RFP Staff
♦The Rowan-Salisbury School Administration has yet to comply with a full accounting of financial records requested on two separate occasions, first by County Commission Chairman Jim Sides and later by Rowan County attorney Jay Dees, II. According to NC state statute § 115C-429: “(c) The board of county commissioners shall have full authority to call for, and the board of education shall have the duty to make available to the board of county commissioners, upon request, all books, records, audit reports, and other information bearing on the financial operation of the local school administrative unit.” The county is interested in learning more about the school systems’ cornucopia of bank accounts, properties, numerous defunct buildings, warehouses, stockpiled and unused IPADs, and other major financial assets for a school system pleading poor. Rowan-Salisbury School System’s ”hidden assets” are alleged to be in the multiple millions according to school system whistleblowers.
The county’s requests for the school systems’ complete financial records must be complied with according to state statutes. Not only is it a statutory obligation, but the lack of a budget deprives the county commissioners of vital information and could lead to the grant of a summary judgment motion in favor of the commissioners, or a continuance until such time the public schools fulfill this statutory duty.
As of this writing, no date was determined for the next joint mediation session between Rowan County Commissioners and the School Board. Counsel for the schools and the county commissioners have struck out on several suggested dates.
Here is the full statute in question:
§ 115C‑429. Approval of budget; submission to county commissioners; commissioners’ action on budget.
(a) Upon receiving the budget from the superintendent and following the public hearing authorized by G.S. 115C‑428(b), if one is held, the board of education shall consider the budget, make such changes therein as it deems advisable, and submit the entire budget as approved by the board of education to the board of county commissioners not later than May 15, or such later date as may be fixed by the board of county commissioners.
(b) The board of county commissioners shall complete its action on the school budget on or before July 1, or such later date as may be agreeable to the board of education. The commissioners shall determine the amount of county revenues to be appropriated in the county budget ordinance to the local school administrative unit for the budget year. The board of county commissioners may, in its discretion, allocate part or all of its appropriation by purpose, function, or project as defined in the uniform budget format.
(c) The board of county commissioners shall have full authority to call for, and the board of education shall have the duty to make available to the board of county commissioners, upon request, all books, records, audit reports, and other information bearing on the financial operation of the local school administrative unit.
(d) Nothing in this Article shall be construed to place a duty on the board of commissioners to fund a deficit incurred by a local school administrative unit through failure of the unit to comply with the provisions of this Article or rules and regulations issued pursuant hereto, or to provide moneys lost through misapplication of moneys by a bonded officer, employee or agent of the local school administrative unit when the amount of the fidelity bond required by the board of education was manifestly insufficient. (1975, c. 437, s. 1; 1981, c. 423, s. 1.)
Also key in this issue is statute § 115C-436, in relevant part, assigns the following statutory duties to the school finance officer, “The school finance officer shall be responsible to the superintendent for: Preparing and filing a statement of the financial condition of the local school administrative unit as often as requested by the superintendent, and when requested in writing, with copy to the superintendent, by the board of county commissioners.”
§ 115C‑436. Duties of school finance officer.
(a) The school finance officer shall be responsible to the superintendent for:
(1) Keeping the accounts of the local school administrative unit in accordance with generally accepted principles of governmental accounting, the rules and regulations of the State Board of Education, and the rules and regulations of the Local Government Commission.
(2) Giving the preaudit certificate required by G.S. 115C‑441.
(3) Signing and issuing all checks, drafts, and State warrants by the local school administrative unit, investing idle cash, and receiving and depositing all moneys accruing to the local school administrative unit.
(4) Preparing and filing a statement of the financial condition of the local school administrative unit as often as requested by the superintendent, and when requested in writing, with copy to the superintendent, by the board of education or the board of county commissioners.
(5) Performing such other duties as may be assigned to him by law, by the superintendent, or by rules and regulations of the State Board of Education and the Local Government Commission.
All references in other portions of the General Statutes or local acts to school treasurers, county treasurers, or other officials performing any of the duties conferred by this section on the school finance officer shall be deemed to refer to the school finance officer.
(b) The State Board of Education has authority to issue rules and regulations having the force of law governing procedures for the disbursement of money allocated to the local school administrative unit by or through the State. The Local Government Commission has authority to issue rules and regulations having the force of law governing procedures for the disbursement of all other moneys allocated or accruing to the local school administrative unit. The State Board of Education and the Local Government Commission may inquire into and investigate the internal control procedures of a local school administrative unit with respect to moneys under their respective jurisdictions and may require any modifications in internal control procedures which may be necessary or desirable to prevent embezzlements or mishandling of public moneys. (1975, c. 437, s. 1; 1981, c. 423, s. 1.)
