DAR File No. 41074

Education, Administration

Rule R277-114

Corrective Action and Withdrawal or Reduction of Program Funds

Notice of Proposed Rule

(Amendment)

DAR File No.: 41074
Filed: 12/13/2016 11:33:39 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Legislature passed S.B. 91, Board of Education Amendments, during the 2016 General Session, which allows the Board to audit a local education agency's (LEA) use of public education funding and take corrective action against an LEA for misuse of funds. Rule R277-114 is amended to provide additional methods of corrective action and provide an LEA an opportunity to appeal or address the Board. The rule is also updated in accordance with the Rulewriting Style Manual.

Summary of the rule or change:

The amendments to Rule R277-114 provide additional methods of corrective action and appeals for an LEA that has been placed on a correction action plan; and provide technical and conforming changes throughout the rule.

Statutory or constitutional authorization for this rule:

• Art X, Sec 3
• Subsection 53A-1-401(8)(c)
• Section 53A-1-401

Anticipated cost or savings to:

the state budget:

The amendments provide additional methods of corrective action and appeal opportunity, which likely will not result in a cost or savings to the state budget.

local governments:

The amendments provide additional methods of corrective action and appeal opportunity, which likely will not result in a cost or savings to local government.

small businesses:

The amendments provide additional methods of corrective action and appeal opportunity, which likely will not result in a cost or savings to small businesses.

persons other than small businesses, businesses, or local governmental entities:

The amendments provide additional methods of corrective action and appeal opportunity, which likely will not result in a cost or savings to persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

The amendments provide additional methods of corrective action and appeal opportunity, which likely will not result in any compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

To the best of my knowledge, there should be no fiscal impact on businesses resulting from the amendments to this rule.

Sydnee Dickson, State Superintendent

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Education
Administration
250 E 500 S
SALT LAKE CITY, UT 84111-3272

Direct questions regarding this rule to:

• Angela Stallings at the above address, by phone at 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/31/2017

This rule may become effective on:

02/07/2017

Authorized by:

Angela Stallings, Deputy Superintendent, Policy and Communication

R277. Education, Administration.

R277-114. Corrective Action and Withdrawal or Reduction of Program Funds.

R277-114-[2]1 . Authority and Purpose.

[A.](1) This rule is authorized by:

(a) Utah Constitution Article X, Section 3 , which vests general control and supervision of public education in the Board;[ and by]

(b) Section 53A-1-401[(3)], which allows the Board to [adopt]make rules [in accordance with its responsibilities]to execute the Board's duties and responsibilities under the Utah Constitution and state law; and

(c) Subsection 53A-1-401(8)(c), which allows the Board to make rules setting forth the procedures to be followed for enforcing Board rules.

[B.](2) The purpose of the rule is to provide procedures for public education [P]program monitoring and corrective action for noncompliance with identified :

(a) [P]program requirements[,];

(b) [P]program accountability standards[,]; and

(c) financial propriety.

 

R277-114-[1]2 . Definitions.

[A. "Board" means the Utah State Board of Education.]

[B.](1) "Program" means a public education project or plan under the direction of the Board.

[C.](2) "Recipient" means an LEA or a school.

[D. "State Superintendent" means the State Superintendent of Public Instruction as defined under Section 53A-1-301, or his or her designee.]

 

R277-114-3. [State Superintendent Responsibilities.]Program Monitoring.

[A. Program Monitoring]

(1) For each [P]program, the[State] Superintendent shall design and implement a consistent monitoring [program]plan that includes standards for both [P]program outcomes and [P]program financial compliance.

(2) The[State] Superintendent shall notify all [R]recipients of the initiation of or changes to any monitoring [program]plan.

(3) The[State] Superintendent shall monitor compliance with:

(a) [P]program outcomes[,];

(b) reporting requirements[,]; and

(c) financial compliance.

 

R277-114-4. Corrective Action Plans.

[B. Corrective Action Plans]

(1) The[State] Superintendent shall place a [R]recipient on a corrective action plan when a [R]recipient :

(a) does not demonstrate satisfactory [P]program outcomes[,];

(b) demonstrates noncompliance with [P]program requirements or allowable [P]program expenditures[,]; or

(c) does not comply with requests to provide accurate and complete [P]program or financial information.

(2) The[State] Superintendent shall clearly outline in a corrective action plan:

(a) all areas of noncompliance[and establish];

(b) steps required to satisfy the corrective action plan; and

(c) a reasonable time frame for the [R]recipient to correct identified issues.

(3) A corrective action plan may also include provision and a timeline for:

(a) referral for monitoring by a Board section;

(b) referral for monitoring to the Board's internal audit department, with approval of the Board's Audit Committee;

(c) periodic meetings between a recipient administrator or governing board member and the Superintendent or a member of the Superintendency;

(d) planned appearances before the Board to provide status updates; and

(e) training for the LEA's staff.

(4) The Superintendent may employ escalating restrictive conditions in a corrective action plan based on:

(a) the severity of the violation; or

(b) repeated violations by an LEA.

[C.](5) The[State] Superintendent may [withhold, reduce or terminate funding for Recipient noncompliance.]include penalties for non-compliance with a corrective action plan in accordance with Subsection 53A-1-401(8).

([3]6) The[State] Superintendent shall give notice and a copy of the corrective action plan in writing to:

(a) the [R]recipient LEA's administrators;[and]

(b) the respective LEA 's governing board; and

(c) the charter school authorizer, if applicable.

[D.](7) The[State] Superintendent shall report to the Board monthly about the status of noncompliant [P]program [R]recipients.

 

R277-114-[4]5 . Recipient Appeals.

(1) A [R]recipient may file an appeal to the Board of any adverse decision of the [State ]Superintendent resulting from a corrective action plan [or withholding of funds]or penalty.

(2) An appeal must be made in writing and within 30 days of the date of the[ State] Superintendent's action.

(3) The Board may:

(a) review the appeal as a full board; or

(b) refer the matter to the Board audit committee to make a recommendation to the Board for action.

 

KEY: programs, noncompliance, corrective action

Date of Enactment or Last Substantive Amendment: [June 8, 2015]2017

Notice of Continuation: May 1, 2015

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-1-401[(3)]