Uniform Budgeting & Accounting Act
School Advisor , 2006 Issue No. 2

Recently, a few districts have received letters from the Department of Education stating that, based on a review of the district’s June 30, 2005 financial statements, it appears the district may have violated the Uniform Budgeting & Accounting Act (primarily by having total actual expenditures exceed total budgeted expenditures). This effort by the state has resulted in a series of meetings and discussions initiated by MSBO between various interested parties and the Department of Education. Several positions outlined by the Department of Education need further clarification which is currently underway.

In the meantime, please be alert to the fact that the Department of Education has renewed interest in monitoring and enforcing compliance with the Uniform Budgeting & Accounting Act (P.A. 621). In particular, it will be critical to amend your June 30, 2006 budget, if necessary, prior to June 30, 2006 in order to avoid overall expenditures in excess of budget — the existence of which is a clear starting point for inquiry into possible violations of the Act.