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6-20-2210. Limitation on fund balances — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-20-2210. Limitation on fund balances — Definitions.
(a) As used in this section:
(1) “Facilities master plan” means the same as defined in § 6-21-803;
(2) “Net legal balance” means the:
(A) Combined balance for a public school district's teacher's salary fund, operating fund, and debt services fund; minus
(B) Combined balance for the following funds for a public school district's categorical funding:
(i) National school lunch fund;
(ii) Alternative learning environment fund;
(iii) English-language learner fund; and
(iv) Professional development fund; minus
(C) Escrow balance restricted for the retirement of federal qualified bonds;
(3) “Net legal balance revenues” means:
(A) Revenues placed into the teacher's salary fund, operating fund, and debt services fund; minus
(B) Revenues placed into the:
(i) National school lunch fund;
(ii) Alternative learning environment fund;
(iii) English-language learner fund; or
(iv) Professional development fund; minus
(C) Proceeds derived from federal qualified bonds;
(4)(A) “Revenues” means the same as defined in the latest version of the Arkansas Financial Accounting Handbook established by the Division of Elementary and Secondary Education under § 6-20-2203.
(B) “Revenues” does not include financing sources such as:
(i) Bond or other debt proceeds;
(ii) Loans;
(iii) Bonded debt refunding savings;
(iv) Consolidation and annexation funding;
(v) Audit adjustments;
(vi) Proceeds from the sale or loss of public school district real or personal property;
(vii) Interfund transfers; or
(viii) Other similar nonrevenue financing sources as defined in:
(a) The latest version of the Arkansas Financial Accounting Handbook established by the division under § 6-20-2203; or
(b) Rules prom
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-20-2210
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:6-20-2210
Source file: gov.ar.code.title.06.odt
Pages: Not recorded – Not recorded
Passage SHA-256: bb592ab1ec6b5f937969db481b3d6798738fa893b716ea149d1123368095d7f3
Source location: content.xml paragraph 23128
Stored source content
6-20-2210. Limitation on fund balances — Definitions.
(a) As used in this section:
(1) “Facilities master plan” means the same as defined in § 6-21-803;
(2) “Net legal balance” means the:
(A) Combined balance for a public school district's teacher's salary fund, operating fund, and debt services fund; minus
(B) Combined balance for the following funds for a public school district's categorical funding:
(i) National school lunch fund;
(ii) Alternative learning environment fund;
(iii) English-language learner fund; and
(iv) Professional development fund; minus
(C) Escrow balance restricted for the retirement of federal qualified bonds;
(3) “Net legal balance revenues” means:
(A) Revenues placed into the teacher's salary fund, operating fund, and debt services fund; minus
(B) Revenues placed into the:
(i) National school lunch fund;
(ii) Alternative learning environment fund;
(iii) English-language learner fund; or
(iv) Professional development fund; minus
(C) Proceeds derived from federal qualified bonds;
(4)(A) “Revenues” means the same as defined in the latest version of the Arkansas Financial Accounting Handbook established by the Division of Elementary and Secondary Education under § 6-20-2203.
(B) “Revenues” does not include financing sources such as:
(i) Bond or other debt proceeds;
(ii) Loans;
(iii) Bonded debt refunding savings;
(iv) Consolidation and annexation funding;
(v) Audit adjustments;
(vi) Proceeds from the sale or loss of public school district real or personal property;
(vii) Interfund transfers; or
(viii) Other similar nonrevenue financing sources as defined in:
(a) The latest version of the Arkansas Financial Accounting Handbook established by the division under § 6-20-2203; or
(b) Rules promulgated by the division; and
(5) “School district” means the same as defined in § 6-21-803.
(b) If at the close of the fiscal year a public school district has a net legal balance that exceeds twenty percent (20%) of the public school district's current year net legal balance revenues, the public school district shall within five (5) years reduce its net legal balance to no more than twenty percent (20%) of the public school district's current year net legal balance revenues.
(c) A public school district may reduce its excess net legal balance under subsection (a) of this section by:
(1)(A) Transferring funds into the public school district's building fund.
(B) Any funds transferred into the public school district's building fund under subdivision (c)(1)(A) of this section shall be used for construction, renovation, repair, or other planned building fund expenditure or project allowed within building fund coding specifications in the latest version of the annual financial report and budget expenditures fund specification of the Arkansas Public School Computer Network.
(C) If the construction, renovation, repair, or other planned building fund expenditure or project under subdivision (c)(1)(B) of this section is cancelled or revised such that the funds are no longer dedicated to the construction, renovation, repair, or other planned building fund expenditure or project, the public school district may transfer the funds back into the fund from which the transfer was made under subdivision (c)(1)(A) of this section unless transferring the funds will result in the net legal fund balance exceeding twenty percent (20%) of the public school district's current year net legal balance revenues; or
(2) Spending funds on, including without limitation:
(A) Prekindergarten programs;
(B) Remediation programs;
(C) Career and technical education or workforce readiness programs; or
(D) Any other program or for any other purpose authorized by law.
(d)(1) The division shall:
(A) Monitor on a yearly basis each public school district's compliance with the requirements of this section; and
(B) Withhold subsequent state funding from a public school district in the amounts under subdivision (d)(2) of this section for each year the public school district fails to make the required reduction.
(2) If a public school district fails to reduce every year within the five-year period its net legal balance by twenty percent (20%) of the total required reduction under subsection (b) of this section, the division shall withhold subsequent state funding from that public school district in an amount equal to the amount the public school district failed to reduce its net legal balance for that year.
(e)(1) Under an unusual and limited circumstance, including without limitation an increase in one-time funds, a public school district may request that the division waive the requirements of this section.
(2) A public school district seeking a waiver shall file a waiver request with the Commissioner of Elementary and Secondary Education, accompanied by a resolution adopted by the public school district's board of directors, describing the unusual and limited circumstances.
(3) The commissioner may grant a waiver request under this subsection if the commissioner finds that the request is necessary based upon the unusual and limited circumstances.
(f) The division shall promulgate rules to implement this section.
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Arkansas Code — all titles (historical 2020) · legal_authorities
6-20-2203. Uniform budget and accounting system required.
(a)(1) The State Board of Education shall adopt by rule a uniform budget and accounting system that shall be known as the “Arkansas Educational Financial Accounting and Reporting System”.
(2) This system shall establish and implement the process and procedures for financial reporting as required by this subchapter for school districts, education service cooperatives, and open-enrollment public charter schools.
(3)(A) Pursuant to § 6-20-2207, the Division of Elementary and Secondary Education shall establish and implement a uniform chart of accounts known as the “Arkansas Financial Accounting Handbook” or the “Arkansas Handbook”.
(B) The Arkansas Handbook shall be incorporated by reference into the rules governing the system.
(C) However, the Arkansas Handbook shall be exempt from the rulemaking process and procedures required pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(4) The rules shall be developed by the state board in cooperation with the division, representatives from the Arkansas Association of Educational Administrators, the Arkansas Association of School Business Officials, the Arkansas Education Association, the education service cooperatives, and the Legislative Joint Auditing Committee.
(b) To the extent necessary to comply with federal law, the terms and definitions contained in the Arkansas Handbook shall initially comply with Financial Accounting for Local and State School Systems, 2003 Edition (NCES 2004-318), and may thereafter be revised by the division as necessary to remain consistent and shall be used for valid comparisons of expenditures of schools, school districts, open-enrollment public charter schools, and education service cooperatives.
(c)
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-20-2203
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-20-2203. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-21-803. Definitions.
As used in this subchapter:
(1)(A) “Academic facility” means a building or space, including related areas such as the physical plant and grounds, where public school students receive instruction that is an integral part of an adequate education as described in § 6-20-2302.
(B) A public school building or space, including related areas such as the physical plant and grounds, used for an extracurricular activity or an organized physical activity course as defined in § 6-16-137 shall not be considered an academic facility for the purposes of this subchapter to the extent that the building, space, or related area is used for extracurricular activities or organized physical activities courses, except for physical educational training and instruction under § 6-16-132.
(C) Buildings or spaces, including related areas such as the physical plant and grounds, used for prekindergarten education shall not be considered academic facilities for purposes of this subchapter.
(D) District administration buildings and spaces, including related areas such as the physical plant and grounds, shall not be considered academic facilities for the purposes of this subchapter.
(E) A leased facility shall not be considered an academic facility for the purpose of this subchapter;
(2) “Annexation” means the joining of an affected school district or part of the school district with a receiving district under § 6-13-1401 et seq.;
(3) “Consolidation” means the joining of two (2) or more school districts or parts of the districts to create a new single school district under § 6-13-1401 et seq.;
(4) “Custodial activities” means routine and renovation cleaning activities related to the daily operations and upkeep of a public school facility, including related superv
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-21-803
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 6-21-803. This identifies an authority to review, not proof of applicability.