As used in this chapter the phrase “school district” shall include all
school districts, including vocational-technical school districts.
(75 Del. Laws, c. 264, § 1; 75 Del. Laws, c. 439, § 1.)
§ 1802. Financial Recovery Team.
Upon the recommendation of the Secretary of Education (“Secretary”)
that a school district is in financial distress as provided in paragraph (1)
of this section, the Director of the Office of Management and Budget
(“Director”), with the consent of the Controller General, may appoint a
Financial Recovery Team (“Team”), and the Department of Education is hereby
authorized to secure technical assistance and other resources as necessary to
ensure the effective operations of the Team.
(1) For the purposes of this section a local school district shall be
considered in financial distress when 1 or more of the following criteria are
met:
a. The district financial position report required to be submitted on
May 1, pursuant to § 1507(a) of this title, projects less than 1 month's
carryover; or
b. It is projected at anytime during the course of the fiscal year that
local payroll expenses will exceed projected local revenues; or
c. Whenever a school district projects that it cannot fund 1 or more
scheduled payroll disbursements.
(2) During any period of time when it is determined that a school
district is in financial distress, the Financial Recovery Team shall be
empowered to exercise, subject to the approval of the Secretary, control over
the expenditure of funds appropriated to a school district as deemed necessary
by the members of the Team. Control shall include, without limiting the
foregoing, the right to approve the school district's annual budget and any
subsequent material amendment thereto the right to approve district tax rates,
the right to request drawdown of state financial assistance if applicable, the
right to approve financial reporting to the local board of education, the
right to approve accounting policies, procedures and reports, the right to
require a Financial Responsibility Committee be established by the local
school board comprised of 1 or more members of the said board and/oor
residents of the district whose responsibility shall be to examine and report
on the financial status of the district, and the right to pre-approve any
obligation or contract that would require the expenditure of funds by the
school district. Notwithstanding any provision of either this Code or any
applicable rule or regulation to the contrary, the authority extended under
this section shall apply to the expenditure of all funds received by a school
district.
(3) The Financial Recovery Team shall report at least monthly to the
Governor, the General Assembly, Director and the Controller General regarding
the district's current and projected financial position.
(4) The district shall reimburse the State for all salary and related
costs of the Financial Recovery Team.
(5) Upon the recommendation of the Secretary that a school district is
no longer in financial distress as defined in this section, the Director, with
the consent of the Controller General, may elect to remove the members of the
Financial Recovery Team.
(75 Del. Laws, c. 264, § 1; 75 Del. Laws, c. 439, §§ 2-5.)
NOTICE: The Delaware Code appearing on this site was prepared by the Division of Research of Legislative Council of the General Assembly with the assistance of the Government Information Center, under the supervision of the Delaware Code Revisors and the editorial staff of LexisNexis, includes all acts up to and including 76 Del. Laws, c. 246, effective June 19, 2008.
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