The school district fiscal year shall begin July 1 and end June 30 of the following year.  The budget shall state the expenditures for the fiscal year, and it shall be the responsibility of the superintendent to operate the educational program within the budget.

It shall be the responsibility of the board to ensure the budget is managed effectively.

 

 

Legal Reference:  Iowa Code §24.2 (1991)

Cross Reference:  803        Budget
                                       804        Revenue
                                       805        Expenditures

Approved:  4-23-92
Reviewed:  12-11-23            
Revised:             

 

Each year at its annual meeting, the board shall designate by resolution the name and location of the financial depository institution or institutions to serve as the official school district depository or depositories.  The maximum deposit amount to be kept in the depository shall be stated in the resolution.

It shall be the responsibility of the board secretary to include the resolution in the minutes of the meeting.

 

 

Legal Reference:  Iowa Code §§279.33, 453 (1991)

Cross Reference:  211.1    Annual Meeting
                                       206.4    Treasurer
                                       804        Revenue

Approved:  4-23-92
Reviewed:  12-11-23            
Revised:             

 

The board may transfer monies between accounts as it deems necessary.  The board shall exercise this authority judiciously.

Such transfers shall be treated as a loan from one account to the other with the payment of a rate of interest to be determined by the board.  The period of the transfer shall be no longer than June 30 of the fiscal year in which the transfer was made unless the board determines otherwise.

When the necessity for an account has ceased to exist, the balance may be transferred to another fund by resolution of the board.  Only monies that were received for use without a designated purpose may be transferred in this manner.  Funds received for a specific use or upon vote of the people shall only be used for the purpose designated.

It shall be the responsibility of the board secretary to make recommendations to the board regarding transfers and to provide supporting evidence for the transfer.

 

 

Legal Reference:  Iowa Code §§24.21-.22, 279.8, 291.13 (1991)

Cross Reference:  803        Budget

Approved:  4-23-92              
Reviewed: 12-11-23            
Revised:             

 

School district accounting practices will follow state and federal laws and regulations, generally accepted

accounting principles (GAAP) and the uniform financial accounting system provided by the Iowa Department of Education. As advised by the school district’s auditor, determination of liabilities and assets, prioritization of expenditures of governmental funds and provisions for accounting disclosures shall be made in accordance with governmental accounting standards.

In Governmental Accounting Standards Board (GASB) Statement No. 54, the board identifies the order of spending unrestricted resources applying the highest level of classification of fund balance – restricted, committed, assigned and unassigned – while honoring constraints on the specific purposes for which amounts in those fund balances can be spent. A formal board action is required to establish, modify and or rescind a committed fund balance. The resolution will state the exact dollar amount. In the event, the board chooses to make changes or rescind the committed fund balance, formal board action is required.

The board authorizes the Superintendent to assign amounts to a specific purpose in compliance with GASB 54. An “assigned fund balance” should also be reported in the order of spending unrestricted resources, but in not restricted or committed.

It is the responsibility of the superintendent to develop administrative regulations implementing this policy. It is also the responsibility of the superintendent to make recommendations to the board regarding fund balance designations.

 

 

Legal Reference:  Iowa Code §§257.31(4), 279.8, 297.22 - .25, 298A (2011)

Approved:                                     
Reviewed:                       
Revised:             

 

Cash is required to be on hand for day to day operations of the school district.  The amount of cash that may be kept in the school building for any one day shall be sufficient for that day’s operations.  Funds raised by students shall be kept in the administrative office.

Cash, not to exceed $500, shall be kept in a locked cabinet in the administrative office at the close of the day.  Cash in excess of $500 shall be deposited in the authorized depository of the school district.

It shall be the responsibility of the board secretary to determine the amount of cash necessary for each day’s operations and to comply with this policy.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  801.2    Depository of Funds
                                               804        Revenues

Approved:  4-23-92
Reviewed:  12-11-23            
Revised:             

 

Gate receipts from any given school event have the potential to amount to a substantial sum of cash.  In consideration of the board policy to limit cash in the vault to $500 at the close of the day, cash receipts should be removed and deposited on the same day of the event whenever possible.

In those instances when same day deposits are impossible, gate receipts are to be locked in the building’s vault until the first (1^st) business day when a deposit can be made.  The board discourages the individual in charge of collections of the gate receipts from personally holding the receipts except in special circumstances approved by the administration.

The administration shall be responsible for designating the individual(s) who shall be in charge of collecting, counting and depositing the gate receipts.  The administration shall provide guidelines to be followed by those chosen to handle the receipts.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  801.2    Depository of Funds
                                      802.1    Cash in School Building
                                      804        Revenues

Approved:  4-23-92              
Reviewed:  12-11-23            
Revised:  4-14-97

 

GASB (Governmental Accounting Standards Board) 34 requires that districts issue district-wide financial statements using the economic resources measurement focus and accrual basis of accounting.  This requirement means that certain amounts reported in the fund financial statements will need to be restated for the district-wide statements.  In essence, the cost associated with the acquisition of capital assets will be replaced by the cost to use up the asset.  The cost of usage, called depreciation, is reported in the current fiscal period in district-wide statements.

The Government Finance Officers Association (GFOA) suggests a capitalization threshold of an amount that ensures that at least 80 percent of the value of assets are reported, but the threshold should not be greater than $5,000.  The Association of School Business Officials International (ASBO) also recommends that school districts establish a capitalization threshold that ensures that at least 80 percent of the value of  assets are reported, but the threshold should not be greater than $5,000.  The Association of School Business Officials International (ASBO) also recommends that school districts establish a capitalization threshold that ensures that at least 80 percent of the value of assets are reported without exceeding $5,000.

The capitalization threshold will be set at a level to capture 80 percent of the value of assets and periodically reviewed to ensure this percentage is maintained.  Beginning with the 2003-04 school year the capitalization threshold will be established at $2,500.

The district will also keep an inventory of other fixed assets, which fall below the $2,500 capitalization threshold, for insurance purposes.  Beginning with the 2003-04 school year, the fixed asset threshold for insurance purposes will be established at $500.

 

 

Approved:  7-12-04
Reviewed:  12-11-23            
Revised:             

 

The Governmental Accounting Standards Board has ruled that effective with the 2003-04 school year, the Bennett Community School District must implement GASB Statement 34 to determine the capitalization and depreciation policies for capital assets in accordance with GAAP.  The Bennett School will adhere to the following capital assets requirements:

Major Classes – Land, Land Improvements, Buildings, Equipment & Vehicles, Nutrition Equipment, and Construction in process.

               Description

               Year of Acquisition

               Method of Acquisition – Donated, purchased, or grant

               Funding Source

               Purchase Cost

               Salvage Value

Straight Line Depreciation – The capitalization threshold is 80% of the value of all fixedassets.  Items on the annual moveable equipment inventory, with a purchase value of $2,500.00 and above per unit, will be captured for depreciation.

            Useful Lives        Buildings 50 years

Site Improvement 20 years

                                              Equipment 5 years

                                              Vehicles 7 years

                                              Nutrition Equipment 12 years

 

 

Approved:  3-14-05
Reviewed:  12-11-23            
Revised:             

 

Annually, the board will review the projected revenues and expenditures for the school district and make adjustments where necessary to carry out the educational program within the revenues projected.

It shall be the responsibility of the board secretary and superintendent to make recommendations and to bring potential major expenditures to the attention of the board during the planning of the budget for the next fiscal year.

In planning the budget each year the following steps shall be followed:

Assessment of the educational program and its impact upon the budget;

Assessment of the district’s estimated income;

Assessment of the district’s estimated expenditures.

 

 

Legal Reference:  Iowa Code Chapters 24, 297, 298, 442 (1991)

Cross Reference:  803        Budget
                                      804        Revenues
                                      805        Expenditures

Approved:  4-23-92
Reviewed:  12-11-23                          
Revised:             

 

A budget for the school district shall be prepared annually for the board’s review.  The budget shall include the following:

*The amount of revenues from sources other than taxation;

*The amount of revenue to be raised by taxation;

*An itemization of the amount to be spent in each fund; and

*A comparison of the amount spent in each fund for the like purposes in the two (2) prior fiscal years

After the board has reviewed the budget, the board shall file the proposed budget with the board secretary no later than twenty (20) days prior to April 15 each year.

It shall be the responsibility of the board secretary, in conjunction with the superintendent, to prepare the budget for review by the board at a regularly scheduled board meeting by April of each year.

 

 

Legal Reference:  Iowa Code §§24.3, .5, .9, 298.1, 442 (1991)

Cross Reference:  803        Budget
                                      804        Revenues          
                                      805        Expenditures

Approved:  4-23-92                            
Reviewed:  12-11-23             
Revised:             

 

Prior to the adoption of the certified budget by the board, the public shall be apprised of the proposed budget for the school district.  The budget filed by the board with the board secretary and the time and place for the public hearing on the proposed budget shall be published in a newspaper designated for official publication in the school district.

It shall be the responsibility of the board secretary to publish the proposed budget and public hearing information at least ten (10) days prior to the public hearing.

 

 

Legal Reference:  Iowa Code §24.9, 618 (1991)

Cross Reference:  803        Budget
                                      804        Revenues
                                      805        Expenditures

Approved:  4-23-92
Reviewed:  12-11-23             
Revised:             

 

Prior to the adoption of the certified budget by the board, the public shall have an opportunity to review and state their opinion of the proposed budget.  A public hearing for the proposed budget of the board shall be held each year no later than April 15.

The public hearing shall be conducted in the manner deemed appropriate by the board.

 

 

Legal Reference:  Iowa Code §§24.9, 279.8, 618 (1991)

Cross Reference:  803        Budget
                                      804        Revenues
                                      805        Expenditures

Approved:  4-23-92                            
Reviewed:  12-11-23             
Revised:  5-12-03

 

The board shall adopt and certify a budget for the operation of the school district to the county auditor by April 15, and under special circumstances no later than May 1, of each year.

It shall be the responsibility of the board secretary to file the adopted and certified budget with the county auditor and other proper authorities.

 

 

Legal Reference:  Iowa Code Chapters 24 and 442 (1991)

Cross Reference:  803        Budget

Approved:  4-23-92                            
Reviewed:  12-11-23             
Revised:  5-12-03

 

The board may amend the budget for the school year in the event of unforeseen circumstances.  The amendment procedures shall follow the procedures for public review and adoption of the regular budget by the board outlined in these policies.

It shall be the responsibility of the superintendent and the board secretary to bring any budget amendments necessary to the attention of the board no later than May 31 of each year.

 

 

Legal Reference:  Iowa Code §24.11 (1991)

Cross Reference:  803        Budget
                                      804        Revenues

Approved:  4-23-92                            
Reviewed:  12-11-23             
Revised:             

 

The budget of the school district shall be the authority for the expenditures of the school district for the fiscal year for which the budget was adopted and certified.  Expenditure of revenues in excess of the projected revenues shall be made only upon amendment of the budget.

It shall be the responsibility of the superintendent to operate the school district within the budget.  The superintendent shall report monthly to the board on the status of the spending plan.

 

 

Legal Reference:  Iowa Code §24.11 (1991)

Cross Reference:  803        Budget
                                      804        Revenues

Approved:  4-23-92                            
Reviewed:  12-11-23             
Revised:             

 

Revenues of the school district shall be received by the board treasurer.  Other persons receiving revenues on behalf of the school district shall promptly place them in the hands of the board treasurer.

Revenue, from whatever source, shall be accounted for and classified under the official accounting system of the school district.  It shall be the responsibility of the board treasurer to deposit all revenues in the approved depository for the school district in a timely manner.

Tuition fees received by the school district shall be deposited in the general fund.  The tuition fee for pre-kindergarten (PreK) through sixth (6) grade during the regular academic school year shall be set by the board, based on the superintendent’s recommendation.  Tuition fees for summer school and adult education shall be set by the board prior to offering of the programs.

The board may charge students fees for the use, purchase, misuse or destruction of educational materials.  Materials fees received by the school district shall be deposited in the general fund.  It shall be the responsibility of the superintendent to recommend when fees will be charged and the amount of the fees for educational materials to students.

Rental fees received by the school district for the rental of school district equipment or facilities shall be deposited in the general fund.  It shall be the responsibility of the superintendent to recommend to the board a fee schedule for renting school district property. 

Proceeds from the sale of real property shall be placed in the schoolhouse fund, and the proceeds from the sale of other school district property shall be placed in the general fund.

The board may claim exemption from the application of state law prohibiting competition with private enterprise for the following activities:

*Goods/services directly and reasonably related to the educational mission;

*Goods/services offered only to students, employees or guests which cannot be provided by private enterprise at the same or lower cost;

*Use of vehicles for charter trips offered to the public, full or part time, or temporary students;

*Goods/services which are not otherwise available in the quantity or quality required by the school;

*Telecommunications other than radio or television stations;

*Sponsoring or providing facilities for fitness and recreation; food service and sales;

*Sale of books, records, tapes, software, educational equipment and supplies.

It shall be the responsibility of the superintendent to bring to the board’s attention additional sources of revenue for the school district.

 

 

Legal Reference:  Iowa Code §§23A, 279.8, 282.2, .6, .24, 291.12, .13, 297.9-.12, .22, 301.2, 442.4, 453 (1991)
                                      1940 Op. Att’y Gen. 232
                                      1940 Op. Att’y Gen. 196

Cross Reference:  801.2    Depository of Funds
                                       801.3    Classification of Accounts
                                       903        Selling and Leasing
                                      1006      Use of School District Facilities and Equipment

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:  1-9-12

 

DEBT LIMITS

Credit Ratings

The school district seeks to maintain the highest possible credit ratings for all categories of short- and long-term debt that can be achieved without compromising the delivery of services and the achievement of adopted objectives.  The school district recognizes that external economic, natural, or other events may from time to time affect the creditworthiness of its debt. Nevertheless, the school district is committed to ensuring that actions within their control are prudent.

Debt Limits
For general obligation debt, the school district’s outstanding debt limit shall be no more than five percent (5%) of the actual value of property within the school district’s boundaries, as prescribed the Iowa constitution and statutory restrictions.

For revenue debt, the school district’s goal is to provide adequate debt service coverage of at least 1.20 times the annual debt service costs.

In accordance with Iowa law, the school district may not act as a conduit issuer or issue municipal securities to raise capital for revenue-generating projects where the funds generated are used by a third party (“conduit borrower”) to make payments to investors.

PURPOSES AND USES OF DEBT 
Capital Planning
To enhance creditworthiness and prudent financial management, the school district is committed to systematic capital planning, intergovernmental cooperation and coordination and long-term financial planning.

Capital Financing
The school district may issue long-term debt for capital projects as authorized by Iowa law, which include, but are not limited to, the costs of planning, design, land acquisition, buildings, permanent structures, attached fixtures or equipment, and movable pieces of equipment. Capitalized interest may be included in sizing any capital project debt issue.  The types of debt instruments to be used by the school district include:

• General Obligation Bonds
• General Obligation Capital Loan Notes
• Bond Anticipation Notes
• Revenue Anticipation Notes
• School Infrastructure Sales, Services and Use Tax Revenue Bonds
• Lease Purchase Agreements, including Certificates of Participation

Working Capital Financing
The school district may issue debt for working capital for operations after cash flow analysis has determined that there is a mismatch between available cash and cash outflows.  The school district shall strive to repay working capital debt by the end of the fiscal year in which the debt was incurred.  A Working Capital Reserve may be included in sizing any working capital debt issue.

Refundings
Periodic reviews of all outstanding debt will be undertaken to determine if refunding opportunities exist. Refunding will be considered (within federal tax law restraints) if and when there is a net economic benefit of the refunding or if the refunding is otherwise in the best interests of the school district, such as to release restrictive bond covenants which affect the operations and management of the school district.

In general, advance refundings for economic savings will be undertaken when a net present value savings exceeds three percent of the refunded debt can be achieved.  Current refundings, which produce a new present value savings of less than three percent will be considered on a case by case basis taking into consideration bond covenants and general conditions.  Refundings with negative savings will not be considered unless there is a compelling public policy objective for doing so.

DEBT STANDARDS AND STRUCTURE

Length of Debt
Debt will be structured for the shortest period consistent with a fair allocation of costs to current and future beneficiaries or users.  Long-term debt will not be issued for periods exceeding the useful life or average useful lives of the project or projects to be financed.  All debt issued will adhere to state and federal law regarding the length of time the debt may be outstanding.

Debt Structure
Debt will be structured to achieve the lowest possible net cost to the school district given market conditions, the urgency of the capital project, the type of debt being issued, and the nature and type of repayment source.  To the extent possible, the school district will design the repayment of its overall debt to rapidly recapture its credit capacity for future use.

Generally, the school district will only issue fixed-rate debt.  In very limited circumstances, the school district may issue variable rate debt, consistent with the limitations of Iowa law and upon a finding of the board that the use of fixed rate debt is not in the best interest of the school district and a statement of the reasons for the use of variable rate debt.

All debt may be structured using discount, par or premium coupons, and as serial or term bonds or notes, or any combination thereof, consistent with Iowa law.  The school district should utilize the coupon structure that produces the lowest True Interest Cost (TIC) taking into consideration the call option value of any callable maturities.

The school district will strive to structure their debt in sinking fund installments for each debt issue that achieves, as nearly as practicable, level debt service within an issue or overall debt service within a particular classification of debt.

Derivatives (including, but not limited to, interest rate swaps, caps, collars, corridors, ceiling and floor agreements, forward agreements, float agreements, or other similar financing arrangements), zero-coupon or capital appreciation bonds are not allowed to be issued consistent with State law.

Decision Analysis to Issue Debt
Whenever the school district is contemplating the issuance of debt, information will be developed concerning the following four categories commonly used by rating agencies assessing the school district’s credit worthiness, listed below.

Debt Analysis – Debt capacity analysis; purpose for which debt is proposed to be issued; debt structure; debt burden; debt history and trends; and adequacy of debt and capital planning. 

Financial Analysis – Stability, diversity, and growth rates of tax or other revenue sources; trend in assessed valuation and collections; current budget trends; appraisal of past revenue and expenditure trends; history and long-term trends of revenues and expenditures; evidences of financial planning; adherence to GAAP; audit results; fund balance status and trends in operating and debt funds; financial monitoring systems and capabilities; and cash flow projections.

Governmental and Administrative Analysis – Government organization structure; location of financial responsibilities and degree of control; adequacy of basic service provision; intergovernmental cooperation/conflict and extent of duplication; and overall planning efforts.

Economic Analysis – Geographic and location advantages; population and demographic characteristics; wealth indicators; types of employment, industry and occupation; housing characteristics; new construction; evidences of industrial decline; and trend of the economy.

DEBT ISSUANCE

Credit Enhancement
Credit enhancements (.i.e., bond insurance, etc.) may be used but only when the net debt service on the debt is reduced by more than the costs of the credit enhancement.

Costs and Fees
All costs and fees related to issuing the debt will be paid out of debt proceeds and allocated across all projects receiving proceeds of the debt issue.

Method of Sale
Generally, all school district debt will be sold through a competitive bidding process.  Bids will be awarded on a TIC basis providing other bidding requirements are satisfied.

The school district may sell debt using a negotiated process in extraordinary circumstances when the complexity of the issue requires specialized expertise, when the negotiated sale would result in substantial savings in time or money, or when market conditions of school district credit are unusually volatile or uncertain.

Professional Service Providers
The school district will retain external bond counsel for all debt issues.  All debt issued by the school district will include a written opinion by bond counsel affirming that the school district is authorized to issue the debt, stating that the school district has met all Iowa constitutional and statutory requirements necessary for issuance and determining the debt’s federal income tax status.  The bond counsel retained must have comprehensive municipal debt experience and a thorough understanding of Iowa law as it relates to the issuance of the particular debt.

The school district will retain an independent financial advisor.  The financial advisor will be responsible for structuring and preparing all offering documents for each debt issue.  The financial advisor retained will have comprehensive municipal debt experience, experience with diverse financial structuring and pricing of municipal securities.

The treasurer shall have the authority to periodically select other service providers (e.g., escrow agents, verification agents, trustees, arbitrage consultants, rebate specialist, etc.) as necessary to meet legal requirements and minimize net debt costs.  These services can include debt restructuring services and security or escrow purchases. 

Compensation for bond counsel, financial advisor and other service providers will be as economical as possible and consistent with industry standards for the desired qualification levels.

DEBT MANAGEMENT

Investment of Debt Proceeds
The school district shall invest all proceeds received from the issuance of debt separate from the school district’s consolidated cash pool unless otherwise specified by the authorizing bond resolution or trust indenture.  Investments will be consistent with those authorized by Iowa law and the school district’s Investment Policy to maintain safety of principal and liquidity of the funds.

Arbitrage and Record Keeping Compliance
The treasurer shall maintain a system of record-keeping, reporting and compliance procedures with respect to all federal tax requirements which are currently, or may become applicable through the lifetime of all tax-exempt or tax credit bonds.

Federal tax compliance, record-keeping, reporting and compliance procedures shall include not be limited to:

post-issuance compliance procedures (including proper use of proceeds, timely expenditure of proceeds, proper use of bond financed property, yield restriction and rebate, and timely return filing);

1. proper maintenance of records to support federal tax compliance;
2. investments and arbitrage compliance; 
3. expenditures and assets; 
4. private business use; and
5. designation of primary responsibilities for federal tax compliance of all bond financings.

Financial Disclosure
The school district is committed to full and complete financial disclosure, and to cooperating fully with rating agencies, institutional and individual investors, other levels of government, and the general public to share comprehensible and accurate financial information.  The school district is dedicated to meeting secondary disclosure requirements on a timely and comprehensive basis, as promulgated by the Securities and Exchange Commission.

The Official Statements accompanying debt issues, Annual Audits, and Continuing Disclosure statements will meet the standards articulated  by the Municipal Securities Rulemaking Board (MSRB), the Government Accounting Standards Board (GASB), the Securities and Exchange Commission (SEC), Generally Accepted Accounting Principles (GAAP) and the Internal Revenue Service (IRS).  The treasurer shall be responsible for ongoing debt disclosure as required by any Continuing Disclosure Certificate for any debt issue and for maintain compliance with disclosure standards promulgated by state and federal regulatory bodies.

 

 

Legal Reference:  Iowa Code §§ 74-76; 278.1; 298; 298A

Approved:                                     
Reviewed:                                      
Revised:             

 

The board may conduct an election for the authority to issue bonded indebtedness. Revenues generated from an approved bond issue shall be used only for the purpose stated on the ballot. Use of excess funds in the account for any other purpose requires the approval of the voters in the school district community.

Revenues received from the issuing of bonded indebtedness shall be deposited into the schoolhouse fund.

 

 

Legal Reference:  Iowa Code §§278.1(7), 291.13, 74-76, 298 (1991)

Cross Reference:  801        Financial Accounting System
                                      804        Revenue

Approved:  4-23-92              
Reviewed:  1-08-24              
Revised:             

 

The board supports the investment of funds in excess of current needs.  In making investments, the school district shall exercise the judgment and care under the circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs.

Prior to making an investment, the board secretary shall determine the length of time, the rate of interest and the location for investing the funds.

 

 

Legal Reference:  Iowa Code §§279.29, 283A, 285, 442, 452.10, 453, 633.12 (1991)
                                      281 Iowa Admin. Code 58, 43, 44

Cross Reference:  804        Revenues

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:             

 

The board believes gifts, grants and bequests to the school district may be accepted if they will further the interests of the educational program.  The board shall have sole authority to determine whether the gift furthers the interests of the school district.

Gifts, grants, and bequests shall be approved by the board or the superintendent.  Once it has been approved by the board, a board member or the administration may accept the gift on behalf of the school district.

Gifts, grants, and bequests once accepted on behalf of the school district shall become the property of the school district.  Gifts, grants, and bequests shall be administered in accordance with terms, if any, agreed to by the board.

 

 

Legal Reference:  Iowa Code §§279.42, 565.6 (1991)

Cross Reference:  221        Gifts to Board of Directors Members
                                       402.4    Gifts to School District Personnel
                                       508.1    Class or Student Group Gifts

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:             

 

Funds raised by students or from student activities are the property of and shall be under the financial control of the school district.  Students may use these funds for purposes approved by the administration.  Funds remaining in the fund after the graduation of the class shall revert to the school district.

It shall be the responsibility of the board secretary and treasurer to keep student activity funds up-to-date and complete.

 

 

Legal Reference:  Iowa Code §§11.23, 256.8(7), 291.13 (1991)
                                      281 Iowa Admin. Code 12.3 (3)

Cross Reference:  504        Student Activities
                                      801        Financial Accounting System

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:  4-14-97

 

The board supports economic development in Iowa.  Purchases by the school district will be made in Iowa for Iowa goods and services from a locally-owned business located within the school district or from an Iowa-based company which offers these goods or services if the cost and other considerations are relatively equal and they meet the required specifications.

It shall be the responsibility of the superintendent to approve purchases, except those authorized by or requiring direct board action.  The administration may coordinate and combine purchases with other governmental bodies to take advantage of volume price breaks.  Joint purchases with other political subdivisions will be considered in the purchase of equipment or accessories or attachments with an estimated cost of $50,000 or more. 

The administration shall have the authority to authorize purchases without competitive bids for goods and services costing under $2000 without prior board approval.  For goods and services costing more than $2000 and less than $25,000, the administration shall compare prices of the goods and services to be purchased prior to making a recommendation to the board.  Competitive sealed bids are required for purchases, other than emergency purchases, for goods and services that cost $25,000 or more, and for textbooks from a source other than the publisher.

The purchase will be made from the lowest responsible bidder based upon total cost considerations, including but not limited to, the cost of the goods and services being purchased, availability of service and/or repair, and delivery date.  The board and the administration shall have the right to reject any or all bids, or any part thereof, and to re-advertise.  The board will enter into such contract or contracts as the board deems in the best interests of the district.

It shall be the responsibility of the administration to make a recommendation and the purpose for it to the board for purchases exceeding $2000.  A contract, which has been awarded, may be cancelled by the board upon the recommendation of the administration.

 

 

Legal Reference:  Iowa Code §§18.6(9), 23A, 28E.20, 72.3, 73, 285.10(3), .10(7), 301 (1991)
                                      281 Iowa Admin. Code 43.25
                                      1974 Op. Att’y Gen. 171

Cross Reference:  705        Expenditures
                                      901        Site Acquisition and Building Construction
                                      902        Maintenance – Operation – Management

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:  4-14-97

 

Generally, the school district shall not purchase items on behalf of school district personnel.  The school district may in unusual and unique circumstances do so.  It shall be within the discretion of the board to determine when such unique and unusual circumstances exist.

No purchase shall be made unless the employee has paid the school district prior to the order being placed.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  803        Budget

Approved:  4-23-92                            
Reviewed:  1-08-24                            
Revised:             

 

Supplies, equipment, and services may only be purchased by the building administrator or the superintendent. Requests for supplies, equipment, and services shall be made by school district personnel to their immediate supervisor. Requisitions shall be submitted to the building principal, along with a written request, in the case of educational materials.

The building principal shall be responsible for issuing purchase order numbers.  Only those purchases approved by the building principal or the superintendent shall be processed by the school district. Supplies, equipment, and services procured by a formal written contract shall not require a purchase order.

The superintendent may authorize a procedure for the purchase of small, emergency items, usually at a cost of $500 or less.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  805.1    Purchasing and Bidding
                                      805.4    Receiving Goods and Services

Approved:  4-23-92                            
Reviewed:  1-08-24                            
Revised:             

 

To assure goods and services procured by the school district are properly accounted for and are of the quality and type ordered, all goods will be received by the board secretary. Goods and services which do not meet the requirements specified in the purchase order will not be paid for or accepted.

If, in unusual and unique circumstances, goods must be delivered to and received by someone other than the board secretary, it shall be the responsibility of that person to inform the board secretary, to assure the goods and services are properly accounted for, and to ensure they are of the quality and type ordered.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  805.1    Purchasing and Bidding
                                      805.3    Requisitions and Purchase Orders

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:             

 

Only the board may authorize the issue of warrants for payment of claims against the school district for goods and services. The board will allow such warrants after goods and services have been received and accepted in compliance with board policy and audited by the board.

The Board of Directors, by resolution, may authorize the Board Secretary to issue warrants when the Board of Directors is not in session, for payments of freight, drayage, express, postage, printing, water, lights, telephone rents, but only upon verified bills filed with the Secretary, and for payment of salaries pursuant to the terms of a written contract.  In addition, the Board of Directors may, by resolution, authorize the Secretary, upon approval of the Board President, to issue warrants when the Board of Directors is not in session, but only upon verified bills filed with the Secretary.

All bills and salaries for which warrants are issued prior to audit and allowance by the Board must be passed upon the Board of Directors at the next meeting and be entered in the minutes of the Secretary.

 

 

Legal Reference:  Iowa Code §§279.29, .30, .36, 291.12, .30 (1991)
                                      281 Iowa Admin. Code 12.3 (1)

Cross Reference:  805.1    Purchasing and Bidding
                                      805.3    Requisitions and Purchase Orders
                                      805.4    Receiving Goods and Services

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:  1-08-18

 

Generally, the board shall authorize claims to be paid only when sufficient funds are available for such claims.  In unusual and unique circumstances, as determined by the board, the board may authorize the payment of claims for which insufficient funds are available.

When the board deems it necessary to authorize warrants without sufficient funds available, anticipatory warrants shall be authorized.

It shall be the responsibility of the board secretary to issue anticipatory warrants when authorized.

 

 

Legal Reference:  Iowa Code Chapters 74 and (1991)
                                      281 Iowa Admin. Code 12.3 (1)

Cross Reference:  805.1    Purchasing and Bidding
                                      805.3    Requisitions and Purchase Orders
                                      805.4    Receiving Goods and Services
                                      805.5    Payment for Goods and Services

Approved:  4-23-92                            
Reviewed:  1-08-24                            
Revised:             

 

A petty cash fund shall be maintained by the school district in each building’s administrative office for incidental expenditures. The petty cash fund in each building shall not exceed $500.

It shall be the responsibility of the building principal to maintain and authorize expenditures from the petty cash fund.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  805        Expenditures

Approved:  4-23-92                            
Reviewed:  1-08-24              
Revised:             

 

The board recognizes that school district funds are public funds, and as such, should be used to further a public purpose and the overall educational mission of the school community.  The district is committed to managing and spending public funds in a transparent and responsible manner.  Prior to making a purchase with public funds, an individual should be comfortable defending the purchase/reimbursement to the taxpayers in the district.  If the individual is uncomfortable doing so, the purchase may not fulfill a public purpose and additional guidance should be sought before the purchase is made.

Individuals who have concerns about the public purpose of a purchase or reimbursement should utilize the district’s Internal Controls policy and regulation as a resource for questioning a purchase.  Concerns should be reported to the superintendent and/or the board president.  

The superintendent shall develop a process for approving expenditures of public funds.  The board will review expenditures and applicable reports as necessary to ensure proper oversight of the use of public funds.  To the extent possible, expenditures shall be pre-approved by the district prior to expending the funds.  Purchases of food and refreshment for district staff, even within district, should comply with the district’s Employee Travel Compensation policy, and all other applicable policies.  All purchases/reimbursements shall comply with applicable laws, board policies and district accounting requirements.

Additional guidance regarding appropriate expenditures of school funds is provided in the regulation accompanying this policy.

 

 

Legal Reference:  Iowa Constitution Art. III, sec. 31;
                                      Iowa Code §§ 68A.505; 279.8; 721.2.
                                      281 I.A.C. 98.70

Cross Reference:  401.12                 Employee Travel Compensation
                                      804.01                 Local – State – Federal – Miscellaneous Revenue
                                      804.05                 Student Activities Fund
                                      805.01                 Purchasing – Bidding                                   
                                      805.04                 Payment for Goods and Services
                                      807.05                 Internal Controls
                                      807.05-(R)1        Internal Controls – Procedures
                                      1000.01              Community Use of School District Buildings & Sites & Equipment

Approved:                                                    
Reviewed:                                                    
Revised:             

 

The payroll period for the school district shall be a month.  All school district personnel shall be paid on the twentieth (20^th) day of each month. If this day is a holiday, recess, or weekend, the payroll shall be paid on the last working day prior to the holiday, recess or weekend.

It shall be the responsibility of the board secretary to issue payroll to school district personnel in compliance with this policy.

Any requirements in the master contract between school district personnel and the board shall be followed regarding payroll periods for school district personnel which are a part of the collective bargaining unit.

 

 

Legal Reference:  Iowa Code §20.9 (1991)

Cross Reference:  806.02  Payroll Deductions

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised:  5-12-03

 

Ease of administration is the primary consideration for payroll deductions, other than those required by law.  Payroll deductions are made for federal income tax withholdings, Iowa income tax withholdings, social security, and the Iowa Public Employees’ Retirement System (IPERS).

Employees may elect to have amounts withheld from their pay for items authorized by law, subject to agreement of the district.  Requests for these deductions will be made in writing to the superintendent.

It is the responsibility of the superintendent to determine which additional payroll deductions will be allowed.

 

 

Legal Reference:  Iowa Code §§ 91A.2(4), .3; 294.8-.9, .16

Cross Reference:  406.6    Licensed Employee Tax Shelter Programs
                                       412.4    Classified Employee Tax Shelter Programs
                                       706.1    Payroll Periods

Approved:  4-23-92              
Reviewed:  2-08-21              
Revised:  2-13-19

 

The board secretary shall report to the board each month about the receipts, disbursements and balances of the various funds.  This report shall be in written form and sent to the board with the agenda for the board meeting.

 

 

Legal Reference:  Iowa Code §§279.8, 291.7 (1991)

Cross Reference:  807        Fiscal Reports
                                      206.3    Board of Directors’ Secretary
                                      206.4    Board of Directors’ Treasurer

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised:             

 

At the annual meeting, the treasurer shall give the annual report stating the amount held over, received, paid out, and on hand in the general and schoolhouse funds. This report shall be in written form and sent to the board with the agenda for the board meeting.

It shall be the responsibility of the treasurer to submit this report to the board annually.

 

 

Legal Reference:  Iowa Code §§279.31, 291.15 (1991)

Cross Reference:  206.4    Board of Directors’ Treasurer
                                      807        Fiscal Reports

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised:             

 

Each month the schedule of bills allowed by the board shall be published in a newspaper designated as a newspaper for official publication. Annually, the total salaries paid to school district personnel regularly employed by the school district shall also be published in a newspaper designated as a newspaper for official publications.

It shall be the responsibility of the board secretary to publish these reports in a timely manner.

 

 

Legal Reference:  Iowa Code §§279.35 - .36 (1991)
                                      1952 Op. Att’y. Gen. 133

Cross Reference:  206.3    Board of Directors’ Secretary
                                      807.2    Treasurer’s Annual Report

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised:             

 

To review the funds and accounts of the school district, the board shall employ an auditing agency to perform an annual audit of the financial affairs of the school district.  The administration shall cooperate with the auditors.

It shall be the responsibility of the superintendent to recommend to the board an auditing agency to review the school district’s financial affairs.

 

 

Legal Reference:  Iowa Code §11.18 (1991)

Cross Reference:  801        Financial Accounting System
                                      807        Fiscal Reports

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised:             

 

The Board expects all board members, employees, volunteers, consultants, vendors, contractors, students and other parties maintaining any relationship with the school district to act with integrity, due diligence, and in accordance with all laws in their duties involving the school district’s resources. The board is entrusted with public dollars and no one connected with the school district should do anything to erode that trust.

Internal control is the responsibility of all employees of the school district. The superintendent and board secretary shall be responsible for developing internal controls designed to prevent and detect fraud, financial impropriety, or fiscal irregularities within the school district subject to review and approval by the board. Administrators shall be alert for any indication of fraud, financial impropriety, or irregularity within the administrator’s area of responsibility.

Any employee who suspects fraud, impropriety, or irregularity shall report their suspicions immediately to his/her immediate supervisor, or the superintendent. The superintendent shall have primary responsibility for any necessary investigations and shall coordinate investigative efforts with the board’s legal counsel, auditing firm, and other internal or external departments and agencies, including law enforcement officials, as the superintendent may deem appropriate.

Employees bringing forth a legitimate concern about a potential impropriety will not be retaliated against and those who do retaliate against such an employee will be subject to disciplinary action up to, and including, discharge.

In the event the concern or complaint involves the superintendent, the concern shall be brought to the attention of the board vice-president, who shall be empowered to contact the board’s legal counsel, insurance agent, auditing firm, and any other agency to investigate the concern or complaint.

Upon approval of the board, the superintendent, may contact the State Auditor or elect to employ the school district’s auditing firm or State Auditor to conduct a complete or partial forensic/internal control/SAS99 audit annually or otherwise as often as deemed necessary. The superintendent is authorized to order a complete forensic audit if, in the superintendent’s judgment, such an audit would be useful and beneficial to the school district. The superintendent shall ensure the State Auditor is notified of any suspected embezzlement or theft pursuant to Iowa law. In the event there is an investigation, records will be maintained for use in the investigation. Individuals found to have altered or destroyed records will be subject to disciplinary action, up to, and including termination.

 

 

Legal References:  American Competitiveness and Corporate Accountability Act of 2002,
                                        Pub. L. No. 107-204.
                                        Iowa Code ch. 11, 279.8 (2007).

Cross References:  807.04                 Audit

Approved:                                                    
Reviewed:                                     
Revised:             

 

At the annual meeting each year, the board shall receive a written report indicating the types, amounts of, and cost of the insurance for the school district. This report shall include bonds purchased for school district personnel and board officers. It shall be in written form and sent to the board with the agenda for the board meeting.

It shall be the responsibility of the board secretary to file this report with the board.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  810        Insurance

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised:             

 

The board will maintain a comprehensive insurance program to provide adequate coverage against major types of risk, loss, or damage, as well as legal liability and dishonesty.  The board will purchase insurance for the replacement values, when possible, after reviewing the costs and availability of such insurance.  The comprehensive insurance program shall be reviewed once every three (3) years.

The district will assume the risk of property damage, legal liability, and dishonesty in cases in which the exposure is so small or dispersed that a loss would not significantly affect the operation of the educational program or financial position.

Insurance of buildings, structures, or property in the open will not be purchased to cover loss exposures below $1000 unless such insurance is required by statute or contract.  The board may also purchase this coverage when such coverage is desirable in the judgment of the board.

The board may retain a private appraisal agency for inventory and appraisal value services.  An itemized statement of the appraised value of all school district owned facilities shall be kept.  This statement shall be updated at least once every five (5) years.

Insurance will only be purchased through legally licensed Iowa insurance agents or brokers maintaining offices in the school district community when possible.

Administration of the insurance program shall be the responsibility of the superintendent.  The board secretary shall also be responsible for placing insurance coverage, maintaining property appraisals and inventories, processing claims, maintaining loss records, and supervising loss prevention activities.

It shall be the responsibility of the superintendent to recommend, when necessary, the use of a private appraisal agency to make recommendations to the board for the purpose of insurance coverage.

 

 

Legal Reference:  Iowa Code §§85.2, 279.12, .28, 285.5(6), .10 (6), 269.7, 517A.1, 613A.7 (1991)
                                      1972 Op. Att’y Gen. 676

Cross Reference:  205        Board of Directors Member Security and Protection
                                       807.5    Insurance Report

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised:             

 

At the annual meeting each year, the board shall receive a written report indicating the types, amounts of, and cost of the insurance for the school district. This report shall include bonds purchased for school district personnel and board officers. It shall be in written form and sent to the board with the agenda for the board meeting.

It shall be the responsibility of the board secretary to file this report with the board.

 

 

Legal Reference:  Iowa Code §279.8 (1991)

Cross Reference:  810        Insurance

Approved:  4-23-92                            
Reviewed:  2-12-24              
Revised: