DAR File No. 42098
This rule was published in the October 1, 2017, issue (Vol. 2017, No. 19) of the Utah State Bulletin.
Delivery of Flow Through Money
Notice of Proposed Rule
DAR File No.: 42098
Filed: 09/13/2017 03:20:27 PM
Purpose of the rule or reason for the change:
During a five-year review of Rule R277-423, it was determined that the rule is no longer necessary because any necessary provisions in this rule are better suited for Utah State Board of Education Internal Finance Section policies.
Summary of the rule or change:
This rule describes the process by which flow through money is disbursed to local education agencies. Those provisions are now better suited as an internal policy. Therefore, Rule R277-423 is repealed in its entirety.
Statutory or constitutional authorization for this rule:
- Section 53A-1-401
- Art X Sec 3
Anticipated cost or savings to:
the state budget:
Repealing Rule R277-423 will likely not result in a cost or savings to the state budget. Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.
Repealing Rule R277-423 will likely not result in a cost or savings to local governments. Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.
Repealing Rule R277-423 will likely not result in a cost or savings to small businesses. Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.
persons other than small businesses, businesses, or local governmental entities:
Repealing Rule R277-423 will likely not result in a cost or savings to persons other than small businesses, businesses, or local government entities. Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.
Compliance costs for affected persons:
Repealing Rule R277-423 will likely not result in any compliance costs for affected persons. Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.
Comments by the department head on the fiscal impact the rule may have on businesses:
After conducting a thorough analysis, it was determined that repealing this rule will not result in a fiscal impact to businesses.
Sydnee Dickson, State Superintendent
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:Education
250 E 500 S
SALT LAKE CITY, UT 84111-3272
Direct questions regarding this rule to:
- Angela Stallings at the above address, by phone at 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at email@example.com
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:
Angela Stallings, Deputy Superintendent, Policy and Communication
R277. Education, Administration.
R277-423. Delivery of Flow Through Money.
A. "Bank transfer" means a monthly deposit of
money to each LEA's bank as authorized by the USOE via the
State Treasurer and agent bank. B. "Board" means the Utah State Board of
Education. C. "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 LEAs. D. "LEA" means a local education agency,
including local school boards/public school districts, charter
schools, and, for purposes of this rule, the Utah Schools for the
Deaf and the Blind. E. "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. F. "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 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 LEAs.
A. An estimate of the amount of each LEA'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 LEA, its estimated number of units and
the cost of its state-supported minimum school programs.
One-twelfth of the LEA's share of the state funds constitutes
monthly payments. The estimates are revised periodically to
accurately represent one-twelfth of the LEA's share of the
state funds. A final statement is made with LEAs following the
end of the fiscal year. B. State and federal funds shall be transferred to LEAs
by means of bank transfers. (1) The USOE shall prepare a summary listing funds for
each individual program and total funds for each LEA which shall
be mailed electronically to each LEA. It shall also prepare a
summary listing the designated bank and amount of funds for each
LEA 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 LEA'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 LEA'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.
An LEA 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
KEY: education finance
Date of Enactment or Last Substantive Amendment: November 8,
Notice of Continuation: September 14, 2012
Authorizing, and Implemented or Interpreted Law: Art X Sec
More information about a Notice of Proposed Rule is available online.
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/2017/b20171001.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 Angela Stallings at the above address, by phone at 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at firstname.lastname@example.org. For questions about the rulemaking process, please contact the Office of Administrative Rules.