D--FISCAL MANAGEMENT

TABLE OF CONTENTS

D--FISCAL MANAGEMENT

DA.............................. Goals and Objectives

DB.............................. Budget Planning

DC............................. Annual Operating Budget

                                                Budget Forms

                                                Priorities

                                                Deadlines and Schedules

                                                Encumbrances

                                                Recommendations

                                                Preliminary Adoption Procedures

                                                Hearings and Reviews

                                                Management of District Assets/Accounts

                                                Fraud Prevention and Investigation

                                                Reporting Fraud

                                                Whistleblowers

DFAA......................... Grants and other Outside Financial Resources

DFE............................ Investment of Funds

                                                Posting Securities

                                                Distribution of Monies for Investment shall be as follows:

DFG........................... Fees, Payments and Rentals (See KG)

DFK............................ Gifts and Bequests

DFM........................... Equipment and Supplies Sales (See KK)

DH............................. Bonded Employees

DIC............................ Inventories

DJB............................ Petty Cash Accounts

DJE............................ Purchasing

                                                Purchasing Authority

DJEB.......................... Quality Control

                                                Specifications

                                                Standardization

                                                Quantity Purchasing

                                                Cost Control

DJED.......................... Bids and Quotations Requirements

                                                Bid Specifications

                                                Procedure

                                                Responsible Bidder

                                                Withdrawal of Bids

                                                Rejection of Bids

                                                Multi-State Purchasing Pools

DJEE.......................... Local Purchasing

DJEF.......................... Requisitions

DJEG......................... Purchase Orders and Contracts (See DJEJ and DJFAB)

DJEJ.......................... Payment Procedures (See DJEG and DJFAB)

DJFA.......................... Purchasing Authority

DJFAB....................... Administrative Leeway (See CMA, DJEG, and DJEJ)

DK.............................. Student Activity Fund Management (See JGHB, JH and JL)

                                                Activity Fund Management

                                                Activity Fund Deposits

                                                Inactive Activity Funds

                                                Resolution to Establish Activity Fund

 

DA   Goals and Objectives                                                                       

The board shall adhere to strict fiscal accounting procedures as outlined in board policies and rules. The board shall make an effort to secure goods and services from responsible merchants and vendors at a price and quality that will enable the staff to fulfill the district's educational goals.

Approved: 4/07

 

DB   Budget Planning                                                                              

A planned, systematically prepared budget is essential in the management of the district. The board delegates to the superintendent the authority to develop a budget for the board's consideration.

Approved: 4/07

 

DC   Annual Operating Budget                                                               

The district budget shall be prepared by the superintendent in cooperation with selected district employees and shall reflect the district’s educational goals.

The superintendent shall follow the adopted budget.

The district shall fund the operating budget according to approved fiscal and budgetary procedures required by the State of Kansas.

Budget Forms

Budget forms used shall be those prepared and recommended by the Kansas State Department of Education. Budget summary documents shall be prepared on forms provided by the Kansas State Department of Education.

Priorities

The board will establish priorities for the district on a short-term, intermediate and long-range basis.

Deadlines and Schedules

Deadlines and time schedules shall be established by the board.

Encumbrances

An encumbrance shall be made when a purchase is made or when an approved purchase order is processed. All encumbrances shall be charged to a specific fund. All necessary encumbrances shall be made by the superintendent.

Recommendations

Recommendations of the superintendent and professional staff concerning the district’s educational program and related budget figures will be presented to the board prior to submission of the tentative draft budget.


DC   Annual Operating Budget                                                            

Preliminary Adoption Procedures

The superintendent will be responsible for developing the budget cover letter. It is recommended that the letter include a restatement of the goals and objectives of the district and a list of budget priorities. An explanation of line item expenditures will be included in the letter. Fund expenditures and line categories will also be explained in terms of how the budget meets the goals and objectives of the district and enhances completion of priority programs. A preliminary draft of the district’s budget will be submitted by the superintendent to the board each year.

Hearings and Reviews

The board shall conduct budget hearings according to state law.

Management of District Assets/Accounts

The superintendent shall establish and maintain accurate, financial management systems to meet the district’s fiscal obligations, produce useful information for financial reports, and safeguard district resources. The superintendent shall ensure the district’s accounting system provides ongoing internal controls. The superintendent shall review the accounting system with the board.

Fraud Prevention and Investigation

All employees, board members, consultants, vendors, contractors and other parties maintaining a business relationship with the district shall act with due diligence in duties involving the district’s fiscal resources. The superintendent shall develop internal controls that aid in the prevention and detection of fraud, financial impropriety or irregularity.

 

DC   Annual Operating Budget                                                            

Reporting Fraud

An employee who suspects fraud, impropriety or irregularity shall promptly report those suspicions to the immediate supervisor and/or the superintendent. The superintendent shall have primary responsibility for any investigations, in coordination with legal counsel and other internal or external departments and agencies as appropriate.

Whistleblowers

The district encourages complaints, reports or inquiries about illegal practices or violations of district policies, including illegal or improper conduct by the district, its leadership or by others on its behalf. Reports could include, but not be limited to, financial improprieties, accounting or audit matters, ethical violations or other similar illegal or improper practices or policies. The district prohibits retaliation by or on behalf of the district against staff members who make good faith complaints, reports or inquiries under this policy or for participations in a review or investigation under this policy. This protection extends to those whose allegations are made in good faith but prove to be mistaken. The district reserves the right to discipline persons who make bad faith, knowingly false, or vexatious complaints, reports or inquiries or who otherwise abuse this policy.

Complaints, reports or inquiries may be made under this policy on a confidential or anonymous basis. They should describe in detail the specific facts demonstrating the bases for the complaints, reports or inquiries. They

should be directed to the superintendent. If the superintendent is implicated in the complaint, report or inquiry, it should be directed to the board of education.

 

DC   Annual Operating Budget                                                            

The district will conduct a prompt, review or investigation. The district may be unable to fully evaluate a vague or general complaint, report or inquiry that is made anonymously.

Approved: KASB Recommendation – 7/03; 4/07; 6/07; 6/09; 8/13

  

DFAA   Grants and other Outside Financial Resources                        

The board encourages the superintendent to secure federal, state and private grants, or other alternative funding sources for use in curriculum development, staff development, instructional or activity programs and other areas as directed by the board.

The board shall approve all grant applications before their submission.

Approved: KASB Recommendation – 6/04; 4/07

  

DFE   Investment of Funds                                                                      

The investment of school district monies shall be the responsibility of the superintendent, business manager and/or the district treasurer.

Any monies not immediately required for the purposes for which the monies were collected or received, shall be invested as provided by current statute.

Posting Securities

All investments of district monies shall be secured by F.D.I.C. coverage, a pledge of direct federal obligations or direct guaranteed federal agency deposits in accordance with requirements of state law. Exceptions to the required posting of securities shall be only as provided by law and approval of the board.

All offerings of monies for investment shall state the amount to be invested and the maturity date of each investment.

All banks and savings and loan associations with main or branch offices located within the county or adjoining counties of the district shall be given an opportunity to bid on all monies offered for investment. All bids shall be specified on the basis of simple interest.

Distribution of monies for investment shall be as follows:

The treasurer or other person designated by the board shall inform each eligible bank and savings and loan association of the total amount of money to be invested on a specified date and the maturity date of the investment.

Each bank or savings and loan association bidding shall submit a single bid of the rate of interest it would pay on all or part of the funds to be invested.

 

DFE   Investment of Funds                                                                   

Monies shall be invested with the highest bidder in such amount as the bidder will accept, and any remaining amounts shall be invested with the next highest bidders in order of interest rate offered. No bidder shall be eligible to receive any funds in the same offering at a rate lower than its single bid.

No bid less than the most recently determined investment rate as determined by the state treasurer shall be accepted. No funds will be invested for maturities of more than two years.

Any monies not otherwise invested in eligible banks and savings and loans located in the district due to their inability, for whatever reason, to accept the funds, shall be invested in secured deposits in banks or savings and loans which have offices located in counties in which a part of the school district is located or in adjoining counties.

Any monies not invested in banks and savings and loans in the district or located in counties in which a part of the school district is located may be invested in the municipal investment pool fund or United States Treasury bills or notes as authorized by Kansas law.

Monies available for reinvestment as a result of maturities may be reinvested with the bank or association holding such monies provided the bank or savings and loan association agrees to pay the same or higher rate as that offered by the highest bidder at the time of re-offer.

In the event of identical high bids, the allocation of monies to be invested between the high bidders shall be at the discretion of the superintendent.

 

DFE   Investment of Funds                                                                   

The treasurer shall record the following information: the date of each offering; the name of each bank or savings and loan association notified; the name of the officer notified; the bid, carried to five decimal places (.11111); the amount of monies the bank or savings and loan association is willing to accept at the rate bid.

To be eligible to receive invested funds or deposits from the dis­trict, any otherwise eligible bank or savings and loan association shall have on file in the office of the district treasurer a letter requesting its inclusion in the bidding process and providing proper assurance of compliance with requirements of applicable laws and board policy relating to maintenance of proper security and assurance of its membership in good standing consistent with current federal regulations. The superintendent shall report monthly to the board on the district's investments.

Approved: KASB recommendation 6/06; 4/07

 

DFG   Fees, Payments and Rentals (See KG)                                            

Proceeds from fees for building or equipment use or rental will be credited to the general fund.

Approved: 4/07

  

DFK   Gifts and Bequests                                                                       

Income derived from gifts and bequests will be credited, if possible, as specified by the board.

Approved: 4/07

 

DFM   Equipment and Supplies Sales (See KK)                                       

Excess or unusable district-owned equipment and supplies will be disposed of at the discretion of the board.

Approved: 4/07

  

DH   Bonded Employees                                                                          

The board shall purchase a blanket fidelity bond for school employees. The amount of the bond shall be determined by the board.

We only have two bonded employees in our district, our Deputy Superintendent/Business Manager ($100,000) and our Bookkeeper ($25,000). Our Clerk and Superintendent are not bonded.

Approved: KASB Recommendation – 9/04; 4/07; 8/13

  

DIC   Inventories                                                                                  

An accounting will be made annually for all district-owned property, real and personal.

An inventory record system shall be developed by the superintendent. All inventory records shall be annually updated showing deletions and additions, the estimated value, original cost (where available), date of purchase, serial numbers (where available) and location and condition of each piece of district-owned property.

Each building principal shall take an annual inventory of district-owned property under the direction of the superintendent. Inventory forms shall be developed by the superintendent. One copy of each inventory taken in an attendance center shall be filed in that building, and one copy shall be filed in the central office with Accounts Payable.

Approved: 4/07; 8/13

 

DJB   Petty Cash Accounts                                                                     

The board may establish petty cash accounts by resolution. An annual report of all petty cash funds shall be included in the board's regular July agenda. 

Approved: 4/07; 8/13

  

DJE   Purchasing                                                                                   

The purchasing, receiving, storing and distribution of supplies, equipment and services for use in the district shall be managed efficiently and economically.

Purchasing Authority

The board shall appoint a purchasing agent for the district.

Approved: 4/07

  

DJEB   Quality Control                                                                        

The board reserves the right to establish the specifications for and quality of goods or services purchased by the district.

Specifications

It is the responsibility of the originator of a purchase request to see that all specifications requested are complete.

Standardization

Whenever possible, standard lists of supplies and equipment shall be developed in all budget areas.

Quantity Purchasing

Quantity purchasing is encouraged.

Cost Control

The board reserves the right to maintain cost control authority over any goods or services.

Approved: 4/07

 

DJED   Bids and Quotations Requirements                                           

All purchases requiring competitive bids shall be made in accordance with current statutes.

The purchasing agent shall develop and maintain lists of potential suppliers. Bid lists shall be used to notify potential bidders.

Any supplier may be included in the list upon request. All bid lists shall be reviewed annually by the purchasing agent.

A copy of this policy shall be given to all bidders upon request.

All bids and supporting documentation shall be retained in the district office with the clerk for a period of three years after bids have been opened.

Bid Specifications

All bid specifications shall be written by the district’s purchasing agent. Specifications shall include, when necessary: required performance, surety, bid and statutory bond information; compliance with preferential bid law; financial statements; the board’s right to reject any or all bids; compliance with all federal, state and local laws, ordinances and regulations; the date, time and place for the opening of bids; and other items as the board directs.

The board shall avoid negotiation of bid specifications after bids have been accepted and shall correct specifications if they are inadequately written and request new bids. If an error is discovered in the bid specifications all bids shall be returned unopened and the project shall be rebid using corrected and/or amended specifications.

Procedure

All bids must be submitted to the clerk in sealed envelopes with the name of the bidder and the date of the bid opening plainly marked in the lower left-

 

DJED   Bids and Quotations Requirements                                        

hand corner of the envelope. All bids shall be opened publicly on the stated day and time. All bidders and other interested persons may be present when the bids are opened.

Bids may be opened by the purchasing agent or other person designated by the board and such opening shall be witnessed by one other district employee. The bids shall then be arranged in order from low to high before they are presented to the board for action.

Responsible Bidder

All bids shall be awarded to the lowest responsible bidder. The board remains the sole judge of whether or not a bidder is “responsible.” Criteria that may be used to judge “responsible,” by way of illustration and not limitation, are: financial standing, reputation, experience, resources, facilities, judgment and efficiency.

The board may investigate the “responsibleness” of any bidder by using information at hand to form an intelligent judgment, such as the district’s architect, previous clients of the bidder, their own investigation, or an outside investigation agency.

Withdrawal of Bids

Any bid may be withdrawn and/or corrected prior to the scheduled time for opening of bids and no later than two days after the bids have been opened if a non-judgmental error has been made.

Any bid received after the publicized date and time shall not be considered by the board.

 

DJED   Bids and Quotations Requirements                                        

Rejection of Bids

The board reserves the right to reject any and all bids and to ask for new bids. This reservation shall be specified in the publication or notification of bid letting.

The board reserves the right to waive any informalities in, or reject any parts of a bid.

Multi-State Purchasing Pools

The board may participate in multi-state purchasing pools.

Approved: KASB Recommendation – 7/03; 4/07

 

DJEE   Local Purchasing                                                                       

The purchasing agent shall make purchases from local vendors when the price, availability of the product and service are competitive with outside vendors for purchases not subject to the bidding law. The board shall not grant preferential bid percentages to local contractors or businesses except as provided by statute.

Approved: 4/07

  

DJEF   Requisitions                                                                              

The purchasing agent shall develop a requisition form to be used by staff members requesting that certain goods be purchased for the district.

All requisitions shall be submitted to the purchasing agent at a time designated by him. After a purchase order has been issued, the number of the purchase order shall be recorded on the requisition, and the number of the requisition shall be recorded on the purchase order. After processing, the original copy of the requisition shall be filed in the office of the purchasing agent in numerical sequence.

School letterhead paper shall not be used in ordering supplies and equipment for the personal use or purchase by employees.

Approved: 4/07

 

DJEG   Purchase Orders and Contracts (See DJEJ and DJFAB)                

The purchasing agent shall develop an order form compatible with the requisition form to be used in purchasing goods, and shall be authorized to sign all purchase orders.

Each purchase order shall include a specification of the item which

adequately describes the characteristics and the quality standards; a quoted, firm, net, delivered price, whenever possible, and prices shown both per unit and as extended; clear delivery instructions which include time and place; a signature of the purchasing agent and budget account code number; and the appropriate address and telephone number.

All purchase orders shall be numbered in sequence; sufficient copies will be made to meet distribution requirements.

A verbal order, subject to subsequent confirmation by a written purchase order, may be issued only in cases where a bona fide emergency exists. Whenever possible, a purchase order number should be given to the supplier. A confirming requisition/purchase order shall be issued immediately thereafter and clearly marked as such.

Approved: 4/07

 

DJEJ   Payment Procedures (See DJEG and DJFAB)                                  

The superintendent shall recommend payment to vendors and suppliers for goods and services upon satisfactory receipt of all goods or completion of all services and for which there is a district purchase order number issued as provided for in board policy. (See DJEG)

The board shall consider payment of bills recommended for payment at regular board meetings except as provided for in policy. (See DJFAB)

The board may designate one or more employees to pay bills in advance of any board meeting in order to avoid a penalty for late payment or to take advantage of any early payment discount.

Approved: 4/07

 

DJFA   Purchasing Authority                                                               

The superintendent is authorized to execute contracts on behalf of the district for the purchase of goods and services if the amount is less than $20,000. The board shall receive reports on any contracts.

Approved: KASB Recommendation - 6/01; 6/06; 4/07

  

DJFAB   Administrative Leeway                                                         

(See CMA, DJEG and DJEJ)

In an emergency, the superintendent shall have the authority to make expenditures necessary to prevent additional damage to district property, to keep the schools open or to reopen schools. Emergency purchases shall be ratified by the board at the next regular or special board meeting.

Approved: 4/07

 

DK   Student Activity Fund Management (See JGHB, JH and JL)                    

Any activity which involves the expenditure of activity funds shall be subject to prior approval of the principal.

Activity Fund Management

The building principals shall maintain an accurate record of all student activity funds in the respective attendance centers. No funds shall be expended from these accounts except in support of the student activity program. No activity account shall have a negative balance.

The board shall receive a monthly report on all activity accounts.

All student activity funds will be audited annually at the same time as the general fund budget.

All payments from student activity funds shall be made from purchase orders co-signed by the employee responsible for the fund and the class or organization sponsor.

Receipts shall be kept for all revenue deposited into the activity fund of each attendance center. All payments from the activity fund shall be by checks provided for that purpose.

Activity Fund Deposits

Activity funds from gate receipts or other sources may be deposited directly into a bank account maintained for this purpose.

Inactive Activity Funds (See JH)

The board will assume control of all inactive activity funds and disburse those funds to other activity accounts or expend the funds as directed by the board.

Each student activity fund shall have an employee in charge of the fund.  

Approved: 4/07; 12/12; 8/13