For purposes of this part:

1. (1) “Annual financial budget (AFB)” means the annual budget of expenditures and receipts required by Arkansas Constitution, Article 14, § 3, and Arkansas Code §§ 6-11-128, 6-13-620, and 6-20-2202;
2. (2) “Annual financial report (AFR)” means the fiscal year annual report of financial information as required by Arkansas Code § 6-20-2202;
3. (3) “Approved budget” means an AFB that has received the required written notification from the Division of Elementary and Secondary Education that the AFB presented was not identified as deficient as of February 15 of the current year;

4. (4) “Arkansas Financial Accounting Handbook” means the uniform chart of accounts and related codes that are:

   1. (A) Established by the Division of Elementary and Secondary Education;
   2. (B) Incorporated into this part as the Arkansas Financial Accounting Handbook; and
   3. (C) Used for accounting and financial reporting of all public schools, school districts, open-enrollment charter schools, and education service cooperatives as referenced in Arkansas Code § 6-20-2203;
5. (5) “Athletic expenditures” means all direct and indirect expenses related to interschool athletic programs, prorated if necessary;

6. (6) “Authorized entity” means an entity recognized by the Division of Elementary and Secondary Education to accept data:

   1. (A) With an executed memorandum of understanding (MOU), a data-sharing agreement (DSA), or both; and

   2. (B) That meets all applicable:

      1. (i) Federal and state laws; and
      2. (ii) Rules of the Division of Elementary and Secondary Education;

7. (7)

   1. (A) "Cycle reports" are mandatory reports that:

      1. (i) Summarize financial and student information; and
      2. (ii) Are certified and submitted to the state.

   2. (B) The purpose of these reports is to ensure that every school district has access to comparable administrative computing systems and services with which to:

      1. (i) Meet all local and state requirements;
      2. (ii) Promote increased compatibility of the administrative records and data maintained by each school district;
      3. (iii) Reduce the paperwork and reporting burden of school sites and districts; and
      4. (iv) Increase the accuracy and timeliness of data submitted by school districts.
   3. (C) These reports are used for reporting to state and federal agencies as well as legislative committees.
   4. (D) These reports are also used for purposes of calculating funding for school districts;

8. (8) “Deficient” or “deficiency” means:

   1. (A) A finding by the Division of Elementary and Secondary Education auditors that budget or financial accountability reports do not meet the mandated expenditure requirements in effect for the appropriate year;
   2. (B) The budget or financial accountability reports contain one (1) or more material misstatements of financial information; or
   3. (C) Budgeted revenue, expenditures, and fund balances are not in compliance with law or Division of Elementary and Secondary Education rules;
9. (9) “Electronic transcript” means a student transcript that is formatted and transmitted electronically in the uniform method prescribed by the Division of Higher Education and the Division of Elementary and Secondary Education for use by public schools and institutions of higher education in this state;
10. (10) “Financial management systems applications” means the computer software used primarily to process and record financial transactions;
11. (11) “Full-time equivalent (FTE)” means the amount of time an employee works during a school year, July 1 through June 30 of the following calendar year, as a percentage of the amount of time a full-time employee in the same position would work during a school year;

12. (12) “Local educational agency (LEA)” means all:

    1. (A) Arkansas public school districts;
    2. (B) Open-enrollment public charter schools; and
    3. (C) Education service cooperatives;

13. (13) “Special needs categories” means the state funding categories of:

    1. (A) Alternative learning environments (ALE);
    2. (B) English language learners (ELL);
    3. (C) Enhanced Student Achievement Funding (ESA funding); and
    4. (D) Professional development (PD);
14. (14) “State Board of Education (SBE)” means the State Board of Education;
15. (15) “State funds” means all money derived from state revenues, specifically including but not limited to distributions from the Division of Elementary and Secondary Education Public School Fund Account and uniform rate of tax ad valorem property taxes distributed to a public school or school district; and
16. (16) “Student management systems applications” means the computer software used primarily to process and maintain student records.