(1) According to 20-9-344 , MCA, the Board of Public Education may order the Superintendent of Public Instruction to withhold distribution of BASE aid from a district when the district fails to submit reports or budgets as required by law or rule.
(2) The purpose of withholding distribution of a district's BASE aid is to ensure that required reports and budgets are prepared properly and are submitted timely. Therefore, the Office of Public Instruction will notify the Board of Public Education if a district or county repeatedly:
(a) fails to submit reports or budgets in accordance with prescribed deadlines, or
(b) fails to prepare reports or budgets correctly. This section applies to reports and budgets that are necessary for the Office of Public Instruction to determine the district's BASE aid or are necessary for the Office of Public Instruction to monitor a district's compliance with statutory restrictions.
(3) Upon discovery that a report or budget has not been submitted or has not been prepared properly, the Office of Public Instruction will notify the district clerk, the district superintendent and the county superintendent of the specific violation(s) . If the report is a county report, the county treasurer and county commissioners will also be notified. A list of districts and counties notified will be sent to the Board of Public Education.
(4) After 35 calendar days, the Office of Public Instruction will provide to the Board of Public Education an updated list of districts that have not submitted or properly prepared a report or budget.
(5) If a district's BASE aid is withheld because district or county reports or budgets were not submitted to the Office of Public Instruction as required by law or rule, the Office of Public Instruction will notify the Board of Public Education and the district when such reports are received and all reporting requirements have been met and will request approval from the board to release withheld funds.
(6) Upon receiving approval from the board, the Office of Public Instruction will release any BASE aid being held from the district with the next regular distribution of BASE aid.