FINANCIALLY DORMANT DISTRICTS

(a) A financially dormant district is a district that had: (1) $500 or less of receipts from operations, tax assessments, loans, contributions, or any other sources during the calendar year; (2) $500 or less of disbursements of funds during the calendar year; (3) no bonds or other long-term (more than one year) liabilities outstanding during the calendar year; and (4) no cash or investments that exceeded $5,000 at any time during the calendar year. (b) A financially dormant district may elect to submit to the executive director a financial dormancy affidavit instead of complying with the audit requirements of Section 49.191. (c) The annual financial dormancy affidavit shall be prepared in a format prescribed by the executive director and shall be submitted for filing by a duly authorized representative of the district. (d) The affidavit must be filed annually on or before January 31 with the executive director until such time as the district becomes financially active and the board adopts a fiscal year; thereafter, the district shall file annual audit reports as prescribed by this subchapter. (e) A district that becomes financially dormant after having been financially active shall be required to file annual financial dormancy affidavits on or before January 31, until the district is either dissolved or again becomes financially active. (f) Districts governed by this section are subject to periodic audits by the executive director.