DAR File No. 30845

Education, Administration

R277-423

Delivery of Flow Through Money

NOTICE OF PROPOSED RULE

DAR File No.: 30845
Filed: 12/14/2007, 01:33
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is amended to remove repealed statutory references; and to change the date when financial data is provide by the Utah State Office of Education to school district and charter schools; and to include charter school language.

Summary of the rule or change:

The amendments include inserting charter school language throughout the rule; changing the date that financial data must be provide by the Utah State Office of Education to school districts and charter schools; and to provide more thorough and accurate accounting by local education agencies.

State statutory or constitutional authorization for this rule:

Subsections 53A-1-402(1) and 53A-1-401(3)

Anticipated cost or savings to:

the state budget:

There are no anticipated costs to the state budget because of the amendments to this rule. Terminology and date changes do not result in increased or decreased costs. There may be minor savings to the state because of the method for transmission of funding information changing from U.S. Mail to electronic transfer.

local governments:

There are no anticipated cost or savings to local government. Terminology changes, a date change, and the manner in which funding information is transmitted do not result in any cost or savings.

small businesses and persons other than businesses:

There are no anticipated cost or savings to small businesses AND persons other than businesses. The rule and changes relate to delivery of flow through money from the Utah State Office of Education to school districts and charter schools.

Compliance costs for affected persons:

There are no compliance costs for affected persons because of the amendments to this rule. The rule and changes relate delivery of flow through money from the Utah State Office of Education to school districts and charter schools.

Comments by the department head on the fiscal impact the rule may have on businesses:

There is no fiscal impact on businesses. Patti Harrington, State Superintendent of Public Instruction

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Education
Administration
250 E 500 S
SALT LAKE CITY UT 84111-3272

Direct questions regarding this rule to:

Carol Lear at the above address, by phone at 801-538-7835, by FAX at 801-538-7768, or by Internet E-mail at carol.lear@schools.utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/31/2008

This rule may become effective on:

02/07/2008

Authorized by:

Carol Lear, Director, School Law and Legislation

R277. Education, Administration.

R277-423. Delivery of Flow Through Money.

R277-423-1. Definitions.

A. "State-supported minimum school program" means school programs for kindergarten, elementary, and high schools which may be operated and maintained for the total of costs set by the Legislature annually.

B. "Bank transfer" means a monthly deposit of money to each school district's or charter school's bank as authorized by the USOE via the State Treasurer and agent bank.

C. "USOE" means the Utah State Office of Education.

D. "Board" means the Utah State Board of Education.

E. "Flow through money" means state funds appropriated under the state-supported minimum school program and federal funds, both of which are administered by the Board and disbursed to individual school districts and charter schools.

 

R277-423-2. Authority and Purpose.

A. This rule is authorized by Article X, Section 3 of the Utah Constitution which vests general control and supervision of public education in the Board, Section 53A-1-402(1)[(f), U.C.A. 1953,] which directs the Board to establish rules for the minimum school program, and Section 53A-1-401(3)[, U.C.A. 1953,] which allows the Board to adopt rules in accordance with its responsibilities.

B. The purpose of this rule is to describe the process whereby flow through money is disbursed to school districts and charter schools.

 

R277-423-3. Procedures.

A. An estimate of the amount of each school district's and charter school's share of state funds appropriated for the state-supported minimum school program is[ annually] made by the USOE annually before June [21]30. The estimate shall indicate, for each district and charter school, its estimated number of units and the cost of its state-supported minimum school programs. One-twelfth of the district's and charter school's share of the state funds constitutes monthly payments. The estimates are revised periodically to accurately represent one-twelfth of the district's and charter school's share of the state funds. A final statement is made with districts and charter schools following the end of the fiscal year.

B. State and federal funds shall be transferred to school districts and charter schools by means of bank transfers.

(1) The USOE shall prepare a summary listing funds for each individual program and total funds for each school district and charter school which shall be mailed electronically to each school district and charter school. It shall also prepare a summary listing the designated bank and amount of funds for each school district and charter school on the electronic funds transfer memo for the state designated agent bank and the State Treasurer[;].

(2) [t]The USOE shall, in a timely manner, complete the necessary accounting work for the transfer of funds and deliver the [warrant ]request to the State Department of Finance. The USOE shall coordinate the letter of credit for federal funds withdrawal for deposit with the State Treasurer in accordance with the cash management agreement with the US Treasury[;].

(3) [t]The State Department of Finance shall complete necessary accounting work to have [state warrants available]funds authorized for release [to]by the State [Auditor's]Treasurer's office[;].

(4) [t]The State Treasurer's office shall release [state warrants]funds in accordance with the electronic funds transfer memo to the state designated agent bank in time to ensure deposit of funds in each school district's and charter school's designated bank by 11:00 a.m. on the last working day of each month[;].

(5) [t]The state designated agent bank shall deposit funds to each school district's and charter school's designated account by 11:00 a.m. on the last working day of each month.

(6) LEAs shall keep bank account transfer information accurate and current to enable the monthly transfers of funds to be completed in a timely manner; all information shall be sent to the USOE audit/finance specialist in the School Finance and Statistics Section at the USOE.

C. When a disruption occurs in the procedure specified in Subsection 3(B), the USOE shall coordinate transfer procedures in a timely manner.

D. The USOE may administer state and federal flow through money for state institutions and private and parochial schools. It prepares and processes vouchers for the funds and forwards warrant requests authorizing the State Treasurer to make payment to the identified recipient.

 

R277-423-4. Reports.

A school district or charter school that fails to meet deadlines for submitting to the USOE reports that are necessary to calculate its share of state funds or that fails to meet deadlines for the annual audit report may have its state funds withheld until an acceptable report is filed with the USOE in accordance with R277-484, Data Standards.[ Required reports and their deadlines are:

A. The F-16 uniform school budget report, due July 15.

B. The S-3 annual statistical report:

(1) S-3 Part I, due June 15;

(2) S-3 Part II, due June 30;

(3) S-3 Page III, due July 15.

C. The final sections of the F-4 annual financial reports, due October 1.

D. The external audit report, due November 30.]

 

KEY: education finance

Date of Enactment or Last Substantive Amendment: [1987]2008

Notice of Continuation: October 5, 2007

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-1-402(1)(f); 53A-1-401(3)