WSR 05-17-177

PERMANENT RULES

SUPERINTENDENT OF

PUBLIC INSTRUCTION

[ Filed August 23, 2005, 4:39 p.m. , effective September 23, 2005 ]


Purpose: The rules are being amended to accommodate repealing of RCW 28A.310.380 and also incorporate guidance for use of interfund loans used by the ESDs. This will allow ESDs to establish enterprise funds to account for those operations requiring enterprise fund accounting. This will establish authority to allow ESDs to use interfund loans between the general fund and enterprise fund operations. This authority is modeled after the school district interfund loan process.

Citation of Existing Rules Affected by this Order: Amending chapter 392-125 WAC.

Statutory Authority for Adoption: Chapter 28A.150 RCW.

Adopted under notice filed as WSR 05-11-030 on May 10, 2005.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 1, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: August 15, 2005.

Marty Daybell

for Dr. Terry Bergeson

State Superintendent

OTS-8063.1


AMENDATORY SECTION(Amending Order 81-19, filed 9/4/81)

WAC 392-125-010   Principles of accounting.   In all cases, the budgeting and accounting systems of educational service districts shall be governed by generally accepted accounting principles modified where necessary by statute and/or this chapter. The Accounting Manual for Educational Service Districts shall govern the accounting system of educational service districts and is hereby incorporated into this chapter by this reference. Prior to any revision thereof, the superintendent of public instruction shall publish notice of such proposed action and shall hold at least one public hearing. ((The general expense fund of an educational service district shall be the only fund of the district and shall be used for all activities which an educational service district performs.))

[Statutory Authority: RCW 28A.21.135. 81-19-007 (Order 81-19), 392-125-010, filed 9/4/81; Order 8-76, 392-125-010, filed 7/23/76; Order 7-75, 392-125-010, filed 12/22/75. Formerly WAC 392-31-020.]


NEW SECTION
WAC 392-125-100   Interfund loans -- Definition.   An interfund loan is considered to be a temporary loan of moneys between one educational service district fund and another. An interfund loan is not considered to be an investment.

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NEW SECTION
WAC 392-125-105   Interfund loans allowable.   Loans are allowable to the general expense fund and the enterprise fund. Loans shall not be made to the detriment of any function or project for which the fund was established.

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NEW SECTION
WAC 392-125-110   Interfund loans -- Identification of temporary loans.   A temporary loan is considered to be a loan which is completely liquidated in less than one year.

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NEW SECTION
WAC 392-125-120   Interfund loans -- Payment of interest.   Interest shall be charged by the loaning fund to be paid by the borrowing fund. The rate of interest shall be not less than the current warrant interest rate prevailing in the county in which the educational service district is considered to be located. The interest shall be credited to the loaning fund and shall not be transferred to any other fund.

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NEW SECTION
WAC 392-125-130   Interfund loans -- Full disclosure on financial statements.   Financial reports of each educational service district, including the monthly financial reports provided to the board of directors of the educational service district, shall specify all outstanding interfund loans and all interest charges involved. The proceeds of any interfund loan shall not be used to balance the budget of the borrowing fund.

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NEW SECTION
WAC 392-125-140   Interfund loans -- board resolution adopted -- Contents.   The board of directors of an educational service district shall adopt a resolution before any interfund loan transaction may take place. The resolution shall contain the exact amount of the loan, the funds involved, the specific source of funds for repayment, the schedule for repayment, and the interest rate involved.

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Washington State Code Reviser's Office