative association in the same fiscal
year to | 6 |
| exceed $25,000.
| 7 |
| (c) In addition to the above exemption, any board member | 8 |
| may provide
materials, merchandise, property, services or | 9 |
| labor if:
| 10 |
| A. the award of the contract is approved by a majority | 11 |
| vote of the
board provided that any such interested member | 12 |
| shall abstain from
voting; and
| 13 |
| B. the amount of the contract does not exceed $1,000; | 14 |
| and
| 15 |
| C. the award of the contract would not cause the | 16 |
| aggregate amount of
all such contracts so awarded to the | 17 |
| same person, firm, association,
partnership, corporation, | 18 |
| or cooperative association in the same fiscal
year to | 19 |
| exceed $2,000, except with respect to a board member of a | 20 |
| school
district in which the materials, merchandise, | 21 |
| property, services, or labor to
be provided under the | 22 |
| contract are not available from any other person, firm,
| 23 |
| association, partnership, corporation, or cooperative | 24 |
| association in the
district, in which event the award of | 25 |
| the contract shall not cause the
aggregate amount of all | 26 |
| contracts so awarded to that same person, firm,
|
|
|
|
09600SB0226ham001 |
- 13 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| association, partnership, or cooperative association in | 2 |
| the same fiscal year to
exceed $5,000; and
| 3 |
| D. such interested member publicly discloses the | 4 |
| nature and extent
of his interest prior to or during | 5 |
| deliberations concerning the proposed
award of the | 6 |
| contract; and
| 7 |
| E. such interested member abstains from voting on the | 8 |
| award of the
contract, though he shall be considered | 9 |
| present for the purposes of
establishing a quorum.
| 10 |
| (d) In addition to exemptions otherwise authorized by this | 11 |
| Section, any
board member may purchase for use as the board | 12 |
| member's primary place of
residence a house constructed by the | 13 |
| district's vocational education
students on the same basis that | 14 |
| any other person would be entitled to
purchase the property. | 15 |
| The sale of the house by the district must comply
with the | 16 |
| requirements set forth in Section 5-22 of The School Code.
| 17 |
| (e) A contract for the procurement of public utility | 18 |
| services by a
district with a public utility company is not | 19 |
| barred by this Section by
one or more members of the board | 20 |
| being an officer or employee of the
public utility company or | 21 |
| holding an ownership interest of no more than
7 1/2% in the | 22 |
| public utility company, or holding an ownership interest of
any | 23 |
| size if the school district has a population of less than 7,500 | 24 |
| and
the public utility's rates are approved by the Illinois | 25 |
| Commerce
Commission. An elected or appointed member of the | 26 |
| board having such an
interest shall be deemed not to have a |
|
|
|
09600SB0226ham001 |
- 14 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| prohibited interest under this Section.
| 2 |
| (f) Nothing contained in this Section, including the | 3 |
| restrictions set
forth in subsections (b), (c), (d) and (e), | 4 |
| shall preclude a contract of
deposit of monies, loans or other | 5 |
| financial services by a school
district with a local bank or | 6 |
| local savings and loan association,
regardless of whether a | 7 |
| member or members of the governing body of the
school district | 8 |
| are interested in such bank or savings and loan
association as | 9 |
| an officer or employee or as a holder of less than 7 1/2%
of the | 10 |
| total ownership interest. A member or members holding such an
| 11 |
| interest in such a contract shall not be deemed to be holding a
| 12 |
| prohibited interest for purposes of this Act. Such interested | 13 |
| member or
members of the governing body must publicly state the | 14 |
| nature and extent
of their interest during deliberations | 15 |
| concerning the proposed award of
such a contract, but shall not | 16 |
| participate in any further deliberations
concerning the | 17 |
| proposed award. Such interested member or members shall
not | 18 |
| vote on such a proposed award. Any member or members abstaining
| 19 |
| from participation in deliberations and voting under this | 20 |
| Section may be
considered present for purposes of establishing | 21 |
| a quorum. Award of such
a contract shall require approval by a | 22 |
| majority vote of those members
presently holding office. | 23 |
| Consideration and award of any such contract
in which a member | 24 |
| or members are interested may only be made at a
regularly | 25 |
| scheduled public meeting of the governing body of the school
| 26 |
| district.
|
|
|
|
09600SB0226ham001 |
- 15 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| (g) Any school board member or general counsel who violates | 2 |
| this Section is guilty of a
Class 4 felony and in addition | 3 |
| thereto any office held by such person so
convicted shall | 4 |
| become vacant and shall be so declared as part of the
judgment | 5 |
| of the court.
| 6 |
| (Source: P.A. 89-244, eff. 8-4-95.)
| 7 |
| (105 ILCS 5/10-16.9 new)
| 8 |
| Sec. 10-16.9. Complaint policy. Each school board shall | 9 |
| adopt a policy allowing a person to report to the school board | 10 |
| if he or she believes that the school board or an individual | 11 |
| school board member or employee has violated State or federal | 12 |
| law or board policy. The complaint policy shall include each of | 13 |
| the following: | 14 |
| (1) Instructions for filing a complaint under this | 15 |
| Section. | 16 |
| (2) A complaint resolution process that includes, when | 17 |
| appropriate, referral to the appropriate State's Attorney | 18 |
| or the regional superintendent of schools. | 19 |
| (3) A statement that an elective school board office | 20 |
| becomes vacant whenever, among other reasons, a school | 21 |
| board member is convicted of an infamous crime, an offense | 22 |
| involving a violation of official oath, or a violent crime | 23 |
| against a child, pursuant to item (5) of Section 10-11 of | 24 |
| this Code, of having a prohibited interest in a district | 25 |
| contract under Section 10-9 of this Code, of official |
|
|
|
09600SB0226ham001 |
- 16 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| misconduct under Section 33-3 of the Criminal Code of 1961, | 2 |
| or of bid-rigging under Section 33E-3 of the Criminal Code | 3 |
| of 1961. | 4 |
| (4) A statement that the appropriate regional | 5 |
| superintendent of schools is authorized to remove a school | 6 |
| board member from office for willful failure to perform | 7 |
| official duties pursuant to Section 3-15.5 of this Code. | 8 |
| Within 10 days after completing an investigation of a | 9 |
| complaint referred to him or her under a board policy | 10 |
| implementing this Section, the regional superintendent of | 11 |
| schools or State's Attorney shall send a written report of his | 12 |
| or her investigation and findings to the school board president | 13 |
| and superintendent of the school district identified or | 14 |
| referenced in the findings, the person who made the initial | 15 |
| complaint, and any person who is the subject of the complaint. | 16 |
| (105 ILCS 5/10-17b new) | 17 |
| Sec. 10-17b. Financial policies. Each school board shall | 18 |
| adopt a formal, written financial policy. The policy may | 19 |
| include information in the following areas: | 20 |
| (1) Debt capacity, issuance, and management. | 21 |
| (2) Capital asset management. | 22 |
| (3) Reserve or stabilization funds. | 23 |
| (4) Periodic budget to actual comparison reports. | 24 |
| (5) Fees and charges. | 25 |
| (6) The use of one-time revenue. |
|
|
|
09600SB0226ham001 |
- 17 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| (7) Risk management. | 2 |
| (8) Purchasing. | 3 |
| (9) Vehicle acquisition and maintenance. | 4 |
| The school board shall make the policy publicly available. | 5 |
| (105 ILCS 5/10-17c new) | 6 |
| Sec. 10-17c. Long-term financial plan. Each school board | 7 |
| shall develop a long-term financial plan that extends over at | 8 |
| least a 3-year period and that is updated and approved | 9 |
| annually. The plan must include multi-year forecasts of | 10 |
| revenues, expenditures, and debt. The school board may make the | 11 |
| plan available to the public by publishing it as a separate | 12 |
| document and submitting it with the annual budget or by posting | 13 |
| the plan as a document on the school district's Internet | 14 |
| website, if any. The forecasts that are the foundation of the | 15 |
| plan must be available to participants in the budget process | 16 |
| before budgetary decisions are made. The public must be | 17 |
| provided opportunities for providing dialog with respect to the | 18 |
| long-term financial planning process. | 19 |
| (105 ILCS 5/10-17d new) | 20 |
| Sec. 10-17d. Capital improvement plan. Each school board | 21 |
| shall develop a 5-year capital improvement plan that is updated | 22 |
| and approved annually. The plan must include a summary list of | 23 |
| the description of the capital projects to be completed over | 24 |
| the next 5 years, along with projected expenditures, and |
|
|
|
09600SB0226ham001 |
- 18 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| revenue sources. The school board shall make the plan available | 2 |
| to the public. The school board shall hold a public hearing on | 3 |
| the capital improvement plan, which hearing may be held at a | 4 |
| regularly scheduled meeting of the board. | 5 |
| (105 ILCS 5/10-20.46 new)
| 6 |
| Sec. 10-20.46. School district financial accountability. | 7 |
| (a) A school board shall annually include a user-friendly | 8 |
| executive summary as part of the district's budget. The | 9 |
| executive summary shall include all of the following: | 10 |
| (1) The district's major goals and objectives. | 11 |
| (2) A discussion of the major financial factors and | 12 |
| trends affecting the budget, such as changes in revenues, | 13 |
| enrollment, and debt. | 14 |
| (3) A description of the budget process. | 15 |
| (4) An overview of revenues and expenditures for all | 16 |
| funds, including 3 to 5 years of prior trends. | 17 |
| (5) An explanation of significant financial and | 18 |
| demographic trends. | 19 |
| (6) An explanation of the reasons for a budget deficit | 20 |
| and an explanation of how the deficit is being addressed. | 21 |
| (7) A budget forecast for 3 to 5 years in the future. | 22 |
| (8) Student enrollment trends, including a future | 23 |
| forecast. | 24 |
| (9) The number of personnel by type. | 25 |
| (10) Changes in debt burden. |
|
|
|
09600SB0226ham001 |
- 19 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| (b) A school board shall annually include in the full | 2 |
| budget document the following items; any or all of the | 3 |
| following items may be published as separate documents provided | 4 |
| that they are explicitly referenced in the annual budget and | 5 |
| provided that they are made publicly available at the same time | 6 |
| as the budget document: | 7 |
| (1) An organizational chart. | 8 |
| (2) Formal financial policies. | 9 |
| (3) The district's long-term financial plan or a | 10 |
| summary of the long-term financial plan. | 11 |
| (4) The district's capital improvement plan or a | 12 |
| summary of the capital improvement plan.
| 13 |
| (105 ILCS 5/10-22.45) (from Ch. 122, par. 10-22.45)
| 14 |
| Sec. 10-22.45. A school board shall To establish an audit | 15 |
| committee, which may include and to appoint members
of the | 16 |
| board , or other appropriate officers , or persons who do not | 17 |
| serve on the board to the committee , to review audit
reports | 18 |
| and any other financial reports and documents, including | 19 |
| management
letters prepared by or on behalf of the board. | 20 |
| Nothing in this Section prohibits a school district from | 21 |
| maintaining its own internal audit function.
| 22 |
| (Source: P.A. 82-644.)
| 23 |
| (105 ILCS 5/23-3) (from Ch. 122, par. 23-3)
| 24 |
| Sec. 23-3. Filing
copy of constitution, by-laws and |
|
|
|
09600SB0226ham001 |
- 20 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| amendments. Within 30 days after the adoption by any such | 2 |
| association of its
constitution or by-laws or any amendment | 3 |
| thereto, it shall file a copy
thereof, certified by its | 4 |
| president and executive director, with the
Governor, the State | 5 |
| Superintendent of Education, Public Instruction and the | 6 |
| regional county
superintendent of schools of each region county | 7 |
| in which it has any membership.
| 8 |
| (Source: Laws 1961, p. 31.)
| 9 |
| (105 ILCS 5/23-5.5 new)
| 10 |
| Sec. 23-5.5. Professional development and training. Any | 11 |
| such association shall offer professional development and | 12 |
| training to school board members on topics that include, but | 13 |
| are not limited to, basics of school finance, financial | 14 |
| oversight and accountability, labor law and collective | 15 |
| bargaining, ethics, duties and responsibilities of a school | 16 |
| board member, and board governance principles. Every school | 17 |
| board member is expected to receive at least 4 hours of | 18 |
| professional development and training per year.
| 19 |
| (105 ILCS 5/23-6) (from Ch. 122, par. 23-6)
| 20 |
| Sec. 23-6. Annual report. Each association shall make an | 21 |
| annual report within 60 days after the
close of its fiscal year | 22 |
| to the Governor, the State Board of Education
and the regional
| 23 |
| superintendent of schools of each region in
which it has | 24 |
| members, setting forth the activities of the association
for |
|
|
|
09600SB0226ham001 |
- 21 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| the preceding fiscal year, the institutes held, the subjects
| 2 |
| discussed, and the attendance, and shall furnish the Governor, | 3 |
| the
State Board of Education and
such regional superintendents
| 4 |
| with copies of all publications sent to its members. The | 5 |
| association shall include the board training topics offered and | 6 |
| the number of school board members that availed themselves of | 7 |
| professional development and training.
| 8 |
| (Source: P.A. 81-1508.)
| 9 |
| (105 ILCS 5/34-18.37 new)
| 10 |
| Sec. 34-18.37. Financial policies. The board shall adopt a | 11 |
| formal, written financial policy. The policy may include | 12 |
| information in the following areas: | 13 |
| (1) Debt capacity, issuance, and management. | 14 |
| (2) Capital asset management. | 15 |
| (3) Reserve or stabilization funds. | 16 |
| (4) Periodic budget to actual comparison reports. | 17 |
| (5) Fees and charges. | 18 |
| (6) The use of one-time revenue. | 19 |
| (7) Risk management. | 20 |
| (8) Purchasing. | 21 |
| (9) Vehicle acquisition and maintenance. | 22 |
| The board shall make the policy publicly available. | 23 |
| (105 ILCS 5/34-18.38 new)
| 24 |
| Sec. 34-18.38. Long-term financial plan. The board shall |
|
|
|
09600SB0226ham001 |
- 22 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| develop a long-term financial plan that extends over at least a | 2 |
| 3-year period and that is updated and approved annually. The | 3 |
| plan must include multi-year forecasts of revenues, | 4 |
| expenditures, and debt. The board may make the plan available | 5 |
| to the public by publishing it as a separate document and | 6 |
| submitting it with the annual budget or by posting the plan as | 7 |
| a document on the school district's Internet website. The | 8 |
| forecasts that are the foundation of the plan must be available | 9 |
| to participants in the budget process before budgetary | 10 |
| decisions are made. The public must be provided opportunities | 11 |
| for providing dialog with respect to the long-term financial | 12 |
| planning process. | 13 |
| (105 ILCS 5/34-18.39 new)
| 14 |
| Sec. 34-18.39. Capital improvement plan. The board shall | 15 |
| develop a 5-year capital improvement plan that is updated and | 16 |
| approved annually. The plan must include a summary list of the | 17 |
| description of the capital projects to be completed over the | 18 |
| next 5 years, along with projected expenditures, and revenue | 19 |
| sources. The board shall make the plan available to the public. | 20 |
| The board shall hold a public hearing on the capital | 21 |
| improvement plan, which hearing may be held at a regularly | 22 |
| scheduled meeting of the board. | 23 |
| (105 ILCS 5/34-18.40 new) | 24 |
| Sec. 34-18.40. School district financial accountability. |
|
|
|
09600SB0226ham001 |
- 23 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| (a) The board shall annually include a user-friendly | 2 |
| executive summary as part of the district's budget. The | 3 |
| executive summary shall include all of the following: | 4 |
| (1) The district's major goals and objectives. | 5 |
| (2) A discussion of the major financial factors and | 6 |
| trends affecting the budget, such as changes in revenues, | 7 |
| enrollment, and debt. | 8 |
| (3) A description of the budget process. | 9 |
| (4) An overview of revenues and expenditures for all | 10 |
| funds, including 3 to 5 years of prior trends. | 11 |
| (5) An explanation of significant financial and | 12 |
| demographic trends. | 13 |
| (6) An explanation of the reasons for a budget deficit | 14 |
| and an explanation of how the deficit is being addressed. | 15 |
| (7) A budget forecast for 3 to 5 years in the future. | 16 |
| (8) Student enrollment trends, including a future | 17 |
| forecast. | 18 |
| (9) The number of personnel by type. | 19 |
| (10) Changes in debt burden. | 20 |
| (b) The board shall annually include in the full budget | 21 |
| document the following items; any or all of the following items | 22 |
| may be published as separate documents provided that they are | 23 |
| explicitly referenced in the annual budget and provided that | 24 |
| they are made publicly available at the same time as the budget | 25 |
| document: | 26 |
| (1) An organizational chart. |
|
|
|
09600SB0226ham001 |
- 24 - |
LRB096 08010 NHT 26993 a |
|
| 1 |
| (2) Formal financial policies. | 2 |
| (3) The district's long-term financial plan or a | 3 |
| summary of the long-term financial plan. | 4 |
| (4) The district's capital improvement plan or a | 5 |
| summary of the capital improvement plan. | 6 |
| (105 ILCS 5/34-18.41 new)
| 7 |
| Sec. 34-18.41. Audit committee. The board shall establish | 8 |
| an audit committee, which may include members
of the board, | 9 |
| other appropriate officers, or persons who do not serve on the | 10 |
| board, to review the board's independent auditor's
report on | 11 |
| the comprehensive annual financial report and other financial | 12 |
| reports and documents, including management
letters. Nothing | 13 |
| in this Section prohibits the school district from maintaining | 14 |
| its own internal audit function. | 15 |
| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law, except that the provisions changing Sections 3-7, | 17 |
| 10-22.45, and 23-6 and adding Sections 10-17b, 10-17c, 10-17d, | 18 |
| 10-20.46, 23-5.5, 34-18.37, 34-18.39, 34-18.40, and 34-18.41 | 19 |
| of the School Code take effect July 1, 2010.".
|
|