I. . 

December 18, 1961 

Dr. J. W. Edgar Opinion No. ~~-1225 

Commissioner of Education 

State of Texas Re: What responsibility and 

Austin, Texas authority, if any, does 

the Central Education 

Agency have Periodically 

to audit State funds allotted to the County 

Administration Fund and 

Transportation Fund to 

determine if such funds 

are being expended purDear Sir: suant to statute? 

You have requested the opinion of this office as 

to what responsibility and authority, if any, the Central 

Education Agency has periodically to audit State funds allotted to the County Administration Fund and Transportation 

Fund to determine If such funds are being expended pursuant 

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 salaries and operation of 

the office of county superintendent. Under these statutes, 

the salaries and traveling expenses of the county superlntendent, his assistants, and the county supervisors are 

paid from the County Admlnlstration Fund. The County Administration Fund is created by Article 2827a, Vernon's 

Civil Statutes, and Is drawn from the State Available 

School Fund. This ~fund is paid into then county depository 

by the Commissioner of Education in response to the budget 

prepared by the County School Board. After it is received 

by the County depository, the fund may be drawn upon by 

vouchers filed by the county superintendent and approved 

by the County School Board. 

The Transportation Fund is established by 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 Administration Fund. 
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 school districts. It must be 

noticed, however, that the funds presently In question; the 

County Administration Fund and the Transportation Fund, are 

not at any point channeled through a school district account. 

Therefore, any audit conducted under 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 Transportation mnds, apparently acting under 

the provisions of Article 1652, Vernon's Civil Statutes. 

This action is apparently unauthorized on the basis of Article 1652, since that Article refers specifically to school 

district accounts. Further, it has been held that a County 

Auditor has no authority to aonrove or dlsaoorove the disbursement of school funds. Houston National-Exchange Bank 

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

APP. 19011. 

The statutes, then, make no express provision for 

any accounting for these particular funds. If any power to 

audit exists, it must be inferred from the general law. 

The Transportation Fund 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 State money, 

albeit In the custody of county depositories. Inasmuch as 

the Commissioner of Education has 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 County Administration find, the 

situation is virtually the same. This fund is for the payment of salaries and traveling expenses for authorized personnel of the County Superintendent's office. The Court In 

Webb County v. 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 support and maintain an agent of the State. In 

this situation it is clear that a county auditor should not 

have the responsibility for conducting an audit of these 
Honorable J. W. Edgar, page 3 (WW-1225) 

funds. such an audit should be the responslblllty of the 

State agency which must account for the overall State Avallable School Fund. 

The State Commissioner of Education having the 

responsibility of accounting for the State Available School 

Fund, it follows that the Commissioner has the authority and 

duty to prescribe regulations for the supervision of the 

County Administration Fund and Transportation Fund under Article 2700, Section 4, Vernon's Civil Statutes, and may make 

original audits of these funds where the situation demands 

it. 

SUMMARY 

The Central Education Agency has the responsibility and authority to prescribe regulations 

for the auditing of State Funds allotted to the 

County Administration Fund 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.