2001-9 Public School Academies Budget Requirements

June 22, 2001

TO: Public School Academies

FROM: Richard L. Baldermann, Administrator Local Audit and Finance Division

SUBJECT: Budget Requirements

Public Act 493 of 2000 amended certain budgeting related sections of the Uniform Budgeting and Accounting Act and the budgeting related sections were made applicable to a public school academy established under part 6a of the revised school code, Public Act 451 of 1976, as amended, MCL 380.501 to 380.507.

Chief Administrative Officer--Section 2b of the Uniform Budgeting and Accounting Act (MCL 141.422b) defines a "chief administrative officer" as a person granted general administrative control of the public school academy by the board of directors of a public school academy established under part 6a of the revised school code, Public Act 451 of 1976, MCL 380.501 to 380.507, or other person designated by the board of directors of the public school academy.

The board of directors of a public school academy must designate, by resolution, a chief administrative officer. The chief administrative officer has final responsibility for budget preparation, presentation of a proposed budget to the academy board and control of expenditures under the adopted budget and general appropriations act. The chief administrative officer may be an employee of the academy board or an employee of an educational provider.

Public Hearing--Section 14 of the Uniform Budgeting and Accounting Act (MCL 141.434) requires that before final passage of a general appropriations act by the legislative body, a public hearing shall be held as required by Budget Hearings of Local Governments Act (MCL 141.411 to 141.415). However, Section 2 of the Budget Hearings of Local Governments Act requires the notice of the public hearing to contain certain language relating to mileage rates to be levied. Since public school academies cannot levy a tax, the required language does not have to be included.

Uniform Chart of Accounts--The Michigan School Accounting Manual (Bulletin 1022) issued by the Michigan Department of Education serves as a mandatory guide to the uniform classification and recording of accounting transactions and budgeting for Michigan public school academies. If you have questions related to the Michigan School Accounting Manual, please call Glenda Rader (517) 335-0524.

If you have questions or need further assistance, please call (517) 373-3227 or write our office: Michigan Department of Treasury, Local Audit and Finance Division, P.O. Box 30728, Lansing, Michigan 48909-8228.