PRINTER'S NO. 3960
No. 2629 Session of 2006
INTRODUCED BY BARRAR, ARMSTRONG, BEYER, BOYD, CALTAGIRONE,
GOODMAN, HERSHEY, McCALL, S. MILLER, NICKOL, PRESTON, PYLE,
RAPP, R. STEVENSON, E. Z. TAYLOR AND WRIGHT, APRIL 25, 2006
REFERRED TO COMMITTEE ON EDUCATION, APRIL 25, 2006
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for reports to
6 Department of Education and for financial reports.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Sections 218 and 921-A of the act of March 10,
10 1949 (P.L.30, No.14), known as the Public School Code of 1949,
11 amended or added May 10, 2000 (P.L.44, No.16), are amended to
12 read:
13 Section 218. Reports to Department of Education.--All
14 financial accounting and reporting by school districts to the
15 Department of Education shall be in accordance with generally
16 accepted accounting and reporting standards[.], except for the
17 annual financial report. The Department of Education shall
18 establish a reporting standard for the annual financial report.
19 The standard shall conform to fund level reporting criteria
1 only, and will be an allowed other comprehensive basis of
2 accounting. For purposes of this section, an "other
3 comprehensive basis of accounting" shall mean a basis of
4 accounting, other than generally accepted accounting principles,
5 that an entity uses to report its assets, liabilities, equity,
6 revenues and expenses.
7 Section 921-A. Financial Reports.--An annual financial
8 report shall be submitted to the Secretary of Education by each
9 intermediate unit not later than the first day of October,
10 together with an auditor's report prepared by an independent
11 auditor who shall be a certified public accountant or other
12 competent public accountant. All financial accounting and
13 reporting by intermediate units to the Department of Education
14 shall be in accordance with generally accepted accounting and
15 reporting standards[.], except for the annual financial report.
16 The Department of Education shall establish a reporting standard
17 for the annual financial report. The standard shall conform to
18 fund level reporting criteria only, and will be an allowed other
19 comprehensive basis of accounting. For purposes of this section,
20 an "other comprehensive basis of accounting" shall mean a basis
21 of accounting, other than generally accepted accounting
22 principles, that an entity uses to report its assets,
23 liabilities, equity, revenues and expenses.
24 Section 2. This act shall take effect July 1, 2006, or
25 immediately, whichever is later.
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