California Code of Regulations › Title 5 - Education › Division 6 - California Community Colleges › Chapter 9 - Fiscal Support › Subchapter 4 - Budgets and Reports › Section 58312 - Inadequate Plans by District or Failure to Implement Plans; Authorized Actions by the Chancellor

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If the Chancellor determines that the district's plans
					 prepared and adopted pursuant to section
					 58310 are inadequate to solve the
					 financial problems or to implement the principles of sound fiscal management,
					 or if the district substantially fails to implement the plans, or if a college
					 operated by the district is in imminent jeopardy of losing its accreditation
					 which would create severe fiscal problems, the Chancellor shall have the
					 authority to take any of the following actions. The Chancellor should first
					 utilize measures which minimize interference with normal district operation,
					 unless he or she determines that acting otherwise is necessary to prevent the
					 worsening of fiscal conditions at the district.
(a) Conduct a comprehensive management review
				  of the district and its educational programs and an audit of the financial
				  condition of the district. The Chancellor may also contract for, or request
				  another appropriate agency to conduct, the reviews and audit or require the
				  district, at the expense of the district, to contract for the reviews and
				  audit. The terms and conditions of the contract and the final selection of a
				  contractor shall be subject to the written approval of the
				  Chancellor.
(b) Direct the district
				  to amend and readopt the fiscal and educational plans prepared pursuant to
				  section 58310 based on the findings of the
				  comprehensive audits.
(c) Review
				  and monitor the implementation of the plans and direct the district to make any
				  further modifications to the fiscal and educational plans he or she deems
				  necessary for the district's achievement of fiscal stability.
(d) Appoint or assign a special trustee at
				  district expense for the period of time necessary for the district to achieve
				  fiscal stability or solvency, to implement the principles of sound fiscal
				  management, or to maintain the accredited status of a college or to recover
				  accredited status if it has been terminated. The Chancellor shall establish
				  benchmarks that indicate the presence of local capacity to manage fiscal
				  duties. The special trustee shall have recognized expertise in finance, and
				  may, with the approval of the Chancellor, employ on a short-term basis any
				  staff necessary to assist the special trustee. The Chancellor shall determine
				  and specify in writing the duties of the special trustee, which may include,
				  but are not limited to, any or all of the following:
(1) Reviewing and monitoring the plans,
				  reports, and other financial material required under section
				  58310 and this section.
(2) Requiring any further modifications to
				  the fiscal and educational plans which he or she deems necessary.
(3) Determining district spending levels and
				  priorities to further the district's achievement of fiscal stability.
(4) Approving or disapproving actions of the
				  district which affect or relate to the implementation of the fiscal and
				  educational plans.