Professional Report

district additional time to submit its proposal. The law also allows the Department to visit and inspect districts while under Fiscal Caution. As part of the inspection process, the Department may monitor the district’s financial situation on a monthly basis. If the Department finds that a district has not made reasonable proposals or has not taken action to discontinue or correct the practices or conditions that led to Fiscal Caution, the State Superintendent may recommend to the Auditor of State that the district be placed in Fiscal Watch or Emergency. Finally, the law allows the Auditor of State to conduct a performance audit of the district at the Department’s expense.

Release from Fiscal Caution

A district in Fiscal Caution cannot be released in the same fiscal year in which the declaration was made. A district may be released from Fiscal Caution the following fiscal year if the Department determines that the corrective actions have been or are being implemented. The State Superintendent shall notify the local board president, the district superintendent, and the treasurer of the district’s release from Fiscal Caution.

Last Modified: 4/2/2013 11:42:33 AM