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6-13-1027. Fiscal distress — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1027. Fiscal distress — Definitions.
(a) As used in this section:
(1) “Fiscal integrity” means the education service cooperative's ability to comply completely, accurately, and timely with financial management, accounting, auditing, and reporting procedures required by state law and rule or federal law and regulations; and
(2) “Material” means that the act, omission, or violation jeopardizes the fiscal integrity of the education service cooperative.
(b) Any education service cooperative that meets one (1) or more of the following criteria may be identified by the Division of Elementary and Secondary Education as being in fiscal distress upon final approval of the State Board of Education:
(1)(A) A declining balance that jeopardizes the fiscal integrity of the education service cooperative.
(B) The division shall not use capital outlay expenditures from the education service cooperative's balance for facilities to identify the education service cooperative as being in fiscal distress;
(2) A material failure to meet the education service cooperative's obligation to maintain the education service cooperative's facilities;
(3) A material violation of local, state, or federal law, state rule, or federal regulations relating to:
(A) Fire, health, or safety codes;
(B) Construction codes;
(C) Audit requirements; or
(D) Procurement, bidding, and purchasing requirements;
(4) A material failure to provide timely and accurate legally required financial reports to the division, Arkansas Legislative Audit, the General Assembly, or the Internal Revenue Service;
(5) A material failure to maintain sufficient funds to cover payroll, salary, employment benefits, or legal tax obligations;
(6) A material default on any debt obligation;
(7) A material dis
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1027
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:6-13-1027
Source file: gov.ar.code.title.06.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1cdfb0b3576e6c79c0db4a9103d1f906f77bfe9de4e4aa89673e55f6f9bfbacf
Source location: content.xml paragraph 4757
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6-13-1027. Fiscal distress — Definitions.
(a) As used in this section:
(1) “Fiscal integrity” means the education service cooperative's ability to comply completely, accurately, and timely with financial management, accounting, auditing, and reporting procedures required by state law and rule or federal law and regulations; and
(2) “Material” means that the act, omission, or violation jeopardizes the fiscal integrity of the education service cooperative.
(b) Any education service cooperative that meets one (1) or more of the following criteria may be identified by the Division of Elementary and Secondary Education as being in fiscal distress upon final approval of the State Board of Education:
(1)(A) A declining balance that jeopardizes the fiscal integrity of the education service cooperative.
(B) The division shall not use capital outlay expenditures from the education service cooperative's balance for facilities to identify the education service cooperative as being in fiscal distress;
(2) A material failure to meet the education service cooperative's obligation to maintain the education service cooperative's facilities;
(3) A material violation of local, state, or federal law, state rule, or federal regulations relating to:
(A) Fire, health, or safety codes;
(B) Construction codes;
(C) Audit requirements; or
(D) Procurement, bidding, and purchasing requirements;
(4) A material failure to provide timely and accurate legally required financial reports to the division, Arkansas Legislative Audit, the General Assembly, or the Internal Revenue Service;
(5) A material failure to maintain sufficient funds to cover payroll, salary, employment benefits, or legal tax obligations;
(6) A material default on any debt obligation;
(7) A material discrepancy between budgeted and actual expenditures; or
(8) Any other fiscal condition of the education service cooperative that the division determines materially impacts the education service cooperative's delivery of education services.
(c)(1) The division may identify an education service cooperative as being in fiscal distress at any time a fiscal condition of the education service cooperative is discovered to have a detrimental negative impact on the continuation of educational services provided by the education service cooperative.
(2)(A) If the division identifies an education service cooperative as being in fiscal distress, the division shall notify the education service cooperative in writing of the identification of fiscal distress within ten (10) calendar days.
(B) The division shall identify in the notice each criteria for fiscal distress on which the division based the identification of fiscal distress.
(C) The division shall deliver the notice by certified mail, return receipt requested, and addressed to:
(i) The president of the education service cooperative's board of directors; and
(ii) The director of the education service cooperative employed under § 6-13-1010.
(d) The identification of fiscal distress made by the division under this section may be appealed to the state board under § 6-13-1031 in which case the final order entered upon appeal is the final classification of fiscal distress.
(e) Within two (2) weeks following the date the education service cooperative receives the final classification by the state board of fiscal distress, the education service cooperative shall:
(1) Notify in writing each public school district in its service area that the education service cooperative is classified as being in fiscal distress; and
(2) File with the division a fiscal distress plan under § 6-13-1028.
(f) An education service cooperative that is identified as being in fiscal distress shall not incur any debt without the prior written approval of the division.
(g) The education service cooperative shall include in the annual report to constituent school districts under § 6-13-1020(d) the progress the education service cooperative has made on its fiscal distress plan.
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Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1010. Director.
(a) Each education service cooperative shall be administered by a director who shall perform the following duties:
(1) Administer the programs and services of the education service cooperative;
(2) Recommend the employment of professional and nonprofessional personnel authorized by the education service cooperative's governing body;
(3) Prepare the budget for adoption by the education service cooperative's governing body;
(4) Direct expenditures of funds within the budget; and
(5) Perform other duties as required by the education service cooperative's governing body and the policies and rules of the State Board of Education.
(b) The director of each education service cooperative shall:
(1) Hold an administrator's license and meet all requirements to serve as a superintendent of schools in the State of Arkansas; or
(2) Have an equivalent level of education and administrative experience and obtain the approval of the state board.
(c) The governing body of any education service cooperative may enter into a contract with a director for a period not to exceed three (3) years.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1010
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-13-1010. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1020. Policies and procedures — Expenditures, reports, and audits.
(a) On or before August 31 of each year, each education service cooperative shall file with the State Board of Education for the state board's approval:
(1) The policies and procedures of the education service cooperative, including without limitation the board of directors' policies and procedures for overseeing the administrative and program expenditures of the education service cooperative;
(2) A record of the education service cooperative's employment policies and practices for the year that includes without limitation:
(A) The race and sex of each person the education service cooperative employed or terminated during the year;
(B) The race and sex of every person who sought employment with the education service cooperative during the year; and
(C) The name of each person employed by the education service cooperative during the year who is related by blood or marriage to another employee or board member of the education service cooperative; and
(3)(A) A report of its receipts and expenditures made in accordance with uniform accounting procedures adopted by the Commissioner of Elementary and Secondary Education.
(B) The report shall contain without limitation:
(i) An itemization of administrative and program expenditures; and
(ii) The result of the board of directors' review of the expenditures made under its oversight function.
(b) The Division of Elementary and Secondary Education may prescribe the forms and procedures for filing the information required by subsection (a) of this section.
(c) Each education service cooperative is subject to an annual audit by the Legislative Joint Auditing Committee.
(d)(1)(A) In an annual meeting of the board of directors which must c
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1020
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-13-1020. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1028. Fiscal distress plan.
(a) An education service cooperative that is classified by the State Board of Education as being in fiscal distress shall file with the Division of Elementary and Secondary Education a fiscal distress plan that:
(1) Addresses each area of fiscal distress identified by the division;
(2) Describes how the education service cooperative will remedy the areas experiencing fiscal distress; and
(3)(A) Establishes the schedule by which the education service cooperative will implement the fiscal distress plan.
(B) The fiscal distress plan implementation schedule shall not exceed two (2) years from the date of the final classification of fiscal distress.
(b) The division shall approve the fiscal distress plan before the education service cooperative implements the fiscal distress plan.
(c) An education service cooperative identified as being in fiscal distress is required to receive on-site technical evaluation and assistance from the division.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1028
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-13-1028. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-13-1031. Appeal.
(a) An education service cooperative may appeal to the State Board of Education the identification of fiscal distress under § 6-13-1027.
(b) The education service cooperative may lodge an appeal by filing a written appeal with the Commissioner of Elementary and Secondary Education by certified mail, return receipt requested, within thirty (30) days of the date the education service cooperative received notice of the identification of fiscal distress.
(c) The written appeal shall state in clear terms the reason why the education service cooperative should not be classified as being in fiscal distress.
(d) The state board shall hear the appeal within sixty (60) days of receipt of the written notice of appeal.
(e) Notwithstanding any appeal rights in this section, no appeal shall stay the state board's or the Division of Elementary and Secondary Education's authority to take action to enforce the education service cooperative's compliance with financial management, accounting, auditing, and reporting procedures required by state law or rule or federal law and regulations.
(f)(1) The decision of the state board on the appeal is a final order.
(2) There is no further right of appeal except to Pulaski County Circuit Court pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-13-1031
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-13-1031. This identifies an authority to review, not proof of applicability.