File No. 36771
This rule was published in the October 1, 2012, issue (Vol. 2012, No. 19) of the Utah State Bulletin.
Delivery of Flow Through Money
Notice of Proposed Rule
DAR File No.: 36771
Filed: 09/14/2012 10:31:29 AM
Purpose of the rule or reason for the change:
This rule is amended to provide updated terminology and remove an outdated citation.
Summary of the rule or change:
Updated terminology is provided throughout the rule and an outdated citation is removed.
State statutory or constitutional authorization for this rule:
- Subsection 53A-1-401(3)
Anticipated cost or savings to:
the state budget:
There is no anticipated cost or savings to the state budget. The terminology that is updated and removal of an outdated citation do not affect cost or savings.
There is no anticipated cost or savings to local government. The terminology that is updated and removal of an outdated citation do not affect cost or savings.
There is no anticipated cost or savings to small businesses. This rule and the amendments apply to public education and do not affect businesses.
persons other than small businesses, businesses, or local governmental entities:
There is no anticipated cost or savings to persons other than small businesses, businesses, or local government entities. The terminology that is updated and removal of an outdated citation do not affect cost or savings.
Compliance costs for affected persons:
There are no compliance costs for affected persons. The terminology that is updated and removal of an outdated citation do not affect cost or savings.
Comments by the department head on the fiscal impact the rule may have on businesses:
I have reviewed this rule and I see no fiscal impact on businesses.
Larry K. Shumway, State Superintendent
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:Education
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 firstname.lastname@example.org
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:
This rule may become effective on:
Carol Lear, Director, School Law and Legislation
R277. Education, Administration.
R277-423. Delivery of Flow Through Money.
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.
D]. "Board" means the Utah State Board of
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].
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.
C]. "USOE" means the Utah State Office of
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].
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.
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: September 14, 2012
Authorizing, and Implemented or Interpreted Law: Art X Sec
53A-1-402(1)(f); ] 53A-1-401(3)
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For questions regarding the content or application of this rule, please contact Carol Lear at the above address, by phone at 801-538-7835, by FAX at 801-538-7768, or by Internet E-mail at email@example.com.