0001|                               AN ACT
    |
0002| RELATING TO PUBLIC SCHOOLS; REQUIRING THE STATE DEPARTMENT OF
    |
0003| PUBLIC EDUCATION TO ENACT PROCEDURES TO ENSURE THAT SCHOOL
    |
0004| DISTRICTS COMPLY WITH ACCOUNTING AND BUDGETING REGULATIONS;
    |
0005| DIRECTING THE STATE DEPARTMENT OF PUBLIC EDUCATION TO ENACT
    |
0006| REGULATIONS REQUIRING SCHOOL DISTRICTS TO SUBMIT ANNUAL
    |
0007| ACCOUNTING AND BUDGETING REPORTS; AMENDING THE PUBLIC SCHOOL
    |
0008| CODE. 
    |
0009| 
    |
0010| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0011|      Section 1.  Section 22-8-5 NMSA 1978 (being Laws 1967, Chapter 16, Section 59, as
    |
0012| amended) is amended to read:
    |
0013|      "22-8-5.  MANUAL OF ACCOUNTING AND BUDGETING.--
    |
0014|           A.  The department shall compile and publish a manual prescribing detailed
    |
0015| regulations for a uniform system of accounting and budgeting of funds for all public schools and
    |
0016| school districts of the state.  The manual of regulations and any revision or amendments thereto
    |
0017| shall become effective only upon approval by the state board and the legislative finance
    |
0018| committee, filing with the state records center and publication.  A copy shall also be filed with
    |
0019| the department of finance and administration.
    |
0020|           B.  All public schools and school districts shall comply with the regulations
    |
0021| prescribed in the manual of accounting and budgeting and shall, upon request, submit additional
    |
0022| reports concerning finances to the department.  In addition, upon request, all public schools and
    |
0023| school districts shall file reports with the department containing pertinent details regarding
    |
0024| applications for federal money or federal grants-in-aid or regarding federal money or federal
    |
0025| grants-in-aid received, including but not limited to details of programs, matching funds,
    |
0001| personnel requirements, salary provisions and program numbers, as indicated in the catalog of
    |
0002| federal domestic assistance, of the federal funds applied for and of those received.
    |
0003|           C.  The department shall develop procedures for ensuring that local school
    |
0004| districts comply with the regulations prescribed in the manual of accounting and budgeting.  The
    |
0005| department shall require local school districts to submit annually a report on the district's internal
    |
0006| control policies and procedures.  The report shall be submitted with each budget request required
    |
0007| pursuant to Section 22-8-12.1 NMSA 1978, include information on the internal control structure
    |
0008| for all school district transactions and specify the individuals involved in the accounting and
    |
0009| budgeting process during the accounting cycle.  Additionally, prior to the approval of temporary
    |
0010| budgets, the department shall advise each local school district and the state auditor of the
    |
0011| minimum requirements for independent school district audits for the ensuing fiscal year.
    |
0012|           D.  Upon request by the department of finance and administration, the
    |
0013|                                                               legislative finance committee or the legislative education study committee, the department
    |
0014|                                                               shall timely furnish information and data obtained from public schools and school districts
    |
0015|                                                               pursuant to Subsection B of this section."                                                       
    |