45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO PUBLIC SCHOOLS; REQUIRING AN INDEPENDENT STUDY OF THE BUDGETS AND EXPENDITURES OF PUBLIC SCHOOLS AND SCHOOL DISTRICTS; REQUIRING AN ANNUAL REPORT TO THE LEGISLATIVE EDUCATION STUDY COMMITTEE; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 22-8-5 NMSA 1978 (being Laws 1967, Chapter 16, Section 59, as amended) is amended to read:

"22-8-5. RULES--PROCEDURES.--

A. The department shall establish rules and procedures for a uniform system of accounting and budgeting of funds for all public schools and school districts of the state. The rules, including revisions or amendments, shall become effective only upon approval by the state board, the legislative education study committee and the legislative finance committee and also upon filing with the state records center and publication. A copy shall also be filed with the department of finance and administration.

B. All public schools and school districts shall comply with the rules and procedures prescribed and shall, upon request, submit additional reports concerning finances to the department. In addition, upon request, all public schools and school districts shall file reports with the department containing pertinent details regarding applications for federal money or federal grants-in-aid or regarding federal money or federal grants-in-aid received, including details of programs, matching funds, personnel requirements, salary provisions and program numbers, as indicated in the catalog of federal domestic assistance, of the federal funds applied for and of those received.

C. Upon request by the department of finance and administration, the legislative finance committee or the legislative education study committee, the department shall timely furnish information and data obtained from public schools and school districts pursuant to Subsection B of this section.

D. The department shall contract with an international accounting firm to conduct a detailed study of the budgets and expenditures of all public schools and school districts in the state, using the uniform system of accounting and budgeting approved by the state board and the legislative education study committee. Beginning July 1, 2004 and every July 1 thereafter, the department shall report the findings of the contractor's study to the legislative education study committee and to each public school."

Section 2. APPROPRIATION.--One million dollars ($1,000,000) is appropriated from the general fund to the state department of public education for expenditure in fiscal year 2003 to contract with an international accounting firm to conduct a detailed study of the budgets and expenditures of all public schools and school districts in the state. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund.