D. At the request of the department of education, the state board of education shall call a public meeting to consider overexpenditures by any school district. The state board of education shall require the superintendent of the school district and any other school district personnel who may have information relevant to the overexpenditure to appear before the state board of education. After testimony from all interested parties, the state board of education shall take one of the following actions:

1. 1. Require the department of education, in conjunction with the county school superintendent, to monitor the expenditures of the school district.
2. 2. Direct the department of education to contract with a level one fiscal crisis team. The level one fiscal crisis team shall provide on-site oversight and off-site monitoring for the school district for not longer than twelve months and shall advise the school district on all financial issues and professional development training related to financial issues.
3. 3. Direct the department of education to contract with a level two fiscal crisis team. The level two fiscal crisis team shall provide on-site oversight and off-site monitoring for the school district for not longer than twenty-four months, shall have the authority prescribed for level one fiscal crisis teams and may override any financial act or decision of the school district, including expenditures.
4. 4. Appoint a receiver who, subject to the discretion of the state board of education, may take any actions prescribed in section 15-103, subsection F.

G. Beginning ninety days after submitting the fiscal management report prescribed in subsection H of this section, the fiscal crisis team or receiver appointed pursuant to this section shall submit a detailed written quarterly progress report to the state board of education that includes all of the following:

1. 1. The results of the review of the school district's finances, including expenditures.
2. 2. The recommendations and decisions made by the fiscal crisis team or the receiver appointed pursuant to this section.
3. 3. The status of the fiscal management plan described pursuant to subsection H of this section.
4. 4. Recommendations to the state board of education on the content of professional development training related to overexpenditures.
5. 5. Any recommendations of potential action to be taken concerning professional certificates issued to school district personnel by the state board of education or the department of education. The state board of education shall review the recommendations submitted pursuant to this paragraph and shall take appropriate action.

H. After appointment, the fiscal crisis team or the receiver appointed pursuant to this section shall review the financial affairs of the school district and may work with school finance personnel at the department of education to ensure that the finances of the school district are in compliance with the laws of this state. A school district that has been assigned a fiscal crisis team or a receiver pursuant to this section shall submit, in consultation with the receiver or the fiscal crisis team, a fiscal management report to the state board of education within one hundred twenty days after the date that the state board of education appointed the receiver or the fiscal crisis team. The fiscal management report shall include the following:

1. 1. A description of the fiscal management plan that has been implemented to correct the overexpenditure, including the following:

   1. (a) The manner in which the fiscal management plan will address the findings and recommendations of the fiscal crisis team.
   2. (b) A timeline for complete resolution of the overexpenditure.
   3. (c) A detailed explanation of the methods and procedures that will be implemented to prevent future overexpenditures.
   4. (d) The identification of any issues that need to be resolved before the fiscal management plan may be fully implemented.
   5. (e) The identification of any long-term issues resulting from the overexpenditure that will extend to future fiscal years.
2. 2. A description of the manner in which the fiscal management plan was developed, including identification of the role of the fiscal crisis team or the receiver, the role of the school district governing board and the role of the administrators of the school district.

I. On or before December 31, the state board of education shall submit an annual report to the governor, the president of the senate and the speaker of the house of representatives. The state board shall provide a copy of this report to the secretary of state. The annual report shall include the following:

1. 1. A summarized compilation of the fiscal management reports submitted by school districts pursuant to subsection H of this section.
2. 2. The actions taken by the state board of education, the department of education, school districts, fiscal crisis teams and receivers during the most recently completed fiscal year.
3. 3. Recommendations regarding improvements to the laws of this state or to administrative actions required under the laws of this state.

N. For the purposes of this section, "overexpenditure" means an expenditure that exceeds any of the following:

1. 1. The general budget limit of the school district or the amount budgeted by the school district, whichever is less.
2. 2. The unrestricted capital budget limit of the school district or the amount budgeted for capital by the school district, whichever is less.