1997 Minnesota Statutes

     124.14 Distribution of school aids; appropriation. 

    Subdivision 1.  The commissioner shall supervise 
 distribution of school aids and grants in accordance with law.  
 It may make rules consistent with law for the distribution to 
 enable districts to perform efficiently the services required by 
 law and further education in the state, including reasonable 
 requirements for the reports and accounts to it as will assure 
 accurate and lawful apportionment of aids.  State and federal 
 aids and discretionary or entitlement grants distributed by the 
 commissioner shall not be subject to the contract approval 
 procedures of the commissioner of administration or to chapter 
 16A or 16B.  The commissioner shall adopt internal procedures 
 for administration and monitoring of aids and grants. 

    Subd. 2.  On determining that the amount of state aid 
 distributed to a school district is in error, the commissioner 
 is authorized to adjust the amount of aid consistent with this 
 subdivision.  On determining that the amount of aid is in excess 
 of the school district's entitlement, the commissioner is 
 authorized to recover the amount of the excess by any 
 appropriate means.  Notwithstanding the fiscal years designated 
 by the appropriation, the excess may be recovered by reducing 
 future aid payments to the school district.  Notwithstanding any 
 law to the contrary, if the aid reduced is not of the same type 
 as that overpaid, the school district shall adjust all necessary 
 financial accounts to properly reflect all revenues earned in 
 accordance with the uniform financial accounting and reporting 
 standards pursuant to sections 121.904 to 121.917.  
 Notwithstanding the fiscal years designated by the 
 appropriation, on determining that the amount of an aid paid is 
 less than the school district's entitlement, the commissioner is 
 authorized to increase such aid from the current appropriation. 

    Subd. 3.  The commissioner shall establish procedures for 
 conducting and shall conduct audits of school district records 
 and files for the purpose of verifying school district pupil 
 counts, levy limitations, and aid entitlements.  The 
 commissioner shall establish procedures for selecting and shall 
 select districts to be audited.  Disparities, if any, between 
 pupil counts, levy limitations, or aid entitlements determined 
 by audit of school district records and files and data reported 
 by school districts in reports, claims and other documents shall 
 be reviewed by the commissioner who shall order increases or 
 decreases accordingly.  Whenever possible, the commissioner 
 shall audit at least 25 districts each year pursuant to this 
 subdivision.  

    Subd. 3a.  If the commissioner audits fewer than 25 school 
 districts in a fiscal year pursuant to subdivision 3, the 
 commissioner shall report the reasons for the number audited to 
 the following legislative committees:  house education, house 
 appropriations, senate education, and senate finance.  

    Subd. 4.    Final decision and records.  A reduction of 
 aid under this section may be appealed to the state board of 
 education and its decision shall be final.  Public schools shall 
 at all times be open to the inspection of the commissioner, and 
 the accounts and records of any district shall be open to 
 inspection by the state auditor, the state board, or the 
 commissioner for the purpose of audits conducted under this 
 section.  Each district shall keep for a minimum of three years 
 at least the following:  (1) identification of the annual 
 session days held, together with a record of the length of each 
 session day, (2) a record of each pupil's daily attendance, with 
 entrance and withdrawal dates, and (3) identification of the 
 pupils transported who are reported for transportation aid.  

    Subd. 5.  Renumbered 124A.032 

    Subd. 6.    Adjustment appropriation.  There is annually 
 appropriated from the general fund to the department of 
 children, families, and learning any additional amounts 
 necessary for the adjustments made pursuant to section 124.155, 
 subdivision 1. 

    Subd. 7.    Appropriation transfers.  If a direct 
 appropriation from the general fund to the department of 
 children, families, and learning for any education aid or grant 
 authorized in this chapter and chapters 121, 123, 124A, 124C, 
 125, 126, and 134 exceeds the amount required, the commissioner 
 of children, families, and learning may transfer the excess to 
 any education aid or grant appropriation that is insufficient.  
 However, section 124A.032 applies to a deficiency in the direct 
 appropriation for general education aid.  Excess appropriations 
 shall be allocated proportionately among aids or grants that 
 have insufficient appropriations.  The commissioner of finance 
 shall make the necessary transfers among appropriations 
 according to the determinations of the commissioner of children, 
 families, and learning.  If the amount of the direct 
 appropriation for the aid or grant plus the amount transferred 
 according to this subdivision is insufficient, the commissioner 
 shall prorate the available amount among eligible districts.  
 The state is not obligated for any additional amounts.  

    Subd. 8.    Health and safety aid transfer.  The 
 commissioner of children, families, and learning, with the 
 approval of the commissioner of finance, annually may transfer 
 an amount from the appropriation for health and safety aid to 
 the appropriation for debt service aid for the same fiscal 
 year.  The amount of the transfer equals the amount necessary to 
 fund any shortage in the debt service aid appropriation created 
 by a data correction that occurs between November 1 and June 30 
 of the preceding fiscal year. 

    HIST: 1961 c 562 s 14; 1969 c 399 s 15,16; 1973 c 492 s 7; 
 1975 c 432 s 20; 1977 c 447 art 1 s 3; art 2 s 1; 1979 c 334 art 
 6 s 19; 1981 c 358 art 7 s 23-26; 1982 c 548 art 7 s 4; 1983 c 
 314 art 7 s 22; 1Sp1985 c 12 art 7 s 18; art 10 s 2; 1986 c 444; 
 1987 c 384 art 2 s 1; 1987 c 398 art 7 s 24; 1988 c 486 s 20; 
 1991 c 130 s 8; 1991 c 265 art 11 s 8; 1993 c 224 art 13 s 
 33,34; art 14 s 16; 1994 c 465 art 2 s 1; 1Sp1995 c 3 art 5 s 1; 
 art 16 s 13