SF 3871

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; modifying school debt provisions; amending
Minnesota Statutes 2006, sections 123B.14, subdivision 7; 123B.77, subdivision
3; 123B.81, subdivisions 3, 5; Minnesota Statutes 2007 Supplement, section
123B.81, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 123B.14, subdivision 7, is amended to read:

Subd. 7.

Clerk records.

The clerk shall keep a record of all meetings of the
district and the board in books provided by the district for that purpose. The clerk shall,
within three days after an election, notify all persons elected of their election. By deleted text begin August deleted text end
new text begin September new text end 15 of each year the clerk shall file with the board a report of the revenues,
expenditures and balances in each fund for the preceding fiscal year. The report together
with vouchers and supporting documents shall subsequently be examined by a public
accountant or the state auditor, either of whom shall be paid by the district, as provided
in section 123B.77, subdivision 3. The board shall by resolution approve the report or
require a further or amended report. By deleted text begin August deleted text end new text begin September new text end 15 of each year, the clerk shall
make and transmit to the commissioner certified reports, showing:

deleted text begin (1) The condition and value of school property;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end The revenues and expenditures in detail, and such other financial information
required by law, rule, or as may be called for by the commissioner;

deleted text begin (3) deleted text end new text begin (2) new text end The length of school term and the enrollment and attendance by grades; and

deleted text begin (4) deleted text end new text begin (3) new text end Such other items of information as may be called for by the commissioner.

The clerk shall enter in the clerk's record book copies of all reports and of the
teachers' term reports, as they appear in the registers, and of the proceedings of any
meeting as furnished by the clerk pro tem, and keep an itemized account of all the
expenses of the district. The clerk shall furnish to the auditor of the proper county, by
deleted text begin October 10 deleted text end new text begin September 30 new text end of each year, an attested copy of the clerk's record, showing the
amount of deleted text begin money deleted text end new text begin proposed property taxes new text end voted by the district or the board for school
purposes; draw and sign all orders upon the treasurer for the payment of money for bills
allowed by the board for salaries of officers and for teachers' wages and all claims, to be
countersigned by the chair. Such orders must state the consideration, payee, and the
fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
the order in which they become due, and no money applicable for teachers' wages shall
be used for any other purpose, nor shall teachers' wages be paid from any fund except
that raised or apportioned for that purpose.

Sec. 2.

Minnesota Statutes 2006, section 123B.77, subdivision 3, is amended to read:

Subd. 3.

Statement for comparison and correction.

(a) By November 30 of the
calendar year of the submission of the unaudited financial data, the district must provide to
the commissioner audited financial data for the preceding fiscal year. The audit must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
of the State Auditor. An audited financial statement prepared in a form which will allow
comparison with and correction of material differences in the unaudited financial data
shall be submitted to the commissioner and the state auditor by December 31. The audited
financial statement must also provide a statement of assurance pertaining to uniform
financial accounting and reporting standards compliance and a copy of the management
letter submitted to the district by the school district's auditor.

(b) By deleted text begin January deleted text end new text begin February new text end 15 of the calendar year following the submission of the
unaudited financial data, the commissioner shall convert the audited financial data
required by this subdivision into the consolidated financial statement format required
under subdivision 1a and publish the information on the department's Web site.

Sec. 3.

Minnesota Statutes 2006, section 123B.81, subdivision 3, is amended to read:

Subd. 3.

Debt verification.

The commissioner shall establish a uniform auditing or
other verification procedure for districts to determine whether a statutory operating debt
exists in any Minnesota school district deleted text begin as of June 30, 1977. This procedure must identify
all interfund transfers made during fiscal year 1977 from a fund included in computing
statutory operating debt to a fund not included in computing statutory operating debt deleted text end .
The standards for this uniform auditing or verification procedure must be promulgated
by the state board pursuant to chapter 14. If a district applies to the commissioner for
a statutory operating debt verification deleted text begin or if the unaudited financial statement for the
school year ending June 30, 1977 reveals that a statutory operating debt might exist deleted text end , the
commissioner shall require a verification of the amount of the statutory operating debt
which actually does exist.

Sec. 4.

Minnesota Statutes 2007 Supplement, section 123B.81, subdivision 4, is
amended to read:

Subd. 4.

Debt elimination.

If an audit or other verification procedure conducted
pursuant to subdivision 3 determines that a statutory operating debt exists, a district
must follow the procedures set forth in deleted text begin this deleted text end section new text begin 123B.83 new text end to eliminate this statutory
operating debt.

Sec. 5.

Minnesota Statutes 2006, section 123B.81, subdivision 5, is amended to read:

Subd. 5.

Certification of debt.

The commissioner shall certify the amount of
statutory operating debt for each district. deleted text begin Prior to June 30, 1979, the commissioner may,
on the basis of corrected figures, adjust the total amount of statutory operating debt
certified for any district.
deleted text end