Can a Tennessee county commission order an audit of a single department of the county school board?

Subject

Opinion No. 14-01, Authority of County Commission to Initiate an Audit of a Department of a County School Board, January 2, 2014

Plain-English summary

Rep. Ron Lollar asked whether a Tennessee county commission may authorize, by resolution, an independent or special audit of a department or division of the county school board. The AG said yes. The principal authority is Tenn. Code Ann. § 49-2-101(3), which lists the duties of the county legislative body with respect to local education. It directs the county legislative body to "require its finance committee to examine the accounts of the county board of education quarterly, or at any other time it may appear that the county board is misusing any of the public school funds, or exceeding the budget adopted by the county legislative body." The statute lets the county legislative body either use its own finance committee or "appoint a competent auditor" at county expense.

Because the statute confers authority to audit "the accounts of the county board of education," and the board's accounts are simply the aggregate of its component departments and divisions, the AG concluded the greater includes the lesser: the county legislative body may direct an audit of a single department or division of the school board, not just a whole-board audit. The opinion expressly notes that it does not analyze local laws or charter provisions that may apply to particular counties; those questions are local-counsel matters.

Currency note

This opinion was issued in 2014. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Background and statutory framework

Tenn. Code Ann. § 49-2-101(3). Sets out one of the county legislative body's duties: "require its finance committee to examine the accounts of the county board of education quarterly, or at any other time it may appear that the county board is misusing any of the public school funds, or exceeding the budget adopted by the county legislative body; or it may appoint a competent auditor to make the examination, the cost of the examination to be paid out of county funds."

Two methods of audit. The statute identifies two alternatives: (1) the county legislative body's own finance committee, or (2) a "competent auditor" retained at county expense.

The trigger. Audits may proceed quarterly as a matter of course or at any time the county board appears to be misusing public school funds or exceeding the budget approved by the county legislative body.

Why a single department or division. The AG reasoned that if the legislature authorized examination of the school board's entire accounts, it follows that the county legislative body may target a narrower slice. The opinion does not require the county commission to first audit the whole board before it can audit a department.

Local laws and charters. The opinion expressly carves out questions about local laws, ordinances, and charter provisions that may affect a county commission's audit power. Counties with a metropolitan or unified form of government, or with a private-act charter, should consult local counsel.

Common questions

Can a county commission audit just the school nutrition department, or only the whole school board?

A single department or division is permissible. The opinion treats the audit power as severable.

Does the school board have to consent before the audit?

No. The county legislative body's authority is independent. The board's accounts are subject to examination by the finance committee or an appointed auditor whenever the statutory triggers apply.

Who pays for the audit?

The statute provides that the cost of an audit performed by an appointed competent auditor is paid out of county funds.

Can the county commission audit a school department for any reason, or only on suspicion of misuse?

The statute authorizes both routine quarterly examinations and additional audits "at any other time" misuse or budget excess appears. The "any other time" language tracks suspected misfeasance, but a quarterly examination needs no special trigger.

What about local private-act provisions that change school audit rules?

The opinion expressly does not address them. Counties with private acts or special charters should check those provisions and consult local counsel before relying on the general statute.

Citations

Statutory: Tenn. Code Ann. § 49-2-101; Tenn. Code Ann. § 49-2-101(3).

Source

• Landing page: https://www.tn.gov/attorneygeneral/opinions.html
• Original PDF: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/ops/2014/op14-001.pdf

Original opinion text

January 2, 2014

Opinion No. 14-01

Authority of County Commission to Initiate an Audit of a Department of a County School Board

QUESTION

Does Tennessee law provide a county commission with authority to authorize, through a resolution, an independent or special audit of a department or division of a county school board?

OPINION

Yes.

ANALYSIS

Tennessee Code Ann. § 49-2-101, which sets forth the duties of the county legislative body as they pertain to local education, provides in relevant part:

The duties of the county legislative body shall be to:

(3) require its finance committee to examine the accounts of the county board of education quarterly, or at any other time it may appear that the county board is misusing any of the public school funds, or exceeding the budget adopted by the county legislative body; or it may appoint a competent auditor to make the examination, the cost of the examination to be paid out of county funds;

Tennessee Code Ann. § 49-2-101(3) thus provides authority for an audit of the county board of education by the county legislative body on a quarterly basis, as well as at any time misfeasance or misuse of public funds is suspected. Further, the audit may be performed by the finance committee of the county legislative body, or the county legislative body may appoint a "competent auditor" to perform the examination.

Tennessee Code Ann. § 49-2-101(3) establishes the authority to audit the accounts of the entire county school board. Consequently, it appears manifest that this statute also confers upon the county legislative body the authority to direct that an audit of a single department or division within the county school board be performed.

This opinion does not address any local laws or charter provisions that may apply to a county commission's powers to initiate an audit of a county school board because such local laws vary from jurisdiction to jurisdiction. Questions regarding the applicability of local laws, ordinances, charter provisions, etc., are best addressed to counsel representing the local governmental entity whose authority is at issue.

ROBERT E. COOPER, JR.
Attorney General and Reporter

JOSEPH F. WHALEN
Associate Solicitor General

KEVIN STEILING
Deputy Attorney General

Requested by:

The Honorable Ron Lollar
State Representative
214 War Memorial Building
Nashville, TN 37243