R277-113-2. Definitions

  (1) "Accrual basis of accounting" means a basis of accounting that records:

  (a) revenue when earned and expenses when incurred; and

  (b) transactions irrespective of the dates on which any associated cash flows occur.

  (2) "Arm's length transaction" means a transaction between two unrelated, independent, and unaffiliated parties or a transaction between two parties acting in their own self interest that is conducted as if the parties were strangers so that no conflict of interest exists.

  (3) "Exclusive contract or arrangement" means an agreement requiring a buyer to purchase or exchange all needed goods or services from one seller.

  (4) "FASB" means the Financial Accounting Standards Board whose purpose is to establish GAAP for nongovernmental entities within the United States.

  (5) "GAAP" means Generally Accepted Accounting Principles or a common framework of accounting rules and standards for financial reporting promulgated by either FASB or GASB, as applicable to the reporting entity.

  (6) "GAAS" means Generally Accepted Auditing Standards or a set of auditing standards and guidelines promulgated by the Auditing Standards Board of the American Institute of Certified Public Accountants.

  (7) "GASB" means the Governmental Accounting Standards Board whose purpose is to establish GAAP for state and local governments within the United States.

  (8) "Internal controls" means a process, implemented by an entity's governing body, management, or other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

  (a) Effectiveness and efficiency of operations;

  (b) Reliability of reporting for internal and external use; and

  (c) Compliance with applicable laws and regulations.

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

  (10) "Management" means:

  (a) an LEA superintendent or director;

  (b) a deputy or associate;

  (c) a business administrator or manager; or

  (d) other educational administrator or designated staff.

  (11) "Modified accrual basis of accounting" means a basis of accounting, commonly used by government agencies, that recognizes revenues when they become available and measurable and recognizes expenditures when liabilities are incurred.

  (12) "Non-operating LEA" means an LEA that has not received minimum school program funds or federal funds and is not providing educational services during a fiscal year, such as an LEA in a start-up period.

  (13) "Operating LEA" means an LEA that has received state minimum school program funds or federal funds and is providing educational services during a fiscal year.

  (14) "Public funds" has the same meaning as that terms is defined in Subsection 51-7-3(26).

  (15) "School sponsored" means an activity, fundraising event, club, camp, clinic, or other event or activity that is authorized by a specific LEA or public school, according to local board policy, and satisfies at least one of the following conditions:

  (a) the activity is managed or supervised by an LEA or public school, or LEA or public school employee;

  (b) the activity uses the LEA or public school's facilities, equipment, or other school resources; or

  (c) the activity is supported or subsidized, more than inconsequentially, by public funds, including the public school's activity funds or minimum school program dollars.

  (16) "Title IX" refers to that portion of the United States Education Amendments of 1972 codified as 20 U.S.C. 1681 through 20 U.S.C. 1688.

  (17) "Utah Public Officers' and Employees' Ethics Act," means Title 67, Chapter 16, which provides standards of conduct for officers and employees of the state of Utah and its political subdivisions in areas where there are actual or potential conflicts of interest between public duties and private interests.