(a) There is established in the Treasury of the Virgin Islands, a fund to be known as the Virgin Islands Education Initiative Fund (hereinafter the “Fund”). The Commissioner of Finance shall provide for the administration of the Fund as a separate and distinct fund in the Treasury of the Virgin Islands and shall promulgate rules and regulations for the expenditure of funds and the reporting of such expenditures pursuant to the provisions of this section.
(b) The Fund shall consist of 35% of the proceeds derived from the games under each contract between the Virgin Islands Lottery and a private contractor of lottery games, including the proceeds under a contract with a contractor of video lottery games authorized under title 32 V.I.C. § 246(a)(1) all sums appropriated thereto by the Legislature of the Virgin Islands, all donations, gifts and bequests.
(c) Monies from the Education Initiative Fund shall be allotted to the various public schools and public adult education facilities of the Virgin Islands according to the following formula: (1) Each public school and public adult education facility shall be awarded a base amount of $10,000. For every enrolled student over 500, as determined by the fall school population report of the Office of Testing, Planning and Evaluation, and Department of Education, each public school and public adult education facility shall receive the additional sum of $15.00. (2) In the event that one school district receives a larger sum than the other under the above formula, the district receiving the smaller sum shall be awarded an additional sum, so that each district receives equivalent sums. The additional sum received by the district shall be divided proportionately to the number of students in each school or facility.
(d) Each school receiving an allocation under the Education Initiative Fund shall have established an imprest fund checking account.
(e) The Principal of each school or facility, or the next ranking Assistant Principal in the Principal's absence shall be the sole authority empowered to expend monies allocated to the school from the Education Initiative Fund. Each Principal, by the 30th day of the month following the end of each quarter, or upon expenditure of all funds received in the current increment, shall provide to the Commissioner of Education and the Insular Superintendent of the respective school district, a quarterly report detailing the amount, the nature, and the justification for each item of expenditure made in the previous quarter or increment. This report shall be accompanied by receipts and any other such documentation required by the guidelines of the Virgin Islands Education Initiative Fund and Laws of the Virgin Islands Government. An Annual Financial Report of the fiscal year's activity shall be compiled by the Department of Education and submitted to the Legislature and the Department of Finance by the 30th of the month following the end of the fiscal year.
(f) Each fiscal year, the sum of $75,000 shall be allocated from the Fund to the Department of Education for the purpose of covering administrative costs incurred in the operation of the Fund. From those funds, the Commissioner of Education shall retain one Accountant per school district to provide assistance to Principals in complying with the reporting requirements of the Fund and to verify the accuracy of such reports before the submission to the Department of Finance.
(g) Principals shall not use monies from the Education Initiative Fund to purchase:
(1) entertainment items, goods, or services;
(2) more than $3,500 worth per year of equipment and supplies for administrative offices;
(3) donations, raffle tickets, or other related expenditures;
(4) more than $2,500 for personal services per person, legal entity, employee, or representative thereof, and not more than 50% of the school's total allocation on personal services;
(5) vehicles; or
(6) travel.
(h) All monies in excess of $100 remaining from a school's allocation at the end of the fiscal year shall be returned to the Virgin Islands Education Initiative Fund for redistribution in the next fiscal year.
(i) The proceeds derived from the contracts between the Virgin Islands Lottery and private contractors referenced in subsection (b) may not be used to pay any delinquent, prior obligations.
(j) The Virgin Islands Bureau of Audit and Control shall conduct an annual audit of monies disbursed to each school under the Education Initiative Fund and shall issue report of its findings to Governor and the Legislature of the Virgin Islands.
(k) The Commissioner of Education shall maintain a record of all monies deposited into and disbursed from the Fund and shall annually report to the Governor and the Legislature on the status of the Fund. The Department of Education shall provide such documentation as may be necessary to substantiate the financial report. The Department of Finance Accounting Division shall review the annual reports submitted by the Department of Education for compliance with the guidelines established by the Virgin Islands Initiative Fund and the Laws of the Government of the Virgin Islands and shall provide a Findings and Exception Report within 30 days after submission of the report.
(l) Notwithstanding any provision of law to the contrary, the Office of Management and Budget shall allocate all monies due to schools and educational facilities under the provisions of this section within 15 days following the beginning of each fiscal year.
(m) Notwithstanding any provision of law to the contrary, monies allocated to schools under the Education Initiative Fund for fiscal year 1995 shall remain available for expenditure until December 31, 1995.
(n) Principals shall consult with the School Based Management Team at their respective sites prior to making any expenditure over $500 except that Principals may make expenditures prior to seeking approval in cases of emergency. Such emergency expenditures over $500 must be reported to the School Based Management Team at the next meeting of the body. The requirements of this section shall not apply to any school whose School Based Management Team has not met in 30 days prior to the time of expenditure.
(o) Except as provided otherwise in this section, the Department of Education may use 80% of the annual balance on September 30th at the end of each fiscal year, after funds have been utilized for public school and public adult education allocations, for textbooks and textbook-related purposes. A “textbook” means (1) any version of a book including hard covered or paperback books, manuals, and workbooks; and (2) any courseware or other instructional materials including electronic textbooks, on-line technologies, CD-ROMS, digital applications or any other format that is used to contribute to the learning process of students.
(p) The sums allocated pursuant to subsection (o) remain available until expended.