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Finance Policies

3000 FINANCE

Financial Management
Preparation of Budget
Fiscal Year
Budget Implementation and Transfer
District Fund Accounts
Petty Cash
State and Federal Projects
Banking Services
Payment Procedures
Investment of District Funds
Purchases By and/or Solicitation of School Staff-Conflict of Interest
Expenditures for Certificated Staff
Revenue-Revenue from Tax Sources-Local Tax Sources
Taxing Authority/Tax Rate Hearing
Revenue-Bonded Indebtedness
Revenue-Borrowed Funds
Building Use
Student Fees and Fines
Tuition
Fund-Raising
Sale/Lease of Real Property
Sale/Lease of Personal Property
Accounting System
Annual Financial Report
Authorized Signatures
Travel and Reimbursement
Sales Tax
Student Attendance Accounting
Annual Audit
School Activities Funds-Management
Insurance Programs
Liability Insurance
Bond For All Employees

Policy 3100
(Regulation 3100)
Financial Management

The Board will adopt a series of policies to provide direction regarding the School District's budget and financial affairs which reflect the educational philosophy of the District and provide a framework in which the District's administration can effectively operate.

The budget and finance processes will conform to all state and local requirements as set forth by the State constitution, State statutes, Department of Elementary and Secondary Education rules, and Board policies.

Good business necessitates keeping accurate, legal and understandable records of receipts and expenditures. It is also essential that procedures be followed which will help to insure that the budget adopted by the Board is effective in providing parameters for the fiscal affairs of the District.

The purpose of the District budget and financial policies will be to provide direction for a systematized procedure that maintains continuity from year to year and informs the public regarding the education and financial operations of the District.
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Policy 3110
(Regulation 3110)
Preparation of Budget

Each year the Superintendent of Schools is required to submit to the Board of Education for their consideration a detailed annual budget showing estimates of income and expenditures for the ensuing fiscal year. The Board may accept, reject, modify or request revisions of the budget, but will adopt a budget by June 30, according to statutory provisions.

By law the approved estimated expenditures for each fund cannot exceed the estimated revenues to be received plus the unencumbered beginning cash balance for the fund. After the beginning of the fiscal year, the Superintendent shall review with the Board the adopted budget in relationship to the beginning cash balances for each fund.
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Policy 3111
Fiscal Year

The fiscal year begins annually on the first day of July and ends on the thirtieth day of the following June.
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Policy 3112
Budget Implementation and Transfer

The annual budget governs the expenditures and obligation of all funds for the District. The Superintendent/designee will establish procedures for funds management and reporting.

No funds may be spent which are not authorized by the annual budget. If an unanticipated need arises, the Board may approve the Superintendent's recommendation to (1) appropriate an amount to cover a needed expenditure from unencumbered budget surplus from the proper fund, or (2) revise the budget to transfer funds from one account to another as permitted by state statutes and DESE regulations.

The Superintendent or Finance Administrator will prepare a monthly statement to account for each month's expenditures and the total spent to date for the fiscal year. The monthly statement will include all receipts and remaining balances for each fund account.
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Policy 3113
District Fund Accounts

The District will maintain the following funds for the accounting of District moneys: teachers' fund, incidental fund, free textbook fund, capital projects fund and debt service fund.  The treasurer of the District will open and maintain an account for each fund.  These funds are denoted for state reporting purposes as: General Fund, Fund 1 – comprised of the Incidental; Fund 2 – the Special Revenue Fund, comprised of the Teachers' Fund; Fund 3 – The Debt Service Fund; and Fund 4 – the Capital Projects Fund.

All sums received from the county school fund and all sums derived from taxation for teachers' wages will be credited to the teachers' fund.  All tuition fees, state moneys received under §162.975 and 163.031, and all other sums received from the state except as otherwise provided in this policy will be credited to the teachers' fund and incidental funds at the discretion of the Board.  The portion of state aid received by the District pursuant to §163.031, which is included in the operating levy for school purposes, will be credited to the debt service or capital projects funds.  Sums received from other Districts for transportation and sums received from taxation for incidental expenses will be credited to the incidental fund.  Sums apportioned for free textbooks will be credited to the free textbook fund.  All sums received from taxation or received from any other source for the erection of buildings, building additions, remodeling, or reconstruction, furnishing, for the payment of lease purchase obligations, for purchase of real estate, for sale of real estate or personal property, from insurance, from sale of bonds other than refunding bonds will be credited to the capital projects fund.

Sums received from taxation for the retirement of bonds and the payment of interest on bonds will be credited to the debt service fund.  Receipts from delinquent taxes will be credited to individual funds on the same basis as receipts from current taxes.  However, where such distribution of receipts from delinquent taxes would affect the previous years' obligations, distribution to the various funds will be based on the levies for the years in which the obligations were incurred.  All refunds will be credited to the fund from which the original expenditure was made.  Sums donated to the District will be credited to the fund from which it can be expended to meet the purpose of the donation.  Sums received from any other source will be credited to the fund designated by the Board.

Amended: September 19, 2006
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Policy 3120
Petty Cash

A petty cash fund is a small amount of money ($100.00 or less) that is managed by an administrator in order to purchase small amounts of supplies or cover unanticipated small expenses, such as materials or refreshments for emergency meetings or unexpected guests. The petty cash fund may have been obtained with a requisition to the District Finance Office, raised by a P.T.O., or from a student or community fund-raising event. The designated administrator is accountable for this fund. Funds collected in excess of $100.00 must be processed immediately for proper deposit and are not to be held at a school site.

The petty cash fund must be used for school purposes (purchase of emergency supplies) and must be documented with receipts. If an administrator accrues out-of-pocket expenses, a requisition for reimbursement should be submitted on a monthly basis with back-up information and receipts.

Teachers may not make petty cash purchases without the prior approval of an administrator.

Petty cash should not be used as a short cut to obtain supplies except in an emergency or in cases where very small items make it impractical to order through channels.
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Policy 3130
State and Federal Projects

With Board of Education approval, the School District may operate various specially funded programs that must be administered in accordance with particular federal and/or state laws, regulations and other conditions for use of such funds.

The Superintendent shall be the designated District official responsible for coordinating funded projects, administering programs and ensuring that the various departments operating these programs do so within the guidelines of the particular program. The administration shall keep accurate and separate records, as required by state and federal programs, to enable the District to verify program compliance and success. The Superintendent shall keep the Board fully informed.

Staff involvement will be solicited by the administration in the planning, implementation and evaluation of programs authorized and approved within the guidelines of Title I of the Improving American Schools Act of 1994 and/or other significant legislative enactments. The vehicle for such involvement shall be determined by the administration, with the approval of the Board of Education.
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Policy 3140
(Regulation 3140)
(Form 3140)
Banking Services

The Board of Education has the option of annually selecting District funds depositaries or the Board may enter into a contract of one to five years duration for the deposit of District funds.

When depositaries are to be selected, the District will receive sealed proposals from banking institutions in the county in which the District is located or in adjoining counties.
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Policy 3150
Payment Procedures

All money received by the District shall be disbursed only for the purposes for which they are levied, collected or received.

The Board will give final approval to all bills paid. Payment of bills shall be authorized by the Superintendent/designee, only after verification of delivery and satisfaction by the department or staff receiving the item(s). No payment for goods or services shall be made unless both an itemized invoice showing the name of the person or firm to whom payment is due is presented, and a receiving document bearing the signature of an authorized school employee is on file. Furthermore, the invoice must have been issued in response to an approved purchase order.

The Superintendent/designee shall audit all claims, and shall submit all invoices to the Board for approval and authorization for payment.  However, payments for materials or services which are necessary for normal business operations which do not individually exceed $500 or exceed an aggregate monthly amount of $10,000 may be authorized by the Superintendent/designee.  In addition, if cash discount or avoidance of financial penalty can be achieved, the Superintendent/designee is authorized to issue a check.  In all such cases, the identity and amounts of such payments will be provided to the Board at the next regular meeting following payment.  The Board will consider such payments and ratify the action taken.
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Policy 3160
(Regulation 3160)
Investment of District Funds

The Board has an obligation to the citizens of the District to direct the management of District funds. The primary objective of the District's investment plan will be legality, safety, liquidity, yield and the provision of a capital base for future needs.  In the management of such funds, the District adheres to the "prudent investor" rule.  Investments will be made with judgment and care, under the circumstances which persons of prudence, discretion and intelligence exercise in the management of their own investments.  Funds will be managed for investment, not for speculation considering the safety of the funds invested and the probable income to be derived.

District personnel, including Board members, who are involved in the investment of District funds, will not engage in any personal business activity which could:

  1. Impair their ability to make impartial decisions concerning investment of District funds;
  2. Conflict with proper execution of the District's investment program; or
  3. Create an appearance of impropriety.

District employees and directors involved in investment of District funds will disclose any material interests in financial institutions in which they conduct business.  Such disclosure will include, but not be limited to any personal financial/investment positions that could be related to the performance of the District's investment portfolio.  Similarly, District employees and directors involved in investment of District funds will not engage in personal investment transactions with the same individual with whom business is conducted on behalf of the District.

Investments will be made through banks or securities dealers who have been approved by the Investment Committee of the State Treasurer's Office.  Such banks and securities dealers will have been subjected to an appropriate investigation by the staff of the State Treasurer's Office.  This investigation will include, among other things, a written review of the firm's financial statements and the background of the sales representatives.  All approved dealers must be fully licensed and registered FINERA Brokers/Dealers or exempt banks.  Criteria used to select securities dealers include:

  1. Financial strength and capital adequacy of firm;
  2. Services provided by firm;
  3. Research service available;
  4. Résumé, reputation, and qualifications of sales representatives;
  5. Due diligence and firm references; and
  6. State government expertise.

The performance goals of the District's active investment management program, over time, should produce book yields which are greater than yields from low risk passive investments.  In analyzing the results of the District's investment program, the District will calculate the book yield and total rate of return on District funds compared to the appropriate security market indexes.

The Superintendent/designee will direct the preparation of quarterly investment reports providing a summary of the District's current investment portfolio and all transactions executed since the last report.

Such investment reports will be prepared by the appropriate bank(s) or security dealers for review by the Board and the Superintendent.  Investment reports are considered to be public records and will be made accessible to the public.

Criteria and procedures implementing the District's investment policy have been approved by the Board and are contained in Regulation 3160.

Amended: October 27, 2015
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Policy 3170
Purchases By and/or Solicitation of School Staff

Conflict of Interest
The School District will not purchase supplies or materials from a staff member of the School District, nor from a member of the household of the staff member, except in emergency situations as determined by the Superintendent of Schools. Neither will the District purchase supplies, materials or services from a member of the Board of Education or from a member of his/her household, or from a firm in which he/she holds a major interest.

Endorsements
Employees of the District will not endorse products or services in such a manner that will identify the employee as an employee of the School District.

Procurement Activities
In any purchasing activities all employees shall refrain from soliciting, discourage the offer of, and decline gifts if offered by any vendor wishing to do business with, or who is doing business with the School District. Instead of making an offer of gifts, the vendor should be encouraged to discount the price of the goods to the school.

Solicitation/Distribution
The advertising of sale or distribution of any goods or service on school property, for any school activity, shall have prior approval from the building principal or Superintendent. This includes but is not limited to: school personnel, students, parents/guardians, relatives, general public and commercial businesses.

Solicitations of School Staff
Agents, solicitors, and salespersons will be denied the privilege of seeing the school staff during the school day except with permission of the administration.
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Policy 3230
(Regulation 3230)
(Form 3230)
Expenditures for Certificated Staff

The Board shall expend for tuition, teacher retirement, and compensation for certificated staff an amount that reflects the requirements as outlined in state statute and Department of Elementary and Secondary Education regulations.
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Policy 3310
Local Tax Sources

In the process of preparing the annual budget, the Superintendent or Finance Administrator shall estimate the amount of actual local tax revenue anticipated to be raised, the rate required to produce the amount, and the rate needed to support the principal and interest payment on bonded indebtedness and general financial obligations of the District. The Superintendent shall recommend the appropriate tax rate to the Board of Education for approval.

If required, the Board shall submit to the voters a proposition for increase in the tax rate beyond the current approved level if it is deemed necessary to obtain increased revenue to meet projected District expenses. State law and Article X, Section 11C of the Missouri Constitution shall govern tax election procedures.

State Tax Sources
All state funds will be accepted for the operation of the District as provided by entitlement by law and through regulations of the Missouri State Board of Education or Missouri Department of Elementary and Secondary Education.

The Superintendent or District Finance Administrator is responsible for filing all required reports and forms to obtain state funds to which the District is entitled to receive according to developed rules and regulations.
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Policy 3320
(Regulation 3320)
Taxing Authority/Tax Rate Hearing

The Board will annually prepare an estimate of the amount of money to be raised by taxation for the ensuing school year, the tax rate required to produce the amount and the rate necessary to sustain the District's schools for the ensuing year, to meet principal and interest payments on the bonded debt of the District, and provide funds to meet other legitimate District purposes.  The District will forward the estimate to the county clerk on or before September 1.
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Policy 3330
(Regulation 3330)
Bonded Indebtedness

The School Board may issue bonds for any District expenditures as prescribed in state law. Funds raised through the sale of bonds may be expended only for the purpose set forth in the election which authorized the sale.
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Policy 3331
Borrowed Funds

State law authorizes the Board to borrow funds in anticipation of the collection of taxes in order to insure continuity in the operations of the District. The School Board must approve in advance all applications for loan indebtedness. The amount borrowed and the repayment of notes payable shall be within guidelines as established by state law and rules and regulations of the Missouri Department of Elementary and Secondary Education.
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Policy 3340
Building Use

All receipts from fees for the use of school property by individuals or community groups shall be deposited in the General Revenue fund.
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Policy 3350
Student Fees and Fines

Fees
No fees shall be charged for enrollment, supplies, equipment or costs attributable to courses of study which are offered for credit. Students shall be required to pay for materials which are used in constructing projects or other items which are to be removed from the school and are thereby the property of the student. All projects constructed at school with materials provided by the school are the property of the District and therefore shall not be removed from school unless approved by the appropriate administrator.

Students may be charged fees or admission for participation in activities which are voluntary, such as attendance at school athletic or other co-curricular events. The fee schedule for such events shall be submitted to the Board of Education for approval annually.

Fines
Every effort shall be made to protect the financial resources of the District by collecting all payment for student fines, lost or damaged textbooks, damage or vandalism to school property. Collected fines shall be deposited in the appropriate account in order to charge replacement costs for books, materials, equipment or repaired property to the appropriate budget item.
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Policy 3360
Tuition

Except when waived, tuition must be paid by nonresident students of the District. The annual rate will be determined by the Board of Education for individuals who wish to attend. Permission to enroll will be granted after reasons for requesting admission have been reviewed and after it has been determined that class enrollments are not excessive.
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Policy 3370
Fund-Raising

All fund-raising activities and planning for fund-raising shall be done after school hours unless prior permission is received from the building principal.

Any fund-raising activity which involves students or employees shall require the approval of the building principal and Superintendent.  Involvement is defined as: any activity which advertises the school, students or school organization.
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Policy 3380
(Regulation 3380)
Sale/Lease of Real Property

The Board of Education may vote to sell or lease real property, land, and/or buildings which are no longer needed by the District and which are located within the boundaries of the District.  Similarly, the Board may vote to sell such real property located outside of the District's boundaries.
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Policy 3390
Sale/Lease of Personal Property

Whenever the District has personal property (i.e., desks, file cabinets, materials, equipment) which the District no longer needs, a majority of the Board may vote to sell or lease such surplus property.  Surplus personal property may be sold or leased to a city, state agency, municipal corporation, or other governmental subdivision of the state which is located within the boundaries of the District for public purposes at a mutually agreed price and upon notice to the public.  In the alternative, the District may sell or lease such surplus personal property to the highest bidder.  Public notice of the sale or auction of surplus personal property will be published once a week for two consecutive weeks in a general circulation newspaper published within the county in which the District is located.  The sale itself will occur as scheduled by the Board at least seven (7) days after the final published notice. The proceeds from the sale or lease of surplus personal property will be placed in the capital projects fund.
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Policy 3410
Accounting System

The District will adhere to the accounting guidelines of the Missouri Department of Elementary and Secondary Education.
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Policy 3420
Annual Financial Report

The District annually publishes a statement of all receipts of school moneys, when and from what source derived, and all expenditures and the account from which expenditures were made.  This statement will also include the present indebtedness and the nature of such indebtedness as well as the rate of taxation for all purposes for the year.  Such statement will be attested by the president and secretary of the Board and forwarded to the State Board of Education.  This financial statement will be published on or by September 1, in a newspaper located within the District or generally circulated within the District.
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Policy 3430
Authorized Signatures

The Board president and treasurer shall sign all checks issued by the District. According to state statutes, if approved by the Board of Education, facsimile signatures may be printed on District checks.
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Policy 3440
(Regulation 3440)
Travel and Reimbursement

It is the policy of the Board to pay reasonable travel expenses for those who travel on District business and whose trip has been approved in advance by the Superintendent/designee. These expenses include registration, transportation, meals, lodging, tolls, and parking charges. Expenses are reimbursed only when properly accounted for by an individual and approved by the Superintendent/designee.
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Policy 3450
(Regulation 3450)
Sales Tax

Pursuant to Chapter 144, R.S.Mo., school districts are exempt from Missouri sales and use tax on purchases. All sellers or vendors shall be furnished a copy of the official State of Missouri Tax Exemption Letter by the Finance Office at the time a purchase order is delivered.

Administrators, teachers, or other school staff who have been authorized to make purchases for the District from local retail dealers will provide a copy of the tax-exempt letter to such dealer at time of purchase.

District representatives are prohibited from using the District tax-exempt letter for purchase of articles for personal use.
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Policy 3460
Student Attendance Accounting

An accurate accounting of student attendance, transportation and food service records shall be kept by the School District. The records will be in accordance with state law and appropriate regulations of the Missouri Department of Elementary and Secondary Education.

Building principals/supervisors will be responsible for maintaining student attendance accounting, and for submitting monthly reports of such records to the Superintendent, who will in turn be responsible for preparing reports to be submitted to the appropriate state offices.
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Policy 3510
Annual Audit

The books and accounts of the District will be audited by an independent certified public accountant in conformance with the prescribed standards and legal requirements. The Superintendent shall place before the Board the matter of the retaining of a certified public accountant. The auditor shall be selected by the Board. The audit shall be presented to the Board for examination.

The Superintendent will be responsible for filing copies of the audit with the proper authorities as prescribed by law.
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Policy 3610
School Activities Funds Management

School activity funds are used to finance a program of student activities which supplement but do not take the place of the instructional programs provided by the Board of Education. Whether funds are collected from student contributions, club dues, special activities, or result from admissions to events or from other fund-raising activities, all funds will be under the jurisdiction of the Superintendent and building principals. The funds will be expended to benefit students currently enrolled in school. The management of the funds will be in accordance with good business practices, including sound budgetary and accounting procedures, and will be audited in the same manner as District funds. There shall be full disclosure of the sources and expenditures of all funds.
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Policy 3710
Insurance Programs

The Board of Education shall maintain adequate insurance programs to cover property, liability and personnel, within the requirements of good risk management and state law. The administration will recommend to the Board the kind and amount of property, casualty and/or liability insurance needed for the protection of the District property, employees, and Board of Education, and will administer insurance authorized by the Board, unless otherwise directed.

Every effort shall be made to obtain insurance at the most economical cost consistent with required service by obtaining quotations or by negotiations, whichever method is advantageous to the District.

The District will maintain coverage on all buildings and capital outlay contents. Coverage should be 100% without coinsurance if available.

Liability coverage should include comprehensive general liability, employee benefits liability, vehicular liability and school board legal liability. (See also Policy 3730 - Liability Insurance.)
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Policy 3730
Liability Insurance

The Board recognizes that legal actions may be initiated from time to time against the School District as a corporate entity, against the Board as a whole, against Board members as individuals, or against District officers, employees or other agents. The Board also recognizes the contribution that is rendered to the students of the District by volunteers and is mindful that legal actions may be initiated against these individuals as well.

To protect members of the Board, District officers, employees, other agents and volunteers in the performance of their duties and responsibilities, the Board will defend its Board members, officers, employees, other agents and volunteers against claims for suits arising out of the performance of their duties and responsibilities. The Board shall indemnify its Board members, officers, employees, other agents and volunteers against all financial liability or loss resulting from such claims or suits including judgments for damages, attorney's fees, fines, court costs and amounts paid in settlement of such matters and reasonable and customary ancillary costs. Ancillary costs may include, for example, travel expenses incurred by Board members or others if they must appear for a case that is being tried outside the area.

The protection provided by this policy shall apply on an occurrence basis, which means that an individual will be indemnified even though he/she is no longer a member of the Board of Education or employed by or otherwise associated with the District when the lawsuit is filed.

The Board reserves the right, however, to deny representation and indemnification to any person covered by their Board policy in any instance in which there would be no coverage under the District applicable liability insurance program in which the claim "results in civil judgment or criminal conviction for" an intentional tort, immoral conduct, violation of any criminal or civil statute or violation of Board policy or regulations or administrative order or directive, whether verbal or written.

As a prerequisite to the right of legal representation and indemnification, any person who is served with legal notice commencing any action or proceeding against him/her for which indemnification is sought is required to immediately notify the Superintendent of the legal action after receipt of such legal notice.

The District shall maintain a program of self-insurance and/or insurance coverage sufficient to provide the legal defense and indemnification described in this policy.  However, the District’s purchase of liability insurance does not waive the District’s entitlement to sovereign immunity.
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Policy 3740
Bond For All Employees

All employees of the School District shall be covered by a blanket bond in an amount to be determined by the Board of Education with premiums to be paid by the Board.
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