Oklahoma Administrative Code › Title 210 - State Department of Education › Chapter 25 - Finance › Subchapter 5 - Budgeting and Business Management › Part 1 - IMPLEMENTATION › Section 210:25-5-4 - Accounting

Current through Vol. 41, No. 20, July 1, 2024
(a) The financial structure of an Oklahoma
				  public school district consists of various classifications as referenced in
				  Oklahoma Administrative Code (OAC)
				  210:25-7-1,
				  Oklahoma Cost Accounting System (OCAS). School District accounting systems
				  shall be organized and operated on a basis that assures legal compliance by the
				  recording and summarizing of financial transactions within funds, each of which
				  is completely independent of any other. Each fund shall account for and
				  continually maintain the identity of its revenues and expenditures. Financial
				  transactions for purposes of this regulation and as referenced in 70 O.S.
				  § 5-135.2 shall be defined as a detailed reporting of revenue within the
				  Source of Revenue dimension. Revenue shall be reported to the bold codes within
				  each of the following broad categories: District Source of Revenue,
				  Intermediate Source of Revenue, State Source of Revenue, and Federal Source of
				  Revenue. Expenditures shall be reported by the bold codes within the Function
				  dimension as follows: Instruction, Support Services-Students, Support
				  Services-Instructional Staff, Support Services-General Administration, Support
				  Services-School Administration, Support Services-Central, Operation and
				  Maintenance of Plant Services, Student Transportation Services, Child Nutrition
				  Programs Operations, Community Services Operations and Facilities Acquisition
				  and Construction Services. Additional dimensions for Revenue and Expenditures
				  are coded to provide classification by Fiscal Year, Fund, Project Reporting,
				  Object, Program, Subject, Job Classification, and Operational Unit, where
				  applicable.
(b) Beginning July 1
				  but no later than September 1 of each year, every school district and charter
				  school board of education shall prepare and submit to the State Department of
				  Education, through the Oklahoma Cost Accounting System (OCAS), a statement of
				  actual income and expenditures of the district or charter school for the fiscal
				  year that ended the preceding June 30. The year-end financial report recording
				  and summarizing all revenue and expenditure financial transactions will be
				  completed and locked on or before September 1 of the applicable year.For
				  purposes of the OCAS system, "locked" means that the data submitted has passed
				  the system's initial edit checks and the district has finalized the submission.
				  To assure the validity and accuracy of financial reporting and accounting,
				  between September 1 and September 30 of each year, school districts and charter
				  schools shall have the opportunity to review and make corrections to the data
				  submitted. By September 30, the data submission shall be certified by the
				  district superintendent or head of charter school. If the school district or
				  charter school does not report any inaccuracies by September 30, the State
				  Department of Education will rely on the data submitted and certified by the
				  school district or charter school to be complete and closed. Upon good cause
				  demonstrated, between October 1 and December 1, a school district or charter
				  school may appeal, in writing, to the State Department of Education for
				  additional changes to the data. For purposes of this Subsection, "good cause"
				  means that a miscalculation was made or that relevant data was omitted from the
				  previously certified submission. The State Department of Education will review
				  the appeal and, if it is determined good cause has been demonstrated as defined
				  in this Subsection, the identified changes to the previously certified data
				  will be authorized. Nothing in this Section shall preclude the State Department
				  of Education or the State Board of Education from conducting regular or
				  periodic reviews of school district or charter school financial records as
				  authorized by law and ensuring a public school operates pursuant to the OCAS
				  system.
(c) As referenced in 70
				  O.S. § 5-135.2, the State Department of Education shall reduce the monthly
				  payment of a district's State Aid funds if the district is not operating
				  pursuant to the OCAS system. Upon final determination, including but not
				  limited to the process set forth in Subsection (b), the reduction of monthly
				  payments shall begin with the first day that the school district or charter
				  school was determined to not be operating in compliance with the OCAS system.
				  The reduction may be waived by the State Board of Education if the school
				  district or charter school can demonstrate that failure to operate pursuant to
				  the OCAS system was due to circumstances beyond the control of the district or
				  charter school, and that every effort is being made to operate in compliance
				  with the OCAS system. Not operating pursuant to said system shall be defined as
				  a district not:
(1) accurately recording and
				  reporting all revenue and expenditures by applicable OCAS bold code dimensions;
(2) submitting OCAS financial
				  records on time and as required, including as provided in Subsection (b), via
				  the Web-based system of all recorded and reported revenue and expenditures by
				  applicable OCAS bold code dimensions to the State Department of Education;
(3) ascertaining that current and
				  accurate applicable OCAS codes are being utilized as updated and maintained by
				  the State Department of Education;
(4) complying with regulations as outlined in
				  OAC
				  210:25-3-7
				  (Financial information processing), OAC
				  210:25-5-10
				  (The encumbrance clerk), OAC
				  210:25-5-11
				  (The school district treasurer), or OAC
				  210:25-5-13
				  (School activity fund);
(5)
				  reconciling all recorded and reported revenue and expenditures by applicable
				  OCAS bold code dimensions by balancing data with bank receipts and statements,
				  purchase orders, warrant registers, investment ledgers, and all balance sheet
				  accounts; and