680 / 864
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