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 November 1, 2002, issue of the Texas Register (27 TexReg 10274) 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, management, and state compensatory education. 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 "September 2002" to "January 2003" to reflect the effective date of 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" incorporate audit standards for leaver records, changes to other auditing standards, changes to the charter school financial accounting and reporting standards, 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, 39.055, 44.001, 44.007, and 44.008, which authorizes the commissioner of education to prescribe the standards for the required agreed-upon procedures of school district leaver records and 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.