FINANCIAL OPERATION
Policy 3100 (Regulation 3100)
Financial Management
The Board will adopt a series of policies to provide direction
regarding the School District's budget and financial affairs which reflect the
educational philosophy of the District and provide a framework in which the
District’s administration can effectively operate.
The budget and finance processes will conform to all state and local
requirements as set forth by the State constitution, State statutes, Department
of Elementary and Secondary Education rules, and Board policies.
Good business necessitates keeping accurate, legal and understandable
records of receipts and expenditures. It is also essential that procedures be
followed which will help to insure that the budget adopted by the Board is
effective in providing parameters for the fiscal affairs of the District.
The purpose of the District budget and financial policies will be to
provide direction for a systematized procedure that maintains continuity from
year to year and informs the public regarding the education and financial
operations of the District.
FINANCIAL
OPERATIONS Policy
3102
Financial
Operations
Debt Management
Policy
The debt management policy of the District
is to remain in full compliance with statutes of the State of Missouri by
borrowing within the allowable limits of no more than fifteen percent (15.00%)
of the District’s assessed valuation, which can include state assessed railroad
and utility properties located within its boundaries. It is also important that the District
exercise caution and prudence concerning its full compliance with the rules and
regulations of the United States Department of the Treasury Internal Revenue
Service (IRS) to avoid any risk of loss of the tax exempt status of any
proposed financings, as well as those currently in existence. Generally the improper spending of the bond
proceeds is what triggers a violation of IRS regulations and not complying with
the ballot language for the projects can create problems with the Missouri
State Auditor and local patrons.
In terms of philosophy towards the
monitoring of a long term debt management policy, the Board of Education and
Administrators recognize that to achieve the necessary 4/7 or 2/3 majority for
approval by the voters of general obligation bond issues it is likely to be
much easier if no increase in the debt service fund levy occurs. As a result, it is the District’s practice to
issue general obligation bonds with optional redemption (call) provisions that
facilitate prepayments when excessive debt service fund balances accumulate
with the goal of maintaining a constant debt service fund levy. This policy has enabled the District to
achieve significant interest savings by issuing refunding bonds to capture
lower interest when municipal bond markets change.
On occasion the District may consider
capital facilities or equipment lease financing programs. It is the intent to only enter into those
types of transactions when it is clear based upon reports from the District’s
Municipal Bond Underwriter that such a program is affordable and that its
implementation does not harm the overall operating budget. If the project and lease financing are deemed
essential, but beyond the range of reasonable affordability, the Board of
Education and Administration will approach the voters for a temporary or
permanent increase in the operating levy to produce the additional revenue.
Since general obligation bond issues and
capital facilities or equipment lease financings happen intermittently, it
presents challenges for administrators and board members to keep fully informed
about the conditions of the municipal bond market, changing rules and
regulations issued by the U.S. Treasury Department, etc. For these reasons the Board of Education
engages the service of a municipal bond underwriter on a continuing basis to
assist the administrators and board members keep up to date and understand what
refunding opportunities exist and what actions are necessary to preserve the
existing debt service fund levy to remain on track with the long range
facilities plans.
The Superintendent of Schools and other
staff providing assistance with those special duties are responsible to the
Board of Education for carrying out this policy. August,
2012
FINANCIAL
OPERATIONS Policy
3106
Financial
Operations
Fraud Prevention
The
District is committed to protecting the public funds with which it has been entrusted.
Minimizing the losses to fraud and corruption is an essential part of ensuring
that all of the District's resources are used for the purpose for which they
are intended.
The
public is entitled to expect the District to conduct its affairs with integrity,
honesty and openness, and demand the highest standards of conduct from those
working for it and with it.
Definition of
Fraud and Corruption
Although
there is no precise legal definition of fraud, the term is used to describe a
multitude of offences, including deception, forgery, theft, misappropriation,
collusion and false representation of material facts.
Corruption
arises when a person receives any benefit which influences them and causes them
to act differently when conducting District business.
The District's
Response
Board
policy requires that matters involving any financial irregularities are
referred to the Superintendent for investigation. These matters are taken
seriously and additional action, such as disciplinary proceedings and/or prosecution,
will be taken where evidence of offences is found.
The Superintendent/designee will:
The Investigation
Process
The
purpose of any investigation is to establish the facts in an equitable and
objective manner.
The process will involve the use of
authority or delegated powers to:
The
Superintendent/designee will establish and record the basis of the concerns
raised and establish what further actions are required. The Board will be
informed of all reported disclosures and the actions being taken. In the case
of disclosures on alleged fraud and corruption, the Chief Financial Officer
will inform the District's external auditors.
Whenever
possible, the individual raising the concern will be advised of the outcome of
the investigation. If an individual is not satisfied with the response received
and any subsequent action taken, they should put their concerns in writing to
the Superintendent who will arrange any further investigation as he/she deems
appropriate. The Superintendent will send a written response to the individual
concerned.
Reporting
Suspicions
If
fraud or corruption is suspected, then the matter should be reported without
delay. Employees should report suspicions to a supervisor at the outset and
retain all evidence. However, if it is thought the supervisor might be involved
or there may be a conflict of interest, the matter should be reported directly
to a more senior administrator.
It
is recognized that for some individuals, raising a concern under this procedure
may be a difficult experience. All reported incidents will be investigated.
All
reports will be dealt with in confidence, with staff being informed on a need
to know basis only.
To ensure that this policy is adhered
to, and to assure staff that the concern will be taken seriously, the District
will:
Overall Objectives
The
District's overall objective is to identify and maintain good practices,
address weaknesses in current processes and introduce improved systems for the
management of those processes. The end result is that of minimizing the amount
of fraud and corruption which may occur within the system and significantly
reduce the opportunity for fraud or corruption to occur in the future. May 2008
FINANCIAL OPERATION Policy
3110 (Regulation 3110)
Financial Management
Preparation of
Budget
Each year the Superintendent of Schools is required to submit to the
Board of Education for their consideration a detailed annual budget showing
estimates of income and expenditures for the ensuing fiscal year. The Board may
accept, reject, modify or request revisions of the budget, but will adopt a
budget by June 30, according to statutory provisions.
By law the approved estimated expenditures for each fund cannot exceed
the estimated revenues to be received plus the unencumbered beginning cash
balance for the fund. After the beginning of the fiscal year, the
Superintendent shall review with the Board the adopted budget in relationship
to the beginning cash balances for each fund.
Jan
03
FINANCIAL OPERATION Policy
3111
Financial Management
Fiscal Year
The fiscal year begins annually on the first day of July and ends on
the thirtieth day of the following June.
Jan. 2003
FINANCIAL OPERATION Policy
3112
Financial Management
Budget
Implementation and Transfer
The annual budget governs the expenditures and obligation of all funds
for the District. The Superintendent/designee will establish procedures for funds
management and reporting.
No funds may be spent which are not authorized by the annual budget. If
an unanticipated need arises, the Board may approve the Superintendent's
recommendation to (1) appropriate an amount to cover a needed expenditure from
unencumbered budget surplus from the proper fund, or (2) revise the budget to
transfer funds from one account to another as permitted by state statutes and
DESE regulations.
The Superintendent or Finance Administrator will prepare a monthly
statement to account for each month's expenditures and the total spent to date
for the fiscal year. The monthly statement will include all receipts and
remaining balances for each fund account.
Jan. 2003
FINANCIAL OPERATION Policy
3113
Financial Management
District Fund
Accounts
The District will maintain the following funds for the accounting of
District moneys: teachers’ fund, incidental fund, free textbook fund, capital
projects fund and debt service fund. The
treasurer of the District will open and maintain an account for each fund. These funds are denoted for state reporting
purposes as: General Fund, Fund 1 – comprised of the Incidental and Free
Textbook Fund; Fund 2 – the Special Revenue fund comprised of the Teachers’ Fund;
Fund 3 – The Debt Service Fund; and
Fund 4 – the Capital Projects Fund.
All sums received
from the county school fund and all sums derived from taxation for teachers’
wages will be credited to the teachers’ fund.
All tuition fees, state moneys received under d162.975 and 163.031, and
all other sums received from the state except as otherwise provided in this
policy will be credited to the teachers’ fund and incidental funds at the
discretion of the Board. The portion of
state aid received by the District pursuant to d163.031 which is included in
the operating levy for school purposes will be credited to the debt service or
capital projects funds. Sums received
from other Districts for transportation and sums received from taxation for
incidental expenses will be credited to the incidental fund. Sums apportioned for free textbooks will be
credited to the free textbook fund. All
sums received from taxation or received from any other source for the erection
of buildings, building additions, remodeling, or reconstruction, furnishing,
for the payment of lease purchase obligations, for purchase of real estate, for
sale of real estate or personal property, from insurance, from sale of bonds
other than refunding bonds will be credited to the capital projects fund.
Sums received from
taxation for the retirement of bonds and the payment of interest on bonds will
be credited to the debt service fund.
Receipts from delinquent taxes will be credited to individual funds on
the same basis as receipts from current taxes.
However, where such distribution of receipts from delinquent taxes would
affect the previous years’ obligations, distribution to the various funds will
be based on the levies for the years in which the obligations were
incurred. All refunds will be credited
to the fund from which the original expenditure was made. Sums donated to the District will be credited
to the fund from which it can be expended to meet the purpose of the
donation. Sums received from any other
source will be credited to the fund designated by the Board.
Nov. 2008
FINANCIAL OPERATION Policy
3114
Financial Management
GASB 54
This Policy
establishes guidelines to be used during the preparation and execution of the
annual budget to ensure that sufficient reserves are maintained for
unanticipated expenditures or revenue shortfalls. The policy is based upon a
long-term perspective with a commitment to keeping the District in a strong
fiscal position that will allow it to better weather negative economic trends.
Background
Statement No. 54
of the Governmental Accounting Standards Board (GASB 54) establishes accounting
and financial reporting standards for all governments that report governmental
funds. It establishes criteria for classifying fund balances and clarifies
definitions for governmental fund types.
GASB 54
establishes five fund balance categories: Nonspendable, Restricted, Committed,
Assigned, and Unassigned.
Nonspendable Fund Balance consists of funds
that cannot be spent due to their form (e.g., inventories and prepaids) or
funds that legally or contractually must be maintained intact.
Restricted Fund
Balance consists of funds that are mandated for a specific purpose by external
parties, constitutional provisions or enabling legislation.
Committed Fund Balance consists of funds
that are set aside for a specific purpose by the District's highest level of
decision-making authority. Formal action must be taken prior to the end of the
fiscal year. The same formal action must be taken to remove or change the
limitations placed on the funds.
Assigned Fund
Balance consists of funds that are set aside with the intent to be used for a
specific purpose by the District's highest level of decision making authority
or a body or official that has been given the authority to assign funds. Assigned
funds cannot cause a deficit in unassigned fund balance.
Unassigned Fund Balance consists of
excess funds that have not been classified in the previous four categories. All
funds in this category are considered spendable resources. This category also provides
the resources necessary to meet unexpected expenditures and revenue shortfalls.
Actions Leading to Restricted, Committed, and Assigned
Fund Balances
The Board of
Education has the authority to set aside funds for a specific purpose.
Commitments are authorized by the Board based on fund placement in the original
adopted and later revised budget, as well as by the Board resolution. The
passage of a resolution must take place prior to June 30th of the applicable
fiscal year. If the actual amount of the commitment is not available by June
30th, the resolution must state the process of formula necessary to calculate
the actual amount as soon as information is available.
Upon adoption of a
budget where fund balance is used as a source to balance the budget, the Chief
Financial Officer shall record the amount as Assigned Fund Balance.
The Board
delegates the authority to assign amounts for specific purpose(s) to the Chief
Financial Officer, Superintendent, or Business Manager.
Order of Spending
When both
restricted and unrestricted funds are available for expenditure, restricted
funds should be spent first unless legal requirements disallow it.
When committed,
assigned and unassigned funds are available for expenditure, committed funds
should be spent first, assigned funds second, and unassigned funds last.
Minimum Unrestricted Fund Balance
The Board
recognizes that the maintenance of a fund balance is essential to provide for
unforeseen expenses or emergencies and to provide working capital in the first
several months of the fiscal year, until sufficient revenues are available to
fund operations. By maintaining an appropriate fund balance, the District can
avoid excessive short term borrowing and the concomitant interest expense,
accumulate sufficient assets to make designated purchases or cover unforeseen
expenditure needs, and demonstrate financial stability necessary to preserve or
enhance its bond rating, thereby lowering debt issuance costs.
The undesignated
fund balance in the operating funds will be maintained at a level sufficient to
provide the resources required to meet operating cost needs, to allow for
unforeseen needs of an emergency nature, and to permit orderly adjustment to
changes resulting from fluctuations of revenue sources. The District will
strive to maintain a minimum undesignated balance in its operating funds equal
to a range of 12-20% of its prior year operating expenditures.
As part of the
annual budget process, the Chief Financial Officer, Superintendent, or Business
Manager will estimate the surplus or deficit for the current year and prepare a
projection of the year-end undesignated fund balance. Such projection will
include an analysis of trends in fund balance levels on an historical and
future projection basis. Any anticipated balance in excess of the minimum
undesignated general fund balance may be budgeted at the discretion of the
Board. Any such action must also provide for necessary appropriations to
restore the undesignated general fund balance to the minimum balance.
If fund balances
decline below the 12% floor, the Board will develop a plan to replenish the
fund balance to the established minimum level within two years.
This policy will
be reviewed by the Finance Committee every three years following adoption or
sooner at the direction of the Board.
Example
Board Resolution- Commitments
It is hereby
resolved, ordered, and directed that the District commit the following portions
of its June 30th, 20XX (August 31, 20XX) General Fund unassigned fund balance.
1.
Be it
resolved that $XXX,XXX be committed for future capital expenditures.
2.
Be it
resolved that $XXX,XXX be committed for future contributions to the District's
Worker's Compensation Insured Plan.
3.
Be it
resolved that $XXX,XXX be committed for funding of future payments to employees
for compensated absences.
4.
Be it
resolved that $XXX,XXX be committed to contribute to the funding of operating
costs of future school openings.
July 2011
FINANCIAL OPERATION Policy
3120
Financial Management
Petty Cash
A petty cash fund is a small amount of money ($100.00 or less) that is
managed by an administrator in order to purchase small amounts of supplies or
cover unanticipated small expenses, such as materials or refreshments for
emergency meetings or unexpected guests. The petty cash fund may have been
obtained with a requisition to the District Finance Office, raised by a P.T.O.,
or from a student or community fund‑raising event. The designated
administrator is accountable for this fund. Funds collected in excess of
$100.00 must be processed immediately for proper deposit and are not to be held
at a school site.
The petty cash fund must be used for school purposes (purchase of
emergency supplies) and must be documented with receipts. If an administrator
accrues out‑of‑pocket expenses, a requisition for reimbursement
should be submitted on a monthly basis with back‑up information and
receipts.
Teachers may not make petty cash purchases without the prior approval
of an administrator.
Petty cash should not be used as a short cut to obtain supplies except
in an emergency or in cases where very small items make it impractical to order
through channels. Jan. 2003
FINANCIAL OPERATION Policy
3130
Financial Management
State and Federal
Projects
With Board of Education approval, the School District may operate
various specially funded programs that must be administered in accordance with
particular federal and/or state laws, regulations and other conditions for use
of such funds.
The Superintendent shall be the designated District official
responsible for coordinating funded projects, administering programs and
ensuring that the various departments operating these programs do so within the
guidelines of the particular program. The administration shall keep accurate and
separate records, as required by state and federal programs, to enable the
District to verify program compliance and success. The Superintendent shall
keep the Board fully informed.
Staff involvement will be solicited by the administration in the planning,
implementation and evaluation of programs authorized and approved within the
guidelines of Title I of the Improving American Schools Act of 1994 and/or
other significant legislative enactments. The vehicle for such involvement
shall be determined by the administration, with the approval of the Board of
Education. Jan. 2003
FINANCIAL OPERATION Policy
3140(Regulation 3140)
Financial Management (Form
3140)
Banking Services
The
Board of Education has the option of annually selecting District funds
depositaries or the Board may enter into a contract of one to five years
duration for the deposit of District funds.
When
depositaries are to be selected, the District will receive sealed proposals
from banking institutions in the county in which the District is located or in
adjoining counties.
In order to open new bank accounts in the District’s name, the
Superintendent and the Treasurer must sign the account authorization. Wire transfers of funds into District
accounts must be authorized in writing by the Superintendent and Treasurer or
other individual authorized by the Board.
In both instances, the Superintendent may appoint a designee to sign for
creation of new accounts and for wire transfers. However, such appointment must be in writing.
Nov 03
FINANCIAL OPERATION Policy
3150
Financial Management
Payment Procedures
All money received by the District shall be disbursed only for the
purposes for which they are levied, collected or received.
The Board will give final approval to all bills paid. Payment of bills
shall be authorized by the Superintendent/designee, only after verification of
delivery and satisfaction by the department or staff receiving the item(s). No
payment for goods or services shall be made unless both an itemized invoice
showing the name of the person or firm to whom payment is due is presented, and
a receiving document bearing the signature of an authorized school employee is
on file. Furthermore, the invoice must have been issued in response to an
approved purchase order.
The Superintendent/designee shall audit all claims, and shall submit
all invoices to the Board for approval and authorization for payment. However, payments for materials or services
which are necessary for normal business operations which do not individually
exceed $500 or exceed an aggregate monthly amount of $10,000 may be authorized
by the Superintendent/designee. In
addition, if cash discount or avoidance of financial penalty can be achieved,
the Superintendent/designee is authorized to issue a check. In all such cases, the identity and amounts
of such payments will be provided to the Board at the next regular meeting
following payment. The Board will
consider such payments and ratify the action taken. Jan. 2003
FINANCIAL
OPERATION
Policy 3155 (Regulation 3155)
Financial
Management
Payments from
Federal Awards/Cash Management
Payments from Federal awards will minimize
the time elapsing between transfer of funds from the Fderal pass through entity
and the disbursement of funds by the District to vendor recipients regardless
of whether the payment is made by electronic transfer, or issuance/redemption
of checks, warrants or payments. The
District will make timely payment to contractors consistent with the terms of
each specific contact. Advance payments
of Federal funds will be deposited and maintained in insured interest-bearing
accounts. Interest amounts of up to
$500.00 per school year will be maintained by the District to be utilized for
administrative purposes. The Districts cash management of Federal funds will be
consistent with requirements §200.305 of the Code of Federal Regulations.
Financial
Management
Investments of
District Funds
The Board has an obligation to the
citizens of the District to direct the management of District funds. The primary objective of the District’s
investment plan will be legality, safety, liquidity, yield and the provision of
a capital base for future needs. In the
management of such funds, the District adheres to the “prudent investor”
rule. Investments will be made with
judgment and care, under the circumstances, which persons of prudence,
discretion and intelligence exercise in the management of their own
investments. Funds will be managed for
investment, not for speculation considering the safety of the funds invested and
the probable income to be derived.
District personnel, including Board
members, who are involved in the investment of District funds, will not engage
in any personal business activity which could:
1. Impair
their ability to make impartial decisions concerning investment of District
funds;
2. Conflict
with proper execution of the District’s investment program; or
3. Create
an appearance of impropriety.
District employees and directors involved
in investment of District funds will disclose any material interests in
financial institutions in which they conduct business. Such disclosure will include, but not be
limited to any personal financial/investment positions that could be related to
the performance of the District’s investment portfolio. Similarly, District employees and directors
involved in investment of District funds will not engage in personal investment
transactions with the same individual with whom business is conducted on behalf
of the District.
Investments will be made through banks or
securities dealers who have been approved by the Investment Committee of the
State Treasurer’s Office. Such banks and
securities dealers will have been subjected to an appropriate investigation by
the staff of the State Treasurer’s Office.
This investigation will include, among other things, a written review of
the firm’s financial statements and the background of the sales
representatives. All approved dealers
must be fully licensed and registered FINERA Brokers/Dealers or exempt banks. Criteria used to select securities dealers
include:
1. Financial
strength and capital adequacy of firm;
2. Services
provided by firm;
3. Research
service available;
4. Resume,
reputation, and qualifications of sales representatives.
5. Due
diligence and firm references; and
6. State
government expertise.
The performance goals of the District’s
active investment management program, over time, should produce book yields
which are greater than yields from low risk passive investments. In analyzing the results of the District’s investment
program, the District will calculate the book yield and total rate of return on
District funds compared to the appropriate security market indexes.
The Superintendent/designee will direct
the preparation of quarterly investment reports providing a summary of the
District’s current investment portfolio and all transactions executed since the
last report.
Such investment reports will be prepared
by the appropriate bank(s) or security dealers for review by the Board and the
Superintendent. Investment reports are
considered to be public records and will be made accessible to the public.
Criteria and procedures implementing the
District’s investment policy have been approved by the Board and are contained
in Regulation 3160.
FINANCIAL
OPERATION Policy
3165
Financial
Management
Procurement
Standards – Federal Contracts
The
District will comply with all applicable regulations issued by the Office of the
Secretary - Education related to procurement activities in federal related
contracts. These provisions include, but are not limited to, procurement,
disposition of unused supplies, copyrights and debarred or suspended parties.
The District will maintain a contract administration system which ensures that
contractors perform in accordance with the terms, conditions, and
specifications of their contracts or purchase orders. Detailed requirements for
compliance are incorporated into Regulation 3165. July 2011
FINANCIAL
OPERATION Policy
3166 (Regulation
3166)
Financial
Management
Federal Awards –
Allowable Costs
The District assumes responsibility for
ensuring that Federal funds have been expended and are accounted for consistent
with Federal program regulations and approved applications. Costs are generally categorized as either
direct or indirect. All coding of direct
and indirect costs will generally follow the Missouri School Finance Accounting
Manual.
Direct
Costs
Direct costs include salaries, fringe
benefits, purchased services, supplies and equipment. Direct charging of administrative or clerical
staff costs will be appropriate only if all of the following conditions are
met:
1.
Such
costs are integral to a project or activity.
2.
Individuals
involved can be specifically identified with the project or activity.
3.
Such
costs are explicitly included in the budget or have the prior written approval
of the Federal Award Agency.
4.
The
costs are not recovered as an indirect cost.
5.
These
conditions may be met using a job description along with time and effort
documentation.
Indirect Costs
Indirect costs are those which are not
readily identified with the activities funded by the Federal grant or contract,
but are nevertheless incurred for the joint benefit of these activities and
other activities and programs of the District.
Accounting, auditing, personnel, budgeting, purchasing and
operation/maintenance of plant are examples of services which typically benefit
several activities and programs for which appropriate costs may be attributed
to the Federal program by means of an indirect cost allocation plan. The indirect rate cost used in calculating
the indirect cost depends on whether the grant is a restricted or unrestricted.
Documentation
of Personnel Costs
Charges for salaries and wages will be
based upon records that reflect the work performed.
Records are required for all employees,
including teachers, paraprofessionals, administrators and other staff paid with
Federal funds. These records will
document the time and effort such individuals spend within the program. The portion of the federally paid salary will
be reflective of the actual activity, not budgeted, the individuals has
contributed for the specific Federal program.
Time and effort reporting is required when any part of an individual’s
salary is charged to a Federal program or used as a match for a Federal
program. January 2017 Copyright © 2017
Missouri Consultants for Education, LLC
FINANCIAL OPERATION Policy
3170
Financial Management
Purchases By and/or
Solicitation of School Staff
Conflict of Interest
The School District will not purchase supplies or materials from a
staff member of the School District, nor from a member of the household of the
staff member, except in emergency situations as determined by the
Superintendent of Schools. Neither will the District purchase supplies,
materials or services from a member of the Board of Education or from a member
of his/her household, or from a firm in which he/she holds a major interest.
Endorsements
Employees of the District will not endorse products or services in such
a manner that will identify the employee as an employee of the School District.
Procurement Activities
In any purchasing activities all employees shall refrain from
soliciting, discourage the offer of, and decline gifts if offered by any vendor
wishing to do business with, or who is doing business with the School District.
Instead of making an offer of gifts, the vendor should be encouraged to
discount the price of the goods to the school.
Solicitation/Distribution
The advertising of sale or distribution of any goods or service on
school property, for any school activity, shall have prior approval from the building
principal or Superintendent. This includes but is not limited to: school
personnel, students, parents/guardians, relatives, general public and
commercial businesses.
Solicitations of School Staff
Agents, solicitors, and salespersons will be denied the
privilege of seeing the school staff during the school day except with
permission of the administration. Jan.
2003
FINANCIAL
OPERATION Policy
3180
Financial
Operations
Procurement of
Professional Services
The Board of Education and the Administrators
recognize that some professional services are necessary on certain occasions to
assist in the governance of the District.
These services include attorneys to provide legal counsel with specific
expertise regarding education policy matters, architects, certified public
accountants to annually audit the financial statements of the District and to
provide answers to questions that arise during the course of the fiscal
year. Similarly, it may be necessary to
obtain financial advisory services to monitor the long range debt objectives of
the District, as well as, bond counsel to address questions that arise with
existing debt and various reports occasionally sought by the Missouri State
Auditor and the United States Treasury branch of Internal Revenue Service and
others.
While in some instances it may be possible
to seek bids for the financial services and bond counsel each time a need
arises, there are also numerous benefits to maintaining longer term
relationships with specific professionals. Having a satisfactory relationship
with a professional service provider includes fair pricing, timely delivery,
dependable and sound advice concerning areas of expertise, a personality match
with administrators and board members and numerous other factors. As long as the board members and
administrators are comfortable with the quality of services provided, it is not
essential that annual bidding occur merely to drive prices to their lowest
level. By losing historical memory of
any professional service provider, the District may in the long run incur more
expense for the new firm to educate their representatives. On other occasions if the administrator
expresses belief that service quality is slipping, expenses and fees are
escalating at unacceptable levels, or any other non favorable working situation
is developing, nothing in this policy is intended to preclude seeking proposals
from other vendors offering similar services.
The Board of Education and Administration believes that the collective
expertise within the District is sufficient to judge if and when seeking
alternative providers is prudent.
July 2012
FINANCIAL OPERATION Policy
3230 Regulation 3230
Payroll (Form
3230)
The Board shall
expend for tuition, teacher retirement, and compensation for certificated staff
an amount that reflects the requirements as outlined in state statute and
Department of Elementary and Secondary Education regulations. Jan. 2003
FINANCIAL OPERATION Policy
3310
Revenue
Revenue from Tax
Sources
Local Tax Sources
In the process of preparing the annual budget, the Superintendent or
Finance Administrator shall estimate the amount of actual local tax revenue
anticipated to be raised, the rate required to produce the amount, and the rate
needed to support the principal and interest payment on bonded indebtedness and
general financial obligations of the District. The Superintendent shall
recommend the appropriate tax rate to the Board of Education for approval.
If required, the Board shall submit to the voters a proposition for
increase in the tax rate beyond the current approved level if it is deemed
necessary to obtain increased revenue to meet projected District expenses.
State law and Article X, Section 11C of the Missouri Constitution shall govern
tax election procedures.
State Tax Sources
All state funds will be accepted for the operation of the District as
provided by entitlement by law and through regulations of the Missouri State
Board of Education or Missouri Department of Elementary and Secondary
Education.
The Superintendent or District Finance Administrator is responsible for
filing all required reports and forms to obtain state funds to which the
District is entitled to receive according to developed rules and regulations.
Jan. 2003
FINANCIAL OPERATION Policy 3320
(Regulation 3320)
Revenue
Taxing Authority/Tax
Rate Hearing
The Board will annually prepare an estimate of the amount of money to
be raised by taxation for the ensuing school year, the tax rate required to
produce the amount and the rate necessary to sustain the District’s schools for
the ensuing year, to meet principal and interest payments on the bonded debt of
the District, and provide funds to meet other legitimate District purposes. The District will forward the estimate to the
county clerk on or before September 1.
Jan. 2003
FINANCIAL OPERATION
Policy 3330 (Regulation 3330)
Revenue
Bonded Indebtedness
The School Board may issue bonds for any District expenditures as
prescribed in state law. Funds raised through the sale of bonds may be expended
only for the purpose set forth in the election which authorized the sale. Jan. 2003
FINANCIAL OPERATION Policy
3331
Revenue
Borrowed Funds
State law authorizes the Board to borrow funds in anticipation of the
collection of taxes in order to insure continuity in the operations of the
District. The School Board must approve in advance all applications for loan
indebtedness. The amount borrowed and the repayment of notes payable shall be
within guidelines as established by state law and rules and regulations of the
Missouri Department of Elementary and Secondary Education. Jan. 2003
OPERATION Policy
3340
Revenue
Building Use
All receipts from fees for the use of school property by individuals or
community groups shall be deposited in the General Revenue fund.
Jan. 2003
OPERATION Policy
3350
Revenue
Student Fees and
Fines
Fees
No fees shall be charged for enrollment, supplies, equipment or costs
attributable to courses of study which are offered for credit. Students shall
be required to pay for materials which are used in constructing projects or
other items which are to be removed from the school and are thereby the
property of the student. All projects constructed at school with materials
provided by the school are the property of the District and therefore shall not
be removed from school unless approved by the appropriate administrator.
Students may be charged fees or admission for participation in
activities which are voluntary, such as attendance at school athletic or other
co‑curricular events. The fee schedule for such events shall be submitted
to the Board of Education for approval annually.
Fines
Every effort shall be made to protect the financial resources of the
District by collecting all payment for student fines, lost or damaged
textbooks, damage or vandalism to school property. Collected fines shall be
deposited in the appropriate account in order to charge replacement costs for
books, materials, equipment or repaired property to the appropriate budget
item. Jan. 2003
FINANCIAL OPERATION Policy
3360
Revenue
Tuition
Except when waived, tuition must be paid by nonresident students of the
District. The annual rate will be determined by the Board of Education for
individuals who wish to attend. Permission to enroll will be granted after
reasons for requesting admission have been reviewed and after it has been
determined that class enrollments are not excessive. Jan. 2003
FINANCIAL OPERATION Policy
3370*
Revenue
Fund-Raising
All fund-raising activities and planning for fund-raising shall be done
after school hours unless prior permission is received from the building
principal.
Any fund-raising activity which involves students or employees shall
require the approval of the building principal and Superintendent. Involvement is defined as: any activity which
advertises the school, students or school organization. Jan. 2003
FINANCIAL OPERATION Policy
3380(Regulation 3380)
Revenue
Sale/Lease of Real
Property
The Board of Education may vote to sell or lease real property, land,
and/or buildings which are no longer needed by the District and which are located
within the boundaries of the District.
Similarly, the Board may vote to sell such real property located outside
of the District’s boundaries. Jan. 2003
FINANCIAL
OPERATION Policy
3381
Revenue
Purchase Lease of
Real Estate
The Board may enter into agreements in
order to provide for the acquisition, construction, improvement, extension,
repair, remodeling, renovation and financing of sites, buildings, facilities,
furnishings and equipment for the use of the District for educational purposes.
Lease
The Board may approve a lease of sites,
buildings, facilities, furnishings and equipment.
The Board may also sell or lease at fair
market value any existing sites, buildings and facilities in order to acquire,
construct, improve, extend, repair, remodel, renovate, furnish and equip
buildings and lease back or purchase such sites, provided that any lease back
to the District is not for more than one (1) year in length and will not
provide for more than twenty-five (25) successive options to renew the lease
under the same conditions and provided there is an agreement to convey or sell
the sites, buildings or facilities and attendance improvements back to the
District with clear title at the time payments have been completed.
The Board may make such rental payments
under such leases provided that in no event shall the District become indebted
in an amount in any year exceeding the income and revenue of the District for
such year, plus any unencumbered balances from previous years.
Notice that the Board is considering such
project shall be given publication in a newspaper published within the county
in which all or part of the District is located which has general circulation
in the area once a week for two (2) consecutive weeks, the last publication to
be at least seven (7) days prior to the date of the Board meeting at which the
project will be concluded and acted upon.
July 2014
FINANCIAL OPERATION Policy
3390
Revenue
Sale/Lease of
Personal Property
Whenever the District has personal property (i.e., desks, file
cabinets, materials, equipment) which the District no longer needs, a majority
of the Board may vote to sell or lease such surplus property. Surplus personal property may be sold or
leased to a city, state agency, municipal corporation, or other governmental
subdivision of the state which is located within the boundaries of the District
for public purposes at a mutually agreed price and upon notice to the
public. In the alternative, the District
may sell or lease such surplus personal property to the highest bidder. Public notice of the sale or auction of
surplus personal property will be published once a week for two consecutive
weeks in a general circulation newspaper published within the county in which
the District is located. The sale itself
will occur as scheduled by the Board at least seven (7) days after the final
published notice. The proceeds from the sale or lease of surplus personal
property will be placed in the capital projects fund. Jan. 2003
FINANCIAL OPERATION Policy
3410
Accounting and
Reporting
Accounting System
The
District will adhere to the accounting guidelines of the Missouri Department of
Elementary and Secondary Education. Jan.
2003
FINANCIAL OPERATION Policy
3420
Accounting and
Reporting
Annual Report
The
District annually publishes a statement of all receipts of school moneys, when
and from what source derived, and all expenditures and the account from which
expenditures were made. This statement
will also include the present indebtedness and the nature of such indebtedness
as well as the rate of taxation for all purposes for the year. Such statement will be attested by the
president and secretary of the Board and forwarded to the State Board of Education. This financial statement will be published on
or by September 1, in a newspaper located within the District or generally
circulated within the District.
Jan.
2003
FINANCIAL
OPERATION Policy
3425
Accounting and
Reporting
Accountability
Portal
By
September 1, 2019, the District will develop, maintain and make publically
available, on its website, a researchable accountability portal containing an
expenditure and revenue document. The document will detail actual income,
expenditures and disbursements for the current calendar or fiscal year. The
District’s financial accounting software will detail actual year-to-date
income; actual year-to-date and expenditures; and detail the year-to-date check
register. The data may be in the form of a searchable Word, Excel or PDF
document or provide a link to a database the District may have.
Alternatively, the District may provide on its website a direct link to the
Department of Elementary and Secondary Education’s (DESE) website which has
detailed financial and budgetary information about the District.
The
District’s accountability portal will contain only information that is a public
record and not confidential or otherwise protected by state or federal
law. The District will not post online any personal information relating
to payroll including but not limited to payroll deductions, payroll
contributions, or any other information that is confidential or statutorily
protected. As provided elsewhere, employee contracts are public documents
and are subject to Sunshine Law requests.
The
financial data contained in the District’s accountability portal will be
updated at least quarterly. The District will archive the financial data
for a minimum of ten (10) years. The archived financial data will remain
accessible and searchable during this period.
February
2019
FINANCIAL OPERATION Policy
3430
Accounting and
Reporting
Authorized
Signatures
The School Board president and treasurer shall sign all checks issued
by the District. According to state statutes, if approved by the Board of
Education, facsimile signatures may be printed on District checks.
June 2004
It is
the policy of the Board to pay reasonable travel expenses for those who travel
on District business and whose trip has been approved in advance by the
Superintendent/designee. These expenses include registration, transportation,
meals, lodging, tolls, and parking charges. Expenses are reimbursed only when
properly accounted for by an individual and approved by the
Superintendent/designee.
Federal
Award Programs
Travel costs, include transportation,
lodging, meals, subsistence and related expenses incurred by employees who are
in travel status on official business of the District. When District employees are traveling on
Federal program business, automobile travel will be reimbursed at the then
existing IRS mileage rate. The reasonable
costs of lodging, meals and related costs will be fully reimbursed. However, such costs will be allowable only to
the extent such costs do not exceed charges normally allowable by the District
in its regular operations. With prior approval, commercial air travel is a
covered expense, provided the air travel utilizes the least expensive,
unrestricted accommodation class.
In addition, the District’s Policy and
Regulation 3440 are applicable except where District policies conflict with
specific Federal Award Program guidelines set out herein. In such cases, Federal Award Program
guidelines control. January 2017
Copyright © 2017 Missouri Consultants for Education, LLC
FINANCIAL OPERATION
Policy 3450 (Regulation 3450)
Accounting and
Reporting
Sales Tax
Pursuant to Chapter 144, R.S.Mo., school districts are exempt from
Missouri sales and use tax on purchases. All sellers or vendors shall be
furnished a copy of the official State of Missouri Tax Exemption Letter by the
Finance Office at the time a purchase order is delivered.
Administrators, teachers, or other school staff who have been
authorized to make purchases for the District from local retail dealers will
provide a copy of the tax‑exempt letter to such dealer at time of
purchase.
District representatives are prohibited from using the District tax‑exempt
letter for purchase of articles for personal use. Jan. 2003
FINANCIAL OPERATION Policy
3460
Accounting Reporting
Student Attendance
Accounting
An accurate accounting of student attendance, transportation and food
service records shall be kept by the School District. The records will be in
accordance with state law and appropriate regulations of the Missouri
Department of Elementary and Secondary Education.
Building principals/supervisors will be responsible for maintaining
student attendance accounting, and for submitting monthly reports of such
records to the Superintendent, who will in turn be responsible for preparing
reports to be submitted to the appropriate state offices. Jan. 2003
FINANCIAL
OPERATION Policy
3470
Accounting and
Reporting
Average Daily
Attendance – Early Childhood Program
Pupils
between the ages of three and five years old who are eligible for free and
reduced lunches and who attend an early childhood education program that
is operated by and in the District, or by a charter school that has declared
itself a local educational agency providing full-day kindergarten and that
meets standards established by the State Board of Education; or that is under
contract with the District or charter school that has declared itself as a
local educational agency and that meets standards established by the State
Board of Education will be included in the District’s calculation of average
daily attendance. In the event that the District contracts with an early
childhood program, the District will adhere to standards set by the State Board
of Education.
If
a pupil who is eligible for free and reduced price lunch leaves the early
childhood program during the school year, the District may fill the vacant
enrollment spot with another pupil between the ages of three and five who is
also eligible for free and reduced lunch without affecting the District’s
calculation of average daily attendance.
The
total number of three and five year olds included in the District’s calculation
of average daily attendance must not exceed four percent (4%) of the total
number of students who are eligible for free and reduced lunch between the ages
of three and eighteen who are included in the District’s average daily
attendance.
FINANCIAL
OPERATION
Policy 3480 Regulation 3480
Accounting and
Reporting
Bond Proceeds Reporting
The District’s
(i) preliminary and final official statements or offering circulars and
any supplements or amendments as required by and defined in the “Annual Financial Information” will
be filed with the Municipal Securities Rulemaking Board’s (“MSRB”) Electronic
Municipal Market Access (“EMMA”)
system, and (ii) notices of Material Events or Reportable Events, and any
other required or voluntary disclosures to EMMA will comply in all material
respects with the federal securities laws.
January 2015
FINANCIAL OPERATION Policy
3510
Auditing
Annual Audit
The books and accounts of the District will be audited by an
independent certified public accountant in conformance with the prescribed
standards and legal requirements. The Superintendent shall place before the
Board the matter of the retaining of a certified public accountant. The auditor
shall be selected by the Board. The audit shall be presented to the Board for
examination.
The Superintendent will be responsible for filing copies of the audit
with the proper authorities as prescribed by law. Jan. 2003
FINANCIAL OPERATION Policy
3610
School Activities
Funds
Management
School activity funds are used to finance a program of student
activities which supplement but do not take the place of the instructional
programs provided by the Board of Education. Whether funds are collected from
student contributions, club dues, special activities, or result from admissions
to events or from other fund‑raising activities, all funds will be under
the jurisdiction of the Superintendent and building principals. The funds will
be expended to benefit students currently enrolled in school. The management of
the funds will be in accordance with good business practices, including sound
budgetary and accounting procedures, and will be audited in the same manner as
District funds. There shall be full disclosure of the sources and expenditures
of all funds. Jan. 2003
FINANCIAL OPERATION Policy
3710
Insurance
Insurance Programs
The Board of Education shall maintain adequate insurance programs to
cover property, liability and personnel, within the requirements of good risk
management and state law. The administration will recommend to the Board the
kind and amount of property, casualty and/or liability insurance needed for the
protection of the District property, employees, and Board of Education, and
will administer insurance authorized by the Board, unless otherwise directed.
Every effort shall be made to obtain insurance at the most economical
cost consistent with required service by obtaining quotations or by
negotiations, whichever method is advantageous to the District.
The District will maintain coverage on all buildings and capital outlay
contents. Coverage should be 100% without coinsurance if available.
Liability coverage should include comprehensive general liability,
employee benefits liability, vehicular liability and school board legal
liability. (See also Policy 3730 – Liability Insurance.)
Jan. 2003
FINANCIAL OPERATION Policy
3730
Insurance
Liability Insurance
The Board recognizes that legal actions
may be initiated from time to time against the School District as a corporate
entity, against the Board as a whole, against Board members as individuals, or
against District officers, employees or other agents. The Board also recognizes
the contribution that is rendered to the students of the District by volunteers
and is mindful that legal actions may be initiated against these individuals as
well.
To protect members of the Board, District
officers, employees, other agents and volunteers in the performance of their
duties and responsibilities, the Board will defend its Board members, officers,
employees, other agents and volunteers against claims for suits arising out of
the performance of their duties and responsibilities. The Board shall indemnify
its Board members, officers, employees, other agents and volunteers against all
financial liability or loss resulting from such claims or suits including
judgments for damages, attorney's fees, fines, court costs and amounts paid in
settlement of such matters and reasonable and customary ancillary costs.
Ancillary costs may include, for example, travel expenses incurred by Board
members or others if they must appear for a case that is being tried outside
the area.
The protection provided by this policy
shall apply on an occurrence basis, which means that an individual will be
indemnified even though he/she is no longer a member of the Board of Education
or employed by or otherwise associated with the District when the lawsuit is
filed.
The Board reserves the right, however, to
deny representation and indemnification to any person covered by their Board
policy in any instance in which there would be no coverage under the District
applicable liability insurance program in which the claim "results in
civil judgment or criminal conviction for" an intentional tort, immoral
conduct, violation of any criminal or civil statute or violation of Board
policy or regulations or administrative order or directive, whether verbal or
written.
As a prerequisite to the right of legal
representation and indemnification, any person who is served with legal notice
commencing any action or proceeding against him/her for which indemnification
is sought is required to immediately notify the Superintendent of the legal
action after receipt of such legal notice.
The District shall maintain a program of self-insurance and/or
insurance coverage sufficient to provide the legal defense and indemnification
described in this policy. However, the
District’s purchase of liability insurance does not waive the District’s
entitlement to sovereign immunity.
Jan. 2003
FINANCIAL OPERATION Policy
3740
Insurance
Bond For All
Employees
All employees of the School District shall be covered by a blanket bond
in an amount to be determined by the Board of Education with premiums to be
paid by the Board. Jan. 2003