0001| SENATE BILL 329 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| RICHARD M. ROMERO | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO EDUCATION; AMENDING THE PUBLIC SCHOOL FINANCE ACT | 0012| TO REQUIRE SCHOOL DISTRICTS TO USE ACCRUAL BASIS ACCOUNTING, | 0013| TO MAKE QUARTERLY REPORTS AND TO PREVENT THE USE OF CASH | 0014| BALANCES FOR RECURRING EXPENSES. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. Section 22-8-5 NMSA 1978 (being Laws 1967, | 0018| Chapter 16, Section 59, as amended) is amended to read: | 0019| "22-8-5. MANUAL OF ACCOUNTING AND BUDGETING.-- | 0020| A. The department shall compile and publish a | 0021| manual prescribing detailed ~[regulations]~ |rules| for a | 0022| uniform system of |accrual basis| accounting and budgeting of | 0023| funds for all public schools and school districts of the | 0024| state. The manual of ~[regulations and any revision or | 0025| amendments thereto]~ |rules| shall become effective only upon | - 1 - 0001| approval by the state board ~[of education]~ and the | 0002| legislative finance committee, filing with the state records | 0003| center and publication. |The department shall provide | 0004| training to the school districts on accrual basis accounting.| | 0005| A copy shall also be filed with the department of finance and | 0006| administration. | 0007| B. All public schools and school districts shall | 0008| comply with the ~[regulations]~ |rules| prescribed in the | 0009| manual of accounting and budgeting and shall, upon request, | 0010| submit additional reports concerning finances to the | 0011| department. In addition, upon request, all public schools and | 0012| school districts shall file reports with the department | 0013| containing pertinent details regarding applications for | 0014| federal money or federal grants-in-aid or regarding federal | 0015| money or federal grants-in-aid received, including but not | 0016| limited to details of programs, matching funds, personnel | 0017| requirements, salary provisions and program numbers, as | 0018| indicated in the catalog of federal domestic assistance, of | 0019| the federal funds applied for and of those received. | 0020| C. Upon request by the department of finance and | 0021| administration, the legislative finance committee or the | 0022| legislative education study committee, the ~[state]~ | 0023| department ~[of public education]~ shall timely furnish | 0024| information and data obtained from public schools and school | 0025| districts pursuant to Subsection B of this section." | - 2 - 0001| Section 2. Section 22-8-13 NMSA 1978 (being Laws 1974, | 0002| Chapter 8, Section 3, as amended) is amended to read: | 0003| "22-8-13. REPORTS.-- | 0004| A. Each local school board shall require each | 0005| public school in its school district to keep accurate records | 0006| concerning membership in the public school. The | 0007| superintendent of each school district shall maintain the | 0008| following reports for each twenty-day reporting period: | 0009| (1) the basic program MEM by grade in each | 0010| public school; | 0011| (2) the early childhood education MEM; | 0012| (3) the special education MEM in each public | 0013| school in class C and class D programs as defined in Section | 0014| 22-8-21 NMSA 1978; | 0015| (4) the number of class A and class B | 0016| programs as defined in Section 22-8-21 NMSA 1978; ~[and]~ | 0017| (5) the full-time-equivalent MEM for | 0018| bilingual multicultural education programs; |and| | 0019| |(6) a comparison of actual revenues and | 0020| expenditures with budgeted revenues and expenditures on a | 0021| quarterly basis.| | 0022| B. The superintendent of each school district | 0023| shall furnish to the department reports of the information | 0024| required in Paragraphs (1) through ~[(5)]~ |(6)| of Subsection | 0025| A of this section for the first forty days of the school year. | - 3 - 0001| The forty-day report and all other reports required by law or | 0002| by the state board shall be furnished within five days of the | 0003| close of the reporting period. | 0004| C. All information required pursuant to this | 0005| section shall be on forms prescribed and furnished by the | 0006| department. A copy of any report made pursuant to this | 0007| section shall be kept as a permanent record of the school | 0008| district and shall be subject to inspection and audit at any | 0009| reasonable time. | 0010| D. The department shall withhold allotments of | 0011| funds to any school district ~[where]~ |when| the | 0012| superintendent has failed to comply until the superintendent | 0013| complies with and agrees to continue complying with | 0014| requirements of this section. | 0015| E. The provisions of this section may be modified | 0016| or suspended by the department for any school district or | 0017| school operating under the Variable School Calendar Act. The | 0018| department shall require MEM reports consistent with the | 0019| calendar of operations of such school district or school and | 0020| shall calculate an equivalent MEM for use in projecting school | 0021| district revenue." | 0022| Section 3. Section 22-8-41 NMSA 1978 (being Laws 1967, | 0023| Chapter 16, Section 99, as amended) is amended to read: | 0024| "22-8-41. RESTRICTION ON OPERATIONAL FUNDS--EMERGENCY | 0025| ACCOUNTS--CASH BALANCES.-- | - 4 - 0001| A. No school district shall expend money from its | 0002| operational fund for the acquisition of a building site or for | 0003| the construction of a new structure, unless the school | 0004| district has bonded itself to practical capacity or the state | 0005| superintendent determines and certifies to the legislative | 0006| finance committee that the expending of money from the | 0007| operational fund for this purpose is necessary for an adequate | 0008| public educational program and will not unduly hamper the | 0009| district's current operations. | 0010| B. A school district may budget out of cash | 0011| balances carried forward from the previous fiscal year an | 0012| amount not to exceed five percent of its proposed operational | 0013| fund expenditures for the ensuing fiscal year as an emergency | 0014| account. Money in the emergency account shall be used only | 0015| for unforeseen expenditures incurred after the annual budget | 0016| was approved and shall not be expended without the prior | 0017| written approval of the state superintendent. | 0018| C. ~[In addition to the emergency account]~ School | 0019| districts ~[may also]~ |shall not| budget operational fund | 0020| cash balances carried forward from the previous fiscal year | 0021| for operational expenditures ~[exclusive of salaries and | 0022| payroll, upon specific prior approval of the state | 0023| superintendent. The state superintendent shall notify the | 0024| legislative finance committee in writing of his approval of | 0025| such proposed expenditures]~." | - 5 - 0001|  |