ORS 327.201 Financial audits; determinations of moneys not spent in accordance with grant agreement

Each year, each recipient of a grant from the Student Investment Account shall conduct a financial audit of the use of grant moneys that is prepared in accordance with the Municipal Audit Law.

Results of the financial audit must be:

Made available at the main office of the grant recipient and on the grant recipient’s website.

Presented to the governing body of the grant recipient at an open meeting, following:

Oral presentation of the results by an administrator of the grant recipient to the governing body of the grant recipient; and

Opportunity for the public to comment on the results at an open meeting.

Forwarded to the Department of Education.

Based on information received under subsection (1) of this section, the department shall determine each year whether grant moneys received by a grant recipient were used as provided by the grant agreement.

If a grant recipient did not use grant moneys as provided by the grant agreement, the department shall:

Collaborate with the grant recipient to identify and implement specific interventions;

Provide technical assistance to the grant recipient as described in ORS 327.208;

Direct amounts of future grant distributions for specific investments; or

Deduct amounts from future grant distributions.

If amounts are to be deducted from future grant distributions under paragraph (b)(D) of this subsection, the grant recipient may appeal to the State Board of Education for review as provided by the board by rule.

If a grant recipient fails to commit to spending all available grant moneys, the department may deduct amounts not committed from future grant distributions.

Based on a review of the information received under subsection (1) of this section, the department may require a grant recipient to conduct a financial audit on a specific funding area or multiple funding areas.