DEPARTMENT OF EDUCATION

Office of the Secretary

Statutory Authority: 14 Delaware Code, Section 122(b)(11) (14 Del.C. §122(b)(11))

14 DE Admin. Code 735

PROPOSED

PUBLIC NOTICE

Education Impact Analysis Pursuant To 14 Del.C. Section 122(d)

735 Standardized Financial Reporting and Transparency

A. TYPE OF REGULATORY ACTION REQUIRED

Amendment to Existing Regulation

B. SYNOPSIS OF SUBJECT MATTER OF THE REGULATION

Pursuant to 14 Del.C. §122(b)(11), the Secretary of Education intends to amend 14 DE Admin. Code 735 Standardized Financial Reporting and Transparency. The Department has reviewed the regulation in order to comply with 29 Del.C. §10407 which requires regulations to be reviewed on a recurring basis every four years and updated the regulation to align with current practice and to further clarify and update terminology.

Persons wishing to present their views regarding this matter may do so in writing by the close of business on or before December 4, 2019 to Department of Education, Office of the Secretary, Attn: Regulation Review, 401 Federal Street, Suite 2, Dover, Delaware 19901 or email to DOEregulations.comment@doe.k12.de.us. A copy of this regulation may be viewed online at the Registrar of Regulation’s website, http://regulations.delaware.gov/services/current_issue.shtml, or obtained at the Department of Education, located at the address listed above.

C. IMPACT CRITERIA

1. Will the regulation help improve student achievement as measured against state achievement standards? The reauthorized regulation does not directly address student achievement as measured against state achievement standards.

2. Will the regulation help ensure that all students receive an equitable education? The reauthorized regulation is intended to help ensure all students receive an equitable education.

3. Will the regulation help to ensure that all students’ health and safety are adequately protected? The reauthorized regulation does not address student health and safety.

4. Will the regulation help to ensure that all students’ legal rights are respected? The reauthorized regulation continues to help ensure that all students’ legal rights are respected.

5. Will the regulation preserve the necessary authority and flexibility of decision making at the local board and school level? The reauthorized regulation does not change the decision making at the local board and school level.

6. Will the regulation place unnecessary reporting or administrative requirements or mandates upon decision makers at the local board and school levels? The reauthorized regulation does not place any unnecessary reporting or administrative requirements on decision makers.

7. Will the decision making authority and accountability for addressing the subject to be regulated be placed in the same entity? The decision making authority and accountability for addressing the subject to be regulated does not change because of the reauthorized regulation.

8. Will the regulation be consistent with and not an impediment to the implementation of other state educational policies, in particular to state educational policies addressing achievement in the core academic subjects of mathematics, science, language arts and social studies? The reauthorized regulation is consistent with and not an impediment to the implementation of other state educational policies.

9. Is there a less burdensome method for addressing the purpose of the regulation? There is not a less burdensome method for addressing the purpose of the regulation.

10. What is the cost to the State and to the local school boards of compliance with the regulation? There is no expected cost to implementing this reauthorized regulation.

735 Standardized Financial Reporting and Transparency

1.0 Purpose

The purpose of this regulation is to outline the criteria and process for the required standardized financial reporting pursuant to 14 Del.C. §122(b)(11); and the uniformity and transparency in the financial recording and bookkeeping practices of the school districts and charter schools pursuant to 14 Del.C., §§1508 and 1509.

13 DE Reg. 933 (01/01/10)

2.0 Definitions

“Charter School” shall mean a charter school board established pursuant to Chapter 5 of Title 14 of the Delaware Code means a non-home based full-time public school that is operated in an approved physical plant under a charter granted by, or transferred to, the Department of Education or other authorizing body for the personal physical attendance of all students.

"Delaware Educational Statistics Report" shall mean the annual reports maintained by the Delaware Department of Education related to financial and pupil information.

"Delaware Financial Management System or (DFMS)" shall mean the State of Delaware's system for managing financial transactions.

“District” shall mean means a reorganized school district or vocational technical school district established pursuant to Chapter 10 of Title 14 of the Delaware Code 14 Del.C. Ch. 10.

“First State Financials” or “FSF” means the State of Delaware’s system for managing financial transactions.

"Open Checkbook" means the State of Delaware's official online checkbook that provides the ability to view payment information by state agency, expenditure category, or vendor and includes information on credit card transactions of state employees.

"PHRST" shall mean means the State of Delaware's payroll and human resources system.

"State of Delaware Online Checkbook" shall mean the State of Delaware's official online checkbook. The online checkbook provides the ability to view payment information by state agency, expenditure category, or vendor. The data are updated on a quarterly basis.

13 DE Reg. 933 (01/01/10)

3.0 Standardized Financial Report

Standardized Financial Report financial reports shall mean the provide a summary of the District’s or Charter School’s financial documentation data provided in a format approved by the Department of Education that includes, but is not limited to, the District’s or Charter School’s most current expenditure and revenue budgets. This documentation shall include encumbrances, expenditures, and remaining balances by category as prescribed in the approved format. Districts and Charter Schools shall indicate on the Standardized Financial Report reports whether the most current expenditure and revenue budgets are preliminary, amended or have been finalized by its approving entity.

13 DE Reg. 933 (01/01/10)

4.0 Uniformity and Transparency in Financial Recording and Bookkeeping Practices

4.1 Each District and Charter School shall be required to use the following:

4.1.1 Delaware Financial Management System FSF or successor thereof for all financial transaction maintained in that system;

4.1.2 PHRST for payroll purposes; and

4.1.3 All other financial reporting formats or templates as provided by the Department of Education.

13 DE Reg. 933 (01/01/10)

5.0 Reporting Requirements and Timelines

5.1 Each District and Charter school School, no later than fifteen (15) working days after the most recent District or Charter School board meeting, shall post the most current Standardized Financial Report standardized financial report on its website. Provided further, the District or Charter School shall provide post the final Standardized Financial Report for the past school year, no later than September 1st of each year.

5.2 Each District and Charter school School shall provide a link on its website to the State of Delaware Online Open Checkbook, which includes state employee credit card transactions.

5.3 Each District and Charter school School shall provide a link on its website to the Delaware Educational Statistics Report Card, which includes additional financial reporting data.

11 DE Reg. 918 (01/01/08)

13 DE Reg. 933 (01/01/10)

23 DE Reg. 349 (11/01/19) (Prop.)