SF 2954

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education finance; creating a school district consolidated financial
statement; requiring the conversion of Uniform Financial Accounting and
Reporting Standards data into a new consolidated financial statement format;
requiring the new consolidated financial statement to be published on the
Department of Education Web site; creating a task force; amending Minnesota
Statutes 2004, section 123B.77, subdivisions 2, 3, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 123B.77, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin School district consolidated financial statement. new text end

new text begin The commissioner,
in consultation with the consolidated financial statement task force, shall develop and
maintain a school district consolidated financial statement format that converts uniform
financial accounting and reporting standards data under subdivision 1 into a more
understandable format.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123B.77, subdivision 2, is amended to read:

Subd. 2.

Audited financial statement.

new text begin (a) new text end Each district must submit to the
commissioner by September 15 of each year unaudited financial data for the preceding
fiscal year. These financial data must be submitted in the format prescribed by the
commissioner.

new text begin (b) By September 30 of each year the commissioner shall convert the unaudited
financial data required by this subdivision into the consolidated financial statement format
required under subdivision 1a and publish the information on the department's Web site.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for financial statements prepared in
2006 and later.
new text end

Sec. 3.

Minnesota Statutes 2004, section 123B.77, subdivision 3, is amended to read:

Subd. 3.

Statement for comparison and correction.

new text begin (a) new text end By November 30 of the
calendar year of the submission of the unaudited financial data, the district must provide to
the commissioner audited financial data for the preceding fiscal year. The audit must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
of the State Auditor. An audited financial statement prepared in a form which will allow
comparison with and correction of material differences in the unaudited financial data
shall be submitted to the commissioner and the state auditor by December 31. The audited
financial statement must also provide a statement of assurance pertaining to uniform
financial accounting and reporting standards compliance and a copy of the management
letter submitted to the district by the school district's auditor.

new text begin (b) By December 15 of the calendar year of the submission of the unaudited financial
data, the commissioner shall convert the audited financial data required by this subdivision
into the consolidated financial statement format required under subdivision 1a and publish
the information on the department's Web site.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for financial statements prepared in
2006 and later.
new text end

Sec. 4. new text begin CONSOLIDATED FINANCIAL STATEMENT TASK FORCE.
new text end

new text begin The commissioner of education must convene a task force to develop a consolidated
financial statement that converts school district revenues and expenditures from the
uniform financial accounting and reporting standards, under Minnesota Statutes, section
123B.77, subdivision 1, to a consolidated financial statement recommended on November
11, 2005, by the Describing School Finances Committee. The task force shall consist of 11
members. The commissioner of education or the commissioner's designee shall chair the
task force. The commissioner shall appoint two members from the Minnesota Department
of Education. One task force member each shall be appointed from the Association of
Metropolitan School Districts, the Schools for Equity in Education, the Minnesota Rural
Education Association, and the Minnesota Association of School Business Officials. The
chairs of the house Education Finance Budget Division and the senate K-12 Education
Budget Division must each appoint two members, one representing the Minnesota
business community and one public school parent. The task force shall complete its
work by August 15, 2006.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end