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 June 21, 2002, issue of the Texas Register (27 TexReg 5349) 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 http://www.tea.state.tx.us/school.finance/ on the TEA website.

The adopted amendment to §109.41 changes the date from "December 2001" to "September 2002" to reflect the effective date of the adopted 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 adopted amendments to the "Resource Guide" include changes to auditing, financial accounting, and reporting guidelines due to changes required by General Accounting Standards Board 34; changes to fund codes for state and federally funded projects as a result of the No Child Left Behind Act; and other minor edits.

No comments were received regarding adoption of the proposed 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.