Oklahoma Code § 70-18-116

Title 70. Schools: Forfeiture of State Aid
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A.  Any school district which willfully operates school buses
contrary to the rules and regulations prescribed by the State Board
of Education shall forfeit its State Aid for the time of
noncompliance.  All State Aid funds shall be withheld from any
school district that does not comply with the standards of the State
Board of Education for accrediting.
B.  Any school district that willfully pays a teacher less than
the minimum salary required by law including the five percent (5%)
increments for special education or alternative education shall
forfeit a portion of its State Aid equal to the amount that the
teacher was underpaid.  The amount to be forfeited shall be deducted
from the State Aid payment following confirmation of the
underpayment by the State Department of Education.
C.  1.  No more than fifty percent (50%) of the funds
apportioned to school districts under the provisions of this article
shall be paid by the state unless and until there has been filed
with the State Board of Education on forms prescribed by such Board
an itemized sworn account of the expenditures and revenues of the
school district during the next preceding fiscal year and a teacher
personnel report for the current year.
2.  All State Aid paid to a district whose district budget, as
filed with the State Auditor and Inspector, shows that the
appropriations of the district, plus the State Aid and other cash
funds for which the district qualifies, will not enable it to
maintain a full term of school as defined by this article, shall be
credited against the State Aid of the district or districts to which
the first district shall be annexed, if annexation is required.  It

is intended that the balance of any unexpended State Aid or other
revenue originally allocated to an annexed district shall be paid to
the receiving district.
D.  School districts receiving State Aid shall not spend any of
these funds except by regularly issued warrants.  The warrants shall
be issued against properly approved encumbrances in the manner
provided by law.  All encumbrances shall be approved by the board of
education of the school district at a regular meeting or a special
meeting called for that purpose.  All original copies of
encumbrances as represented by purchase orders, shall be filed in
either numerical or alphabetical order, with the original paid
invoice or invoices attached, accompanied by a signed and dated
receiving copy verifying receipt of goods or services.  It shall be
unlawful to register or pay the warrant unless such warrant conforms
to the statutes regulating the allowance and issuance thereof.  Said
treasurer shall purchase, by treasurer's check, all warrants issued.
E.  All board of education members, employees, or other
officials of school districts required to make reports to the State
Board of Education or other agencies under the provisions of this
article, and all persons lawfully charged with the duty of making
records of original entry, such as teachers' registers,
transportation records, and financial records, which form the basis,
in whole or in part, of said reports, shall exercise the highest
degree of diligence, accuracy, and good faith in making said records
and reports reflect the truth.  Teachers' registers shall be marked
daily in ink, by the teacher or principal in charge of rooms or
groups of pupils.  Provided, the State Board of Education may
authorize alternate systems of accounting for pupils' attendance in
districts using data processing methods.
F.  The State Board of Education shall revoke the certificate of
any teacher, principal, or superintendent who knowingly or willfully
violates any of the provisions of this article.
G.  Any official involved in the execution of this article who
shall fail or refuse to carry out any of the provisions thereof
shall be liable on his official bond, if any, for the monetary
damages resulting from said failure to act, and in addition thereto
shall be subject to removal from office for neglect of duty under
the provisions of law relating to the removal of public officials.
H.  Any person or firm who shall knowingly or willfully violate
any of the provisions of this article shall be guilty of a
misdemeanor.  Any public official or public employee violating any
of the provisions of this article shall be subject to the penalties
for a misdemeanor and in addition thereto shall forfeit his position
or office.  Any officer or employee of the State Board of Education
who knowingly or willfully apportions or disburses any monies
appropriated by this article contrary to the provisions of this

article shall be subject to the penalties for a misdemeanor and in
addition shall forfeit his office or position.
I.  The State Board of Education shall prescribe the form of all
records, reports and applications for State Aid necessary to the
proper administration of this article, and it shall be the duty of
all, school district superintendents, and boards of education of
school districts to make such reports fully and completely at the
time and in the manner prescribed by the State Board of Education.
The State Board of Education shall also have authority and it shall
be its duty to promulgate rules and regulations, not inconsistent
with the provisions hereof, relative to the distribution of funds
and for the administration of this article.  Such regulations and
rules shall apply alike to all school districts.
J.  Any school district that is not in compliance with the
standards and requirements established by the State Board of
Education related to the state student record system as provided in
Section 3-160 of this title shall forfeit its State Aid for the time
of noncompliance.

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