Code No. 700 Statement of Guiding Priniciples

Code 700 Statement of Guiding Principles

This series of the board policy manual is devoted to the goals and objectives for the school district’s business operations and non-instructional and/or auxiliary services that assist in the delivery of the education program.  These non-instructional services include, but are not limited to, the school lunch program, transportation services, and child care.  The board, as it deems necessary, may provide additional non-instructional services to support the education program.

It is the goal of the board to conduct its business operations and to provide non-instructional services in an efficient manner.

Expenditures for Public Purposes

The Board of Directors recognizes and supports the principle that District funds are to be expended only for legitimate public purposes and not for private personal gain for which services of comparable value have not been rendered to the District. The Board of Directors, therefore, believes it is important to designate those expenditures for officers, directors, employees, and volunteers, which are in addition to salaries and benefits authorized and/or specified in Board policy and legitimate expense reimbursement which serves a legitimate public purpose.

The Board of Directors authorizes the expenditure of District funds for District officers, directors, employees, and volunteers for the following purposes, as these are commonly-granted benefits for employees and volunteers in public and private organizations which aid in recruitment of personnel, promotes improvement of staff morale and cooperation, and assists in building a commitment to the District, thus assisting in creating a more productive learning environment:

  • Mementos for employees for recognition of every five years of service to the District.
  • A retirement appreciation function once per year to recognize retiring employees, mementos may also be given to retirees.
  • A recognition item upon the end of service by a Board member.
  • A recognition item for the president of the Board of Directors upon completion of service as president.
  • Staff welcome and appreciation breakfast or lunch with Board members and employees attend (a limited number of invited community members may be invited also), once per school year, to recognize employee contributions and to promote communication between Board members, administrators, and other staff members.
  • Meals on-site during staff development (in-service) meetings, committee meetings, and meetings hosted at the school.  This is to promote a more efficient day so that staff members and attendees do not leave the premises.
  • Meals for licensed interviewees (and if the interviewee is an administrative candidate, the interviewee’s spouse) and members of the interview committee accompanying the interviewee at the time of an interview.
  • Light meals may also be served to Board members, administrators, and other school personnel required to be present at Board meetings, or Board committee meetings if the meetings are called prior to 7:00 p.m., or if they go unusually long, in order to enable the Board to continue with business without interruption.
  • A volunteer and/or contributor appreciation function or token with Board members, employees, and/or contributor and volunteers may attend once a year to recognize the contributions of volunteers.
  • Meals may be purchased for volunteers working in buildings during the day, from student activity funds.
  • Motivational items for employees that align with the Board's mission and vision for teaching and learning and enhance the climate and culture of the district.
  • Meals for off-site professional development and conferences for Board members, board officers, and accompanying district staff (i.e., Iowa Association of School Boards Annual Convention) to promote effective and efficient board governance.

The Board of Directors also authorizes the expenditure of District funds for coffee and soft drinks in the school buildings. Coffee, soft drinks, light refreshments, such as cookies, may also be made available at Board and committee meetings to promote a welcoming environment and as a common courtesy for individuals who travel to the District building for attendance at District meetings and conferences.

No District funds will be used to pay the cost of any alcoholic beverage and no alcoholic beverage will be available on school grounds.

 

 

Approved:  January 18, 1999

Revised/Reviewed: January 24, 2022

 

Code No. 700.1 Internal Controls and Whistleblower

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, chief financial officer, business manager and board secretary [or designee] 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 their immediate supervisor, the superintendent, the business manager, or the human resources director.  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 about a potential financial impropriety 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.

As the elected leader of the board, the board president shall manage the board and related actions including board meetings, analysis of information related to concerns and/or complaints, and all communication internally and externally to the district.

Upon approval of the board, the superintendent [or designee] 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.

 

Approved: January 24, 2022

Revised/Reviewed:

Code No. 701.1 Budget Planning

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

  • the amount of revenues to be raised by taxation;
  • the amount of revenues from sources other than taxation;
  • an itemization of the amount to be spent in each fund; and,
  • a comparison of the amount spent and revenue received in each fund for like purposes in the two prior fiscal years.

It is the responsibility of the superintendent and board secretary to prepare the budget for review by the board prior to the April 15 deadline each year.

Prior to the adoption of the proposed budget by the board, the public is apprised of the proposed budget for the school district.  Prior to the adoption of the proposed budget by the board, members of the school district community will have an opportunity to review and comment on the proposed budget.  A public hearing for the proposed budget of the board is held each year in sufficient time to file the adopted budget no later than April 15.

The proposed budget filed by the board with the board secretary and the time and place for the public hearing on the proposed budget is published in a newspaper designated for official publication in the school district.  It is the responsibility of the board secretary to publish the proposed budget and public hearing information at least ten but no more than twenty days prior to the public hearing.

Prior to certification of the budget, the board will review the projected revenues and expenditures for the school district and make adjustments where necessary to carry out the education program within the revenues projected.

The board will adopt and certify a budget for the operation of the school district to the county auditor by April 15.  It is the responsibility of the board secretary to file the adopted and certified budget with the county auditor and other proper authorities.

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

It is the responsibility of the superintendent and the board secretary to bring any budget amendments necessary to the attention of the board to allow sufficient time to file the amendment with the county auditor no later than May 31 of each year.

 

Approved:       January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 701.2 Budget as a Spending Plan

The final certified budget of the school district is the authority for the expenditures of the school district for the fiscal year for which the budget was adopted and certified.  It is the responsibility of the superintendent to operate the school district within the budget.

Any expenditure to be made that exceeds the final certified budget shall be made only in accordance with procedures specified in the Code of Iowa. The board, upon approving an amended budget, shall file and publish the same and give notice of a public hearing as provided by law.

 

Approved:       January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 702.1 Depository Funds

Each year at its June regular meeting or at its annual meeting, the board will 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 maximum deposit amount to be kept in the depository will be stated in the resolution.  The amount stated in the resolution must be for all depositories and include all of the school district’s funds.

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

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 702.2 Transfer of Funds

The board may loan monies between funds as it deems necessary.  The board shall exercise this authority judiciously.

When the necessity for an account has ceased to exist, the balance may be transferred to another account or fund by resolution of the board.  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.

A loan from one fund to the other will be at a rate of interest consistent with the state rate.  The period of the loan shall be for a reasonable period and no longer than one year from the beginning date of the loan.

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

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 702.3 Financial Accounting System

The board has adopted the Uniform Financial Accounting for Iowa Schools.  Revisions and amendments to this source shall automatically be adopted.

The board secretary, under the direction of the superintendent, shall seek to refine and extend the accounting procedures prescribed by the Department of Education as the spending plan is developed and implemented.

 

Approved: September 29, 2015

Revised/Reviewed: November 25, 2019

Code No. 702.4 Governmental Accounting Practices and Regulations

General

The board strives to maintain adequate fund balances and reserves in order to:

  1. Provide sufficient cash flow for daily financial needs;
  2. Secure and maintain investment-grade bond ratings;
  3. Offset significant economic downturns or revenue shortfalls; and
  4. Provide funds for unforeseen expenditures related to emergencies.

Reporting Fund Balances

The board shall engage in accounting and financial reporting procedures in compliance with the Governmental Accounting Standards Board’s Statement No. 54 (“GASB 54”).

Pursuant to GASB 54, governmental fund balances shall be identified for purposes of reporting as one of the following types of funds:

  1. “Non-spendable”- fund balances that can never be spent because the balances are either not in spendable form because they cannot currently be spent or cannot ever be spent (i.e., supply inventory funds, prepaid items, long-term loans receivables (including from loans to other funds of the district) and non-financial assets held for resale) or the district is legally or contractually required to maintain the balances in-tact (i.e., principal of an endowment fund).
  2. “Restricted”- fund balances that can be used only for the specific purposes permitted in externally enforceable legal restrictions, including, but not limited to, the constitution, enabling legislation or external resource providers (i.e., PPEL funds, Debt Service funds, Capital Project funds, state grant carryover funds).
  3. “Committed”- fund balances that can be used only for the specific purposes determined by a formal action of the board.
  4. “Assigned”- fund balances that are constrained by the district’s intent to use the funds for specific purposes determined by the board and/or superintendent, but which are neither restricted nor committed (i.e., funds for book fairs or field trips that are within the general fund).
  5. “Unassigned”- fund balances that have not been restricted, committed or assigned (i.e., residual classification for the general fund or a deficit balance from overspending for specific purposes for which amounts have been restricted, committed or assigned for other funds).

Governmental fund balances shall first be distinguished based upon whether the fund balance is non-spendable, as defined above, and then shall be distinguished based upon whether the fund balance is restricted, classified, assigned or unassigned, all as defined above. 

Governmental fund balances shall be identified at the highest category of identification possible, regardless of whether the fund balance also fits into a lower category of identification (i.e., a PPEL fund balance should be reported as “restricted,” even if a separate board action “committed” a portion of the PPEL fund balance to a specific purpose).

Authority to Commit or Assign Fund Balances

The board shall have the authority to determine whether a governmental fund balance in the district’s general fund is committed and/or assigned, both as defined above.  The board shall take formal board action prior to committing a fund balance.  The board will take action to ‘commit’ a fund balance prior to year-end (June 30) of the year the original committed amount is determined.  The exact amount of the committed balance may be determined after the year-end; however, in compliance with GASB 54, the intended committed purpose must be identified, prior to year-end (June 30).  In the event that a committed fund balance is identified subsequent to year-end (June 30), the amount will be reflected on the balance sheet as assigned for that year.

The board shall approve by a majority vote the commitment of a fund balance, and shall approve by a two-thirds vote the removal of the commitment of a fund balance.  The board delegates to the superintendent the authority to assign a fund balance in the district’s general fund to be used for a specific purpose.

Spending Fund Balances

Pursuant to GASB 54, the district shall spend and/or reduce governmental fund balances in the following order: restricted fund balance, committed fund balance, assigned fund balance and unassigned fund balance.

 

Approved:  June 27, 2011 

Revised/Reviewed: November 25, 2019

Code No. 702.5 Capital Assets

The school district will establish and maintain a capital assets management system for reporting capitalized assets owned or under the jurisdiction of the school district in its financial reports in accordance with generally accepted accounting principles (GAAP) as required or modified by law; to improve the school district's oversight of capital assets by assigning and recording them to specific facilities and programs and to provide for proof of loss of capital assets for insurance purposes.

Capital assets, including tangible and intangible assets, are reported in the government-wide financial statements (i.e. governmental activities and business type activities) and the proprietary fund financial statements.  Capital assets reported include school district buildings and sites, construction in progress, improvements other than buildings and sites, land and machinery and equipment.  Capital assets reported in the financial reports will include individual capital assets with an historical cost equal to or greater than ($5000).  The Federal regulations governing school lunch programs require capital assets attributable to the school lunch program with a historical cost of equal to or greater than $500 be capitalized.  Additionally, capital assets are depreciated over the useful life of each capital asset. 

All intangible assets with a purchase price equal to or greater than ($25,000) with useful life of two or more years, are included in the intangible asset inventory for capitalization purposes.  Such assets are recorded at actual historical cost and amortized over the designated useful lifetime applying a straight-line method of depreciation.  If there are no legal, contractual, regulatory, technological or other factors that limit the useful life of the asset, then the intangible asset needs to be considered to have an indefinite useful life and no amortization should be recorded.

Phase III districts, as determined under GASB 34, will not retroactively report intangible assets.  If actual historical cost cannot be determined for intangible assets due to lack of sufficient records, estimated historical cost will be used.

This policy applies to all intangible assets.  If an intangible asset that meets the threshold criteria is fully amortized, the asset must be reported at the historical cost and the applicable accumulated amortization must also be reported.  It is not appropriate to “net” the capital asset and amortization to avoid reporting.   For internally generated intangible assets, outlays incurred by the government's personnel, or by a third-party contractor on behalf of the government, and for development of internally generated intangible assets should be capitalized.

The capital assets management system must be updated monthly to account for the addition/acquisition, disposal, relocation/transfer of capital assets.  It is the responsibility of the superintendent to count and reconcile the capital assets with capital assets management system on June 30 each year.

It is the responsibility of the superintendent to develop administrative regulations implementing this policy.  It will also be the responsibility of the superintendent to educate employees about this policy and its supporting administrative regulations.  

 

Approved:  January 24, 2011

Revised/Reviewed: November 25, 2019

Code No. 702.5R1 Capital Assets Regulations

  1. Capital Assets Management System:  The superintendent, and/or other designated staff, shall:
    1. Conduct the fixed assets physical count;
    2. Develop the fixed assets listing;
    3. Tag fixed assets included in the fixed assets management system with a bar code identification number;
    4. Make a recommendation of a computer software program for managing the fixed assets management system;
    5. Enter the necessary data into the fixed capital assets management system and compile the appropriate reports;
    6. Develop forms and procedures for maintaining the integrity of the fixed capital assets management system; and,
    7. Maintain responsibility for an accurate fixed capital assets management system
  2. Determining historical cost
    1. The historical cost of a capital asset is based on the actual costs expended in making the capital assets serviceable.
    2. Gifts of capital assets are valued at the estimated fair market value at the addition/acquisition date. 
    3. Fixed assets purchased under a capital lease are valued at historical cost of their net present value of the minimum lease payments on the addition/acquisition date.
    4. The historical cost of capital assets must include capitalized interest.
  3. Annual capital assets listing reconciliation
    1. The superintendent, and/or other designated staff, in conjunction with the capital assets management team, will conduct an annual capital assets physical count to develop the annual capital assets listing in a manner similar to the initial capital assets listing process in B above.  At least every three years, someone other than the person in custody of the capital assets in the building/department/room will perform the capital assets physical count for the building/department/room.
    2. Upon completion of the annual capital assets listing, the capital assets listing is reconciled to the capital assets management system data base.                                     
    3. Capital assets found to have been excluded from the data base are added to the capital assets management system.  The capital assets management system process should be reviewed to prevent future incidents of excluding a capital asset.
    4. Capital assets unaccounted for are reported to the superintendent who contacts the supervisor of and the individual in charge/control/custody of the capital asset.  The individual in charge/control/custody of the capital asset has thirty days to account for the capital asset.                     
    5. Capital assets unaccounted for after thirty days are reported to the superintendent for appropriate action and documentation.  “Appropriate action” may include discipline, up to and including discharge, and may require the employee/person in charge/control/custody of the capital asset to replace the asset.
    6. The superintendent is responsible for documenting the reasons each asset was not reconciled to the capital assets management system.                                         
  4. Addition/acquisition of capital assets. 
    1. The school district's purchasing policy and administrative regulations must be followed when acquiring capital assets.  The school district's policy and administrative regulations must be followed for receiving a gift of capital assets.  
    2. The capital assets addition/acquisition documentation must be completed for each additional capital assets with an addition/acquisition cost of equal to or greater than ($500).  The following information should be collected, if applicable:
      1. Name of location-building/department/room;
      2. Location-building/department/room code;
      3. Balance sheet accounting/class code;
      4. Government or BTA program;
      5. Addition/acquisition date;
      6. Check/purchase order number or gift;
      7. Bar code identification number assigned to and placed on the capital asset;
      8. Serial/model number;                                                            
      9. Cost-historical;
      10. Fair market value on acquisition date (donated assets only);
      11. Estimated useful life;
      12. Vendor;
      13. Purchasing fund and function;
      14. Description of capital asset;
      15. Department/person charged with custody,
      16. Method of addition/acquisition-purchase, trade, gift etc.,
      17. Quantity;
      18. Replacement cost;
      19. Addition/acquisition authorization; and,
      20. Function for depreciation.
    3. Capital assets acquired in a month must be entered into the capital assets management system in the same month.
    4. The actual costs of construction in progress, other than infrastructure, is entered into the capital assets management system in the month in which costs are incurred until the total cost of addition/acquisition is entered.  Upon completion of construction, the total costs accumulated over the period of construction are reclassified to buildings.
    5. Capital assets acquired in a month must be entered into the capital assets management system in the same month.
  5. Relocation/transfer of machinery and equipment capital assets.
    1. A capital assets relocation/transfer documentation must be completed prior to removing machinery and equipment capital assets from their current location.  The following information must be collected:
      1. Relocation/transfer date;
      2. Quantity;
      3. Bar code identification number;
      4. Current location-building/department/room code;
      5. Name of current location-building/department/room;
      6. New location-building/department/room code
      7. Name of new location-building/department/room;
      8. Date placed at new location-building/department/room;
      9. Department/person charged with custody; and
      10. Relocation/transfer authorization.
    2. Capital assets relocated/transferred in a month must be entered into the capital assets management system in the same month.
  6. Disposal of capital assets
    1. A Capital Assets disposal documentation must be completed prior to disposing of real property.  The following information must be collected:
      1. Disposal date;
      2. Quantity;
      3. Bar code tag identification number;
      4. Legal description,
      5. Location/Address;
      6. Purchaser;
      7. Disposal methods for real property trade, sale, stolen, etc.; and,
      8. Disposal authorization.
    2. Capital assets disposed of in a month must be entered into the capital assets management system in the same month.
    3. When assets are sold or disposed of, it is necessary to calculate and report a gain or loss in the statement of activities.  The gain/loss is calculated by subtracting the net book value (historical cost less any accumulated amortization) from the net amount realized on the sale or disposal.
  7. Lost, damaged or stolen capital assets.
    1. A Lost, Damaged or Stolen Capital Assets Report must be completed when a capital asset has been lost, damaged or stolen. The following information must be collected:
      1. Date of loss, damage or theft;
      2. Employee/person discovering;
      3. Quantity;
      4. Description of capital asset;
      5. Bar code tag identification number;
      6. Location-building/department/room;
      7. Description of loss, damage, etc.
      8. Filing of police report-yes or no;
      9. Filing of insurance report-yes or no;
      10. Sent for repair-yes or no;
      11. Date returned from repair;
      12. Date returned to location-building/department/room;
      13. Department/person charged with custody; and,
      14. Authorization.
    2. Capital assets damaged, lost or stolen in a month must be entered into the capital assets management system in the same month.
  8. Capital assets reports
    1. Annual reports for June 30 each year.                                 
      1. Capital assets listing including the following items:
        1. Balance sheet accounting/class code;
        2. Purchasing fund, function and depreciation function;
        3. Bar code tag identification number;
        4. Description of the capital asset;
        5. Historical cost or other;
        6. Location;
        7. Current year depreciation/expense; and,
        8. Accumulated depreciation/amortization.
      2. capital assets listing by location/building;
      3. capital assets listing by department/employee/person charged with custody; and,
      4. capital assets listing by replacement cost. 

 

Revised/Reviewed: November 25, 2019

 

Code No. 702.5R2 Capital Assets Definitions

Back trending/standard costing - an estimate of the historical original cost using a known average installed cost for like units as of the estimated addition/ acquisition date.  This cost is only applied to the capital assets initially counted upon implementation of the capital assets management system when the historical original cost cannot be determined.  It is inappropriate to apply the back trending/standard costing method to any capital assets acquired after the assets management system implementation date.

Balance sheet accounting/class codes - the codes set out for assets in the Iowa Department of Education Uniform Accounting Manual.  They are:  200-capital assets; 211- land and land improvements; 221-site improvements; 222-accumulated depreciation on site improvements; 231-buildings and building improvements; 232-accumulated depreciation on buildings and building improvements; 241-machinery and equipment; 242-accumulated depreciation on machinery and equipment, 251-works of art and historical treasures; 252-accumulated depreciation on works of art and historical treasures, 261-infrastructure, 262-accumulated depreciation on infrastructure, and 271-construction in progress.

Book value - the value of capital assets on the records of the school district, which can be the cost or, the cost less the appropriate allowances, such as depreciation.

Buildings and building improvements - a capital assets account reflecting the addition/acquisition cost of permanent structures owned or held by a government and the improvements thereon.

Business-type activities – one of two classes of activities reported in the government-wide financial statements.  Business-type activities are financed in the whole or in part by fees charged to external parties for goods or services.  These activities are usually reported in enterprise funds.

Capital expenditures/expenses - expenditures/expenses resulting in the addition/acquisition of or addition/acquisition to the school district's capital assets.

Capital assets - Capital assets with a value of equal to or greater than ($500) based on the historical cost include:  long-lived assets obtained or controlled as a result of past transactions, events or circumstances.  Capital assets include buildings, construction in progress, improvements other than facilities, land, machinery and equipment, and intangible assets.

Capitalization policy - the criteria used by the school district to determine which capital assets will be reported as capital assets on the school district’s financial statements and records

Capitalization threshold - The dollar value at which a government elects to capitalize tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.

Capitalized interest - interest accrued and reported as part of the cost of the capital assets during the construction phase of a capital project.  The construction phase extends from the initiation of pre-construction activities until the time the asset is placed in service. 

Construction in progress - buildings in the process of being constructed other than infrastructure.

Cost - the amount of money or other consideration exchanged for goods or services.

Depreciation/Amortization - expiration in the service life of capital assets, other than wasting assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence.  In accounting for depreciation/amortization, the cost of a capital asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost.

Fixtures - attachments to buildings that are not intended to be removed and cannot be removed without damage to the buildings.  Those fixtures with a useful life presumed to be as long as that of the building itself are considered a part of the building.  Other fixtures are classified as machinery and equipment. 

General capital assets - capital assets that are not capital assets of any fund, but of the governmental unit as a whole.  Most often these capital assets arise from the expenditure of the financial resources of governmental funds.

General capital assets account group (GFAAG) - a self-balancing group of accounts established to account for capital assets of the school district, not accounted for through specific proprietary funds.

Government activities – activities generally financed through taxes, intergovernmental revenues, and other non-exchange revenues.  These activities are usually reported in governmental funds and internal service funds.

Government-wide financial statements – Financial statements that incorporate all of a government's governmental and business-type activities, as well as its nonfiduciary component units.  There are two basic government-wide financial statements the statement of net assets and the statement of activities.  Both basic government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting.

Historical (acquisition) cost - the actual costs expended to place a capital asset into service.  For land and buildings, costs such as legal fees, recording fees, surveying fees, architect fees and similar fees are included in the historical cost.  For machinery and equipment, costs such as freight and installation fees and similar fees are included in the historical cost.

Improvements – In addition made to, or change made in, a capital asset, other than maintenance, to prolong its life or to increase the efficiency or capacity.  The cost of the addition or change is added to the book value of the asset.

Improvements other than buildings - attachments or annexation to land that are intended to remain so attached or annexed, such as sidewalks, trees, drives, tunnels, drains and sewers.  Sidewalks, curbing, sewers and highways are sometimes referred to as "betterments," but the term "improvements" is preferred.

Infrastructure – long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets.  Examples of infrastructure assets include; roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems.

Investment in general capital assets - an account in the GFAAG representing the school district's investment in general capital assets. The balance in this account generally is subdivided according to the source of the monies that finance the capital assets addition/acquisition, such as general fund revenues and special assessments. 

Land and buildings - real property owned by the school district.

Machinery and equipment - capital assets which maintain their identity when removed from their location and are not changed materially or consumed immediately (e.g., within one year) by use.  Machinery and equipment are often divided into specific categories such as:  transportation machinery and equipment which includes school buses and school district owned automobiles, trucks and vans; other motor machinery and equipment which includes lawn maintenance machinery and equipment, tractors, motorized carts, maintenance machinery and equipment, etc.; other machinery and equipment which includes furniture and machinery and equipment contained in the buildings whose original cost is equal to or greater than ($500), and capital assets under capital leases and capital assets being acquired under a lease/purchase agreement.

Proprietary funds – Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows.  There are two different types of proprietary funds:  enterprise funds and internal service funds.

Replacement cost - the amount of cash or other consideration required today to obtain the same capital assets or its equivalent.

 

Revised/Reviewed: November 25, 2019

Code No. 702.6 Student Activities Fund

Revenue raised by students or from student activities is deposited and accounted for in the student activities fund.  This revenue is the property of and is under the financial control of the board.  Students may use this revenue for purposes approved by the superintendent.

Whether such revenue is collected from student contributions, club dues, and special activities or result from admissions to special events or from other fund-raising activities, all funds will be under the jurisdiction of the board and under the specific control of the superintendent.  The revenue will be deposited in a designated depository and will be disbursed and accounted for in accordance with instructions issued by the superintendent.

It is the responsibility of the superintendent or designee to keep student activity accounts up-to-date and complete.

Any unencumbered class or activity account balances will automatically revert to the general fund of the school when a class graduates or an activity is discontinued.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 703.1 Revenue

Revenues of the school district are received by the board treasurer.  Other persons receiving revenues on behalf of the school district will promptly turn them over to the board treasurer.

Revenue, from whatever source, is accounted for and classified under the official accounting system of the school district.  It is the responsibility of the board treasurer to deposit the revenues received by the school district in a timely manner.  School district funds from all sources will not be used for private gain or political purposes.

Tuition fees received by the school district are deposited in the general fund.  The tuition fees for kindergarten through twelfth grade during the regular academic school year are set by the board based upon the superintendent’s recommendation in compliance with current law.  Tuition fees for summer school, driver’s education and adult education are set by the board prior to the offering of the programs.

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

Rental fees received by the school district for the rental of school district equipment or facilities are deposited in the general fund.  It is 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 are placed in the PPEL fund.  The proceeds from the sale of other school district property are placed in the general fund.

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

  • Goods and services directly and reasonably related to the educational mission;
  • Goods and 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 and services which are not otherwise available in the quantity or quality required by the school district;
  • Telecommunications other than radio or television stations;
  • Sponsoring or providing facilities for fitness and recreation;
  • Food service and sales; and,
  • Sale of books, records, tapes, software, educational equipment, and supplies.

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

 

Approved:       January 18, 1998

Revised/Reviewed: November 25, 2019

Code No. 703.2 Cash in School Buildings

The amount of cash that may be kept in the school building for any one day is sufficient for that day’s operations.  Funds raised by students are deposited each day in the bank.

A minimal amount of cash is kept in the central administration office at the close of the day.  Excess cash is deposited in the authorized depository of the school district.

It is the responsibility of the superintendent to determine the amount of cash necessary for each day’s operations and to comply with this policy.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 703.2R1 Business Procedures for Handling Cash

An important control principle in all accounting procedures is a process of checks and balances.  In order to achieve a proper check and balance, there must be an appropriate and adequate segregation of duties based on the resources available.  This means that no one individual should perform all phases of a transaction.  The superintendent and the principals should assign accounting duties among available office staff to achieve the highest degree of segregation.  As needed, the business manager will assist with suggestions for an appropriate segregation of duties.

The efficient and accurate handling of cash is very important.  The original document for recording cash received shall be a pre-numbered cash receipt.  Receipts must be used in numerical order.  Pre-numbered cash receipt books or forms shall be available through the Business Office. 

Pre-numbered receipts (three-part receipt) shall be issued for all cash received as follows:

  1. The original (white) copy is given to the payer or person submitting the money.
  2. The second (yellow) copy is pulled out and attached to the supporting documentation which includes a copy of the Cash Receipt Breakdown to provide to the Business Manager for input into the district’s computerized accounting system.
  3. The third (pink) copy must stay in the receipt book.  Once full, receipt books should be submitted to the Business Manager to be kept on file for audit purposes for at least five fiscal years. 

NOTE:  If an error is made in writing a receipt, mark it “VOID”, send the yellow copy to the Business Manager, and leave the white and pink copies intact in the receipt book. 

At the time of collection, all checks and cash should be counted by the school office staff in the presence of the sponsor/payer, and before the cash receipt is issued.  If this is not possible, the sponsor/payer should turn in documentation of his/her money count to the office staff so reconciliation can be done at a more convenient time.  When submitting money to the office, a CASH COUNT FORM should be prepared to provide documentation of the amount submitted.  Money collected must be deposited into the bank intact.  Checks must be stamped immediately with a restrictive endorsement stamp (FOR DEPOSIT ONLY), and should not be cashed or exchanged for cash through the school’s deposit.  Money should be deposited daily to avoid having cash in sites overnight.  If money cannot be processed immediately for deposit, it should be placed in the school vault.  Money collected should never be commingled (mixed together) with change funds or petty cash funds.  School Office Staff are responsible for the money on-hand in their buildings.

All money collected should be submitted to the school office daily to reduce the risk of loss.  Money should not be stored in classroom desks and cabinets or other places that cannot be properly safeguarded.  When money is submitted to the school office for deposit, a pre-numbered cash receipt should be issued by the school office staff to the teacher or activity sponsor. 

Deposits should be made as follows:

For all schools, the food service department, and the preschool program, deposits should be made daily.  If a situation arose where a deposit could not be made, the deposit documentation, money, and other pertinent documents should be stored in the school’s vault overnight. 

Documentation for Deposits should be distributed as follows:

  1. The deposit slip should be placed with the cash, checks, and a copy of the calculator tape.  Deposits ready to be taken to the bank should be forwarded to the High School vault, and deposit information should be printed on the clipboard.
  2. The yellow copy of the receipts should be attached to the Cash Receipt Breakdown and sent to the Superintendent’s Office the day of deposit.  School office staff should make a copy of the deposit slip and Cash Receipt Breakdown to be maintained in date order for future reference by the school office.
  3. A copy of the bank’s verification of deposit should be returned to the Superintendent’s Office and attached to the Cash Receipt Breakdown.  Bank personnel will sign clipboard confirming amount of deposit.

Petty Cash Funds:

Each school office shall have Petty Cash Funds to be used for incidental type purchases that are non-recurring in nature and of relatively minimal amount.  No collection of any type is ever added to the fund, and no disbursement is made without sufficient expense documentation.  No checks may be cashed by the fund.  The Petty Cash Funds are controlled by an individual assigned by the building principal.  This person is referred to as the custodian of the fund.  The authorized fund amount for the elementary is $150.  The authorized fund amount for the two petty cash funds at the secondary school include $230 for the primary petty cash account and $20 for the secondary petty cash account (used only to make change).  The amount of cash in the fund, plus any petty cash vouchers (with original receipts attached) shall always equal the authorized balance.  Purchases made through the petty cash fund should be minimal in value; therefore the maximum amount per disbursement is set at $20.  Postage needs for the district may exceed $20 and in those rare instances, the disbursement may be permitted to exceed $20 with the superintendent’s approval.   

Whenever the amount of cash in the fund is low as determined by the frequency of use, a requisition shall be processed to reimburse the fund.  At that time, the petty cash fund shall be reconciled by the custodian by counting the amount of cash and adding it to the amount of disbursements for which reimbursement is requested.  The total of these amounts should equal the authorized balance for the fund.  Variances shall be noted on the reimbursement form or requisition and will be accounted for by the Business Office. 

Upon approval, a check will be written payable to the petty cash custodian.  When the reimbursement check is received at the Site, the custodian of the fund shall write a receipt using a regular pre-numbered receipt, marking the receipt “Petty Cash Reimbursement-----Not for Deposit”.  The check shall be cashed at the bank by the petty cash custodian and the cash immediately placed in the petty cash box.

The petty cash fund shall be safeguarded at all times and placed in a secure location, such as in a locked safe or vault, if available, or a locked filing cabinet or desk.  At the end of the fiscal year (June 30), a final reimbursement request shall be submitted to the Business Office in order to reconcile the fund and account for expenditures in the appropriate fiscal year. 

Cash Boxes for Events:

A cash box is a change fund that is commonly used for athletic or other extra-curricular activities where there is an admission charge.  The fund is assigned to and controlled by one individual as determined by the Principal or Athletic Director.  The cash box should only be used to make change when selling tickets in conjunction with admissions at an event.  The cash box may not be used to pay for expenditures of any type.

The cash box should be safeguarded at all times and placed in a secure location such as in a locked safe or vault.  Cash boxes are maintained on an imprest basis.  This means that an established amount is on hand and reconciled after use.   The amount of the change fund for cash boxes not to exceed $1,250.

 

Approved:       February 22, 2010

Revised/Reviewed: November 25, 201

Code No. 703.3 Sale of Bonds

The board may conduct an election for the authority to issue bonded indebtedness.  Revenues generated from an approved bond issue are used only for the purpose stated on the ballot.   Revenues received from the issuing of bonded indebtedness shall be deposited into the debt service fund.

Once the purpose on the ballot is completed, any balance remaining in a capital projects fund may be retained for future capital projects in accordance with the purpose stated on the ballot or any remaining balance may be transferred by board resolution to the debt service fund or the physical plant and equipment levy fund.  Voter approval is required to transfer monies to the general fund from the capital projects fund.  Voter approval is also required for the use of excess funds in the debt service fund for another purpose.

 

Approved:       January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 703.3R1 Post-Issuance Compliance Regulation for Tax-Exempt Obligations

  1. Role of Compliance Coordinator/Board Treasurer:  The board treasurer shall, with the assistance of others, including, but not limited to bond counsel: 
    1. Be responsible for monitoring post-issuance compliance;
    2. Maintain a copy of the transcript of proceedings or minutes in connection with the issuance of any tax-exempt obligations and obtain records that are necessary to meet the requirements of this regulation;
    3. Consult with bond counsel, a rebate consultant, financial advisor, IRS publications and such other resources as are necessary to understand and meet the requirements of this regulation;
    4. Seek out training and education to be implemented upon the occurrence of new developments in the area and upon the hiring of new personnel to implement this regulation.
  2. Financing Transcripts’ Filing and Retention:  The board treasurer shall, with the assistance of others, including, but not limited to bond counsel, confirm the proper filing of an IRS 8038 Series return and maintain a transcript of proceedings and minutes for all tax-exempt obligations issued by the school district including, but not limited to, all tax-exempt bonds, notes and lease-purchase contracts. Each transcript shall be maintained until 11 years after the tax-exempt obligation documents have been retired. The transcript shall include, at a minimum:
    1. Form 8038;
    2. Minutes, resolutions and certificates;
    3. Certifications of issue price from the underwriter;
    4. Formal elections required by the IRS;
    5. Trustee statements;
    6. Records of refunded bonds, if applicable;
    7. Correspondence relating to bond financings; and
    8. Reports of any IRS examinations for bond financings.
  3. Proper Use of Proceeds:  On an annual basis, the board treasurer shall review with bond counsel the resolution authorizing issuance for each tax-exempt obligation issued by the school district and the school district shall:
    1. Obtain a computation of the yield on such issue from the school district's financial advisor;
    2. Create a separate Project Fund (with as many sub-funds as shall be necessary to allocate proceeds among the projects being funded by the issue) into which the proceeds of issue shall be deposited;
    3. Review all requisitions, draw schedules, draw requests, invoices and bills requesting payment from the Project Fund;
    4. Determine whether payment from the Project Fund is appropriate and, if so, make payment from the Project Fund (and appropriate sub-fund, if applicable);
    5. Maintain records of the payment requests and corresponding records showing payment;
    6. Maintain records showing the earnings on, and investment of, the Project Fund;
    7. Ensure that all investments acquired with proceeds are purchased at fair market value;
    8. Identify bond proceeds or applicable debt service allocations that must be invested with a yield-restriction and monitor the investments of any yield-restricted funds to ensure that the yield on such investments do not exceed the yield to which such investments are restricted;
    9. Maintain records related to any investment contracts, credit enhancement transactions and the bidding of financial products related to the proceeds.
  4. Timely Expenditure and Arbitrage/Rebate Compliance:  The board treasurer shall, with the assistance of others, including, but not limited to bond counsel, review the Tax-Exemption Certificate (or equivalent) for each tax-exempt obligation issued by the school district and the expenditure records provided in Section 2 of this regulation, above and shall:
    1. Monitor and ensure that proceeds of each such issue are spent within the temporary period set forth in such certificate;
    2. Monitor and ensure that the proceeds are spent in accordance with one or more of the applicable exceptions to rebate as set forth in such certificate if the school district does not meet the "small  issuer" exception for said obligation;
    3. Not less than 60 days prior to a required expenditure date, confer with bond counsel and a rebate consultant, if the school district will fail to meet the applicable temporary period or rebate exception expenditure requirements of the Tax-Exemption Certificate.  In the event the school district fails to meet a temporary period or rebate exception:
      1. Procure a timely computation of any rebate liability and, if rebate is due, file a Form 8038-T and arrange for payment of such rebate liability;
      2. Arrange for timely computation and payment of yield reduction payments (as such term is defined in the Code and Treasury Regulations), if applicable.
  5. Proper Use of Bond Financed Assets:  The board treasurer shall, with the assistance of others, including, but not limited to bond counsel:
    1. Maintain appropriate records and a list of all bond financed assets.  Such records shall include the actual amount of proceeds (including investment earnings) spent on each of the bond financed assets;
    2. Monitor and confer with bond counsel with respect to all proposed bond financed assets;
      1. management contracts;
      2. service agreements;
      3. research contracts;
      4. naming rights contracts;
      5. leases or sub-leases;
      6. joint venture, limited liability or partnership arrangements;
      7. sale of property; or
      8. any other change in use of such asset.
    3. Maintain a copy of the proposed agreement, contract, lease or arrangement, together with the response by bond counsel with respect to said proposal for at least three years after retirement of all tax-exempt obligations issued to fund all or any portion of bond financed assets; and
    4. Contact bond counsel and ensure timely remedial action under IRS Regulation Sections 1.141-12 in the event the school district takes an action with respect to a bond financed asset, which causes the private business tests or private loan financing test to be met.
  6. General Project Records:  For each project financed with tax-exempt obligations, the board treasurer shall, with the assistance of others, including, but not limited to bond counsel, maintain, until three years after retirement of the tax-exempt obligations or obligations issued to refund those obligations, the following:
    1. Appraisals, demand surveys or feasibility studies;
    2. Applications, approvals and other documentation of grants;
    3. Depreciation schedules;
    4. Contracts respecting the project.
  7. Advance Refundings: The board treasurer shall be responsible for the following current, post issuance and record retention procedures with respect to advance refunding bonds.  The board treasurer shall, with the assistance of others, including, but not limited to bond counsel:
    1. Identify and select bonds to be advance refunded with advice from internal financial personnel and a financial advisor;
    2. Identify, with advice from the financial advisor and bond counsel, any possible federal tax compliance issues prior to structuring any advance refunding;
    3. Review the structure with the input of the financial advisor and bond counsel, of advance refunding issues prior to the issuance to ensure;
      1. that the proposed refunding is permitted pursuant to applicable federal tax requirements if there has been a prior refunding of the original bond issue;
      2. that the proposed issuance complies with federal income tax requirements which might impose restrictions on the redemption date of the refunded bonds;
      3. that the proposed issuance complies with federal income tax requirements which allow for the proceeds and replacement proceeds of an issue to be invested temporarily in higher yielding investments without causing the advance refunding bonds to become "arbitrage bonds"; and
      4. that the proposed issuance will not result in the issuer's exploitation of the difference between tax exempt and taxable interest rates to obtain an financial advantage nor overburden the tax exempt market in a way that might be considered an abusive transaction for federal tax purposes;
    4. Collect and review data related to arbitrage yield restriction and rebate requirements for advance refunding bonds. To ensure such compliance, the board treasurer shall engage a rebate consultant to prepare a verification report in connection with the advance refunding issuance. Said report shall ensure said requirements are satisfied;
    5. Whenever possible, purchase State and Local Government Series (SLGS) to size each advance refunding escrow. The financial advisor shall be included in the process of subscribing SLGS. To the extent SLGS are not available for purchase, the Board treasurer shall, in consultation with bond counsel and the financial advisor, comply with IRS regulations;
    6. Ensure, after input from bond counsel, compliance with any bidding requirements set forth by the IRS regulations to the extent as issuer elects to the purchase of a guaranteed investment contract;
    7. In determining the issue price for any advance refunding issuance, obtain and retain issue price certification by the purchasing underwriter at closing;
    8. After the issuance of an advance refunding issue, ensure timely identification of violations of any federal tax requirements and engage bond counsel in attempt to remediate same in accordance with IRS regulations.
  8. Continuing Disclosure:  The board treasurer shall, with the assistance of others, including, but not limited to bond counsel, assure compliance with each continuing disclosure certificate and annually, per continuing disclosure agreements, file audited annual financial statements and other information required by each continuing disclosure agreement. The board treasurer will monitor material events as described in each continuing disclosure agreement and assure compliance with material event disclosure. Events to be reported shall be reported promptly, but in no event not later than 10 business days after the day of the occurrence of the event.  Currently, such notice shall be given in the event of:
    1. Principal and interest payment delinquencies;
    2. Non-payment related defaults, if material;
    3. Unscheduled draws on debt service reserves reflecting financial difficulties;
    4. Unscheduled draws on credit enhancements relating to the bonds reflecting financial difficulties;
    5. Substitution of credit or liquidity providers, or their failure to perform;
    6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices, or determinations with respect to the tax-exempt status of the bonds, or material events affecting the tax-exempt status of the bonds;
    7. Modifications to rights of Holders of the Bonds, if material;
    8. Bond calls (excluding sinking fund mandatory redemptions), if material and tender offers;
    9. Defeasances of the bonds;
    10. Release, substitution, or sale of property securing repayment of the bonds, if material;
    11. Rating changes on the bonds;
    12. Bankruptcy, insolvency, receivership or similar event of the Issuer;
    13. The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and
    14. Appointment of a successor or additional trustee or the change of name of a trustee, if material.

 

Approved:       February 27, 2012      

Revised/Reviewed: November 25, 2019

Code No. 703.4 Investments

School district funds in excess of current needs are invested in compliance with this policy.  The goals of the school district’s investment portfolio in order of priority are:

  • To provide safety of the principal;
  • To maintain the necessary liquidity to match expected liabilities; and
  • To obtain a reasonable rate of return.

In making investments, the school district will exercise the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use to meet the goals of the investment program.

School district funds are monies of the school district, including operating funds.  “Operating funds” of the school district are funds which are reasonably expected to be used during a current budget year or within fifteen months of receipt.  When investing operating funds, the investments must mature within three hundred and ninety-seven days or less.  When investing funds other than operating funds, the investments must mature according to the need for the funds.

The board authorizes the treasurer to invest funds in excess of current needs in the following investments.

  • Interest bearing savings, money market, and checking accounts at the school district’s authorized depositories;
  • Qualified investment pool, including, but not limited to, Iowa Schools Joint Investment Trust Program (ISJIT);,
  • Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions; and
  • Obligations of the United States government, its agencies and instrumentalities

It is the responsibility of the treasurer to oversee the investment portfolio in compliance with this policy and the law.

The treasurer is responsible for reporting to and reviewing with the board at its regular meetings the investment portfolio’s performance, transaction activity and current investments including the percent of the investment portfolio by type of investment and by issuer and maturities.  The treasurer is responsible for working with the secretary to coordinate the financial records, the financial reports, the cash flow needs, and the investment portfolio of the district.

If the board requests it, it shall be the responsibility of the treasurer to bring a contract with an outside person to invest district funds, to advise on investments, to direct investments, to act in a fiduciary capacity or to perform other investment services to the board for review and approval.  The board treasurer shall also provide the board with information about and verification of the outside person’s fiduciary bond.  Contracts with outside persons shall include a clause requiring the outside person to notify the district within thirty (30) days of any material weakness in internal structure or regulatory orders or sanctions against the outside person regarding the services being provided to the district and to provide the documents necessary for the performance of the investment portion of the district audit.  The compensation of the outside persons shall not be based upon the performance of the investment portfolio.

The superintendent is responsible for delivering a copy of this policy to the school district’s depositories, auditor and outside persons doing investment business with the school district.

 

It will also be the responsibility of the superintendent, in conjunction with the treasurer, to develop a system of investment practices and internal controls over the investment practices.  The investment practices shall be designed to prevent losses, to document the officers’ and employees’ responsibility for elements of the investment process and address the capability of the management.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 703.5 Gifts, Grants, and Bequests

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

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

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

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 704.1 Purchase of Goods and Services

It shall be the policy of the district to purchase and recommend the purchase of products and services from within the school district community provided that such products and services are available and competitive in quality and in price.

The spending plan that is developed from the Certified Budget shall be considered the authority for all expenditures which are made during the fiscal year.  The principal concern of the board shall be that the overall expenditure for any fiscal period shall not exceed the budgeted amount for any one fund.  Categorical breakdowns within funds shall be used primarily for accounting control for the current fiscal year and for developing future spending planning.

Final authority for approval of all purchases made in the name of the district rests with the superintendent or designee except those authorized by direct action of the board.

Competitive bids in accordance with the laws of the State of Iowa must be used whenever the nature or amount of the purchase justifies taking of bids.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 704.1R1 Purchase of Goods and Services Regulations

The procurement of all supplies, equipment, and services shall be initiated by the issuance of an official purchase order signed by the board secretary or other authorized staff member.  Only supplies, equipment, and services procured by formal contract will be exempt.

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

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 704.2 Payment for Goods and Services

The board authorizes the issuance of warrants for payment of claims against the school district for goods and services.  The board will allow the warrants after the goods and services have been received and accepted in compliance with board policy.

Claims for items pursuant to the terms of a written contract approved by the board, such as payment of freight, athletic officials, express, postage, printing, water, lights, telephone, rents, and payment of salaries may be paid by the board secretary prior to formal audit and approval by the board. In addition, the secretary, upon approval of the board president, may issue warrants for approved registrations, claims offering a discount for early payment, approved travel expenses, approved goods and services delivered C.O.D., and other verified bills filed with the secretary when the board is not in session prior to payment of these claims and prior to audit and approval by the board. The board secretary shall examine the claims and verify bills.

The secretary shall determine to the secretary's satisfaction that the claims presented to the board are in order and are legitimate expenses of the school district. It shall be the responsibility of the secretary to bring claims to the board for approval.  Hereafter, paid claims shall be entered on record in the regular minutes of the secretary.

The board president and board secretary may each sign warrants by use of a signature plate or rubber stamp corresponding to their own signature, but the board secretary shall neither sign nor stamp on behalf of the board president. If the board president is unavailable to personally sign warrants, the vice president may sign warrants on behalf of the president.

 

Approved:  January 18, 1999

Revised/Reviewed: January 24, 2022

Code No. 705.1 Financial Reports

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

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 employees regularly employed by the district shall also be published in a newspaper designated as a newspaper for official publication.

At the annual meeting, the treasurer will give the annual report stating the amount held over, received, paid out, and on hand in the general and schoolhouse funds.  This report is in written form and sent to the board with the agenda for the board meeting.  The treasurer will also furnish the board with a sworn statement from each depository showing the balance then on deposit.

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

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 705.2 Audit

To review the funds and accounts of the school district, the board will employ an auditor to perform an annual audit of the financial affairs of the school district.  The superintendent will use a request for proposal procedure in selecting an auditor.  The administration will cooperate with the auditors.  Such annual audit reports shall remain on permanent file in the central office of the district.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 706.1 District Records

School district records are housed in the central administration office of the school district.  It is the responsibility of the superintendent to oversee the maintenance and accuracy of the records.  The following records are kept and preserved according to the schedule below:

  • Secretary’s financial records                                                             Permanently
  • Treasurer’s financial records                                                             Permanently
  • Minutes of the Board of Directors                                                      Permanently
  • Annual audit reports                                                                           Permanently
  • Annual budget                                                                                    Permanently
  • Permanent record of individual pupil                                                  Permanently
  • Records of payment of judgments against the school district            20 years
  • Bonds and bond coupons                                                                  11 years
  • Written contracts                                                                                10 years
  • Cancelled warrants, check stubs, bank statements, bills, invoices,    5 years

and related records                                                                 

  • Recordings of closed meetings                                                           1 year
  • Program grants                                                                                   As per the grant
  • Nonpayroll personnel records                                                             7 years
  • Payroll records                                                                                    3 years

 

Employees’ records shall be housed in the central administration office of the school district.  The employees’ records are maintained by the superintendent, the building administrator, the employee’s immediate supervisor, and the board secretary.

An inventory of the furniture, equipment, and other non-consumable items other than real property of the school district are conducted annually under the supervision of the superintendent.  This report is filed with the board secretary. A perpetual inventory is maintained on consumable property of the school district.

The permanent and cumulative records of students currently enrolled in the school district are housed in the central administration office of the attendance center where the student attends.  Permanent records must be housed in a fireproof vault.  The building administrator is responsible for keeping these records current.  Records of students who have graduated or are no longer enrolled in the school district shall be housed in the high school vault.  These records will be maintained by the superintendent.

The superintendent or designee may electronically duplicate school district records and may destroy paper copies of the records if they are more than three years old.  A properly authenticated reproduction of an electronically duplicated record meets the same legal requirements as the original record.

 

Approved:       January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 706.1R1 Financial Records

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

Governmental fund type:

  1. General fund
  2. Special revenue fund
    1. Management levy fund
    2. Public education and recreation levy fund
    3. Student activity fund
  3. Capital projects fund
    1. Physical plant and equipment levy fund
  4. Debt service fund
  5. State penny sales tax fund

Proprietary fund type:

  1. Enterprise fund
    1. School nutrition fund
    2. Child care fund
  2. Internal service fund

Fiduciary funds:

  1. Trust or agency funds
    1. Expendable trust funds
    2. Nonexpendable trust funds
    3. Agency funds
    4. Pension trust funds

Account groups:

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

As necessary the board may, by board resolution, create additional funds within the governmental, proprietary and fiduciary fund types. The resolution shall state the type of fund, name of the fund, and purpose of the fund.

The general fund is used primarily for the education program. Special revenue funds are used to account for monies restricted to a specific use by law. Proprietary funds account for operations of the school district operated similarly to private business, and they account for the costs of providing goods and services provided by one department to other departments on a cost reimbursement basis. Fiduciary funds are used to account for monies or assets held by the district on behalf of, or in trust for, another entity. The account groups are the accounting records for fixed assets and long-term debt.

 

Approved:  September 29, 2015

Revised/Reviewed: November 25, 2019

Code No. 706.2 Insurance Program

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.  The board will purchase insurance of replacement values, when possible, after reviewing the costs and availability of such insurance.  The comprehensive insurance program shall be reviewed once every three years.  Insurance will only be purchased through legally licensed Iowa insurance agents.

The school 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 education program or financial condition of the school district.

Insurance of buildings, structures, or property in the open will not generally be purchased to cover loss exposures below $1,000 unless such insurance is required by statute or contract.

The board may retain a private appraisal agency for fixed asset management services.

Administration of the insurance program, making recommendations for additional coverage, and placing the insurance coverage and loss prevention activities is the responsibility of the superintendent.  The board secretary is responsible for maintaining the fixed assets management system, processing claims and maintaining loss records.

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

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 707.1 School Food Program

The purpose of the school food program shall be to provide nutritional, balanced meals to the students of the school district on a non-profit basis and to utilize the program as an instrument to teach nutrition education.

The school district will operate a school lunch and breakfast program in each attendance center as needed.  The school food program services will include meals through participation in the National School Lunch Program and supplementary foods for students during the school day.  Students may bring their lunches from home and purchase milk or juice and other incidental items.

The school food service facilities are provided to serve students and employees when school is in session and during school-related activities.  They may also be used under the supervision of the head cook for food service to employee groups, parent-teacher meetings, civic organizations meeting for the purpose of better understanding the schools, and senior citizens in accordance with board policy.

The school food program is operated on a nonprofit basis.  The revenues of the school food program will be used only for paying the regular operating costs of the school food program.  Supplies of the school food program shall only be used for the school food program.

The board will set, and periodically review, the prices for school lunch, breakfast, and special milk programs.  It shall be the responsibility of the superintendent to make a recommendation regarding the prices of school lunch, breakfast, and milk.  Employees, students, and others will be required to purchase tickets to pay for meals consumed.

It is the responsibility of head cooks to administer the program and to cooperate with the superintendent for the proper functioning of the school food program.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 707.2 Meal Charges

In accordance with state and federal law, the Interstate 35 Community School District adopts the following policy to ensure school district employees, families, and students have a shared understanding of expectations regarding meal charges. The policy seeks to allow students to receive the nutrition they need to stay focused during the school day, prevent the overt identification of students with insufficient funds to pay for school meals, and maintain the financial integrity of the nonprofit school nutrition program.

Payment of Meals

All meal purchases are to be prepaid before meal service begins. Families may add money to student accounts (e.g., electronic payment options, pay at the school office, etc.—please contact the high school office for details). Students who do not have sufficient funds shall not be allowed to charge a la carte items until additional money is deposited in the student account.  If the account balance is negative $10, parents/guardians will be notified (see Negative Account Balances below.)

Students who qualify for free meals shall never be denied a reimbursable meal, even if they have accrued a negative balance from previous purchases.

The school will notify families a reminder if the student(s) lunch balance is less than $10.

Employees may use a charge account for meals, but may charge no more than $20 to this account. When an account reaches this limit, an employee shall not be allowed to charge further meals or a la carte items until the negative account balance is paid.

Negative Account Balances

The school district will make reasonable efforts to notify families when meal account balances are low. Additionally, the school district will make reasonable efforts to collect unpaid meal charges classified as delinquent debt. The school district will coordinate communications with families to resolve the matter of unpaid charges. Families will be notified of an outstanding negative balance. Negative balances of more than $100 not paid in full prior to 60 days of receiving notification from school personnel will be turned over to the superintendent or superintendent’s designee for collection unless contact has been made to the district to create a payment plan. Options may include:  collection agencies, small claims court, or any other legal method permitted by law. 

Any unpaid balances that remain at the end of the year may be turned over to the superintendent or superintendent’s designee for collection.

Communication of the Policy

The policy and supporting information regarding meal charges shall be provided in writing to:

  • All households at or before the start of each school year;
  • Students and families who transfer into the district, at time of transfer; and
  • All staff responsible for enforcing any aspect of the policy. 

Records of how and when the policy and supporting information was communicated to households and staff will be retained.

The superintendent may develop an administrative process to implement this policy.

 

Approved:  March 19, 2001

Revised/Reviewed: May 22, 2023

 

 

Code No. 707.3 Free or Reduced Cost Meals Eligibility

Students enrolled and attending school in the school district, who are unable to afford the special milk program, the cost or a portion of the cost of the school lunch, breakfast, and supplemental foods, will be provided the school food program services at no cost or at a reduced cost.

It is the responsibility of the lunch secretary to determine if a student qualifies for free or reduced cost school food services.  Students whom the principal believes are improperly nourished will not be denied the school food program services simply because the paperwork has not been completed.

Students who participate in free or reduced price meal programs will not be distinguished in any way from students who pay the regular price; great care shall be taken to protect the anonymity of these students.  Their names will not be made known to any person except such staff member or members as needed to make the special arrangements for them.

Employees, students and others will be required to deposit money into their accounts for meals consumed.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 707.4 Vending Machines

Food served or purchased by students during the school day and food served or purchased for other than special circumstances shall be approved by the superintendent or designee.  Vending machines in the school building are the responsibility of the building principal or designee.  Purchases from the vending machines will reflect the guidelines in the board’s wellness policy.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 708.1 School Transportation Services

Elementary and middle school students living more than two miles from their designated school attendance center and high school students living more than three miles from their designated attendance center are entitled transportation to and from their attendance center at the expense of the school district.

Distance to designated attendance center or to a bus route shall be measured on the public highway or street only and over the most passable and safest route as determined by the administration, from the roadway opposite the entrance to the school grounds to the roadway opposite the entrance to the student’s residence, except that dead-ends and/or housing developments shall be measured from the point of the public highway or street opposite the entrance to such dead-ends or developments.

Transportation of students who require special education services will generally be provided as for other students, when appropriate.  Specialized transportation of a student to and from a special education instructional service is a function of that service and, therefore, an appropriate expenditure of special education instructional funds generated through the weighting plan or IDEA federal funds designated for special education purposes.

Transportation of a student to and from a special education support service is a function of that service, and will be specified in the individualized education program (IEP) or the individualized family service plan (IFSP).  When the IEP team determines that unique transportation arrangements are required and the arrangements are specified in the IEP or IFSP, the school district will provide one or more of the following transportation arrangements for instructional services and the AEA for support services:

  • Transportation from the student's residence to the location of the special education and back to the student's residence, or child care placement for students below the age of six.
  • Special assistance or adaptations in getting the student to and from and on and off the vehicle, en route to and from the special education.
  • Reimbursement of the actual costs of transportation when, by mutual agreement, the parents provide transportation for the student to and from the special education.

The school district is not required to provide reimbursement to parents who elect to provide transportation in lieu of agency-provided transportation.

A student may be required, at the board's discretion, to meet a school vehicle without reimbursement up to three-fourths of a mile.  The board may require the parent to transport their children up to two miles to connect with school bus vehicles at the expense of the school district when conditions deem it advisable.  It is within the discretion of the board to determine such conditions.

Parents of students who live where transportation by bus is impracticable or unavailable may be required to furnish transportation to and from the designated attendance center at the expense of the school district.  Parents who transport their children at the expense of the school district will be reimbursed at the rate per mile set by the state.

Transportation arrangements made by agreement with a neighboring school district will follow the terms of the agreement.  Generally, parents of students who choose to attend a school in a school district other than their resident school district will provide transportation to and from the school at their own expense.

The administration may assign pupils transported to school by bus to any elementary school or schools in order to equalize enrollment and to avoid overcrowded conditions.  This applies both to resident and to non-resident students.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 708.2 Bus Service Within City Limits

The mission of the transportation department is to provide safe and reliable school transportation to eligible students.  The school district will endeavor to provide transportation services in such a way that all students are treated with due consideration.

The school district will designate one or more bus stops in each of the cities served by the school district where eligible resident students will be picked up and dropped off.  The school district will not provide a school bus stop at a student’s residence where transportation service may be adequately provided for a student by using the regular designated stop.

The school district may consider adding a school bus stop for an eligible student residing within a city when necessary to protect the student from an unreasonably unsafe walk to a regular bus stop.  “Unreasonably unsafe” circumstances may include those where (1) there is no reasonably close access to a sidewalk, and (2) there is no reasonably close access to a city street.  (“Reasonably close” for purposes of this description would be a distance of 300 ft (100 yards) or less, or a direct connection of the student’s residence via a private driveway to a sidewalk or city street.)

A determination of a student’s qualification under this policy will be made on a case by case basis and will be subject to the exclusive discretion of the superintendent or designee.  Decisions regarding a student’s qualification also are subject to change.  As sidewalks and city streets are added, for example, a student may be re-assigned to the regular bus stop.

It is not the intent of this policy to establish house to house bus service within the city limits.  Rather, for those resident students who qualify under this policy, a bus stop will be established that will help provide reasonable and safe transportation service.

 

Revised/Reviewed: November 25, 2019

Code No. 708.3 Student Conduct on School Transportation

Students utilizing school transportation will conduct themselves in an orderly manner fitting to their age level and maturity with mutual respect and consideration for the rights of the school vehicle driver and the other passengers.  Students who fail to behave in an orderly manner will be subject to disciplinary measures.

The driver will have the authority to maintain order on the school vehicle.  It shall be the responsibility of the driver to report misconduct to the transportation coordinator and/or administrator.

The board supports the use of video cameras on school buses used for transportation to and from school as well as for field trips, curricular or extracurricular events.  The video cameras may be used to monitor student and/or employee behavior and may be used as evidence in a student and/or employee disciplinary proceeding.  The videotapes may be student records and/or employee records subject to school district confidentiality, board policy and administrative regulations.

The principal shall have the authority to suspend transportation privileges of the student or impose other appropriate discipline as prescribed in the student-parent handbook.

It shall be the responsibility of the superintendent, in conjunction with the principal, to develop administrative regulations regarding student conduct and discipline when utilizing school district transportation.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 708.3R1 Student Conduct on School Transportation Regulations

All persons riding in school district vehicles will adhere to the following rules.  The driver, sponsor or chaperones are to follow the school bus discipline procedure for student violations of this policy.  Video cameras may be in operation on the school buses.

  1. Bus riders will be at the designated loading point before the bus arrival time.
  2. Bus riders will wait until the bus comes to a complete stop before attempting to enter.
  3. Riders must not extend arms or heads out of the windows at any time.
  4. Aisles must be kept cleared at all times.
  5. All students being transported in a vehicle with seat belts is required to use the seat belts for the duration of the trip.
  6. All bus riders will load and unload through the right front door.  The emergency door is for emergencies only.
  7. A bus rider will depart from the bus at the designated point unless written permission to get off at a different location is given to the driver.
  8. A rider may be assigned a seat by the driver.
  9. Riders who damage seats or other equipment will reimburse the district for the cost of the repair or replacement.
  10. Riders are not permitted to leave their seats while the vehicle is in motion.
  11. Waste containers are provided on all buses for bus riders’ use.
  12. Permission to open windows must be obtained from the driver.
  13. Classroom conduct is to be observed by students while riding the bus except for ordinary conversation.
  14. The driver is in charge of the students and the vehicle, and the driver is to be obeyed promptly and cheerfully.
  15. Students will assist in looking after the safety and comfort of younger students.
  16. A bus rider who must cross the roadway to board or depart from the bus will pass in front of the bus (no closer than 10 feet), look in both directions and proceed to cross the road or highway only on signal from the driver.
  17. Students will not throw objects about the vehicle nor out through the windows.
  18. Shooting paper wads, squirt guns or other material in the vehicle is not permitted.
  19. Students shall keep feet off the seats.
  20. Roughhousing in the vehicle is prohibited.
  21. Students will refrain from crowding or pushing.
  22. The use or possession of alcohol, nicotine or look-alike substances is prohibited in the vehicle.
  23. The Good Conduct Rule is in effect.

 

Approved:  January 18, 1999

Revised/Reviewed: January 22, 2022

Code No. 708.4 Student Transportation for Extra Curricular Activities

The board, in its discretion, may provide school district transportation for extracurricular activities including, but not limited to, transporting student participants and other students to and from extracurricular events.

Students participating in or attending extracurricular events, other than those held at the school district facilities, may be transported to the extracurricular event by school district transportation vehicles or by another means approved by the superintendent.  Students attending extracurricular events, other than those held at school district facilities, may be transported to the extracurricular event by school district transportation vehicles.

Students, who are provided transportation in school district transportation vehicles for extracurricular events, will ride both to and from the event in the school vehicle unless arrangements have been made with the building principal prior to the event.  A student’s parent may personally appear and request to transport the student home from a school-sponsored event in which the student traveled to the event on a school district transportation vehicle.

It is the responsibility of the superintendent to make a recommendation to the board annually as to whether the school district will provide the transportation authorized in this policy.  In making the recommendation to the board, the superintendent will consider the financial condition of the school district, the number of students who would qualify for such transportation, and other factors the board or superintendent deem relevant.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 708.5 Student Transportation for Summer School Program

Transportation to and from the student’s attendance center for summer school instructional programs is within the discretion of the board.  It is the responsibility of the superintendent to make a recommendation regarding transportation of students in summer school instructional programs at the expense of the school district.  In making the recommendation to the board, the superintendent will consider the financial condition of the school district, the number of students involved in summer school programs, and other factors deemed relevant by the board or the superintendent.

The school district may use school vehicles for transportation to and from summer extracurricular activities.  The superintendent will make a recommendation to the board annually regarding their use.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 708.6 Transportation of Non-Resident and Non-Public School Students

The board has sole discretion to determine the method to be utilized for transporting non-resident and non-public school students. Non-resident students paying tuition may be, and resident students attending a non-public school accredited by the State Department of Education will be, transported on an established public school vehicle route as long as such transportation does not interfere with resident public students' transportation. Non-resident and non-public school students shall obtain the permission of the superintendent prior to being transported by the district.

Parents of resident students who provide transportation for their children attending a non-public school accredited by the Iowa Department of Education will be reimbursed at the established state rate. This reimbursement shall be paid only if the district receives the funds from the state.  If less than the amount of funds necessary to fully reimburse parents of the non-public school students is received by the district, the funds shall be prorated

The charge to the non-resident students shall be determined based on the students’ pro rata share of the actual costs for transportation. The parents of these students shall be billed for the student’s share of the actual costs of transportation. The billing shall be according to the schedule developed by the superintendent. It shall be the responsibility of the superintendent to determine the amount to be charged and report it to the board secretary for billing.

Continued transportation of non-resident and non-public school students on a public school vehicle route will be subject to resident public school students’ transportation needs. The superintendent shall make a recommendation annually to the board regarding the method to be used. In making a recommendation to the board, the superintendent shall consider the number of students to be transported, the capacity of the school vehicles, the financial condition of the district, and other factors deemed relevant by the board or the superintendent.

Non-resident and non-public school students shall be subject to the same conduct regulations as resident public students as prescribed by board policy, and to other policies, rules or regulations developed by the district regarding transportation of students by the district.

 

Approved:  September 29, 2015

Revised/Reviewed: November 25, 2019

Code No. 708.7 Transportation of Non-School Groups

School-owned vehicles are to be used only for school activities and other school purposes.  District vehicles will not be made available to private individuals or groups.  It shall be the responsibility of the superintendent to determine whether a proposed use of a school vehicle qualifies as a use for a school activity or school purpose.

 

Approved:  January 15, 2001

Revised/Reviewed: November 25, 2019

Code No. 708.8 School Transportation Safety Instruction

The school district will conduct school bus safe riding practices instruction and emergency safety drills once a year for students who utilize school district transportation.  Each school bus vehicle will have, in addition to the regular emergency safety drill, a plan for helping those students who require special assistance to safety during an emergency. This will include, but not be limited to, students with disabilities.  School district vehicle drivers are required to attend each safety drill.

Employees shall be responsible for instructing the proper techniques to be followed during an emergency, as well as safe riding practices.  Classroom teachers will work together with school transportation personnel to promote school bus safety.

 

Approved:  January 18, 1999

Revised/Reviewed: November 25, 2019

Code No. 708.9 School Transportation in Inclement Weather

Transportation vehicles owned and operated by the school district will not operate when weather conditions due to fog, rain, snow, ice or other natural elements make operation unsafe.  Because weather conditions may vary around the school district and may change quickly, the best judgment possible will be used with the information available.

The final judgment as to when conditions are unsafe to operate will be made by the superintendent or designee.  The superintendent or designee will be assisted by the actual “on location” condition and reports from the transportation coordinator and the bus drivers.

When, in the judgment of the bus driver, weather conditions are so poor as to present a hazard when loading or unloading students, the driver will radio the superintendent or designee for instructions.  If radio contact is not possible, the driver will proceed to the next stop which does not present a hazard and make telephone contact personally, with the assistance of a student rider, monitor, or other person.

Employees, students and parents will be notified on the district website, e-mail, and by commercial radio and television when school is cancelled or temporarily delayed because of weather.

When weather conditions deteriorate during the day after school has begun, cancellation notices will be announced on the district website, e-mail, and by commercial radio and television.  Students will be returned to their regular drop-off sites unless weather conditions prevent it.  In that case, students will be kept at or returned to school until they are picked up by parents.

 

Approved:  February 18, 2002

Revised/Reviewed: November 25, 2019