CERTIFICATION OF ENROLLMENT

                  SUBSTITUTE SENATE BILL 5394

                   Chapter 167, Laws of 1997

                        55th Legislature

                      1997 Regular Session

SCHOOL AUDITS--PROCEDURES WHEN STATE MONEY IS INVOLVED

                    EFFECTIVE DATE:  7/27/97

Passed by the Senate March 6, 1997   YEAS 48   NAYS 0                BRAD OWEN President of the Senate Passed by the House April 14, 1997   YEAS 90   NAYS 0

CERTIFICATE I, Mike O=Connell, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SUBSTITUTE SENATE BILL 5394 as passed by the Senate and the House of Representatives on the dates hereon set forth.

CLYDE BALLARD Speaker of the       House of Representatives

MIKE O'CONNELL                             Secretary

Approved April 23, 1997 Place Style On Codes above, and Style Off Codes below.

FILED                      April 23, 1997 - 4:37 p.m.

GARY LOCKE Governor of the State of Washington

Secretary of State                   State of Washington

S-1677.1  _______________________________________________

                    SUBSTITUTE SENATE BILL 5394

          _______________________________________________

             Passed Legislature - 1997 Regular Session

State of Washington      55th Legislature     1997 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Hochstatter, West and Spanel; by request of Office of Financial Management)

Read first time 02/17/97.

Regarding school audits.    

    AN ACT Relating to school audits; and adding a new section to chapter 28A.300 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 28A.300 RCW to read as follows:

    The superintendent of public instruction shall withhold or recover state payments to school districts, educational service districts, and other recipients of state money based on findings of the Washington state auditor.  When an audit questions enrollment, staffing, or other data reported to the state and used in state apportionment calculations, the superintendent of public instruction may require submission of revised data, or as an alternative may adjust data based on estimates, and shall revise apportionment calculations and payments accordingly.  The superintendent of public instruction shall adopt rules setting forth policies and procedures for the resolution of monetary and nonmonetary audit findings involving state money.

    Passed the Senate March 6, 1997.

    Passed the House April 14, 1997.

Approved by the Governor April 23, 1997.

    Filed in Office of Secretary of State April 23, 1997.