Colorado State Board of Education – Department of Education

17 CR 7, 7-9

Adopted: 			6-9-94 
Attorney General Opinion:	 6-29-94 
Statutory Authority:			 22-44-105, 
					22-44-111,
					22-30.5-104, 22-30.5-503
22-2-107(l)(c), C.R.S. 

AMENDMENTS TO THE RULES FOR THE
ADMINISTRATION OF THE SCHOOL DISTRICT BUDGET LAW

2245-R-1.00 	Applicability...................The rules stated herein shall 
2244-R-1.00		apply to Colorado public school districts. The 
term districts shall include both public school 
districts, THE CHARTER SCHOOL INSTITUTE, CHARTER SCHOOLS,  and boards of cooperative educational services.  

2245-R-2.00 	Summary Budget Format. Districts shall 
2244-R-2.00	utilize a Summary budget format in presenting their budgets.  The Summary budget format shall be understandable to any layperson and shall meet the following criteria  GUIDELINES.

2.01 			The budget format shall allow comparisons of 
revenues and expenditures among districts by 
pupil. 

2.02 			The budget format shall itemize expenditures of 
the district by fund and by pupil. The budget 
shall describe the expenditure and show the amount 
budgeted for the current fiscal year, THE AMOUNT ESTIMATED TO BE EXPENDED FOR THE CURRENT FISCAL YEAR, and the amount budgeted for the ensuing fiscal year.  

2.03	IF APPLICABLE, SPECIFY THE PROPOSED EXPENDITURES AND ANTICIPATED REVENUES ARISING FROM THE CONTRACTING OF BONDED INDEBTEDNESS BY A CAPTIAL IMPROVEMENT ZONE LOCATED WITHIN THE DISTRICT.

2.04	THE BUDGET SHALL ENSURE THAT THE DISTRICT HOLDS UNRESTRICTED GENERAL FUND OR CASH FUND EMERGENCY RESERVES IN THE AMOUNT REQUIRED UNDER THE PROVISIONS OF SECTION 20 (5) OF ARTICLE X OF THE STATE CONSTITUTION.

2.05	THE BUDGET SHALL SUMMARIZE REVENUES BY REVENUE SOURCE AND SHALL SUMMARIZE EXPENDITURES BY CHART OF ACCOUNT PROGRAM, FUND, AND OBJECT.

2.06	THE ADOPTED BUDGET SHALL NOT PROVIDE FOR EXPENDITURES, INTERFUND TRANSFERS, OR RESERVES, IN EXCESS OF AVAILABLE REVENUES AND BEGINNING FUND BALANCES.

2.07	IF THE BUDGET INCLUDES THE USE OF A BEGINNING FUND BALANCE, THE DISTRICT BOARD OF EDUCATION SHALL ADOPT A RESOLUTION SPECIFICALLY AUTHORIZING THE USE OF A PORTION OF THE BEGINNING FUND BALANCE IN THE DISTRICT BUDGET.  THE RESOLUTION, AT A MINIMUM, SHALL SPECIFY THE AMOUNT OF THE BEGINNING FUND BALANCE TO BE SPENT UNDER THE DISTRICT BUDGET, STATE THE PURPOSE FOR WHICH THE EXPENDITURE IS NEEDED, AND STATE THE DISTRICT’S PLAN TO ENSURE THAT THE USE OF THE BEGINNING FUND BALANCE WILL NOT LEAD TO AN ONGOING DEFICIT.

2.08	EACH DISTRICT SHALL ANNUALLY PREPARE AN ITEMIZED RECONCILIATION BETWEEN THE FISCAL YEAR END FUND BALANCES BASED ON A BUDGETARY BASIS OF ACCOUNTING USED BY THE DISTRICT AND THE FISCAL YEAR END FUND BALANCES BASED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING.  THE RECONCILIATION SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, THE LIABILITY FOR ACCRUED SALARIES AND RELATED BENEFITS.  THE RECONCILIATION SHALL BE INCLUDED WITH THE FINAL VERSION OF THE AMENDED BUDGET AND THE ANNUAL AUDITED FINANCIAL STATEMENTS.

2.03 	09		The proposed expenditures and anticipated revenues 
in the budget shall be supported as needed by 
explanatory schedules or statements of sufficient 
detail to judge the validity thereof, including a 
statement which summarizes the aggregate of 
revenues, appropriations, assets, and liabilities 
of each fund in balanced relations. The budget 
shall disclose planned compliance with section 20 
of article X of the state constitution. 

2.04 	10		The summary budget shall be presented annually to 
the community on the Summary budget report adopted periodically by the state board of education. The Summary budget report form will reflect the criteria required by rules 2245-R-2.00 2244-R-2.00 through 2.03 09.

2244-R-3.00	NO LATER THAN JULY 1, 2008, THE STATE BOARD OF EDUCATION, WITH INPUT AND RECOMMENDATIONS FROM THE FINANCIAL POLICIES AND PROCEDURES ADVISORY COMMITTEE CREATED IN THE DEPARTMENT OF EDUCATION, SHALL ESTABLISH BY RULE THE STANDARD BUDGET REPORT FORMAT TO BE USED BY EACH BOARD OF EDUCATION

3.01	EACH DISTRICT SHALL SUBMIT ITS ADOPTED ANNUAL BUDGET TO THE DEPARTMENT OF EDUCATION ON OR BEFORE JANUARY 31, 2009, AND ON OR BEFORE JANUARY 31 EACH YEAR THEREAFTER.  THE BUDGET SHALL INCLUDE DATA AVAILABLE TO THE DISTRICT AS OF DECEMBER 31 OF THE IMMEDIATELY PRECEDING CALENDAR YEAR.

3.02	THE ADOPTED ANNUAL BUDGET TO BE SUBMITTED TO THE DEPARTMENT OF EDUCATION SHALL BE IN A FORMAT THAT SUMMARIZES THE BUDGET DATA AS OF DECEMBER 31.  FOR EACH FUND BUDGETED BY THE DISTRICT, THE FOLLOWING INFORMATION WILL BE SUBMITTED:  BUDGETED PUPIL COUNT, BEGINNING FUND BALANCE, REVENUES BY GROUPED SOURCE, ALLOCATIONS TO/FROM OTHER FUNDS, TRANSFERS TO/FROM OTHER FUNDS, EXPENDITURES BY PROGRAM AND OBJECT GROUP, RESERVES, AND NON-APPROPRIATED RESERVES.

2245-R-3.00		Statement of Basis and Purpose. The basis for 
2244-R-4.00		these rules is found in C.R.S. Article 44 of Title 
22, School District Budget Law; ARTICLE 30.5 OF TITLE 22, CHARTER SCHOOLS; as well as in 
Section 22-2-107(l)(c) which relates to the duties 
of the state board of education. School District 
Budget Law requires the state board of education 
to establish in rule and regulation a Summary budget format 
that meets certain criteria relating 
to the need for the public to be able to 
understand and compare school district budgets. 
These rules establish a Summary budget format and require school districts to utilize the summary 
budget report adopted by the state board of 
education in presenting their budget to the 
community AND THE ADOPTED ANNUAL BUDGET DATA  TO THE DEPARTMENT OF EDUCATION.