H-2134.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 1989

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By House Committee on Education (originally sponsored by Representatives Anderson, Rockefeller, Quall, Cox, Fromhold, Miloscia, Pflug, Talcott, Santos and Keiser)

Read first time 02/26/2001.  Referred to Committee on .

Evaluating school district financial management practices.

    AN ACT Relating to legislative review of school district financial management practices; adding a new section to chapter 44.28 RCW; and adding a new chapter to Title 28A RCW.

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

NEW SECTION. Sec. 1.  The legislature finds that use of best financial management practices by school districts leads to efficient and effective use of state and district resources, improves district performance and accountability, and helps build public confidence in district operations.  Therefore, the legislature intends to design and implement an evaluation system to determine if school districts are employing best financial management practices.

NEW SECTION. Sec. 2.  (1) The joint legislative audit and review committee, with the assistance of the state auditor, shall design a system that can be used to evaluate whether a school district is employing best financial management practices.  The system must include the identification of criteria that can be used to evaluate financial management practices in specific functional areas.  The specific functional areas in the system must include at least the following:

    (a) Management structure;

    (b) Performance accountability;

    (c) Delivery of educational services, including instructional materials;

    (d) Administrative and educational technology;

    (e) Personnel systems and benefits management;

    (f) Facilities construction, including use of state and district construction funds;

    (g) Facilities maintenance;

    (h) Student transportation;

    (i) Food service operations;

    (j) Cost control systems, including asset management, risk management, financial management, purchasing, internal auditing, and financial auditing;

    (k) Safety and security; and

    (l) Community involvement.

    (2) In designing the evaluation system, the committee shall consult with the appropriate committees of the legislature, the state auditor, the office of financial management, the office of the superintendent of public instruction, the state board of education, educational service districts, and other appropriate community and educational organizations.

NEW SECTION. Sec. 3.  Sections 1 and 2 of this act constitute a new chapter in Title 28A RCW.

NEW SECTION. Sec. 4.  A new section is added to chapter 44.28 RCW to read as follows:

    The joint committee, with the assistance of the state auditor, shall design a system that can be used to evaluate whether a school district is employing best financial management practices and shall conduct reviews of school district financial management practices as provided in chapter 28A.--- RCW (sections 1 and 2 of this act).

                            --- END ---