SB601: SB601 Atlanta Board of Education; residency limitations on qualifications for employment of the executive assistant to the board, chief financial officer, and internal auditor; remove

26 LC 47 3943 Senate Bill 601 By: Senators Halpern of the 39th, Orrock of the 36th, Kemp of the 38th, Parent of the 44th, McLaurin of the 14th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend an Act to continue the existence of the Atlanta Independent School System under1 the management and control of the Atlanta Board of Education, a pproved June 3, 20032 (Ga. L. 2003, p. 4154), as amended, so as to remove residency limitations on qualifications3 for employment of the executive assistant to the board, chief financial officer, and internal4 auditor; to revise provisions related to the selection, removal , and supervision of the5 executive assistant to the boa rd and the internal auditor; to p rovide for related matters; to6 repeal conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 An Act to continue the existence of the Atlanta Independent Sch ool System under the10 management and control of the Atlanta Board of Education, appro ved June 3, 200311 (Ga. L. 2003, p. 4154), as amended, is amended by revising Section 2-112 as follows:12 S. B. 601 - 1 - 26 LC 47 3943 "SECTION 2-112.13 Executive assistant to the board.14 An executive assistant to the board shall be appointed and, if necessary, removed by the15 superintendent with the advice and consent of the board. It sh all be the duty of the16 executive assistant to aid in the discharge of the board's official duties; to be present at all17 meetings of the board, except those meetings concerned with his or her salary, benefits, or18 tenure; to keep the minutes and make a permanent record thereof ; and to do any other19 administrative and clerical work as needed related to such duties. The executive assistant20 shall record and countersign all official proceedings of the board which shall be a public21 record open to the inspection of any person. The board shall h ave direct access to the22 executive assistant. The superintendent and board shall jointly develop any performance23 goals for the executive assistant and the board shall have significant input on any annual24 evaluation."25 SECTION 2.26 Said Act is further amended by revising Section 4-101 as follows:27 "SECTION 4-101.28 Chief financial officer.29 (a) A chief financial officer for the system shall be appointed and, if necessary, removed30 by the superintendent with the advice and consent of the board. Such appointment of the31 chief financial officer may be by a contract authorized by the board.32 (b) The chief financial officer shall immediately report to th e superintendent and to the33 board any financial irregularities or other financial matters that may violate board policy34 or state or federal laws, or that may subject the school system to a loss of state or federal35 funds or a loss of its eligibility to receive such funds. The chief financial officer shall36 cooperate with the internal auditor, providing requested information in a timely manner.37 S. B. 601 - 2 - 26 LC 47 3943 (c) Any person appointed chief financial officer shall give bond in an amount fixed and38 paid by the board. The bond shall be made payable to the schoo l system and shall be39 conditioned upon faithful and true accounting for all public an d other funds and all40 property coming into such chief financial officer's custody, control, care, or possession.41 (d) The chief financial officer shall have at least ten years' progressive experience in the42 management of fiscal operations or public finances, with demonstrated administrative or43 managerial experience in a public agency or the private sector. The number of years'44 experience required in this subsection may be waived by the boa rd upon a three-fourths'45 vote of its membership.46 (e) The chief financial officer shall audit and approve all demands or claims presented to47 him or her for payment. Prior to the approval of any demand or claim, the chief financial48 officer shall be entitled to require evidence that the amount of the demand or claim is justly49 due. For such purposes, the chief financial officer may summon before him or her any50 officer or employee of the school system or other person or mak e an inspection of any51 service, labor, material, supplies, or equipment related to a demand or claim. If, in his or52 her opinion, any demand or claim is not a legal demand or claim, he or she shall withhold53 approval of the same and file such demand, together with his or her action thereon and the54 reasons therefore, with the board for instructions thereon."55 SECTION 3.56 Said Act is further amended by revising Section 4-102 as follows:57 "SECTION 4-102.58 Internal audit function.59 (a) The board shall establish an internal audit function that falls under the supervision of60 an internal auditor. The internal auditor shall be appointed and, if necessary, removed by61 the superintendent with the advice and consent of the board. S uch appointment of an62 S. B. 601 - 3 - 26 LC 47 3943 internal auditor may be either an individual or the account man ager of a firm. Such63 appointment of the internal auditor may be by a contract author ized by the board. The64 superintendent and board shall jointly develop any performance goals for the internal65 auditor and the board shall have significant input on any annual evaluation. At all times,66 the board shall have direct access to the internal auditor and all audit information.67 (b) The internal auditor shall be a certified internal auditor or a certified public accountant,68 demonstrating at least ten years' experience in public financia l and fiscal practices,69 performance and financial auditing, and municipal accounting.70 (c) The internal auditor shall not be involved in partisan political activities or the political71 affairs of the school system.72 (d) Within the budget approval process and established personn el policies for all73 departments, the internal auditor shall, with appropriate appro val, have the power to74 appoint, employ, and remove such assistants, employees, and personnel as he or she may75 deem necessary for the efficient and effective administration of the office.76 (e) The internal auditor will be charged with, but not be limi ted to, the following duties77 and responsibilities:78 (1) To conduct performance and financial audits of the school system and its79 departments, offices, and activities in order to determine independently whether:80 (A) Activities and programs being implemented have been author ized by the board,81 state law, or applicable federal law or regulations and the activities and programs are82 being conducted and funds expended in compliance with applicable laws;83 (B) The department, office, or agency is acquiring, managing, protecting, and using its84 resources, including public funds, personnel, property, equipme nt, and space,85 economically, efficiently, and effectively and in a manner consistent with the objectives86 intended by the authorizing entity or enabling legislation;87 (C) The organization, programs, activities, functions, or poli cies are effective,88 including the identification of any causes of inefficiencies or uneconomical practices,89 S. B. 601 - 4 - 26 LC 47 3943 such as inadequacies in management information systems, internal and administrative90 procedures, organization structure, use of resources, allocation of personnel, purchasing91 policies, and equipment;92 (D) The desired results or benefits are being achieved;93 (E) Financial and other reports are being provided that disclose fairly, accurately, and94 fully all information that is required by law, that is necessary to ascertain the nature and95 scope of programs and activities, and that is necessary to esta blish a proper basis for96 evaluating the results of programs and activities including the collection of, accounting97 for, and depositing of revenues and other resources;98 (F) Management has established adequate operating and administrative procedures and99 practices, systems, or accounting internal control systems and internal management100 controls; and101 (G) Indications of fraud or abuse or illegal acts are present. If fraud or abuse by a102 board member is present, the matter shall be put before the ethics commission;103 (2) To submit an annual report to the board indicating audits completed, major findings,104 corrective actions taken by administrative managers, and significant findings which have105 not been fully addressed by management; and106 (3) To perform such other duties and responsibilities as provided for by this Act.107 (f) All officers and employees shall allow the internal auditor immediate access to any and108 all books, records, documents, and other requested information, including automated data,109 pertaining to the business of the school system and within their custody regarding powers,110 duties, activities, organization, property, financial transactions, contracts, and methods of111 business required to conduct an audit or other official duties. In addition, such officers and112 employees shall provide access for the auditor to inspect all p roperty, equipment, and113 facilities within their custody. Further, all contracts with o utside contractors and114 subcontractors shall provide for the auditor´s access to all fi nancial and performance115 S. B. 601 - 5 - 26 LC 47 3943 related records, property, and equipment purchased in whole or in part with system funds116 and facilities.117 (g) The internal auditor shall present any confidential inform ation to the board during118 regularly scheduled closed executive sessions.119 (h) The internal auditor shall not publicly disclose any infor mation received during an120 audit that is confidential in accordance with any local, state, or federal law or regulation.121 (i) Any reports issued by the internal auditor shall be made available for public inspection122 or copying at a reasonable cost."123 SECTION 4.124 All laws and parts of laws in conflict with this Act are repealed.125 S. B. 601 - 6 -