§ 16-2-9.4. School district accounting compliance.
(a) The office of auditor general and the department of elementary and secondary education
shall promulgate a uniform system of accounting, including a chart of accounts based
on the recommendations of the advisory council on school finances, and require all
accounts of the school districts, regional school districts, state schools, and charter
schools to be kept in accordance therewith; provided, that in any case in which the
uniform system of accounting is not practicable, the office of auditor general, in
conjunction with the department of elementary and secondary education, shall determine
the manner in which the accounts shall be kept. The uniform chart of accounts (UCOA)
must allow for both school-to-school and school district-to-school district comparisons.
The structure of the UCOA shall ensure that data is captured and presented by, at
a minimum, position, program, and school location in order to facilitate such comparisons.
The uniform system of accounting shall also include a standardized budget process
to ensure districts can annually assess investment priorities and incorporate long-range
planning.
(b) For the purpose of securing a uniform system of accounting and a chart of accounts
the advisory council on school finances, as defined in § 16-2-9.3, may make such surveys of the operation of any school district, regional school district,
state school, or charter school as they shall deem necessary.
(c) Upon completion of the implementation of the uniform chart of accounts, all the school
districts, regional school districts, state schools, and/or charter schools, shall
implement a department of elementary and secondary education-approved budget model
that shall include a distinct line item for payments to charter schools and use best
practices established by the department of elementary and secondary education for
long-range planning, budget development, and budget administration and reporting.
(d) Commencing July 1, 2017, and on a continuing basis thereafter, each local education
agency shall submit a "budget-only� file that conforms with UCOA requirements to the
department of elementary and secondary education within 30 days of the city/town adoption
of the budget.
(e) Using data from the uniform chart of accounts, on an annual basis, the department
of elementary and secondary education shall publish on its website, and provide the
general assembly with, a performance dashboard indicating the per-pupil expenditures
of each public school and school district broken down by revenue sources and expenditure
categories. Further, the department shall provide, within the same dashboard, student-performance
indicators for each public school and school district.
(f) Commencing July 1, 2017, and on a continuing basis thereafter, each local education
agency shall post the following information on its website, in a downloadable format,
for free public access:
(1) The local education agency's annual budget, commencing with the budget for the 2017-18
budget year, that includes, at a minimum, information at the program and school levels;
(2) The local education agency shall post a link to the statewide website operated by
the department of elementary and secondary education that will publish the school-
and district-level "budget only� and UCOA expenditure data.
(3) Each local education agency shall update the information specified in subdivision
(f)(1) within sixty (60) days after adoption and/or making any changes to the local
education agency's budget, including any changes made to the budgets of an individual
program or school.
(g) If any school district, regional school district, state school, or charter school
fails to install and maintain the uniform system of accounting, including a chart
of accounts and approved budget model, or fails to keep its accounts and interdepartmental
records, or refuses or neglects to make the reports and to furnish the information
in accordance with the method prescribed by the office of auditor general and the
department of education, or hinders or prevents the examination of accounts and financial
records, the auditor general and the commissioner of education, and/or their respective
designee(s), shall make a report to the superintendent of schools of the local education
agency, the school committee chairperson, the mayor or town manager, and the president
of the town council, and/or for a charter school, to the board of trustees or directors,
as applicable, in writing, specifying the nature and extent of the failure, refusal,
neglect, hindrance, or prevention, and the commissioner is hereby authorized and directed
to review the matter so reported. If the commissioner shall find that failure, refusal,
neglect, hindrance, or prevention exists and that the school district, regional school
district, state school, or charter school should properly comply in the matter so
reported, the commissioner shall direct the school district, regional school district,
state school, or charter school, in writing, to so comply. If the failure, refusal,
neglect, hindrance, or prevention shall continue for a period of ten (10) days following
the written direction, the commissioner may request the board of education for approval
to withhold distribution of state aid to said school district, regional school district,
state school, or charter school. The board shall hold a hearing and provide the subject
school and/or district notice and an opportunity to be heard at said hearing. After
hearing thereon, the board may authorize the commissioner to withhold the distribution
of state aid to said school district, regional school district, state school, or charter
school, if the board determines such sanction is appropriate.
(h) The department of elementary and secondary education, in consultation with the division
of municipal finance, shall conduct periodic reviews and analysis of school revenues
and expenses. The department shall also review and monitor compliance with the approved
budget model and best practices. The department shall identify those local education
agencies considered to be at risk of a year-end deficit or a structural deficit that
could impact future years. Such potential deficits shall be identified based on the
periodic reviews, which may also include on-site visits and reporting in accordance
with the provisions of § 45-12-22.2. Potential deficits shall be reported to the office of municipal finance, office
of auditor general, superintendent, chairperson of the school committee, mayor or
town manager, and the president of the town council, of the applicable school district,
regional school district, or state school, and/or for a charter school, to the board
of trustees or directors, as applicable.