105 ILCS 5/1B-22
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 1B - School District Financial Oversight Panel And Emergency Financial Assistance

Sec. 1B-22.     Additional Powers of the Panel.     For Panels established under  Section 1B-4 for a  district which had its financial plan rescinded by the State Board for  violating that plan as  provided in Section 1A-8, the Panel shall have the following additional powers:(a) As necessary to carry out its purposes when district resources are not  readily available or appropriate for use by the Panel, the Panel may make and  execute contracts, leases, subleases and all other instruments or agreements  necessary or convenient for the exercise of the powers and functions granted by  this Article.(b) As necessary to carry out its purposes when district resources are not  readily available or appropriate for use by the Panel, the Panel may purchase  personal property necessary or convenient for its purposes; mortgage, pledge  or otherwise grant security interests in such properties;  and convey to the district such of its property as, in the  judgment of the Panel, is no longer necessary for its purposes.(c) As necessary to carry out its purposes when district resources are not  readily available or appropriate for use by the Panel, the Panel may appoint  officers, agents, and employees of the Panel, define their duties and  qualifications, and fix their compensation and employee benefits.(d) In order to investigate allegations of or incidents of waste, fraud, or  financial mismanagement which the Board is unable or unwilling to properly  investigate as requested by the Panel, the Panel may appoint an Inspector  General who shall have the authority to conduct investigations into such  allegations or incidents.  The Inspector General shall make recommendations  to the Panel about  its investigations.  The Inspector General shall be independent of the  operations of the Panel and  the Board and perform other duties requested by the Panel. The Inspector  General shall have  access to all information and personnel necessary to perform the duties of the  office.  If the  Inspector General determines that a possible criminal act has been committed or  that special  expertise is required in the investigation, he shall immediately notify the  State's Attorney in the  county in which the district is located.  All investigations conducted by the  Inspector General  shall be conducted in a manner that ensures the preservation of evidence for  use in criminal  prosecutions.  At all times the Inspector General shall be granted access to  any building or  facility that is owned, operated, or leased by the Panel or the Board.  The  Inspector General shall  have the power to subpoena witnesses and compel the production of books and  papers pertinent  to an investigation authorized by this Code.  Any person who (1) fails to  appear in response to a  subpoena; (2) fails to answer any question; (3) fails to produce any books or  papers pertinent to an  investigation under this Code; or (4) knowingly gives false testimony during an  investigation  under this Code is guilty of a Class A misdemeanor.  The Inspector General  shall provide to the  Panel and the State Board of Education a summary of reports and investigations  made under this  Section for the previous fiscal year no later than January 1 of each year.  The  summaries shall  detail the final disposition of those recommendations.  The summaries shall not  contain any  confidential or identifying information concerning the subjects of the reports  and investigations.  The summaries shall also include detailed recommended administrative actions  and matters for  consideration by the State Board of Education or the General Assembly.(e) No hiring or appointment of any person in any position by the Board, the  superintendent, or any other officer or employee of the Board shall be made or  entered into unless it  is consistent with the Financial Plan and Budget in effect and the staffing  plan approved by the  Panel under this Section.  The hiring or appointment of any person shall not be  binding on the  Board unless and until it is in compliance with this Section.   The Board shall  submit to the Panel  for approval by the Panel a staffing plan for the upcoming school year at the  same time as the  submission of the Budget, except that the staffing plan for the fiscal year  ending in 1997 shall be  submitted to the Panel within 90 days after the effective date of this  amendatory Act of 1996.  The staffing plan shall be accompanied by a cost analysis and such other  information as the Panel  may require.  The Panel may  prescribe standards, procedures, and forms for submission of the staffing plan.  The Panel shall approve the staffing plan if the information  required to be  submitted is complete and the staffing plan is consistent with the Budget and  Financial Plan in  effect.  Otherwise, the Panel shall reject the staffing plan.  In the event of  rejection, the Panel  shall prescribe a procedure and standards for revision of the staffing plan.  The Panel shall act on  the staffing plan at the same time as the approval of the Budget, except that  the staffing plan for  the fiscal year ending in 1997 shall be acted upon within 60 days of the  submission of the  staffing plan by the Board.  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 staffing  plan.  The Panel  may review the Board's operations, obtaining budgetary data and financial  statements, may  require the Board to produce reports, and shall have access to any other  information in the  possession of the Board that it deems relevant.  The Panel may issue directives  to the Board to  assure compliance with the staffing plan, including the issuance of reduction  in force notices,  non-renewal of employment contracts, or any other notices or actions required  by  contract or law.  The Board shall produce such budgetary data, financial statements, reports, and  other  information and shall comply with such directives.   After approval of each  staffing plan, the  Board shall regularly reexamine the estimates on which it was based and revise  them as  necessary.  The Board shall promptly notify the Panel of any material change in  the estimates in  the staffing plan.  The Board may submit to the Panel, or the Panel may require  the Board to  submit, modifications to the staffing plan based upon revised revenue or  expenditure estimates or  for any other good reason.  The Panel shall approve or reject each modified  staffing plan within  60 days of its submission in a manner similar to the provisions of this  subsection for the approval  or rejection of the initial staffing plan.(f) The Panel shall examine the business records and audit the accounts of  the  Board or  require that the Board examine its business records and audit its accounts at  such time and in  such manner as the Panel may prescribe.  The Board shall appoint a certified  public accountant  annually, approved by the Panel, to audit its financial statements.  The audit  conducted pursuant  to this paragraph shall be in lieu of the audit that the Board is required to  undertake pursuant to  Section 3-7.(g) The Panel shall initiate and direct financial management  assessments  and similar analyses of the operations of the Board as may, in the judgment of  the Panel, assure  sound and efficient financial management of the Board.  Upon the completion of  these  assessments, the Panel shall give directives to the Board regarding  improvements and changes  that derive from these assessments, which the Board shall implement.  In  conjunction with its  budgetary submission to the Panel for each fiscal year, the Board shall  demonstrate to the  satisfaction of the Panel that the directives of the Panel have been  implemented in whole or in  part or, in the alternative, are not capable of being implemented.  In  consideration of whether to  approve or reject the budget for a fiscal year, the Panel shall adjudge whether  the Board has fully  considered and responsibly proposed implementation of the Panel's directives.(h) The Panel shall initiate and direct a management audit of the Board at  least once  every 2 years.  The audit shall review the personnel, organization, contracts,  leases, and physical  properties of the Board to determine whether the Board is managing and  utilizing its resources in  an economical and efficient manner.  The audit shall determine the causes of  any inefficiencies  or uneconomical practices, including inadequacies in internal and  administrative procedures,  organizational structure, uses of resources, utilization of real property,  allocation of personnel,  purchasing policies, and equipment.(i) In the event that the Board refuses or fails to follow a directive of  the  Panel to issue  notices of non-renewal of contracts, to issue notices of reduction in force to  employees, to issue  requests for bids or proposals, or  to obtain financial or other information  that the Panel finds necessary for the implementation of  its responsibilities  under this Article, the Panel may take such action in the name of the district,  and such action shall  be binding the same as if the action had been taken by the Board.  The powers  established by this  paragraph do not authorize the Panel to enter into contracts in the name of the  Board.(j) The Panel shall meet with the Board or its designees in closed session  prior to the  Board commencing any collective bargaining negotiations to discuss the  financial issues relevant  to the bargaining and for the purpose of the Panel approving the budget  limitations for the  potential collective bargaining agreement.  The Board shall not make or  consider any proposal  which does not comply with the collective bargaining budget approved by the  Panel.  The Board  shall keep the Panel apprised as to the status of the bargaining.  The Board  shall present any  proposed change in the approved collective bargaining budget to the Panel in  closed session for  approval.   Prior to the Board taking a final vote on any tentative agreement  approved by the  employee organization, the Board shall discuss the tentative agreement with the  Panel in closed  session.  Upon final approval of a collective bargaining agreement by both the  Board and the  employee organization, the Board shall submit the final collective bargaining  agreement to the  Panel for approval.  At the same time that the Board submits the final  agreement to the Panel,  the Board shall notify the employee organization that the final agreement has  been submitted and  the date of the Panel meeting at which the final agreement will be considered.  The employee  organization shall be provided an opportunity to discuss the final agreement  with the Panel prior  to the Panel taking action on the agreement.  No collective bargaining  agreement shall be binding  upon the district unless the Board has followed the requirements of this  paragraph and the final  agreement has been approved by the Panel.(k) The budget of the Panel or any revisions to the budget, including any  costs  to the  Panel associated with the appointment of an Inspector General, shall be  approved by the State  Superintendent upon request of the Panel and after opportunity for response by  the Board.    (Source: P.A. 89-572, eff. 7-30-96.)