DAR File No. 43515

Education, Administration

Rule R277-483

LEA Reporting and Accounting Requirements

Notice of Proposed Rule

(New Rule)

DAR File No.: 43515
Filed: 02/11/2019 03:01:41 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this new Utah State Board of Education (Board) rule is to establish reporting and accounting requirements for LEAs to enable the Board to comply with Every Student Succeeds Act (ESSA).

Summary of the rule or change:

Rule R277-483 is being created to include provisions related to school level financial reporting requirements required by ESSA.

Statutory or constitutional authorization for this rule:

• Article X Section 3
• Section 53E-5-202
• Section 53A-1-401

Anticipated cost or savings to:

the state budget:

This new rule is expected to have fiscal impact on state government revenues or expenditures. The rule is being created to include provisions related to school level financial reporting requirements required by ESSA. The existing Utah Public Education Financial System (UPEFS) will need to be modified over the next year to accept school level reporting requirements, generate per pupil expenditures, and create school level expenditure reports. This activity is estimated to cost 7,990 man hours for the project manager, developers, data center/hosting team at a total cost of $683,145. Existing FTEs will complete this work and current development projects on UPEFS will cease until this priority is completed.

local governments:

This new rule is not expected to have any material impact on local governments' revenues or expenditures because our LEAs are required to do school level accounting and reporting currently. LEAs may have to change accounting practices, train staff, or modify their financial reporting transfers to put school level data in UPEFS, but the Board does not anticipate this being a significantly material ongoing cost.

small businesses:

This new rule is not expected to have any material fiscal impact on small businesses' revenues or expenditures because it is being created to include provisions into rule related to school level financial reporting requirements.

persons other than small businesses, businesses, or local governmental entities:

This new rule is not expected to have any material fiscal impact on persons other than small businesses, businesses, or local government entities revenues or expenditures because it is being created to include provisions into rule related to school level financial reporting requirements.

Compliance costs for affected persons:

There are no compliance costs for affected persons.

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

There are 1,241 entities with a NAICS code 611110 (Elementary and Secondary Schools) operating in Utah according to a "Firm Find Data" search through Utah's Department of Workforce Services. Most of the entities in the list are schools including public schools, charter schools, and private schools. Of the 1,241 entities, there are 15 private businesses, all of which are small businesses (there are no non-small businesses with a NAICS code 611110). This new rule has a fiscal impact on local education agencies but will not have a fiscal impact on non-small or small businesses. The Assistant Superintendent of Financial Operations at the Utah State Board of Education, Natalie Grange, has reviewed and approved this fiscal analysis.

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
Administration
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 801-538-7550, by FAX at 801-538-7768, or by Internet E-mail at angie.stallings@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:

04/01/2019

This rule may become effective on:

04/08/2019

Authorized by:

Angela Stallings, Deputy Superintendent of Policy

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2019	FY 2020	FY 2021
State Government	$227,715	$455,430	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$227,715	$455,430	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

There are 1,241 entities with a NAICS code 611110 (Elementary and Secondary Schools) operating in Utah according to a "Firm Find Data" search through Utah's Department of Workforce Services. Most of the entities in the list are schools including public schools, charter schools, and private schools. Of the 1,241 entities, there are 15 private businesses, all of which are small businesses (there are no non-small businesses with a NAICS code 611110). This new rule has a fiscal impact on local education agencies but will not have a fiscal impact on non-small or small businesses.

 

The Assistant Superintendent of Financial Operations at the Utah State Board of Education, Natalie Grange, has reviewed and approved this fiscal analysis.

 

 

R277. Education, Administration.

R277-483. LEA Reporting and Accounting Requirements.

R277-483-1. Authority and Purpose.

(1) This rule is authorized by:

(a) Utah Constitution Article X, Section 3, which vests general control and supervision over public education in the Board;

(b) Section 53A-1-401, which allows the Board to make rules to execute the Board's duties and responsibilities under the Utah Constitution and state law; and

(c) Section 53E-5-202, which directs the Board to adopt rules to implement a statewide accountability system; and

(d) the federal ESSA, which requires states to revise and redesign school accountability systems.

(2) The purpose of this rule is to establish reporting and accounting requirements for LEAs to enable the Board to comply with ESSA.

 

R277-483-2. Definitions.

(1) "LEA" includes, for purposes of this rule, the Utah Schools for the Deaf and the Blind.

(2) "N-size" means the minimum size necessary to disclose or display data to ensure maximum student group visibility while protecting student privacy.

 

R277-483-3. Reporting of School Level Expenditures.

(1) In accordance with ESSA, the Superintendent shall make public required expenditure reporting elements, including school level expenditures.

(a) The Superintendent shall calculate school level expenditures for all schools, by LEA.

(b) The Superintendent shall calculate expenditures for the prior fiscal year.

(2) The Superintendent's school level report for each school shall include:

(a) average daily membership for the fiscal year covered by the report;

(b) an indicator if the school is:

(i) a Title I School; or

(ii) a Necessarily Existent Small School;

(c) grade levels served by each school;

(d) student demographics;

(e) expenditures recorded at the school level and central expenditures allocated to each school by:

(i) federal program expenditures; and

(ii) state and local combined expenditures;

(f) calculated per pupil expenditures; and

(g) average teacher salary.

(3) The Superintendent shall exclude the following expenditures from per pupil school expenditure calculations and present them in total for each LEA:

(a) capital acquisitions;

(b) debt service; and

(c) internal service funds.

(4) The Superintendent may not report expenditure data for a school with an n-size of less than 10.

 

R277-483-4. LEA Accounting Requirements.

(1) Each LEA shall:

(a) record expenditures in compliance with the Board approved chart of accounts;

(b) record expenditures using school location codes that can be mapped to official school location codes used in Board system of record;

(c) record expenditures using approved district and school codes in the Board system of record;

(d) submit expenditures using location codes in the UPEFS system; and

(e) perform program accounting.

(2) Each LEA shall record and report the following expenditures for each school annually:

(a) salaries;

(b) benefits;

(c) supplies;

(d) contracted services; and

(e) equipment.

(3) If an LEA pays for contracted services that occur at the school level, the LEA shall record the payments to the contractors in the appropriate function and object codes established under Subsection (2) at the school level.

(4)(a) An LEA shall record centralized administrative costs to the administrative location code.

(b) The Superintendent shall allocate such costs to each school based on school enrollment.

(5)(a) An LEA shall report transportation costs by function at the LEA level.

(b) The Superintendent shall allocate transportation costs to individual school based on enrollment of each school.

(6)(a) An LEA shall report child nutrition costs by function at the LEA level.

(b) The Superintendent shall allocate child nutrition costs to individual school based on enrollment of each school.

(7) The Superintendent shall present one expenditure report for a school receiving more than one report card under Subsection R277-497-4(8).

(8) If an LEA reports expenditures in programs, the LEA shall report the expenditures to one or more schools.

 

KEY: reporting, ESSA, accounting

Date of Enactment or Last Substantive Amendment: 2019

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