The Texas Education Agency (TEA) adopts an amendment to §109.41, concerning the "Financial Accountability System Resource Guide," without changes to the proposed text as published in the May 25, 2001, issue of the Texas Register (26 TexReg 3682) 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 such as financial reporting, budgeting, purchasing, auditing, site-based decision making, data collection and reporting, and management. 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. The "Resource Guide" is available at www.tea.state.tx.us/school.finance/ on the TEA website.

The adopted amendment to §109.41 changes the date from "December 1999" to "July 2001" to reflect the effective date of the amendments to the "Resource Guide." Under §109.41(b), the commissioner of education shall amend the "Resource Guide," adopting it by reference, as needed. The amendments to the "Resource Guide" include changes to auditing and financial accounting and reporting guidelines. The amendments are necessary to implement proposed new financial reporting standards established by the Governmental Accounting Standards Board, changes to fund codes for state and federally funded projects that will be effective September 2001, and other minor amendments to the "Resource Guide."

No comments were received regarding adoption of the amendment.

The amendment is adopted under the Texas Education Code, §§7.055, 44.001, 44.007, and 44.008, which authorizes 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.