Request By:
Honorable Thomas H. Hadley
Attorney at Law
50 Public Square
Elizabethtown, Kentucky 42701
Opinion
Opinion By: Steven L. Beshear, Attorney General; Robert L. Chenoweth, Deputy Attorney General
You have asked the Office of the Attorney General to consider the legal propriety of the practice of advancing to school district employees, both certified and noncertified, of actual travel expenses in a case where it would create a hardship. Specifically, the question you have asked is whether the school district may advance money to its employees for travel or other necessary expenses prior to the expense actually being incurred.
For our information you noted the travel administrative regulations adopted by the Executive Department for Finance and Administration, 200 KAR 2:010 et seq. You also referenced us to page 22 of the Internal Account Manual adopted by the State Board of Education.
Before we look at the various school laws having a bearing on your question, it should first be cleared up that while school employees are considered to be state employees, they are not governed by the administrative regulations at 200 KAR 2:010 et seq. As explained in the "Necessity and Function" Section 2, 2:010, these regulations are only applicable to "all state officers and employees and others entitled to reimbursement of their travel and other official expenses out of the state treasury. . . ." Local school system employees are not reimbursed for travel expenses out of the state treasury. Thus, these regulations are inapplicable to your question.
There are several sections of the Kentucky school laws that must at least be referred to in responding fully to your questions. KRS 160.410 reads as follows:
"A board of education may pay the necessary expenses of its superintendent and other employes when such expenses are incurred on order of the board."
Similar statutory language is found in KRS 160.280 concerning the incurring of in-district and out-of-district expenses by a local board of education member. We also note KRS 156.114(4) recites that employees of boards of education may be called to attend conferences on matters of concern with elementary and secondary education. Reimbursement to participants who attend such conferences are entitled to reimbursement of "necessary travel expenses." The Superintendent of Public Instruction can also call school conferences pursuant to authority given in KRS 156.190. As under KRS 156.114(4), supra, KRS 156.190 similarly provides:
"Personal traveling expenses incurred by those attending conferences called by the Superintendent of Public Instruction shall be a legitimate public expense and may be paid by boards of education. "
This office has considered, in writing previous advisory opinions, questions similar to yours relating to KRS 160.410 and also KRS 160.280. See OAG 77-331 and OAG 76-329, respectively, copies attached. In OAG 77-331 we concluded that expenses could not be paid unless they had been incurred after prior approval by the local board of education. To the same end was OAG 76-329 which concluded a local board member was only to incur an out-of-district travel expense after it had been authorized by the board.
We have not addressed in the above referred to advisory opinions precisely the question you presented in your letter. The net effect of your question is, even with prior approval by the local board for incurring travel expenses, may the employee be advanced money to meet the expenses before the expenses are actually incurred. We believe the answer must be that such a practice is not contemplated nor warranted by law.
It is our opinion that all of the applicable statutes contemplate reimbursement, and not an advancement of money from which the school employee may pay for incurred school-related expenses. The latter is in the nature of a travel allowance. The board should only pay for those expenses that are incurred on order of the board or for attending conferences called by State Department officials that are "necessary expenses. " Expenses actually incurred during a trip on school business by a school employee or superintendent should be filed as a claim with the secretary of the board of education and approved by the board and paid as other valid claims. It must be recognized that a local board of education is responsible for the "control and management of all school funds." KRS 160.290(1). Also, the local board is required to develop policies regarding the "expenditure and accounting for school funds, including all special funds." KRS 160.340(2)(h). See 702 KAR 3:130 for the State Board of Education's guidelines for the accountability for school account funds. Note Board of Education of Anderson County v. Calvert, Ky., 321 S.W.2d 413 (1959).
As concerns your reference to the Internal Account Manual, we believe the circumstances intended to be covered by the "Expense Memorandum" on page 22 of the Kentucky Department of Education publication "A Uniform Program of Accounting for School Activity Funds" presents a matter principally unrelated to the personal travel allowance question addressed above. The "Expense Memorandum" segment reads in full as follows:
"There are times when it is desirable for a school activity group to advance money to persons in charge of school groups making trips at the expense of the activity group. Senior trips and basketball trips when the group requires board and lodging are good examples. Full and proper accounting is not only a proper procedure, but it is a certain protection to the persons spending the money. Form F-SA-9, completely filled out, shall be accompanied by proper receipts or sales bills secured from those with whom the money is spent. Discretion shall be used in making advances. Advances shall be made only when absolutely necessary.
Form F-SA-9, may also be used to secure cash for making refunds of small amounts to students for locker deposits or for similar purposes. When Form F-SA-9 is used for this purpose, the students shall sign for a stated amount on a separate sheet of paper, and this list of signatures shall be attached to Form F-SA-9 to verify the expenditure. "
It is clear the money advanced to an employee of the school for the type of purposes expressed is not for the school employee's expenses but that of a group of students. We are of the opinion the advancement of money from a school activity account to an employee of the school system, so long as the accounting protections are strictly followed, does not violate any statutory provisions. It must be understood we believe this procedure is only valid as concerns expenses to be incurred by a school activity group, but is wholly inapplicable to the expenses to be incurred personally by the school employees.
We trust the above has been adequately responsive to the question you have presented to this office.