005.28.19 Ark. Code R. § 006 Dese Rules Governing the Regulatory Basis of Accounting

• Library: Arkansas Administrative Code
• Edition: 2023
• Currency: Current through Register Vol. 48, No. 12, December, 2023
• Year: 2023
• Citation: 005.28.19 Ark. Code R. § 006

Arkansas Division of Elementary and Secondary Education Rules Governing the Regulatory Basis of Accounting

Effective: December 30, 2019

1.00 Authority

1.01 The Arkansas State Board of Education's authority for promulgating these Rules is pursuant to Ark. Code Ann §§ 6-11-105, 6-20-401, 10-4-413, and Act 867 of 2019.

1.02 These rules shall be known as the Arkansas Division of Elementary and Secondary Education Rules Governing the Regulatory Basis of Accounting.

2.00 Purpose

2.01 The purpose of these Rules is to establish a consistent basis of accounting for schools.

3.00 Definitions - For purposes of these Rules, the following terms mean:

3.01 "Accrue" - 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.

3.02 "Assets" - Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. Examples include: cash, investments receivables, prepaid items, inventory, land, building, and equipment.

3.03 "Deferred Revenue" - Revenue received prior to the fiscal year in which it is earned. Deferred revenue is recorded as a liability when received and as revenue in the fiscal year it is earned.

3.04 "Expenditures" - Charges incurred, whether paid or unpaid, which are presumed to benefit the current fiscal year.

3.05 "Liabilities" - Debt or other legal obligations arising out of transactions in the past that are payable but not necessarily due.

3.06 "Regulatory Basis of Accounting" - A basis of accounting that the reporting entity (school) uses to comply with the requirements or financial reporting provisions of a governmental regulatory agency (Arkansas Division of Elementary and Secondary Education) to whose jurisdiction the entity is subject.

3.07 "Revenues" - Additions to assets that do not increase a liability, do not represent the recovery of an expenditure, do not represent the cancelation of certain liabilities without a corresponding increase in other liabilities or decrease in assets, and do not represent contributions of fund capital in Food Service and Pupil Activity Funds.

3.08 "School" - any public school district, public charter school, educational cooperative, or any publicly supported entity having supervision over public...