Rule 6A-1.001, F.A.C., is amended to incorporate the updated publication Financial and Program Cost Accounting and Reporting for Florida Schools, 2011, by reference. The purpose of the amendments for Rules 6A-1.004 and 6A-1.038, F.A.C., is to align ...

DEPARTMENT OF EDUCATION
State Board of Education

RULE NO.: RULE TITLE:
6A-1.001: District Financial Records
6A-1.004: Commissioner to Review Budgets
6A-1.0071: Fiscal Reporting Dates
6A-1.038: Funding and Refunding of School District Indebtedness
PURPOSE AND EFFECT: Rule 6A-1.001, F.A.C., is amended to incorporate the updated publication Financial and Program Cost Accounting and Reporting for Florida Schools, 2011, by reference. The purpose of the amendments for Rules 6A-1.004 and 6A-1.038, F.A.C., is to align the rules with the provisions in Chapter 2011-175, Laws of Florida, which took effect on July 1, 2011. Rule 6A-1.0071, F.A.C., is amended to add Forms ESE 374, Schedule of Maturities of Indebtedness, and ESE 523, Information Concerning Authorized Obligations Under Sections 1011.14 and 1011.15, Florida Statutes, to the submission of the school district annual financial report. The effect will be rules aligned with Florida Statutes.
SUMMARY: The purpose of the amendment to Rule 6A-1.001, F.A.C., is to propose changes to the publication Financial and Program Cost Accounting and Reporting for Florida Schools, 2011 as incorporated by reference. Changes in law, accounting principles, and district practices require periodic revision of this publication which includes the chart of accounts. Changes to the chart of accounts include: (1) modify balance sheet accounts in accordance with Governmental Accounting Standards Board (GASB) Statement 54; (2) modify revenue accounts for federal programs based on changes in legislation and reporting; (3) modify revenue accounts for state programs in accordance with changes in state funding; (4) modify local revenue accounts for changes in fee structures; (5) modify fund and account group structure for consistency with GASB Statement 54; (6) clarify function and object code definitions; (7) provide accounting guidance in accordance with GASB Statement 54 in Chapter 2; and (8) modify Chapter 5, Program Cost Accounting and Reporting, to reflect changes in legislation. The purpose of amendments for Rules 6A-1.004 and 6A-1.038, F.A.C., is to align the rules with 2011 legislation that deleted the requirement that the Commissioner of Education review the budget of district school boards and the requirement that the Department of Education approve the budget of district school boards. Rule 6A-1.0071, F.A.C., is amended to incorporate by reference Forms ESE 374 and ESE 523.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The agency has determined that the proposed rule is not expected to require legislative ratification. Based on past agency experiences with the adjustment of accounting and financial reporting requirements for school districts, the adverse impact or regulatory cost, if any, do not exceed, nor would be expected to exceed, any one of the economic analysis criteria set forth in Section 120.541(2)(a), Florida Statutes.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 1001.02(1), 1010.01, 1010.20, 1011.03(4), 1011.16, 1011.60(1), (5) FS.
LAW IMPLEMENTED: 200.065, 1001.42(13)(b), 1010.01, 1010.20, 1011.01(3), 1011.02, 1011.03(4), 1011.16, 1011.60(1), (5) FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: November 15, 2011, 9:00 a.m.
PLACE: Andrew Jackson High School, 3816 N. Main St., Jacksonville, Florida
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Mark Eggers, Bureau Chief of School Business Services, 325 West Gaines Street, Room 814, Tallahassee, FL 32399-0400, [phone]

THE FULL TEXT OF THE PROPOSED RULE IS:

6A-1.001 District Financial Records.

The superintendent of schools of each school district shall be responsible for keeping adequate records and accounts of all financial transactions in the manner prescribed by the Commissioner in the publication titled, “Financial and Program Cost Accounting and Reporting for Florida Schools, 2011 (http://www.flrules.org/Gateway/reference.asp?No=Ref-00649), 2001” which is hereby incorporated by this rule and made a part of the rules of the State Board. Copies of the manual may be obtained from the Office of Funding and Financial Management Reporting, Department of Education, 325 West Gaines Street, Tallahassee, Florida 32399, at a cost to be established by the Commissioner but which shall not exceed actual costs.

Rulemaking Specific Authority 1010.01 FS. Law Implemented 1010.01 FS. History–Amended 9-17-72, Repromulgated 12-5-74, Amended 4-28-77, 8-2-79, 7-21-80, 10-7-81, 8-10-83, 9-27-84, 10-1-85, Formerly 6A-1.01, Amended 11-8-88, 7-30-91, 10-6-92, 10-18-94, 1-26-98, 10-15-01,________.

 

6A-1.004 School District Budget Requirements Commissioner to Review Budgets.

The Commissioner shall establish procedures and prepare plans so that the District Summary Budget budget is transmitted to the Department of Education reviewed by authorized representatives in his or her office.

(1) The following items are included in subject to approval by the Commissioner in reviewing and reporting recommendations relating to the District Summary Budget annual school budgets:

(a) Estimated revenue federal, state and local.

(b) Estimated non-revenue-loans, bond sales, etc.

(c) Operating appropriations Forms ESE 374, Schedule of Maturities of Indebtedness and ESE 523, Information Concerning Authorized Obligation Under Section 1011.14, F.S., are incorporated by reference in this rule to become effective with the effective date of this rule. These forms may be obtained from the Administrator of the Office of Funding and Financial Reporting, Department of Education, 325 West Gaines Street, Tallahassee, Florida 32399.

(d) Transfers, debt services, and capital projects appropriations.

(e) Ending balances and reserves.

1. Cash balances to be carried forward shall not exceed twenty percent (20%) of the anticipated tax receipt for operational purposes; provided however, in extenuating circumstances the cash balance may exceed the twenty percent (20%) level when documented evidence justifies the need.

2. Unappropriated fund balances may not exceed ten percent (10%) of total appropriations and transfers for operational purposes; provided however, in extenuating circumstances the fund balance may exceed the ten percent (10%) level when documented evidence justifies the need.

(2) A budget shall not be considered to be officially received for review and approval until all required forms, schedules, analyses and certifications have been received; provided, however, the millage certification may be submitted after the Commissioner has approved the budget as provided herein.

(3) If the budget as submitted to the Commissioner is defective, a written report shall be made to the superintendent of schools within thirty (30) days of the official receipt of the budget, and the budget, with such comments as are found necessary, shall be returned for correction or completion. If any changes are required, the school board shall authorize such changes and shall resubmit the budget with the corrections within fifteen (15) days from the date of the report from the Commissioner.

Rulemaking Specific Authority 1001.02(1), 1011.03(4) 1011.03(5) FS. Law Implemented 1011.01(3), 1011.02, 1011.03(4) 1011.03(5) FS. History–Amended 3-26-66, 9-17-72, 2-18-74, Repromulgated 12-5-74, Amended 11-29-78, 7-10-85, Formerly 6A-1.04, Amended 10-4-88, 9-22-08,________.

 

6A-1.0071 Fiscal Reporting Dates.

The following dates shall apply to the fiscal reporting and budgeting process of each school district.

(1) The final budget prepared under procedural steps and time intervals specified in Section 200.065, Florida Statutes, shall be transmitted to the Commissioner no later than the third business day following the day of adoption by the school board.

(2) The annual financial report and all official parts thereof must be submitted to the Commissioner no later than September 11th of each year. The annual financial report is composed of the following forms: Forms ESE 348, Report of Financial Data to the Commissioner of Education (http://www.flrules.org/Gateway/reference.asp?No=Ref-00653); ESE 145, Superintendent’s Annual Financial Report (http://www.flrules.org/Gateway/reference.asp?No=Ref-00654); ESE 374, Schedule of Maturities of Indebtedness (http://www.flrules.org/Gateway/reference.asp?No=Ref-00650); and ESE 523, Information Concerning Authorized Obligations Under Sections 1011.14 and 1011.15, Florida Statutes (http://www.flrules.org/Gateway/reference.asp?No=Ref-00651) ESE 904, Automated Format for Public Schools State Cost Analysis Reporting System, which are incorporated by reference in this rule to become effective_______with the effective date of this rule. These forms may be obtained from the Administrator of the Office of Funding and Financial Reporting, Department of Education, 325 West Gaines Street, Tallahassee, Florida 32399.

(3) In the event of an emergency or when unusual circumstances exist and upon written request by the superintendent of schools, the Commissioner shall have authority to grant an extension of reporting dates not specified by statute.

Rulemaking Specific Authority 1001.02(1), 1010.20, 1011.60(1), (5) FS. Law Implemented 200.065, 1011.01(3), 1011.03(4)(5), 1011.60(1), (5) FS. History–New 9-12-72, Amended 2-13-74, 12-5-74, 5-5-75, 10-7-75, 7-22-76, 6-7-77, 1-7-81, 7-10-85, Formerly 6A-1.071, Amended 3-12-86, 10-4-88, 9-22-08,________.

 

6A-1.038 Funding and Refunding of School District Indebtedness.

(1) When any unfunded or delinquent indebtedness exists against the district general current school fund or when any other type of unfunded, legally-incurred legally incurred school indebtedness exists, it shall be the duty of the superintendent to prepare and the school board to approve a plan for retiring this indebtedness in accordance with the provisions of Section 1011.16, Florida Statutes, and to submit such a plan to the Commissioner for consideration as part of the budget for any school year; provided, that if it is impossible to prepare such a plan, a complete and satisfactory explanation shall be submitted with the budget.

(2) It shall be the duty of the Ccommissioner of education to assist and cooperate with the superintendent and school board in any district in which any unfunded or delinquent indebtedness exists, making recommendations regarding the plan, including determining funds necessary to operate and determining what remaining funds are available to retire debt and proposing any necessary modifications to the plan in preparing plans for retiring such indebtedness and to refuse to approve the annual school budget until a satisfactory plan has been submitted, or explanation is given showing that such a plan is not practicable that year.

(3) Any district which fails and refuses to prepare a plan for retiring unfunded or delinquent indebtedness shall not be entitled to participate in the minimum foundation program until such a plan is prepared or satisfactory explanation is given as provided herein.

(3)(4) The district school board shall not attempt to retire any such debt until the Commissioner has proposed recommendations Approval of all plans for refunding or retiring, unfunded indebtedness under Section 1011.16, Florida Statutes, heretofore approved by the Commissioner or the State Board is hereby confirmed and such plans shall be valid and binding until the indebtedness is finally extinguished.

Rulemaking Specific Authority 1001.02(1), 1011.16(5) FS. Law Implemented 1011.16(5) FS. History–Amended 2-18-74, Repromulgated 12-5-74, Amended 9-6-78, Formerly 6A-1.38, Amended________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Linda Champion, Deputy Commissioner, Finance and Operations
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Gerard Robinson, Commissioner, Department of Education
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: October 3, 2011
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: August 19, 2011