1. (1) This rule is authorized by:

   1. (a) Utah Constitution Article X, Section 3, which vests general control and supervision over public education in the Board;
   2. (b) Subsection 53E-3-401(4), which allows the Board to make rules to execute the Board's duties and responsibilities under the Utah Constitution and state law;
   3. (c) Subsection 53E-3-501(1)(e)(i), which directs the Board to establish rules and minimum standards for school productivity and cost effectiveness measures;
   4. (d) Subsection 53E-3-501(1)(e)(iv), which allows the Board to adopt rules regarding financial, statistical, and student accounting requirements;
   5. (e) Section 53E-3-602, which allows the Board to approve auditing standards for LEA governing boards;
   6. (f) Section 53E-3-603, which requires the Board to verify accounting procedures of LEA governing boards for determining the allocation of Uniform School Funds;
   7. (g) Section 53E-5-202, which directs the Board to adopt rules to implement a statewide accountability system;

   8. (h) Subsection 53G-5-404(4), which requires charter schools to make the same annual reports required of other public schools, including an annual financial audit report;

      1. (i) Subsection 53F-2-209(2), which requires the Board to make rules for flexible use of restricted funds; and
   9. (j) ESSA, which requires states to revise and redesign school accountability systems.

2. (2) The purpose of this rule is to:

   1. (a) require LEAs to formally adopt and implement policies regarding the management and use of public funds;
   2. (b) provide minimum standards, procedures, and definitions for LEA policies;
   3. (c) direct that LEAs make policies, procedures, and training materials available to the public and readily accessible on LEA or public school websites, to the extent of resources available;

   4. (d) require LEAs to train employees in:

      1. (i) appropriate financial practices;
      2. (ii) necessary accounting procedures; and
      3. (iii) ethical financial practices;
   5. (e) specify uniform budgeting, accounting, and auditing procedures for LEAs consistent with GAAP, GAAS, and GAGAS; and
   6. (f) establish reporting and accounting requirements for LEAs to enable the Board to comply with ESSA.
3. (3) This Rule R277-113 is categorized as Category 3 as described in Rule R277-111.

KEY: school sponsored activities, public funds, fiscal policies and procedures, audit committee

Date of Last Change: July 8, 2025

Notice of Continuation: September 9, 2021

Authorizing, and Implemented or Interpreted Law: Art X, Sec 3; 53E-3-401(4); 53E-3-501(1)(e)