April 2021 Committee on School Finance/Permanent School Fund Item 2

Discussion of Proposed Amendment to 19 TAC Chapter 109, Budgeting, Accounting, and Auditing, Subchapter B, Texas Education Agency Audit Functions, §109.25, State Compensatory Education Program Reporting and Auditing System

April 15, 2021

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION

SUMMARY: This item provides an opportunity for the committee to discuss a proposed amendment to 19 Texas Administrative Code (TAC) Chapter 109, Budgeting, Accounting, and Auditing, Subchapter B, Texas Education Agency Audit Functions, §109.25, State Compensatory Education Program Reporting and Auditing System. The proposed amendment would update references to statutory citations that were renumbered by House Bill (HB) 3, 86th Texas Legislature, 2019.

STATUTORY AUTHORITY: Texas Education Code (TEC), §48.104, as redesignated and amended by HB 3, 86th Texas Legislature, 2019.

TEC, §48.104, as redesignated and amended by HB 3, 86th Texas Legislature, 2019, requires the State Board of Education (SBOE) to adopt rules requiring a report on the use of compensatory education funds as part of the annual audit and develop minimum requirements for that report.

The full text of statutory citations can be found in the statutory authority section of this agenda.

FUTURE ACTION EXPECTED: The proposed amendment to §109.25 will be presented for first reading and filing authorization at the June 2021 SBOE meeting.

BACKGROUND INFORMATION AND JUSTIFICATION: Section 109.25 addresses the requirement for each school district and charter school to report financial information relating to the expenditure of the state compensatory education allotment under the Foundation School Program to the Texas Education Agency.

Changes to §109.25 are recommended as a result of the statutorily required rule review of 19 TAC Chapter 109. The proposed amendment would replace TEC, §42.152(c), with §48.104(k) and TEC, §42.152(q), with §48.104(o) to reflect the renumbering of statute by HB 3, 86th Texas Legislature, 2019.

The attachment to this item reflects the text of the proposed amendment to §109.25 for consideration by the committee.

Staff Members Responsible:
Leo Lopez, Associate Commissioner, School Finance
David Marx, Director, Financial Compliance

Attachment:
Text of Proposed Amendment to 19 TAC Chapter 109, Budgeting, Accounting, and Auditing, Subchapter B, Texas Education Agency Audit Functions, §109.25, State Compensatory Education Program Reporting and Auditing System