No. 42098 (Repeal): Rule R277-423. Delivery of Flow Through Money

(Repeal)

DAR File No.: 42098
Filed: 09/13/2017 03:20:27 PM

RULE ANALYSIS

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 Therefore, Rule R277-423 is repealed in its entirety.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 Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.

local governments:

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 Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.

small businesses:

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 Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.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 Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.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 Rule R277-423 is repealed in its entirety because the provisions are no longer necessary in a rule.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
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 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at [e-mail]

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:

10/31/2017

This rule may become effective on:

11/07/2017

Authorized by:

Angela Stallings, Deputy Superintendent, Policy and Communication

RULE TEXT

R277. Education, Administration.

[R277-423. Delivery of Flow Through Money.

R277-423-1. Definitions.

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 Education.

 

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.

 

R277-423-3. Procedures.

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.

 

R277-423-4. Reports.

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 Standards.

 

KEY: education finance

Date of Enactment or Last Substantive Amendment: November 8, 2012

Notice of Continuation: September 14, 2012

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

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