2006 New Mexico Statutes - Section 22-8-39 — Boards of finance; suspension.

22-8-39. Boards of finance; suspension.

The state superintendent [secretary] may at any time suspend a local school board from acting as a board of finance if he reasonably believes there is mismanagement, improper recording or improper reporting of public school funds under its control.  When a local school board is suspended from acting as a board of finance, the state superintendent shall:   

A.     immediately take control of all public school funds under the control of the local school board acting as a board of finance;   

B.     immediately have an audit made of all funds under the control of the local school board acting as a board of finance and charge the cost of the audit to the school district;   

C.     act as a fiscal agent for the school district and take any action necessary to conform the fiscal management of funds of the school district to the requirements of law and good accounting practices;   

D.     report any violations of the law to the proper law enforcement officers;   

E.     act as fiscal agent for the school district until he determines that the local school board is capable of acting as a board of finance, or until he determines that the county treasurer should act as fiscal agent for the school district; and   

F.     inform the local school board in writing of his determination as to who is to act as board of finance or fiscal agent for the school district, and also inform the county treasurer in writing if he determines that the county treasurer should act as fiscal agent for the school district.