TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 5. FUNDS MANAGEMENT (FISCAL AFFAIRS)

Subchapter N. FUNDS ACCOUNTING--ACCOUNTING POLICY STATEMENTS

34 TAC §5.160

The Comptroller of Public Accounts proposes an amendment to §5.160, concerning incorporation by reference: accounting policy statements 2004-2005. The accounting policy statements have been revised to reflect changes in accounting policies and procedures necessitated by statutory changes made by the 79th Legislature. The accounting policy statements are issued to provide procedures and guidelines to state agencies for the effective operation of the Uniform Statewide Accounting System (USAS) and for preparation of the annual financial report. Each accounting policy statement contains legal references, a background section, comptroller requirements and state agency requirements, and division contact if more information is needed. Section 5.160 is also being amended to correct the applicable biennium years, the effective date, and the website at which the accounting policy statements can be accessed by the public.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the public benefit anticipated as a result of enforcing the rule will be in promoting more efficient state accounting operations. This rule is adopted under Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposed rules may be addressed to Ken Welch, Director, Fiscal Management Division, Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711.

The amendment is proposed under Texas Government Code, §§403.011, 2101.012, 2101.035 and 2101.037 which provide the comptroller with the authority to prescribe rules and procedures relating to the operation of the Uniform Statewide Accounting System, the preparation of the annual financial report and supervising the state's fiscal concerns.

The amendment implements Government Code, §§403.011, 2101.012, 2101.035, and 2101.037.

§5.160.Incorporation by Reference: Accounting Policy Statements 2006-2007 [ 2004-2005 ].

The "Accounting Policy Statements 2006-2007 [ 2004-2005 ]," issued by the Fund Accounting Division of the Comptroller of Public Accounts as of November 22, 2005 [ October 31, 2003 ], are incorporated by reference and filed with the secretary of state. All statements are published by the comptroller in Austin, and copies may be obtained from the comptroller upon request. All statements are also available on the comptroller's website at: https://fmx.cpa.state.tx.us/fm/pubs/aps/index.php [ http://www.window.state.tx.us ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 6, 2006.

TRD-200600617

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: March 19, 2006

For further information, please call: (512) 475-0387