The board recognizes its fiduciary responsibility to oversee the management of school district funds in keeping with the school district vision, mission and goals.  To achieve this purpose, the board may engage in learning about the financial needs, operations and requirements of the district as appropriate for the board’s understanding of the district’s financial position.  The board also commits to engaging in annual financial goal setting for the district based upon measurable data and projections for the district.

After the fiscal year has closed, the Superintendent or their designee will provide to the board concise, timely, well organized financial data.  The board will exercise its oversight responsibilities by reviewing relevant PK-12 public education sector indicators to understand the financial trends of the district. 

The board will establish and review financial goals annually.  The District will measure whether these goals were obtained as of June 30, but only after completion of the Certified Annual Report due September 15th each year.

Providing the best possible educational experience for all students and meeting federal, state, and local academic goals for each student requires maximizing General Fund resources for use in the instructional program. The board may request from the School Budget Review Committee (SBRC) additional modified spending authority (MSA) where it may be available for items such as:

• Special education deficit balances
• Advances to support increasing student enrollment
• Supports for students identified as English Learners
• At risk / dropout prevention programming
• Initial staffing associated with opening new buildings or programs
• Any other lawful purpose

Any award of modified supplement amount will be levied as a cash reserve based on the recommendation of the superintendent/designee and approved by the Board of Education in keeping with the fiscal management performance measures provided for in district policy.

 

Legal Reference:          Iowa Code §§ 257.7, 31; 279.8

 

Approved:  05/15/2023  

Reviewed:

Revised: 02/20/2024

                     

The school district fiscal year shall begin July 1 and end June 30 each year.  The budget shall state the expenditures for the fiscal year, and it shall be the responsibility of the superintendent to operate the education 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 (2003).

Cross Reference:  703      Budget
                              704      Revenue
                              705      Expenditures

Approved:  11/01/2004

Reviewed:  09/21/2009, 10/20/2014, 10/21/2019, 11/18/2024

Revised:  

 

 

Each year at its annual/organizational meeting, the board shall designate by resolution the name and location of the Iowa located financial depository institution or institutions to serve as the official school district depository or depositories. The board will also designate the maximum amount which may be kept on deposit in each bank.  This amount will be designated the first time a new depository is identified, and will be reviewed at least once every five years or when an increase or additional depository is needed.  The amount stated in the resolution must be for all depositories and include all of the school district's funds.

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

 

 

Legal Reference:  Iowa Code §§ 12C; 279.33 (2003).

Cross Reference:  211.01   Annual Meeting
                              206.03    Secretary-Treasurer
                              704.01   Local - State - Federal - Miscellaneous Revenue

Approved:  11/01/2004

Reviewed:  09/21/2009, 10/21/2019

Revised:  10/20/2014, 02/20/2024

 

 

The money received from the regular and the voter-approved physical plant and equipment levies, the levy for public educational and recreational activities imposed under chapter 300, the proceeds of the sale of bonds authorized by law, and the proceeds of a tax estimated and certified by the board for the purpose of paying interest and principal on lawful bonded indebtedness shall be deposited in the schoolhouse fund and, except when authorized by the electors, shall be used only for the purpose for which originally authorized or certified.  The money received from the district management levy shall be deposited in a sub-fund of the general fund of the school district.  All other revenue received for any other purpose shall be deposited in the general fund of the school district.  The treasurer shall keep a separate account for each fund and shall not pay an order that fails to state the fund upon which it is drawn and the specific use for which it is to be applied.

 

 

Legal Reference:  Iowa Code §§ 11.23; 291.13 (2009).

Cross Reference:  704      Revenue
                              705      Expenditures

 

Approved:  11/01/2004

Reviewed:  09/21/2009, 10/20/2014, 10/21/2019, 11/18/2024

Revised:

 

When the necessity for a fund has ceased to exist, the balance may be transferred to another fund or account by board resolution.  School district monies received without a designated purpose may be transferred in this manner.  School district monies received for a specific purpose or upon vote of the people may only be transferred, by board resolution when the purpose for which the monies were received has been completed.  Voter approval is required to transfer monies to the general fund from the capital projects fund and debt service fund.

If all requirements for district use of funds under the Preschool Foundation Aid, Professional Development Supplement, Home School Assistance Program, Teacher Leadership Supplement, or any discontinued fund have been met and funds remain unexpended and unobligated at the end of the fiscal year, the district may transfer all or a portion of remaining funds by passage of a board resolution into the district’s flexibility account in accordance with law.  Before the expenditure of amounts in the flexibility account, the district will publish notice of the time, date, and place of a public hearing on the proposed resolution approving said expenditures. The board must find and certify that the statutory requirements of each original source of funds have been met before adopting the resolution approving the expenditures. The district will present a copy of the signed board resolution to the Department of Education.

The District may transfer by board resolution from the general fund to the student activity fund an amount needed to purchase or refurbish protective and safety equipment required for any extracurricular interscholastic athletic contest or competition sponsored or administered by the Iowa High School Athletic Association of Iowa Girls High School Athletic Union.

If the before and after school program exceeds the amount necessary to operate the program, the excess amount may, following a public hearing, be transferred by resolution of the board of directors of the school corporation for deposit in the general fund of the school corporation to be used for school district general fund purposes. The district will present a copy of the signed board resolution to the Department of Education.

Beginning in FY 2024, unexpended and unobligated dollars that remain at the end of a fiscal year in addition to ongoing revenues may be transferred to the Teacher Salary Supplement (TSS) program from Professional Development Supplement (PDS), Talented and Gifted (TAG), and Teacher Leadership Supplement (TLS) without board action.

The district may choose to request approval from the School Budget Review Committee to transfer funds to make a program whole, prior to its elimination.

Temporary transfers (loans) of funds are permitted between funds but must be repaid to the originating fund, with interest, by October 1 following the end of the fiscal year.

It is the responsibility of the board secretary to make recommendations to the board regarding transfers and to provide the documentation justifying the transfer.

 

Legal Reference:         Iowa Code §§ 24.21-.22; 257.10; 279.8; 279.42; 298A.

                                    289 IA.C. 6                 

 

Cross Reference:        701.5   Financial Records

                                    703      Budget

                                    704.2   Sale of Bonds

 

Approved:  11/01/2004

Reviewed:  09/21/2009, 10/20/2017, 10/21/2019, 09/20/2021, 06/19/2023

Revised:  09/20/2021, 06/19/2023, 02/20/2024

 

Financial records of the school district shall be maintained in accordance with generally accepted accounting principles (GAAP) as required or modified by law.  School district monies shall be received and expended from the appropriate fund and/or account.  The funds and accounts of the school district shall include, but not be limited to:

Governmental fund type:

• General fund - This fund is the chief operating fund of the district.  It is used to account for all financial                                 resources except those accounted for and reported in another fund.
• Special revenue fund - These funds account for the proceeds of specific revenue sources other than                                               trusts or major capital projects, that are legally restricted or committed to                                                     expenditure for specified purposes other than debt service or capital projects.

                  --Management levy fund

                  --Public education and recreation levy fund

                  --Student activity fund

• Capital projects fund - These funds are used to account for financial resources to acquire or construct                                            major capital facilities or other capital assets (other than those of proprietary                                                funds and trust funds) and to account for revenues from SAVE.

                  --Physical plant and equipment levy fund (PPEL)

                  --Secure an Advanced Vision for Education (SAVE)

• Debt service fund - This fund is used to account for the accumulation of resources for, and the payment                                     of, general long-term debt principal and interest.

Proprietary fund type: - These funds account for operations of the school district operated similar to private                                                          business for which a fee is charged to external users for goods or services, or they account                                            for the costs of providing goods and services provided by one department to other                                                          departments on a cost reimbursement basis. 

• Enterprise fund

                  --School nutrition fund

                   --Child care fund

                   --Community Education

                   --Preschool (nonvoluntary, state)

Fiduciary funds: - These funds are used to account for monies or assets held by the school district on behalf of,                                          or in trust for, another entity.

• Trust

                  --Expendable trust funds

                  --Nonexpendable trust funds

                  --Pension trust funds

• Custodial funds

Non-Fiduciary Scholarship Fund

Account groups: - The groups are the accounting records for capital assets and long-term debt.

• General capital assets account group
• General long-term debt account group

The board may establish other funds in accordance with generally accepted accounting principles and may certify other taxes to be levied for the funds as provided by state law. The status of each fund must be included in the annual report.

It will be the responsibility of the superintendent in conjunction with the school business official to implement this policy and bring necessary changes in the maintenance of the school district's financial records to the attention of the board.

 

 

Legal Reference:          Iowa Code §§291; 298; 298A.

                                    281 I.A.C. 98

 

 

Cross Reference:        704      Revenue

                                    705      Expenditures

 

 

Approved:  11/01/2004

Reviewed:  09/21/2009, 10/20/2014, 10/21/2019

Revised:  02/20/2017, 01/18/2021, 10/18/2021, 02/20/2024

 

 

 

 

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 or board secretary/director of finance 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 is not restricted or committed. 

Fund Balance Reporting

Financial reporting for the balances in the District’s governmental funds is based on Governmental Accounting Standards Board (GASB) Statement 54, Fund Balance Reporting and Governmental Fund Types Definitions.  Fund balance refers to the difference between assets and liabilities in the governmental funds balance sheets.  GASB 54 established a hierarchy that is based on “the extent to which the government is bound to honor constraints on the specific purpose for which the amounts in those funds can be spent.”

The governmental funds can have up to five fund balance classifications.  The classifications are defined below from most to least restrictive.

Nonspendable Fund Balance includes amounts that cannot be spent because they are either not in spendable form, or legally or contractually required to be maintained intact.  This includes items not expected to be converted to cash, including inventories and prepaid expenses.  It may also include other property acquired for resale and the principal of a permanent fund.

Restricted Fund Balance should be reported when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or law or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation.  This includes “categorical balances.”

Committed Fund Balance reflects specific purposes pursuant to constraints imposed by formal action of the board. Such constraints can only be removed or changed by board action.

Assigned Fund Balance reflects amounts that are constrained by the government’s intent to be used for specific purposes but meet neither the restricted nor committed forms of constraint.  Unless the amount is negative, the assigned fund balance is the residual classification for the governmental funds other than the general fund.  If the amount is negative, then the residual amount is shown as unassigned.

Unassigned Fund Balance is the residual classification for the general fund only.  As noted above, if a negative residual amount exists in other governmental funds then the amount is reported as unassigned.

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

 

 

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

Cross Reference:  701.5   Financial Records
                              703      Budget
                              704      Revenue

Approved:  06/20/2011

Reviewed:  10/20/2014, 10/21/2019

Revised:  02/20/2024