Nevada Administrative Code Chapter 387 - Financial Support of School System
Nevada Administrative Code Chapter 387 – Financial Support of School System
Overview
NAC Chapter 387 governs the financial administration, funding, and support mechanisms for public school systems in Nevada. This chapter provides detailed rules on how state and local funds are allocated, accounted for, and reported within the school system.
The regulations ensure transparency, accountability, and equitable distribution of resources to support the educational needs of Nevada’s students.
Legal Authority
NAC Chapter 387 is promulgated under the authority of the Nevada Revised Statutes (NRS) Chapter 387, which governs public school finance in Nevada.
The Nevada Department of Education (NDE) is responsible for overseeing compliance with these financial rules.
The chapter aligns with statutory mandates related to budgeting, accounting, and state aid to school districts.
Key Provisions of NAC Chapter 387
1. Budget Preparation and Approval
School districts must prepare annual budgets consistent with NRS and NAC requirements.
Budgets must itemize expenditures and revenues, including local, state, and federal sources.
Approval of budgets is required by the district board of trustees and must be submitted to the Department of Education.
2. Allocation of State Funds
Rules define the formulas and criteria for distributing state aid to school districts.
Factors influencing allocation include student enrollment numbers, district wealth, and specific program needs.
Special allocations may be provided for programs such as transportation, special education, and facilities maintenance.
3. Accounting and Reporting
School districts must maintain detailed accounting records reflecting all receipts and expenditures.
Reporting requirements include periodic financial statements, audits, and reconciliation of accounts.
The NDE has authority to audit school district finances and require corrective actions for discrepancies.
4. Use of Funds
Funds must be used for authorized educational purposes consistent with approved budgets.
Restrictions exist on using certain funds for non-educational activities or unauthorized expenditures.
Procedures for amending budgets and reallocating funds are provided.
5. Financial Oversight and Compliance
The NDE monitors compliance with financial regulations through audits, investigations, and reporting reviews.
Noncompliance may result in sanctions, withholding of funds, or administrative actions against district officials.
Procedures for appeal or remediation are outlined.
Relevant Nevada Case Law on School Financial Support
1. Clark County School District v. State Board of Education, 2003 Nev. 45
Issue: Dispute over state funding allocation formulas and adequacy of resources.
Holding: The Nevada Supreme Court recognized the legislature’s broad discretion in determining funding formulas, deferring to the State Board’s administration of NAC and NRS financial rules.
Significance: Confirms judicial deference to the State’s financial policies under NAC Chapter 387, provided statutory compliance.
2. Washoe County School District v. Nevada Department of Education, 2010 Nev. App. 101
Issue: Challenge regarding audit findings and alleged misallocation of funds.
Holding: The Court of Appeals upheld the Department of Education’s authority to audit and require correction under NAC 387, emphasizing districts’ duty of financial accountability.
Significance: Supports NDE’s enforcement power under NAC Chapter 387.
3. Petersen v. Nevada State Board of Education, 2016 Nev. Dist. Ct. 275
Issue: Allegation that school district misused state funds for non-educational purposes.
Holding: The district court ruled in favor of the Board, affirming that NAC 387’s restrictions on fund use are enforceable and violations may result in recovery and sanctions.
Significance: Emphasizes strict adherence to allowable uses of public education funds.
Summary of Legal Principles
| Legal Principle | Application in NAC 387 | Case Example |
|---|---|---|
| Budget Approval and Compliance | Districts must submit and follow approved budgets. | Clark County SD v. State Board |
| Authority to Audit and Enforce | NDE may audit and mandate corrections for violations. | Washoe County SD v. NDE |
| Restrictions on Fund Use | Funds must be used only for authorized educational purposes. | Petersen v. Nevada State Board |
| Judicial Deference to State Policies | Courts defer to administrative agencies' financial policies if lawful. | Clark County SD v. State Board |
Conclusion
NAC Chapter 387 provides a robust regulatory framework for the financial management of Nevada’s public school systems. It ensures that funds are distributed equitably, accounted for transparently, and used appropriately to support educational objectives.
Nevada courts have consistently upheld the authority of the Department of Education to oversee and enforce these financial regulations, while respecting the policy discretion of the legislature and administrative agencies.
Understanding these provisions and relevant case law is essential for school district officials, auditors, and policymakers involved in Nevada public education finance.
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