SENATE JOINT MEMORIAL 24

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Cynthia Nava

FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE

A JOINT MEMORIAL

REQUESTING THE OFFICE OF EDUCATION ACCOUNTABILITY, IN COLLABORATION WITH THE STATE AUDITOR AND THE PUBLIC EDUCATION DEPARTMENT, TO CONVENE A WORK GROUP TO EXAMINE PUBLIC SCHOOL DISTRICT FINANCE SYSTEMS AND OPERATIONS.

     WHEREAS, the three major functions of a public school finance system are budgeting, accounting and auditing, which are the three activities required to provide accountability for the sources and uses of funds for public schools; and

     WHEREAS, a public school finance system should support the operations of a sound and successful public education system; and

     WHEREAS, the state auditor has reported that several school districts are out of compliance with statutory requirements to have timely audits; and

     WHEREAS, the state auditor also has reported that untimely audits place school districts at risk for employee fraud and embezzlement; and

     WHEREAS, public school personnel have reported that untimely audits are, in many instances, due to the unavailability of a qualified auditor or to other circumstances beyond their control; and

     WHEREAS, a recent performance review of selected school districts found that the financial systems and accountability of school district operations are sometimes affected by inadequate financial planning, management, oversight and accounting systems; and

     WHEREAS, the reviews have found that several agencies, including the state auditor, the secretary of public education, the public education department, local school boards and district administrators, must strengthen their oversight of public school finances; and

     WHEREAS, the constitution of New Mexico mandates that "the secretary of public education shall have administrative and regulatory powers and duties, including all functions relating to the distribution of school funds and financial accounting for the public schools to be performed as provided by law"; and

     WHEREAS, the legislative education study committee, as a permanent committee of the New Mexico legislature, is authorized by statute to conduct a continuing study of all education in New Mexico, the laws governing such education and the policies and costs of the New Mexico educational system; and

     WHEREAS, the legislative education study committee believes that strong educational programs must be supported by solid financial practices; and

     WHEREAS, the focus of the committee in the 2010 legislative interim will be to monitor the implementation of provisions in law that strengthen the requirements for timely school districts audits, to bring awareness to the issues and factors that may be affecting the accountability of school district operations and to identify in-state and regional initiatives and resources that can support and strengthen school district financial practices;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the office of education accountability, in collaboration with the state auditor and the public education department, convene a work group to examine current public school finance policies and practice; statutory powers and duties of local school boards and state agencies vis-a-vis public school finance; legal concepts pertaining to public schools, finance and budget; the ability and capacity of school districts and state agencies to manage and oversee school district financial systems; the state-required and locally required education and training of school district and charter school officials, including local school board members, members of the governing bodies of charter schools and school finance personnel; systemic safeguards against fraud, waste and abuse; and other related matters; and

     BE IT FURTHER RESOLVED that the work group include representatives from local school boards and governing boards of charter schools, school superintendents and charter school administrators, independent auditors, school finance experts from universities and colleges and other stakeholders from other appropriate professional associations; and

     BE IT FURTHER RESOLVED that the work group hold an organizational meeting and present an interim work plan to the legislative education study committee by May 30, 2010; and

     BE IT FURTHER RESOLVED that the office of education accountability provide a report of its findings and any recommendations for necessary legislation to the legislative education study committee, the legislative finance committee and the governor by October 30, 2010; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the director of the office of education accountability, the secretary of public education, the state auditor, the director of the legislative education study committee and the director of the legislative finance committee.

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