Finance Policies
3000 FINANCE
Financial Management
Preparation of Budget
Fiscal Year
Budget Implementation and Transfer
District Fund Accounts
Petty Cash
State and Federal Projects
Banking Services
Payment Procedures
Investment of District Funds
Purchases By and/or Solicitation of School Staff-Conflict of Interest
Expenditures for Certificated Staff
Revenue-Revenue from Tax Sources-Local Tax Sources
Taxing Authority/Tax Rate Hearing
Revenue-Bonded Indebtedness
Revenue-Borrowed Funds
Building Use
Student Fees and Fines
Tuition
Fund-Raising
Sale/Lease of Real Property
Sale/Lease of Personal Property
Accounting System
Annual Financial Report
Authorized Signatures
Travel and Reimbursement
Sales Tax
Student Attendance Accounting
Annual Audit
School Activities Funds-Management
Insurance Programs
Liability Insurance
Bond For All Employees
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.
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Policy 3110
(Regulation 3110)
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.
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Policy 3111
Fiscal Year
The fiscal year begins annually on the first day of July and ends on the thirtieth day of the following June.
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Policy 3112
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.
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Policy 3113
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; 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
§162.975 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 §163.031, 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.
Amended: September 19, 2006 Return to Top
Policy 3120
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.
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Policy 3130
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.
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Policy 3140
(Regulation 3140)
(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.
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Policy 3150
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.
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Policy 3160
(Regulation 3160)
Investment 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:
- Impair their ability to make impartial decisions
concerning investment of District funds;
- Conflict with proper execution of the District's
investment program; or
- 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 NASD Brokers/Dealers or exempt banks. Criteria used to
select securities dealers include:
- Financial strength and capital adequacy of firm;
- Services provided by firm;
- Research service available;
- Résumé, reputation, and qualifications of sales representatives;
- Due diligence and firm references; and
- State government expertise.
The performance goals of the District's active
investment management program, over time, should produce book yields that
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.
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Policy 3170
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.
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Policy 3230
(Regulation 3230)
(Form 3230)
Expenditures for Certificated Staff
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.
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Policy 3310
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.
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Policy 3320
(Regulation 3320)
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.
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Policy 3330
(Regulation 3330)
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.
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Policy 3331
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.
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Policy 3340
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.
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Policy 3350
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.
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Policy 3360
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.
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Policy 3370
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.
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Policy 3380
(Regulation 3380)
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.
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Policy 3390
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.
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Policy 3410
Accounting System
The District will adhere to the accounting
guidelines of the Missouri Department of Elementary and Secondary Education.
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Policy 3420
Annual Financial 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.
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Policy 3430
Authorized Signatures
The 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.
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Policy 3440
(Regulation 3440)
Travel and Reimbursement
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.
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Policy 3450
(Regulation 3450)
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.
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Policy 3460
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.
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Policy 3510
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.
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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.
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Policy 3710
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.)
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Policy 3730
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.
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Policy 3740
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.
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