(A) Conduct a financial audit of the use of grant moneys that is prepared in accordance with the Municipal Audit Law; and

(B) Review the grant recipient’s progress toward meeting the performance growth targets in the grant agreement.

(b) Results of the financial audit and progress review must be:

(A) Made available at the main office of the grant recipient and on the grant recipient’s website.

(B) Presented to the governing body of the grant recipient at an open meeting, following:

(i) Oral presentation of the results by an administrator of the grant recipient to the governing body of the grant recipient; and

(ii) Opportunity for the public to comment on the results at an open meeting.

(C) Forwarded to the Department of Education.

(2)(a) Based on information received under subsection (1) of this section, the department shall determine each year whether grant moneys received by a grant recipient were used as provided by the grant agreement.

(b) If a grant recipient did not use grant moneys as provided by the grant agreement, the department shall:

(A) Collaborate with the grant recipient to identify and implement specific interventions;

(B) Provide technical assistance to the grant recipient as described in ORS 327.208; or

(C) Deduct amounts from future grant distributions.

(c) If amounts are to be deducted from future grant distributions under paragraph (b)(C) of this subsection, the grant recipient may appeal to the State Board of Education for review as provided by the board by rule.

(d) If a grant recipient fails to commit to spending all available grant moneys, the department may deduct amounts not committed from future grant distributions.

(3)(a) The department shall determine each biennium if a grant recipient does not meet performance growth targets identified in the grant agreement.

(b) If a grant recipient does not meet the performance growth targets:

(A) The grant recipient may submit an explanation for the reasons why the performance growth targets were not met; and

(B) The department may:

(i) Take into consideration the explanation submitted by the grant recipient;

(ii) Require the grant recipient to enter into a coaching program described in ORS 327.214; or

(iii) Direct the expenditure of grant moneys.

(4) Each grant recipient must conduct a performance review every four years, as required by standards adopted by the board by rule.

(5)(a) Based on a review of the information received under subsection (1) of this section, the department may require a grant recipient to conduct a financial audit on a specific funding area or multiple funding areas.

(b) The department may establish a procedure for conducting performance audits on a random basis or based on just cause as allowed under rules adopted by the board. [2019 c.122 §15]