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The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).

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Rule R277-423. Delivery of Flow Through Money.

As in effect on August 1, 2009

Table of Contents

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) which directs the Board to establish rules for the minimum school program, and Section 53A-1-401(3) 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 made by the USOE annually before June 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) The USOE shall, in a timely manner, complete the necessary accounting work for the transfer of funds and deliver the 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) The State Department of Finance shall complete necessary accounting work to have funds authorized for release by the State Treasurer's office.

(4) The State Treasurer's office shall release 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) 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.

KEY

education finance

Date of Enactment or Last Substantive Amendment

February 7, 2008

Notice of Continuation

October 5, 2007

Authorizing, Implemented, or Interpreted Law

Art X Sec 3; 53A-1-402(1)(f); 53A-1-401(3)

Rule converted into HTML by the Division of Administrative Rules.

For questions regarding the content or application of rules under Title R277, please contact the promulgating agency (Education, Administration). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is not able to answer questions about the content or application of these rules.

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