R277-420-4. Procedures for Making Interfund Transfers

  (1) A local school board may apply for an interfund transfer under this rule by filing a request with the Superintendent, which shall include:

  (a) evidence that the district meets the criteria set forth in Section R277-420-3; and

  (b) a plan to eliminate the district's budget deficit.

  (2) As part of a district application under Subsection (1)(a), the Superintendent shall:

  (a) visit the school district; and

  (b) conduct a financial analysis.

  (3) The Superintendent may only approve an interfund transfer under this rule if the Superintendent determines that:

  (a) the district meets the eligibility requirements of Section R277-420-3; and

  (b) the district's request does not conflict with Subsection 53G-7-306(6)(d).

  (4) The Superintendent shall advise the Board of any transfers approved under this rule at the next regularly scheduled Board meeting.

  (5) A school district designated as financially distressed may make nonrecurring or nonroutine interfund transfers to the district's maintenance and operation fund upon the approval of the Superintendent and in accordance with the plan submitted by the district under Subsection (1)(b).

  (6) An interfund transfer shall be established by a school district under the direction of the local school board in an undistributed reserve account consistent with Section 53G-7-304.