ADE Director's Communication Memo Form

Memo Number : FIN-10-048

Date Created : 12/17/2009


Co-op Directors
other: General Business Managers

Type of Memo: Regulatory
Response Required: No
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
Act 1599 of 2001 as applied to Administrators

Regulatory Authority:
Ark. Code Ann. § 6-24-101 et seq. & Rules Govern. Ethical Guidelines & Prohibitions for Admins., Employees, and Board

Contact Person:
Patty Martin

Phone Number:


Ark. Code Ann. § 6-24-101, and Arkansas Department of Education (ADE) Rules Governing the Ethical Guidelines and Prohibitions for Administrators, Employees, and Board Members (Rules) have separate requirements governing the actions of district administrators relative to employment and vendor contracts.

For these purposes, the Rule, Section 3.01 defines “Administrator”:

'means any superintendent, assistant superintendent or individual equivalent, school district treasurer, business manager, or other individual responsible for entity-wide purchasing. The determining factor for being considered an “administrator” for the purposes of the regulations and compliance with Act 1599 of 2001 is the actual or implied authority of an individual to make purchases on behalf of the entire organization. This definition excludes many building principals (whose purchasing authority is often limited to only one school), but could include athletic directors or others. Classified employees serving in food services, business/accounting or other capacities may also be considered “administrators” under Act 1599 when the individuals exercise autonomous system-wide purchasing authority.'

Ark. Code Ann. § 6-24-106(a) and Rules, Section 7.01 and 11.01, expressly prohibits an Administrator from contracting with the public educational entity which employs the individual unless the Commissioner of Education provides written approval.

Ark. Code Ann. § 6-24-106(b) and Rules, Section 11.04, expressly prohibits an Administrator’s immediate family member or former spouse from being initially employed as a disbursing officer unless the Division of Legislative Audit has issued a report on the district’s internal controls to the Commissioner of Education. Subsequent to reviewing this report, the Commissioner may approve the initial hiring of the family member or former spouse.

Ark. Code Ann. § 6-24-106(c) and Rules, Section 11.05, expressly defines the requirements under which an Administrator may contract with a public educational entity other than the entity which employs the indidvidual. The requirements include that the Administrator must receive written pre-approval from both the school board and from the Commissioner prior to entering into a contract with another educational entity; and that the educational entity contracting with the Administrator must also request and receive written pre-approval from both the individual's school board and from the Commissioner prior to entering into a contract with the Administrator.


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