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 to address the overpayment or underpayment
of State School Fund monies related to changes in federal law under
16 U.S.C.
7112(f).
(b) This rule applies only to school years
2017-18, 2018-19, and 2019-20. For purposes of this rule, a year is considered
closed on June 30 that is two years after the fiscal year began. For example,
the fiscal year beginning July 1, 2018, is closed on June 30, 2020.
(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 seven
years of the date that the year was closed. For example, for the fiscal year
beginning July 1, 2018, 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, 2026.
(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 or education service
district, at a minimum, of 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 temporary rule with the notification.
(4) The school district or education service
district 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 or education service district of the department's decision regarding
the appeal.
(6) If the school
district or education service district 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 or education service district 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 or
education service district.
(9) The school district or education service
district may appeal the determination of the repayment period or method of
payment made under section (7) 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 or education service
district 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 or education service district 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 or education service district; 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 or education service
district of the department's decision regarding the appeal, the department
shall proceed to pay or collect the funds.
(13) A school district or education service
district may request in writing at the same time as when the district 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 temporary 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,
2017.
Statutory/Other Authority: ORS
326.051 & ORS
327.125
Statutes/Other Implemented: ORS
326.111 & ORS
327.006 to ORS
327.133
