Subchapters 16 through 22 Readoption with Amendments N.J.A.C. 6A:23A, Fiscal Accountability, Efficiency and Budgeting Procedures Subchapters 16 through 22 Readoption with Amendments

Overview of Chapter 23A Chapter set to expire November 25, 2016 Proposing a readoption with only technical amendments. We recognize substantive changes are needed, and intend to address them in a series of future rulemakings beginning shortly with Subchapter 18 (PSSDs). Chapter 23A is divided into 2 major sections: Commissioner has purview over subchapters 1-15 State Board has purview over subchapters 16-22

Commissioner & State Board Rules Subchapters 16 - 22 Subchapters 1 – 15 Commissioner’s Authority Subchapters include: definitions, ECS duties, school district fiscal accountability, travel policies, budget development & review, and state aid for charter schools. Process starts at Proposal Level. Requires 3 public hearings State Board Authority Subchapters include: GAAP accounting, tuition calculations, student residency, public school contracts, and charter financial operations. Proposal level estimated for November. Subject to State Board approval

Technical Changes The Department is proposing only technical changes at this time, which include updates for the following: Outdated code and statutory references Titles Division of Finance = Office of School Facilities & Finance Department of Education = Department Terminology district = school district school board = district board of education Terminology & titles changed to remain consistent with GAAP & OMB Circulars Grammar and punctuation

Subchapters 16 – 22 (State Board) 16 – Double Entry Bookkeeping & GAAP Accounting 17 – Tuition Public Schools (school districts & CVSDs) 18 – Tuition for PSSDs No changes proposed for this section 19 – Emergency State Aid & Residency Determination 20 – Purchase and Loan of Textbooks 21 – Management of Public School Contracts 22 – Financial Operations of Charter Schools

Subchapters 1 – 15 (Commissioner’s) 1 – Definitions 2 – Executive County Superintendents (ECS) 3 – Administrator & board member accountability 4 – School district fiscal accountability 5 – Effective & efficient expenditures of district funds 6 – Conditions for the receipt of State aid 7 – School district travel policies & procedures 8 – Annual budget development & submission 9 – ECS budget review procedures 10-12 – Growth limits, waivers, & separate question(s) 13 – Budget Transfers, underestimated surplus and deficits 14 – Reserve accounts 15 – State aid calculations for charter schools