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3. BUDGETARY COMPLIANCE AND ACCOUNTABILITY
The Board maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board. The Board follows procedures established by State statutes and State Board of Education rules in establishing budget balances for governmental funds, as described below:
Budgets are prepared, public hearings are held, and original budgets are adopted annually for all governmental fund types in accordance with procedures and time intervals prescribed by law and State Board of Education rules.
Appropriations are controlled at the object level (e.g., salaries, purchased services, and capital outlay) within each activity (e.g., instruction, student support services, and school administration) and may be amended by resolution at any School Board meeting prior to the due date for the annual financial report.
Budgets are prepared using the same modified accrual basis as is used to account for governmental funds.
Budgetary information is integrated into the accounting system and, to facilitate budget control, budget balances are encumbered when purchase orders are issued.
Appropriations lapse at fiscal year-end and encumbrances outstanding are honored from the subsequent year's appropriations.
The reported budgetary data consists of the original budget as well as the final appropriated budget after amendments are approved by the Board.