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Susanne Smith, 503-947-5637

April 7, 2011

Legislative Committee Passes Oregon Department of Education ESD Audit Bill

SALEM- Today the Oregon Senate Education and Workforce Development legislative committee unanimously passed SB 27 PDF – an Oregon Department of Education (ODE) bill to require Education Service Districts (ESD) to file an annual financial audit with ODE. This bill would give the Oregon Department of Education the legal authority to withhold state funding if corrective measures are not made after two successive audits findings.

“Under current law, ESDs are not subject to the same level of accountability to which we hold our school districts,” said State Superintendent Susan Castillo. “ESDs provide vital student services and should be held legally accountable for any mismanagement of funds entrusted to them for these purposes.”

Details of Bill include:
• Requires education service district boards to file a prepared financial annual audit to the ODE
• Requires the education service district boards to submit a corrective action plan to the ODE to remedy or correct deficiencies regarding legal compliance and adherence to generally accepted accounting principles
• If corrections have not been made after two successive audits, the ODE has legal authority to withhold ten percent of an ESD’s payment from the State School Fund until corrective action is taken

The committee recommended that the bill go to the Senate for consideration.

Susan Castillo, State Superintendent of Public Instruction
Susanne Smith, Communications Director, Telephone (503) 947-5637

Oregon Department of Education News Releases contain information that was originally released to the press as an official release.  Refer to each News Release for the details.

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Salem, OR 97310-0203

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