DAR File No. 39285

Education, Administration

Rule R277-114

Corrective Action and Withdrawal or Reduction of Program Funds

Notice of Proposed Rule

(Repeal and Reenact)

DAR File No.: 39285
Filed: 04/15/2015 03:21:12 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Rule R277-114 is repealed and reenacted because changes to the rule are significant.

Summary of the rule or change:

The repealed version of Rule R277-114 provides a section on USOE responsibilities; the reenacted version of Rule R277-114 changes responsibilities to the State Superintendent and is rewritten to more clearly define those responsibilities. The repealed version of Rule R277-114 does not have appeals language; the reenacted version of Rule R277-114 provides a new section on recipient appeals.

State statutory or constitutional authorization for this rule:

• Subsection 53A-1-401(3)

Anticipated cost or savings to:

the state budget:

The reenacted version of Rule R277-114 provides restructure of procedures and responsibilities which likely will not result in a cost or savings to the state budget.

local governments:

The reenacted version of Rule R277-114 provides restructure of procedures and responsibilities which likely will not result in a cost or savings to local government.

small businesses:

The reenacted version of Rule R277-114 provides restructure of procedures and responsibilities which likely will not result in a cost or savings to the small businesses.

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

The reenacted version of Rule R277-114 provides restructure of procedures and responsibilities 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:

Compliance costs resulting from corrective action and withholding of funds is present in both the repealed and reenacted versions of Rule R277-114 so there is likely no compliance costs for affected persons.

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

I have reviewed this rule and I believe that there is likely no fiscal impact on businesses.

Brad C. Smith, State Superintendent

The full text of this rule may be inspected, during regular business hours, at the Division 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 angie.stallings@schools.utah.gov

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:

06/01/2015

This rule may become effective on:

06/08/2015

Authorized by:

Angela Stallings, Associate Superintendent, Policy and Communication

R277. Education, Administration.

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

R277-114-1. Definitions.

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

B. "Program" for purposes of the rule means a public education project or plan under the direction of the Board, with a specific goal or outcome for which public education funding is provided.

C. "Recipient" means a school district or school district program, charter school or charter school program, contractor, or any other entity that receives program funding as defined in this rule.

D. "State Superintendent" means the State Superintendent of Public Instruction as defined under Section 53A-1-301.

E. "USOE" means the Utah State Office of Education.

 

R277-114-2. Authority and Purpose.

A. This rule is authorized by Utah Constitution Article X, Section 3 which vests general control and supervision of public education in the Board and by Section 53A-1-401(3) which allows the Board to adopt rules in accordance with its responsibilities.

B. The purpose of the rule is to provide procedures for public education program monitoring and corrective action for noncompliance with identified program requirements, program accountability standards, and financial propriety.

 

R277-114-3. USOE Responsibilities.

A. USOE Directors, coordinators and program specialists shall act as designees of the State Superintendent and shall review compliance with program outcomes and financial propriety.

B. Designated program reviewers shall act and carry out responsibilities consistent with federal requirements, state law and administrative rules.

C. The following minimum procedures shall be followed prior to reducing or withholding funds from a recipient:

(1) The USOE, with assistance from directors, coordinators and program specialists, shall draft and implement a consistent monitoring procedure that includes standards for both recipient program outcomes and financial compliance. This monitoring program shall be communicated to the recipient regularly, and proper documentation of monitoring and compliance procedures conducted by USOE staff shall be maintained at the USOE.

(2) Recipients that do not demonstrate satisfactory outcomes, demonstrate noncompliance with program requirements or allowable program expenditures, or those that do not comply with requests to provide accurate and complete program or financial information enabling determination of compliance may be placed on corrective action.

(3) All courses of action should be discussed with the USOE deputy/associate superintendent who supervises the program, prior to placing recipients on a corrective action plan as follows:

(a) Corrective action plans shall clearly outline all areas of noncompliance and establish a reasonable time frame for the recipient to correct identified issues.

(b) Notification and a copy of the corrective action plan shall be communicated in writing to a program administrator as well as the superintendent/CEO and business administrator of the school district or school district program, charter school or charter school program, contractor, other recipient in question, the USOE deputy/associate superintendent over the program, the USOE internal auditor, and the State Superintendent.

(4) Directors, coordinators and program specialists shall follow up with the recipient to clarify questions and assist the recipient in establishing appropriate corrective measures to further compliance.

(5) If a recipient does not respond or does not satisfy the requirements of the corrective action plan by established deadline(s), the program director, coordinator, or supervisor shall notify the Internal Auditor, who will notify the State Superintendent.

(6) Verification of noncompliance and contact with the recipient to discuss and investigate the issues addressed in the corrective action plan shall be left to the discretion of the State Superintendent, Board Audit Committee and Internal Auditor.

(7) The Board shall determine if and at what level funding for programs may be withheld or terminated by the State Superintendent and when the Board should withhold or terminate a program or validate the State Superintendent's recommendation for withholding or termination of funding.]

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

R277-114-1. Definitions.

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

B. "Program" means a public education project or plan under the direction of the Board.

C. "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.

 

R277-114-2. Authority and Purpose.

A. This rule is authorized by Utah Constitution Article X, Section 3 which vests general control and supervision of public education in the Board and by Section 53A-1-401(3) which allows the Board to adopt rules in accordance with its responsibilities.

B. The purpose of the rule is to provide procedures for public education Program monitoring and corrective action for noncompliance with identified Program requirements, Program accountability standards, and financial propriety.

 

R277-114-3. State Superintendent Responsibilities.

A. Program Monitoring

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

(2) The State Superintendent shall notify all Recipients of the initiation of or changes to any monitoring program.

(3) The State Superintendent shall monitor compliance with Program outcomes, reporting requirements, and financial compliance.

B. Corrective Action Plans

(1) The State Superintendent shall place a Recipient on a corrective action plan when a Recipient does not demonstrate satisfactory Program outcomes, demonstrates noncompliance with Program requirements or allowable Program expenditures, or does not comply with requests to provide accurate and complete Program or financial information.

(2) The State Superintendent shall clearly outline in a corrective action plan all areas of noncompliance and establish a reasonable time frame for the Recipient to correct identified issues.

(3) The State Superintendent shall give notice and copy of the corrective action plan in writing to the Recipient administrators and respective LEA board.

C. The State Superintendent may withhold, reduce or terminate funding for Recipient noncompliance.

D. The State Superintendent shall report to the Board monthly about the status of noncompliant Program Recipients.

 

R277-114-4. Recipient Appeals.

A 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. An appeal must be made in writing and within 30 days of the date of the State Superintendent's action.

 

KEY: programs, noncompliance, corrective action

Date of Enactment or Last Substantive Amendment: [May 12, 2010]2015

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