Ohio Admin. Code 3301-92-04 - Reporting five-year projections
(A)
Definitions.
(1)
The terms "five-year forecast" and "five-year
projections" are used interchangeably and refer to the "five-year projections
of operational revenues and expenditures" described in section
5705.391
of the Revised Code.
(2)
The term "fiscal oversight" refers to the three fiscal
declaration categories established under Chapter 3316. of the Revised Code:
fiscal caution, fiscal watch, and fiscal emergency.
(3)
All references to
the "department" refer to the Ohio department of education.
(4)
All references to
the "auditor" refer to the Ohio auditor of state.
(B)
Submission
dates.
(1)
No
later than November thirtieth of each fiscal year, a board of education shall
submit to the department a board of education approved five-year projection of
operational revenues and expenditures for the current fiscal year and the
ensuing four fiscal years. A board of education may approve and submit its
five-year projection to the department up to sixty days in advance of this due
date.
(2)
By May thirty-first of each fiscal year, a board of
education shall submit to the department a board of education approved update
of its five-year projection. A board of education may approve and submit the
update of its five-year projection up to sixty days in advance of this due
date.
(3)
Nothing precludes a board of education from filing
other updates to its five-year projection at any time in addition to the
filings required by paragraphs (B)(1) and (B)(2) of this rule.
(C)
Submission requirements.
(1)
All five-year
forecasts shall:
(a)
Use the known operational revenues, expenditures, and
resulting cash balance of the district as the basis for
projections;
(b)
Include accompanying notes for each reported line item
that describe the assumptions used to develop the projected
amounts;
(c)
Ccontain all required information and be in the format
prescribed by the department and auditor;
(d)
Be approved by
the board of education; and
(e)
Be submitted to
the department through the education management information system
(EMIS).
(2)
The department of education or auditor of state may
require historical financial information.
(D)
Examinations.
The
department or the auditor shall examine, at no cost to the district, the
five-year projections and determine whether any further fiscal analysis is
needed to ascertain whether a district has the potential to incur a deficit
during the first three years of the five-year period, and may make
recommendations to update a five-year forecast submission ased on their
examination.
(E)
Written plan requirements.
(1)
A board of
education notified under division (A) of section
5705.391
of the Revised Code shall submit a board of education approved written plan to
the department to eliminate any current fiscal year deficits and avoid the
projected future deficits.
(2)
All written plans
are to be in the format prescribed by the department and contain the following
information:
(a)
A summary narrative describing the district's plan to
eliminate the forecasted deficits which demonstrates the board of education's
understanding of the fiscal distress reflected in the projections and
acknowledges the board of education's responsibility to resolve the forecasted
deficits;
(b)
A completed written plan workbook using the workbook
template provided by the department, unless the board of education requests and
the department approves an alternative format; and
(c)
An explanation of
how the board of education will be kept informed on the status of the written
plan implementation including the financial reports to be used to monitor and
manage the district's financial status.
(3)
The department
may request the written plan to be submitted through EMIS.
(4)
All written plans
are due within forty-five days of the date of the notification letter which
required the written plan, unless extended by the department. Prior to the
original due date of the written plan, a district board of education may
submit, via email, a written request for an extension. The extension request
will be approved or disapproved at the discretion of the
department.
(5)
The department will evaluate written plan submissions
and either approve or disapprove the plans. If the initial written plan is
disapproved, recommendations to render the written plan acceptable will be
provided along with a due date to remedy the identified written plan
deficiencies.
(F)
Written plan implementation and results
monitoring.
(1)
If the board of education fails to submit a written plan or
does not modify a disapproved plan to render it approvable by the due date
established by the department, it may be cause for the district to be subject
to fiscal oversight in accordance with Chapter 3316. of the Revised
Code.
(2)
The department may request the board of education to
update the district's five-year forecast, including assumptions, to be
consistent with the board of education's written plan approved by the
department. If the board of education does not update the forecast as
requested, the department may determine the district to be subject to fiscal
oversight in accordance with Chapter 3316. of the Revised Code.
(3)
The department
may request evidence the board of education is monitoring the implementation of
the written plan. This evidence may include documentation necessary to identify
and evaluate the sufficiency of the actions taken by the board to correct the
budgetary conditions which prompted the need for the written plan and to
determine if fiscal oversight is necessary to prevent further fiscal decline.
If the board does not provide evidence, the department may determine the
district to be subject to fiscal oversight in accordance with Chapter 3316. of
the Revised Code.
Replaces: 3301-92-04
Notes
Promulgated Under: 119.03
Statutory Authority: 3301.07, 5705.391
Rule Amplifies: 5705.391
Prior Effective Dates: 06/22/1998, 07/01/2002, 01/20/2006
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