The Texas Education Agency (TEA) adopts an amendment to §109.41, concerning the Financial Accountability System Resource Guide. The amendment is adopted without changes to the proposed text as published in the February 12, 2010, issue of the Texas Register (35 TexReg 1005) and will not be republished. The section adopts by reference the Financial Accountability System Resource Guide as the TEA's official rule. The Resource Guide describes rules for financial accounting in modules for financial accountability and reporting, budgeting, purchasing, auditing, site-based decision making, accountability, data collection and reporting, management, state compensatory education, GASB 34, and dropout audits. The Resource Guide also includes a special supplement module for nonprofit charter school chart of accounts. Public school districts use the Resource Guide to meet the accounting, auditing, budgeting, and reporting requirements as set forth in the Texas Education Code (TEC) and other state statutes relating to public school finance. Under §109.41(b), the commissioner of education shall amend the Resource Guide, adopting it by reference, as needed. The Resource Guide is available on the TEA website at http://www.tea.state.tx.us/index4.aspx?id=1222.

The adopted amendment to §109.41 changes the date from "June 2008" to "January 2010" to reflect the most recent version of the Resource Guide. The adopted amendments to the Resource Guide include updates as a result of recent legislative changes as well as updates to accounting and auditing standards. The charter school supplement was also updated to reflect legislative changes as well as updates to accounting and auditing standards.

The TEA determined that there is no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

The public comment period on the proposal began February 12, 2010, and ended March 15, 2010. No public comments were received.

The amendment is adopted under the TEC, §§7.055, 7.102(c)(32), 44.001, 44.007, and 44.008, which authorize the commissioner of education to establish advisory guidelines relating to fiscal management of a school district and the State Board of Education to establish a standard school fiscal accounting system in conformity with generally accepted accounting principles.

The adopted amendment implements the TEC, §§7.055, 7.102(c)(32), 44.001, 44.007, and 44.008.