79-1089. Audit by public accountant or certified public accountant; report; failure to comply; effect.

In each school district the school board shall cause to be examined annually by a public accountant or by a certified public accountant all financial records which are maintained directly or indirectly in the administration and management of public school funds. Rules and regulations governing the scope, extent, pattern, and report of the examination shall be adopted and promulgated by the State Board of Education with the advice and counsel of the Auditor of Public Accounts. A copy of the report shall be filed with the Commissioner of Education and the Auditor of Public Accounts on or before November 5. A copy of the report regarding the examination of a Class I school district shall be filed with the Commissioner of Education on or before November 5. When any school district fails to comply with this section, the commissioner shall, after notice to the district and an opportunity to be heard, direct that any state aid granted pursuant to the Tax Equity and Educational Opportunities Support Act be withheld until such time as the district has complied with this section. In addition, the commissioner shall direct the county treasurer to withhold all school money belonging to the school district until such time as the commissioner notifies the county treasurer of compliance by the district with this section. The county treasurer shall withhold such money. If the school district does not comply with this section prior to the end of the state's biennium following the biennium which included the fiscal year for which state aid was calculated, the state aid funds shall revert to the General Fund. The amount of any reverted funds shall be included in data provided to the Governor in accordance with section 79-1031.

Source:Laws 1963, c. 464, § 1, p. 1492; Laws 1979, LB 414, § 3; R.S.1943, (1987), § 79-546; Laws 1988, LB 970, § 2; Laws 1989, LB 487, § 6; Laws 1992, LB 119, § 1; Laws 1992, LB 1001, § 18; R.S.1943, (1994), § 79-4,141.01; Laws 1996, LB 900, § 735; Laws 1997, LB 710, § 23; Laws 1999, LB 149, § 18; Laws 1999, LB 272, § 111; Laws 2001, LB 797, § 40.

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