105 ILCS 5/1B-12
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 1B - School District Financial Oversight Panel And Emergency Financial Assistance

 (from Ch. 122, par. 1B-12)Sec. 1B-12.     Financial Plans.     The local board shall  develop, adopt and submit to the Panel for approval an  initial financial plan with respect to the remaining portion  of the current fiscal year and for the 2 succeeding fiscal  years.  The board shall develop and adopt subsequent  financial plans as directed by the Panel.  The financial  plans shall supersede any financial plan developed pursuant  to Section 1A-8 of this Act.  The Panel shall require that  each financial plan cover a period of at least 3 fiscal  years.  After adoption by the board, the board shall submit  each plan to the Panel for its approval not later than the  date required by the Panel.  The Panel shall approve or  reject the financial plan within 30 days of its receipt.  No  financial plan shall have force or effect without approval  of the Panel.  Each financial plan shall be developed,  submitted, approved and monitored in accordance with the  following procedures:(a) The board shall determine and submit to the Panel,  at a time and in a manner prescribed by the Panel, estimates  of revenues available to the board during the period for  which the financial plan is to be in effect.  The Panel  shall approve, reject or amend the revenue estimates.  In  the event the board fails, for any reason, to submit to the  Panel estimates of revenue as required by this paragraph,  the Panel may prepare such estimates.  The financial plan  submitted by the board shall be based upon revenue estimates  approved or prepared by the Panel.  As soon as practicable  following the establishment of the Panel, the president of  the board shall, at the request of the Chairman of the  Panel, make available to the Panel copies of the audited  financial statements and of the books and records of account  of the board for the preceding 5 fiscal years of the board.(b) Each financial plan for each fiscal year or part  thereof to which it relates, shall contain (1) a description  of revenues and expenditures, provision for debt service,  cash resources and uses, capital improvements, and a  building utilization component requiring maximum efficient  use of all classrooms and buildings, in such manner and  detail as the Panel shall prescribe, (2) a description of  the means by which the budget will be brought into balance,  and (3) such other matters that the Panel, in its  discretion, requires.  For Panels established under Section 1B-4 for a  district that had its financial plan rescinded by the State Board for  violating that plan as  provided in Section 1A-8, the financial plan required under this Section shall  also include the  staffing plan required pursuant to subsection (e) of Section 1B-22, provisions  for addressing  findings or  violations identified by the Inspector General or the school district audit,  provisions for  implementing directives of the Panel, and the plan of action to be followed by  the district to  maintain long-term financial stability, provide for  transition of the Panel's  authority, and analyze the need for additional State funding for the  district.  The initial financial plan shall also  include a description of the means by which any outstanding  short-term indebtedness shall be paid or refunded by the  board.  The Panel may prescribe any reasonable time,  standards, procedures or forms for preparation and  submission of the financial plan.(c) The Panel shall approve the initial and each  subsequent financial plan if, in its judgment, the plan is  complete, is reasonably capable of being achieved, and meets  the requirements set forth in this Article.  Otherwise, the  Panel shall reject the financial plan.  In the event of  rejection, the Panel may prescribe a procedure and standards  for revision of the financial plan by the board.(d) The board shall report to the Panel, at such times  and in such manner as the Panel may direct, concerning the  board's compliance with each financial plan.  The Panel may  review the board's operations, obtain budgetary data and  financial statements, require the board to produce reports,  and have access to any other information in the possession  of the board that it deems relevant.  The Panel may issue  recommendations or directives within its powers to the board  to assure compliance with the financial plan.  The board  shall produce such budgetary data, financial statements,  reports and other information and comply with such  directives.(e) After approval of each financial plan, the board  shall regularly reexamine the revenue and expenditure  estimates on which it was based and revise them as  necessary.  The board shall promptly notify the Panel of any  material change in the revenue or expenditure estimates in  the financial plan.  The board may submit to the Panel, or  the Panel may require the board to submit, modified  financial plans based upon revised revenue or expenditure  estimates or for any other good reason.  The Panel shall  approve or reject each modified financial plan.    (Source: P.A. 89-572, eff. 7-30-96.)