TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 17. TEXAS STATE SOIL AND WATER CONSERVATION BOARD

Chapter 525. AUDIT REQUIREMENTS FOR SOIL AND WATER CONSERVATION DISTRICTS

Subchapter A. AUDITS OF DISTRICTS

The Texas State Soil and Water Conservation Board proposes the repeal 31 TAC §525.8, and simultaneously proposes new §525.8, defining guidelines for audit and financial reporting by Soil and Water Conservation Districts. The proposed rule explains the compliance contingencies of audit and financial statement reporting to the Texas State Soil and Water Conservation Board by Soil and Water Conservation Districts.

The repeal of §525.8 is due to a publication error in the Texas Register dated January 4, 2002. In that issue the body of §525.9 was duplicated in §525.8.

Bobbie Stephens, Assistant Executive Director Administration, has determined that there will not be any fiscal implications as a result of enforcing or administering this rule.

There will be no effect on state government for the first five-year period the rule will be in effect.

There will be no effect on local government for the first five-year period the rule will be in effect.

There is no anticipated effect on small business.

Bobbie Stephens, Assistant Executive Director Administration, has determined that for each year of the first five years the rule as proposed is in effect, the reporting requirements and penalties for lack of, will assist the Texas State Soil and Water Conservation Board in monitoring fund usage by the districts and assist Soil and Water Conservation Districts in monitoring funds. There is no anticipated economic cost to individuals who are required to comply with the rule.

Comments on the proposal may be submitted to Robert G. Buckley, Texas State Soil and Water Conservation Board, P.O. Box 658, Temple, TX 76503.

31 TAC §525.8

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas State Soil and Water Conservation Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under Chapter 201.020 Agriculture Code, which provides the Texas State Soil and Water Conservation Board with the authority to adopt rules as necessary for the performance of its functions under the Agriculture Code.

No other statutes, articles or codes are affected by this amendment.

§525.8.District Divisions and Reorganizations.

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 April 29, 2002.

TRD-200202660

Robert G. Buckley

Executive Director

Texas State Soil and Water Conservation Board

Earliest possible date of adoption: June 9, 2002

For further information, please call: (254) 773-2250


31 TAC §525.8

The new section is proposed under Chapter 201.020 Agriculture Code, which provides the Texas State Soil and Water Conservation Board with the authority to adopt rules as necessary for the performance of its functions under the Agriculture Code.

No other statutes, articles or codes are affected by this amendment.

§525.8.Compliance Contingencies.

(a) The Annual Financial Report must be filed no later than 60 days after August 31 of each fiscal year.

(1) A District's funds will be considered out of compliance and placed on "hold" status if an Annual Financial Statement is not received by the State Soil and Water Conservation Board by October 30 of each fiscal year.

(2) A District's funds will be placed on "hold" status if the Annual Financial Statement has been received by the due date but the District has not corrected errors on the Annual Financial Statement by December 31 of each fiscal year.

(b) The Audit Report must be filed no later than 120 days after August 31 of each even numbered years.

(1) A District's funds will be considered out of compliance and placed on "hold" status if an Audit Report is not received by the State Soil and Water Conservation Board by January 1 of each odd numbered year.

(2) A District's funds will be placed on "hold" status if the Audit Report has been received by the due date but the District has not corrected errors on the Audit Report by February 28 of odd numbered years.

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 April 29, 2002.

TRD-200202659

Robert G. Buckley

Executive Director

Texas State Soil and Water Conservation Board

Earliest possible date of adoption: June 9, 2002

For further information, please call: (254) 773-2250