Current through Register Vol. 63, No. 9, September 1, 2024
(1)
(a)
This rule establishes the process to be used by the Department of Education for
addressing the overpayment or underpayment of State School Funds from a closed
year to a school district, education service district, public charter school or
other program based on information received by the department in an audit or
other report. A year is closed on the June 30 that is two years after the
fiscal year began. For example, the fiscal year beginning July 1, 2008 is
closed on June 30, 2010.
(b) The
department may also use the process established by this rule for addressing the
overpayment or underpayment of other state funds to a school district,
education service district, public charter school or other program based on
information received by the department in an audit or other report.
(c) Other reports received by the department
that may be the basis to determine that an overpayment or underpayment has been
made include but are not limited to information provided by a district, school
or program or information from a department investigation.
(d) The department will only seek to recover
payments or will pay an amount under this rule if the department received the
audit or report that the overpayment or underpayment is based upon within five
years of the date that the year was closed. For example, for the fiscal year
beginning July 1, 2008, the department will only seek to recover or make
payments based on audits or reports involving that fiscal year that were
received by the department on or before June 30, 2015.
(e) The department will not seek to recover
and will not pay amounts under this rule of $750 or less.
(2) The department shall determine whether
there has been an overpayment or underpayment of funds upon receipt of an audit
or other report and whether the department will seek an adjustment of funds
based on the audit or report. The department shall consider the following when
making its determination:
(a) Applicable
statutes, rules and policies;
(b)
Information from the audit or report and any recommendations made in the audit
or report;
(c) Any other relevant
information received by the department relating to the overpayment or
underpayment of funds. This may include information from an investigation
conducted by the department; and (d) Prior determinations of the department on
overpayment or underpayments of funds that involved the same statutes, rules or
policies or similar facts.
(3)
(a) The
department shall notify in writing the school district, education service
district, public charter school or program of, at a minimum, the following:
(A) The department's determination including
the amount of the overpayment or underpayment;
(B) The basis for the determination;
and
(C) The time period in which
the overpayment or underpayment occurred.
(b) The department shall include a copy of
this rule with the notification.
(4) The school district, education service
district, public charter school or program may appeal the determination made
under section (3) of this rule to the department. The appeal must be received
by the department within 60 calendar days of the date of the notice and must:
(a) Be in writing;
(b) State the reasons for the appeal;
and
(c) Be signed by the
superintendent or other official with authority to make the appeal.
(5) Within 60 calendar days of
receiving the appeal, the department shall notify in writing the school
district, education service district, public charter school or program of the
department's decision regarding the appeal.
(6) If the school district, education service
district, public charter school or program does not appeal the determination;
or if the department renders a decision on an appeal that there has been an
overpayment or underpayment of funds, the department shall notify in writing
the school district, education service district, public charter school or
program of:
(a) The amount of the overpayment
or underpayment;
(b) The time
period for correcting the overpayment or underpayment; and
(c) The method for paying or collecting the
funds.
(7) The
department shall establish the time period for correcting any overpayment using
the "Repayment Calculator" established by the School Finance Unit of the
department. The department shall make the Repayment Calculator available upon
request.
(8) The methods for paying
or collecting the funds may include, but are not limited to:
(a) Invoices for payment.
(b) Transferring funds.
(c) In the case of State School Fund
payments, adjusting subsequent payments from the State School Fund to the
school district, education service district or program.
(d) In the case of other state funds,
adjusting subsequent payments from those funds to the school district,
education service district, public charter school or program.
(9) The school district, education
service district, public charter school or program may appeal the determination
of the repayment period or method of payment made under section (5) of this
rule to the department. The appeal must be received by the department within 60
calendar days of the date of the notice and must:
(a) Be in writing;
(b) Establish through auditable, verifiable
data that the repayment period or method of payment established in section (6)
of this rule creates extreme financial hardship;
(c) Contain a statement that the information
is certified as being accurate and complete; and
(d) Be signed by the superintendent or other
official with authority to make the appeal.
(10) The school district, education service
district, public charter school or program may propose in the appeal an
alternative time period for repayment of the funds.
(11) Within 60 calendar days of receiving the
appeal, the department shall notify in writing the school district, education
service district, public charter school or program of the department's decision
regarding the appeal. The department shall consider the following when making
its determination of the time period for repayment of funds:
(a) Applicable statutes, rules and policies;
(b) Information from the audit or
report and any recommendations made in the audit or report regarding the
repayment period or method of payment;
(c) Any other relevant information received
by the department relating to the overpayment or underpayment of
funds;
(d) The financial situation
of the school district, education service district, public charter school or
program; and
(e) Prior
determinations of the department on overpayment or underpayments of funds that
involved the same statutes, rules or policies or similar facts and were made
following the process prescribed by this rule.
(12) After the time period for the appeal has
expired under section (11) of this rule or after the department has notified
the school district, education service district, public charter school or
program of the department's decision regarding the appeal, the department shall
proceed to pay or collect the funds.
(13) A school district, education service
district, public charter school or program may request in writing at the same
time as when the district, school or program files an appeal under section (4)
or (9) of this rule:
(a) A public meeting
with the department. If the department grants the meeting, the department will
follow statutes and rules that apply to public meetings.
(b) A mediation with the department relating
to the issues that are the subject of the appeal. If the department agrees to
the mediation, the mediation will be conducted by a mediator approved by the
department and the department will not pay more than half the cost of the
mediation.
(14)
(a) The Superintendent of Public Instruction
delegates to the department the authority to make corrections to distribution
from the State School Fund for any year that is closed based on ORS
327.120 and the process
established by this rule.
(b) The
superintendent shall specify which department staff has the authority to make
the determinations required by this rule. The determinations required in this
rule may only be made by the superintendent or deputy
superintendent.
(15) This
rule first applies to the overpayment or underpayment of state funds based on
information received by the department in an audit or other report on or after
January 1, 2009.
Stat. Auth.: ORS
326.051,
327.125
Stats. Implemented: ORS
326.111,
327.006-327.133
