THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY FOLMER, RAFFERTY, BAKER, WARD, ALLOWAY, BROWNE, WILLIAMS, BREWSTER, MENSCH, EARLL, BRUBAKER AND FARNESE, APRIL 6, 2011

REFERRED TO EDUCATION, APRIL 6, 2011  

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," further providing for reports to

Department of Education, for subsidies for services and for

financial reports.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 218 of act of March 10, 1949 (P.L.30,

No.14), known as the Public School Code of 1949, amended

November 17, 2010 (P.L.996, No.104), is amended to read:

Section 218.  Reports to Department of Education.--(a)  An

annual financial report shall be submitted to the Secretary of

Education by each school district, intermediate unit, charter

school, cyber charter school and area vocational-technical

school not later than the 31st day of October. All financial

accounting and reporting by school districts, intermediate

units, charter schools, cyber charter schools and area

vocational-technical schools to the Department of Education

shall be in accordance with generally accepted accounting and

reporting standards, except that management discussion and

analysis and related notes and the following financial

statements shall not be required components of the annual

financial report: entity-wide financial statements, including

the statement of activities and the statement of net assets; the

reconciliation of the balance sheet - governmental funds to

statement of net assets; and the reconciliation of the statement

of revenues, expenditures and changes in fund balances -

governmental funds to statement of activities. The Department of

Education shall establish a reporting standard for the annual

financial report.

(b)  The chief school administrator and board secretary of a

school district, intermediate unit, charter school, cyber

charter school or area vocational-technical school shall submit

a signed statement to the Department of Education not later than

the 31st day of December of each year certifying that: the

audited financial statements of the school district,

intermediate unit, charter school, cyber charter school or area

vocational-technical school have been properly audited pursuant

to Article XXIV and that in the independent auditor's

professional opinion, the financial information submitted in the

annual financial report was materially consistent with the

audited financial statements.

(c)  If the financial information submitted in the annual

financial report was not materially consistent with the audited

financial statements, the school district, intermediate unit, 

charter school, cyber charter school or area vocational-

technical school shall submit a revised annual financial report

to the Department of Education not later than the 31st day of

December.

(d)  The Department of Education shall order the forfeiture

penalties provided for under section 2552.1(a.1) against a

school district, intermediate unit, charter school, cyber

charter school or area vocational-technical school for failure

to timely submit an annual financial report or revised annual

financial report.

Section 2.  Section 907-A of the act, added May 4, 1970

(P.L.311, No.102), is amended to read:

Section 907-A.  Subsidies for Services.--(a)  Intermediate

units shall receive subsidies from the Commonwealth as herein

provided only for services performed pursuant to and authorized

by law, as hereinafter provided. Nothing contained herein shall

prohibit intermediate units from receiving funds from school

districts and other sources including nonpublic nonprofit

schools and expending such funds to provide additional services

not included in the approved program of services.

(b)  No later than February 1, 2012, the intermediate units

shall submit to the Department of Education a report on

subsidies and funds received in accordance with this section.

(1)  The report shall include, but not be limited to, the

following information:

(i)  A listing of all contracts, interagency

agreements and purchase orders executed by a Commonwealth

agency with each intermediate unit. 

(ii)  The total amount and duration of each item

under subparagraph (i), including the annual amount if

the item covers multiple years.

(iii)  The source, or sources, and amounts of funds

needed to cover the entire cost of each item.

(iv)  A description of programs or services, or both,

being provided, including performance measures by which

each intermediate unit will be assessed and penalties for

nonperformance, if any.

(v)  A description of the selection process used in

entering into the arrangement.

(vi)  A listing of all employes, contractors and

agents covered under the contracts, the duties of each

and the remuneration provided under the contract.

(2)  The Department of Education shall develop the format

to be used by the intermediate units in the collection of the

information under paragraph (1).

(3)  The Department of Education shall post the reports

on its Internet website.

(4)  The first report shall cover fiscal year 2009-2010.

Section 3.  Section 921-A of the act is amended by adding a

subsection to read:

Section 921-A.  Financial reports.--* * *

(a.1)  The Department of Education shall post on its Internet

website, in the format consistent with those already posted for

the other local education agencies, information included in the

intermediate units' annual financial reports.

* * *

Section 4.  This act shall take effect immediately.