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10.22.105    OVEREXPENDED BUDGETS

(1) Section 20-9-133 , MCA, limits the trustees, all officers and employees of a district from making expenditures or incurring liabilities that will cause budgeted funds, as identified in 20-9-201 , MCA, to be overexpended. The exception is for the debt service fund for the reasons listed in 20-9-133 , MCA.

(2) Expenditures made, liabilities incurred or warrants issued in excess of any final budget shall not be the liability of the district and no district money shall be used to pay the same as per 20-9-133 , MCA.

(3) Section 20-3-332 , MCA, states that if the trustees of a district fail or refuse to be responsible for the proper administration and utilization of all district money, it shall constitute grounds for removal from office.

(4) When the Superintendent of Public Instruction becomes aware that a district has overexpended a fund's budget, the Superintendent may notify the district's board of trustees and request an explanation for the overexpenditure.

(a) The trustees shall respond in writing within 30 calendar days of receiving the Superintendent's notification and shall include in their response a description of the changes and/or controls that have, or will be, put in place at the district to prevent a reoccurrence of the situation that created the budget overdraft.

(5) Upon receiving the trustees' response, the Superintendent will determine whether further action is warranted and, if so, will notify the county attorney for the county that the district is located in and will also notify the Board of Public Education.

History: 20-9-102, MCA; IMP, 20-3-332, 20-9-133, 20-9-315, MCA; NEW, 1992 MAR p. 219, Eff. 2/14/92; AMD, 1996 MAR p. 2168, Eff. 8/9/96; AMD, 2000 MAR p. 632, Eff. 2/25/00.

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