3.01 “Annexation” means the joining of an affected school district or part of an affected school district with a receiving district pursuant to Ark. Code Ann. § 6-13-1401 et seq.

3.02 “Capital Outlay Expenditures” means land, land improvements, buildings, infrastructure and equipment having a unit value of $1,000 or more and a life expectancy of more than one year.

3.03 “Consolidation” means the joining of two (2) or more school districts or parts of the districts to create a new single school district pursuant to Ark. Code Ann. § 6-13-1401 et seq.

3.04 “Current Year Expenditures” means the total expenditures accruing to the combined teacher salary, operating, and debt service funds, excluding restricted funds.

3.05 “Current Year Revenues” means the total revenues accruing to the combined teacher salary, operating, and debt service funds, excluding restricted funds.

3.06 “Day” means a calendar day, unless otherwise specified in these rules, regardless of whether it is a day the Division or a public school district conducts official business.

3.07 “Debt” means a legal liability, encumbrance or contract, including employment contracts, to be paid out of future revenues or current reserves of the district.

3.08 “Declining Balance” means balance resulting when current year expenditures exceed current year revenues.

3.09 “Fiscal Distress Financial Improvement Plan (Plan)” means the written plan submitted by a district classified in fiscal distress and approved by the Division to be implemented by the district addressing each indicator of fiscal distress identified by the Division and the State Board with a specific corrective action plan and timeline.

3.10 “Fiscal Distress Status” means the status of a public school district identified by the Division and classified by the State Board as being placed in fiscal distress status pursuant to Ark. Code Ann. § 6-20-1901 et seq. and these rules.

3.11 “Fiscal Integrity” means to comply with financial management, accounting, auditing, and reporting procedures and facilities management procedures as required by state and federal laws and regulations in a forthright and timely manner.

3.12 “General Business Manager” means a chief financial officer or business manager, however the position is titled, who:

3.13 “Jeopardize” means to expose to loss, injury, or peril.

3.14 “Material Failure, Violation, Default, or Discrepancies” means an act, omission, event, circumstances, or combination thereof, that directly jeopardizes the fiscal integrity of a school district.

3.15 “Non-Material Failure, Violation, Default, or Discrepancies” means an act, omission, event, circumstance, or combination thereof, that does not directly jeopardize the fiscal integrity of a school district, but without intervention could place the school district in fiscal distress.

3.16 “Public school” means:

3.17 “Public school district” means:

3.18 “Reconstitution” means the reorganization of the administrative unit or the governing school board of directors of a school district, including, but not limited to, the replacement or removal of a current superintendent or the removal or replacement of a current school board of directors or both;

3.19 “Restricted Funds” means funds accruing to the teacher salary, operating and debt service funds that can be used only for specific purposes as stated in law or in accordance with a grant award (such as ESA, ALE, ELL, Professional Development).

3.20 “School district systems” means the operations and procedures that occur within a public school district, including without limitation:

3.21 “School Year” means a school year beginning July 1 of one calendar year and ending June 30 of the following calendar year.

3.22 “State Board” means the Arkansas State Board of Education.