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December 18, 1961

Dr. J. W. Edgar OpinionNo. ~~-1225 Commissionerof Education State of Texas Re: What responsibilityand Austin, Texas authority, if any, does the CentralEducation Agency have Periodically to audit State funds allotted to the County AdministrationFund and TransportationFund to determine if such funds
are being expendedpurDear Sir: suant to statute?

You have requested the opinion of this office as to what responsibilityand authority, if any, the Central Education Agencyhas periodically to audit State funds allotted to the County AdministrationFund and Transportation Fund to determine If such funds are being expendedpursuant to statute.

An initial discussion of the nature of these two funds is required. Articles 2700, 2701 and 3888,Vernon's Civil Statutes,provide for the salariesand operation of the office of county superintendent. Under these statutes, the salariesand traveling expenses of the county superlntendent, his assistants, and the county supervisorsare paid from the County AdmlnlstrationFund. The County Administration Fund is createdby Article 2827a,Vernon's Civil Statutes, and Is drawn from the State Available School Fund. This~fundis paid into thencounty depository by the Commissionerof Education in response to the budget preparedby the County SchoolBoard. After it is received by the County depository, the fund may be drawn upon by vouchers filed by the county superintendentand approved by the County SchoolBoard.

The TransportationFund is establishedby Article 2922-15,Vernon's Civil Statutes,and Is utilized to finance the transportation of pupils to and from school. The operation Of the fund is the same as that outlined above for the County AdministrationFund.Honorable J. W. Edgar, Page 2 (WW-1225)

Article 2919g,Vernon's Civil Statutes, requires
an annual audit of school district fiscal accounts. This audit was apparently intended to cover all State Available School Fund monies disbursed by the'state in the operation of common and independent schooldistricts. It must be noticed,however, that the funds presently In question; the County AdministrationFund and the TransportationFund, are not at any point channeled through a school district account. Therefore,any audit conductedunder Article 2919g,VernonI's Civil Statutes,would be futile insofar as these particular funds are concerned.

It has come to the attention of this office that numerous County Auditors are auditing these County Administration and Transportationmnds, apparently acting under the provisions of Article 1652,Vernon's Civil Statutes. This action is apparentlyunauthorized on the basis of Article 1652, since that Article refers specifically to school district accounts. Further, it has been held that a County Auditorhas no authority to aonrove or dlsaoorove the disbursement of school funds. Houston National-ExchangeBank

V. School District No. 25, Harris County, 185 S.W. 589 (Civ. APP. 19011.

The statutes, then,make no expressprovision for any accounting for these particular funds. If any power to audit exists, it must be inferred from the general law.

The TransportationFund is utilized directly for the purpose of aiding in the education of the school children of the State of Texas. As such, it Is strictly Statemoney, albeit In the custody of county depositories. Inasmuch as the Commissioner of Educationhas the duty of accounting for all funds disbursed from the State Available School Fund, this duty must extend to an audit of all State school funds which he has allocated to the county depositories for school
use.

As regards the CountyAdministrationfind, the situation is virtually the same. This fund is for the payment of salaries and traveling expenses for authorizedpersonnel of the County Superintendent'soffice. The Court In Webb Countyv. Board of School Trustees of Laredo, 95 Tex. 131 of,S W 876 (1901) h Id th t the county school superint&dent'ii an agent 0; t:e StaFe, although nominally a county official. Extending this view to the present situation,we find that the State funds are being paid out to a county to supportand maintain an agent of the State. In this situation it is clear that a county auditor should not have the responsibility for conductingan audit of theseHonorable J. W. Edgar, page 3 (WW-1225)

funds. such an audit shouldbe the responslbllltyof the State agency which must account for the overall State Avallable School Fund.

The State Commissionerof Educationhaving the responsibility of accounting for the State Available School Fund, it follows that the Commissionerhas the authority and duty to prescribe regulations for the supervisionof the County AdministrationFund and TransportationFund under Article 2700, Section 4, Vernon's Civil Statutes,and may make original audits of these fundswhere the situationdemands it.

SUMMARY

The CentralEducation Agencyhas the responsibilityand authority to prescribe regulations for the auditing of State Funds allotted to the County AdministrationFund and Transportation Fund, and may make original audits of such funds If necessary.
Very truly yours,

WILL WILSON

MLQ:dhs

APPROVED:

OPINION COMMITTEE

W. V. Geppert, Chairman John Leonarz Marietta Payne Morgan Nesbltt Llnward Shivers

REVIEWED FOR THE ATTORNEY GENERAL BY: Houghton Brownlee, Jr.