DAR File No. 37922
This rule was published in the September 1, 2013, issue (Vol. 2013, No. 17) of the Utah State Bulletin.
Budgeting, Accounting, and Auditing for Utah Local Education Agencies (LEAs)
Notice of Proposed Rule
DAR File No.: 37922
Filed: 08/14/2013 10:22:48 AM
Purpose of the rule or reason for the change:
This rule is amended to provide specific uniform budgeting, accounting, and auditing procedures for LEAs to meet new financial reporting requirements which specifically require a "chart of accounts".
Summary of the rule or change:
The changes provide new and amended definitions, new language for LEA audit requirements, and new language for LEA financial accounting.
State statutory or constitutional authorization for this rule:
- Subsection 53A-1-402(1)(e)(iv)
- Subsection 53A-1-401(3)
Anticipated cost or savings to:
the state budget:
There is no anticipated cost or savings to the state budget. Existing staff within existing budgets will manage new financial reporting requirements.
There is no anticipated cost or savings to local government. It is anticipated that LEAs will manage new reporting requirements with existing staff and within existing budgets.
There is no anticipated cost or savings to small businesses. This rule and the amendments to the rule 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 changes to the rule apply to LEAs and their reporting requirements and do not affect individuals.
Compliance costs for affected persons:
There are no compliance costs for affected persons. LEAs will report financial information consistent with this rule.
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.
Martell Menlove, 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.
R277-425. Budgeting, Accounting, and Auditing for Utah Local Education Agencies (LEAs).
A]. "Board" means the Utah State Board of
C]. "GAAP" means Generally Accepted Accounting
Principles, as defined in the Codification of Governmental
Accounting and Financial Reporting Standards, as published by the
Governmental Accounting Standards Board.
D]. "GAAS" means auditing standards established by
the American Institute of Certified Public Accountants, generally
referred to as Generally Accepted Auditing Standards.
E]. "LEA" means local education agency which
includes school districts and charter schools.
B]. "Modified accrual[ basis of] accounting" means a [ method under which expenditures other than accrued interest
on general long-term debt are recorded at the time liabilities are
incurred and revenues are recorded when they become measurable and
available to finance expenditures of the current period].
F]. "USOE" means the Utah State Office of
R277-425-2. Authority and Purpose.
A. This rule is authorized by Utah Constitution Article X, Section 3 which vests general control and supervision over public education in the Board, Section 53A-1-402(1)(e)(iv) which allows the Board to adopt rules regarding financial, statistical, and student accounting requirements, Section 53A-1-404 which allows the Board to approve auditing standards for school boards, Section 53A-1-405 which requires the Board to verify accounting procedures of school boards for the purpose of determining the allocation of Uniform School Funds, 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 specify uniform budgeting, accounting, and auditing procedures for LEAs consistent with Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS).
3]. Reporting Standards.
A. Each LEA's financial reporting shall be in accordance with GAAP which include GAAS.
B. Each LEA's financial reporting shall be provided in
the modified accrual basis of accounting in accordance with
C. LEAs shall provide data and information
consistent with School Finance budgeting, accounting and auditing
standards for Utah LEAs provided online by the Utah State Office of
Education, October, [
2011] and reviewed annually. The USOE School Finance website
contains applicable Utah statutes, applicable Board rules, and
uniform rules for:
(2) financial accounting;
(3) student membership and attendance accounting;
(4) indirect costs and proration;
(5) financial audits;
(6) statistical audits; and
(7) compliance and performance audits.
D. Section 53A-19-103 allows LEAs to have an undistributed reserve not to exceed five percent of the LEA general fund budgeted expenditures. The purpose of the reserve is to meet unexpected and unspecified contingencies.
KEY: education finance
Date of Enactment or Last Substantive Amendment: [
February 7, 2012]
Notice of Continuation: August 2, 2013
Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-1-402(1)(e); 53A-1-404; 53A-1-405; 53A-1-401(3)
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2013/b20130901.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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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.