For purposes of this part, the following terms mean:

1. (1) “Accrue” means to record revenues when earned and to record expenditures as soon as they result in liabilities, regardless of when the revenue is actually received or the payment is actually made;

2. (2)

   1. (A) “Assets” means future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

   2. (B) Examples include:

      1. (i) Cash;
      2. (ii) Investments;
      3. (iii) Receivables;
      4. (iv) Prepaid items;
      5. (v) Inventory;
      6. (vi) Land;
      7. (vii) Building; and
      8. (viii) Equipment;

3. (3)

   1. (A) “Deferred revenue” means revenue received prior to the fiscal year in which it is earned.
   2. (B) Deferred revenue is recorded as a liability when received and as revenue in the fiscal year it is earned;
4. (4) “Expenditures” means charges incurred, whether paid or unpaid, which are presumed to benefit the current fiscal year;
5. (5) “Liabilities” means debt or other legal obligations arising out of transactions in the past that are payable, but not necessarily due;
6. (6) “Regulatory basis of accounting” means a basis of accounting that the reporting entity (school) uses to comply with the requirements or financial reporting provisions of a governmental regulatory agency (Division of Elementary and Secondary Education) to whose jurisdiction the entity is subject;

7. (7) “Revenues” means additions to assets that do not:

   1. (A) Increase a liability;
   2. (B) Represent the recovery of an expenditure;
   3. (C) Represent the cancelation of certain liabilities without a corresponding increase in other liabilities or decrease in assets; and
   4. (D) Represent contributions of fund capital in food service and pupil activity funds;
8. (8) “School” means any public school district, public charter school, educational cooperative, or any publicly supported entity having supervision over public educational entities; and
9. (9) “Uniform Rate of Tax (URT)” means ad valorem property tax of twenty-five (25) mills levied on the assessed value of all taxable real, personal, and utility property in the state to be used solely for maintenance and operations for the schools per Arkansas Constitution, Article 14 § 3.