800 Statement of Guiding Principles for Business Procedures

STATEMENT OF GUIDING PRINCIPLES FOR BUSINESS PROCEDURES
 
The Board of Directors recognizes that its primary purpose is to provide the best education possible within the limits of the established curriculum and the financial ability of the school district.  The Board of Directors also recognizes its deep responsibility to the citizens of the school district for the efficient use of public funds.  It shall, therefore, be the duty of the Board of Directors (1) to see to it that public funds are used as effectively as possible in the service of our district's children; and (2) to report to the public regularly about such use.
 
 
Legal Reference:           Iowa Code Sections 279.34;  280.3;  280.12;  379.35
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

800.1 Partisan Political Expenditures

PARTISAN POLITICAL EXPENDITURES
 
Expenditures from federal or state funds for partisan political activity is prohibited.
 
 
Adopted:  December 11, 1995               
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

801 Budget

801.1 Planning the Budget

PLANNING THE BUDGET
 
Planning the budget document shall be a continuous process and shall involve long-term thought, study, and deliberation by the superintendent of schools, the Board of Directors, and the administrative staff.  The process may also include the faculty and the citizens of the school district.
 
Planning shall be done in three major phases:
 
            1.   Assessment of the educational program and its impact upon the budget;
 
            2.   Assessment of the district's estimated income;
 
            3.   Assessment of the district's estimated expenditures.
 
 
Legal Reference:           Chapters 8;  24;  298;  442
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

801.2 Preparation of the Budget Document

PREPARATION OF THE BUDGET DOCUMENT
 
The preparation of the formal budget shall be the responsibility of the superintendent of schools.  At its regular meeting in February, the superintendent shall present to the Board a preliminary projection of the needs of the school district for the ensuing fiscal year.  A complete budget shall be prepared by the superintendent and presented to the Board for certification at the Board's regular meeting in April, but not later than April 15.
 
 
Legal Reference:           Iowa Code Chapters 24;  257;  273;  442
 
 
Cross Reference:           801.3    Requirements of the Budget Document
801.4    Publication of the Budget
801.5    Public Review of the Budget
801.6    Budget Adoption by the Board
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

801.3 Requirements of the Budget Document

REQUIREMENTS OF THE BUDGET DOCUMENT
 
The budget document must include the following information:
 
1.         The estimated amount of income for the several funds from sources other than taxation;
 
2.         The amount proposed to be raised by taxation;
 
3.         The amount proposed to be expended in each and every fund and for each and every purpose during the ensuing fiscal year;
 
4.         A comparison of the amounts proposed to be expended with amounts expended for like purposes during the two preceding years;
 
5.         Fully itemized and classified estimates for each particular class of proposed expenditure, showing under separate headings the amounts required, in such manner and form as prescribed by the State Board.
 
The budget document shall also contain a brief explanatory section to show any program changes for the ensuing year that may by responsible for changes in expenditures.
 
 
Legal Reference:           Iowa Code Sections 24.3;  24.5;  298.1;  Chapter 442
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

801.4 Publication of the Budget

PUBLICATION OF THE BUDGET
 
The Board of Directors shall adopt, for publication, an approved budget* for the ensuing year.  This approved budget shall be filed with the secretary of the Board at least 20 days before March 15 of each year.
 
The Board of Directors shall cause this approved budget to be published in the legal newspaper of the school district, together with the time and place established for public review of the budget.
 
*NOTE:  This refers to the certified budget, not to the educational program plan with its corresponding line item appropriations.
 
 
Legal Reference:           Iowa Code Section 24.9;  Chapter 442;  Section 618.14
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

801.5 Public Review of the Budget

PUBLIC REVIEW OF THE BUDGET
 
The Board of Directors shall establish and publish the time and place for public review of the budget document.  This public hearing shall be held no later than April 15 of each year, and a notice of the hearing shall be published at least 10 days in advance.
 
The verified proof of the publication of such notice, together with the certified budget, shall be filed in the office of the county auditor and preserved by that office.  No levy shall be valid unless and until such notice is published and filed.
 
*Note:     Although Iowa Code Sections 24.27 through 24.29 permit citizen groups of the district to file a formal protest against a budget adopted by the Board, at least three of the persons filing such a complaint must have filed a joint written objection at or before the budget hearing of the Board for the protest to be valid, and for the county auditor to pursue the protest.
 
 
Legal References:          Iowa Code Section 24.9 through 24.11;  Chapter 442
Iowa Administrative Code 618.14
 
 
Cross Reference:           204.14  Public Hearings
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

801.6 Budget Adoption and Certification

BUDGET ADOPTION AND CERTIFICATION
 
The board shall adopt and certify a budget for the operation of the school district to the county auditor by April 15.  It shall be the responsibility of the board secretary to file the adopted and certified budget with the county auditor and other proper authorities.
 
 
Legal References:          Iowa Code §§ 24;  257 (1991)
Iowa Code 24.17 (Iowa Acts, 1992)
 
 
Cross Reference:           Budget
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014
 
Revised:  October 19,1992

801.7 Budget as a Spending Plan

BUDGET AS A SPENDING PLAN
 
The final certified budget shall be considered the authority for all expenditures to be made during the fiscal year.
 
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.  These procedures permit the expenditure of closing cash balances of the preceding fiscal year and the expenditure of unanticipated income from sources other than taxation during a fiscal year by amending the budget.  The Board of Directors, upon approving an amended budget, shall file and publish it and give notice of a public hearing within 20 days after approving an amended budget.
 
 
Legal References:          Iowa Code Sections 24.9;  24.14;  442.9
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

801.8 Transfer of Funds

TRANSFER OF FUNDS
 
When the necessity for a fund has ceased to exist, the balance may be transferred to another fund or account by board resolution.  School district monies received without a designated purpose may be transferred in this manner.  School district monies received for a specific purpose or upon vote of the people may only be transferred, by board resolution when the purpose for which the monies were received has been completed.  Voter approval is required to transfer monies to the general fund from the capital projects fund and debt service fund.
 
It shall be the responsibility of the board secretary to make recommendation to the board regarding transfers and to provide the documentation justifying the transfer.
 
 
Legal Reference:           Iowa Code §§ 24.21-.22; 279.8; 298A (1997)
 
 
Cross Reference:           701.3    Financial Records
 
 
Adopted:  February 10,1986                 
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014
 
Revised:  December 8, 1997

801.9 Financial Accounting System

FINANCIAL ACCOUNTING SYSTEM
 
The Board of Directors of this school district adopts as its system of financial accounting the Uniform Financial Accounting for Iowa School Districts and Area Education Agencies.
 
 
Legal Reference:           Iowa Code Sections 11.23;  257.10;  257.18
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

801.10 Governmental Accounting Practices and Regulations

Governmental Accounting Practices and Regulations
 
School district accounting practices will follow state and federal laws and regulations, generally accepted accounting principles (GAAP) and the uniform financial accounting system provided by the Iowa Department of Education.  As advised by the school district’s auditor, determination of liabilities and assets, prioritization of expenditures of governmental funds and provisions for accounting disclosures shall be made in accordance with governmental accounting standards.
 
In Governmental Accounting Standards Board (GASB) Statement No. 54, the board identifies the order of spending unrestricted resources applying the highest level of classification of fund balance - restricted, committed, assigned, and unassigned - while honoring constraints on the specific purposes for which amounts in those fund balances can be spent.  A formal board action is required to establish, modify and or rescind a committed fund balance.  The resolution will state the exact dollar amount.  In the event, the board chooses to make changes or rescind the committed fund balance, formal board action is required.
 
The Board authorizes the superintendent to assign amounts to a specific purpose in compliance with GASB 54.  An ‘assigned fund balance’ should also be reported in the order of spending unrestricted resources, but is not restricted or committed. 
 
It is the responsibility of the superintendent to develop administrative regulations implementing this policy.  It is also the responsibility of the superintendent to make recommendations to the board regarding fund balance designations.  
 
Note:  This policy is an optional policy.  Should the board not adopt a policy implementing GASB54, the default is to reduce – committed, assigned and unassigned fund balances – in that order.  Adoption of a policy gives boards the ability to have greater control over their fund balances.
 
 
Legal Reference:           Iowa Code §§ 257.31(4); 279.8; 297.22-.25; 298A (2011).
 
Cross Reference:           801       Budget
802       Income
                                   
 
Approved: August 15, 2011                  
Reviewed:  July 18, 2011
February 17, 2014                      
Revised:

802 Income

802.1 Local, State, and Federal Income

LOCAL, STATE, AND FEDERAL INCOME
 
All income received by the school district shall be classified under the official accounting system and be placed in the hands of the secretary and treasurer of the Board of Directors, to be deposited into the official school district depository or depositories set by the Board in accordance with the laws of the State of Iowa.
 
 
Legal Reference:           Iowa Code Section 291.12;  Chapters 452:  453
 
 
Cross Reference:           802.8    Depository of Funds
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

802.2 Tuition Fees

TUITION FEES
 
The Board of Directors shall, upon the recommendation of the superintendent of schools, adopt at its regular March meeting a schedule of tuition fees for the school district's adult education and summer school programs for the ensuing school year.
 
For nonresident students attending elementary or secondary school during the regular school year, the fee shall be the state cost per student or the district cost per student, whichever is lower.
 
 
Legal References:          Iowa Code Sections 282.6;  282.24;  282.2;  442.4
Iowa Administrative Code 282
Court Cases:  Oshel v. Creston Comm. Sch. Dist. DPI 
 Admin. Doc. 570, 1/8/81; Mt. Hope Sch. Dist. v. Hendrickson,
197 N.W. 47 (Iowa 1924)
 
 
Cross References:          501.6    Nonresident Students
602.11  Adult Education
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

802.3 Educational Material Fees

EDUCATIONAL MATERIAL FEES
 
The superintendent of school or his/her designated officer shall set up the necessary regulations to administer the sale of educational supplies and materials to students of the school.  These regulations shall include the methods used to determine the selling prices of the items to be sold.  The Board of Directors shall officially adopt the regulations governing the sale of supplies and materials.
 
 
Legal Reference:           Attorney General Rulings:  Re Ames Public School Dist., Dec. 22, 1979
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

802.4 Use of School Property and Equipment

USE OF SCHOOL PROPERTY AND EQUIPMENT
 
The superintendent of schools shall establish the necessary regulations governing the use of the school buildings or school-owned equipment by staff and/or by outside groups.  These regulations shall be consistent with the laws of the State of Iowa.  The superintendent shall also set up a schedule of fees for the use of the buildings or equipment; these regulations shall be submitted to the Board of Directors for approval.
 
The Board will permit school equipment to be loaned to staff members when such use is directly related to their employment, and to students when the equipment is to be used in connection with their studies or extra-curricular activities.  Proper controls will be established to ensure the borrower's responsibility for, and return of, all such equipment.
 
 
Legal References:          Iowa Code Sections 29C.12;  29C.12: 98A.2;  98.3;  111A.;  123.46;  278.1(4);  297.9 through 297.11;  300.1
 
 
Cross References:          1004     Use of School Facilities, and all subcodes
1004.9  Loan of School Equipment
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

802.5 Sale of Bonds

SALE OF BONDS
 
The board may conduct an election for the authority to issue bonded indebtedness.  Revenues generated from an approved bond issue shall be used only for the purpose stated on the ballot.  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.
 
Revenues received from the issuing of bonded indebtedness shall be deposited into the capital projects fund.
 
 
Legal References:          Iowa Code §§ 74-76; 278.1;  298;  298A (1997)
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014
 
Revised:  December 8, 1997

802.6 Investments

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;
 
        ·        Iowa Schools Joint Investment Trust Program (ISJIT); and,
 
        ·        Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions.
 
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. 
 
It is the responsibility of the superintendent to deliver 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 are designed to prevent losses, to document the officers' and employees' responsibility for elements of the investment process and address the capability of the management.
 
Legal Reference:           Iowa Code §§ 11.2, .6; 12.62; 12B.10; 12C; 22.1, .14; 28E.2; 257; 279.29; 283A; 285; 502.701; 633.123 (2001).
 
Cross Reference:           202.5    Treasurer
802       Income
 
Adopted:  January 12, 1987                  
 
Reviewed:   March 8, 1999           
July 19, 2004                          
February , 2009
February 17, 2014
 
Revised:  September 18, 2000
February 16, 2004
 

802.7 Gifts-Grants-Bequests

GIFTS – GRANTS – 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 property of the school district.  Gifts, grants and bequests are administered in accordance with terms, if any, agreed to by the board. 
 
 
Legal Reference:        Iowa Code §§ 279.42; 565.6 (2005)
 
Cross Reference:           221       Gifts to Board of Directors
402.4   Gifts to Employees
508.1   Class or Student Group Gifts
 
 
Adopted:  February 10, 1986    
 
Reviewed:  March 8, 1999                  
July 19, 2004
February  2009
February 17, 2014
 
Revised:  December 18, 2006
 

802.8 Depository of Funds

DEPOSITORY OF FUNDS
 
At the annual meeting, the Board of Directors shall designate by resolution, which shall be entered in the official minutes of the Board, the name and location of the bank or banks selected as the official school district depository or depositories.  The Board shall also designate the maximum amount that may be kept on deposit in each bank.
 
 
Legal Reference:           Iowa Code Sections 279.33;  453.1-453.3;  Chapter 454
 
 
Cross Reference:           204.5    Annual Meeting of the Board
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

802.9 Authorized Use of School District Credit Cards

AUTHORIZED USE OF SCHOOL DISTRICT CREDIT CARDS
 
The Hartley-Melvin-Sanborn Community School Board of Education recognizes the practical uses of school owned credit cards.  The Board hereby authorizes the procurement and use of such credit cards for the following purposes:
 
1)   Expenses related to employee travel including food, lodging, fuel, towing, or vehicle repair; 
 
2)   Payment for on-line computer services; and
 
3)   Procurement of goods valued at less than $250 from vendors with which the district does not have an established line of credit.  No purchase of goods using a school credit card is allowed without a properly executed purchase order.  Receipts for all credit card transactions must be retained and will be verified by the board secretary.  Any lost or stolen card should immediately be reported to the board secretary for cancellation of the card.
 
The district credit cards will be issued to the board secretary who is responsible for providing the cards to school employees when needed.  It shall be the responsibility of the administration to inform staff members of the limits and conditions of credit card use established by this policy. The Board reserves the right to deny payment for credit card purchases beyond the scope authorized by this policy and will seek repayment from the employee using all available means.  Intentional misuse of a school credit card will result in disciplinary action against the school employe
 
 
Adopted:  November 15, 1994              
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

803 Expenditures

803.1 Purchasing and Bidding

PURCHASING AND BIDDING
 
The official budget document shall be considered as the authority for all expenditures which are made during the fiscal year.  The principal concern of the School 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 budget control for the current fiscal year and for future budget planning.
 
The Superintendent of Schools shall approve all purchases made in the name of the School District except those authorized by direct action of the School Board.
 
Competitive sealed bids shall be required for construction of school facilities or nonemergency repairs when the cost is $25,000 or more.  Competitive sealed bids shall be required for purchases of textbooks and supplies other than from publishers in accordance with Sections 301.7 and 301.8, Iowa Code.
 
For all other purchases when the cost is in excess of $5,000 for one item or a group of related items, the administration will obtain bids or quotations, for the purpose of comparing basic cost.  The award of contract shall be to the lowest responsible bidder meeting the specifications.  The District reserves the right to enter into such contract or contracts as shall be deemed to be in the best interests of the school district.  The administration will recommend to the Board from whom the purchase should be made, with reasons briefly stated whenever the recommendation is not for the lowest bid or quotation.
 
It shall be the policy of the School District to purchase products and services from within the district community whenever justified by total cost considerations including basic cost of item(s) being purchased, availability of service and/or repair, delivery date, and related concerns.
 
In addition, when practical, the School District will endeavor to coordinate and combine purchases with other governmental bodies to take advantage of volume price breaks.
 
 
Legal Reference:           Iowa Code Sections 297.7, 297.8, 301.7, 301.8, 301.10,73.1, 23.18
 
 
Cross References:          902.3    Emergency Repairs
901.10  Construction Contract Bidding
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

803.2/803.3 Requisitions/Purchase Orders

REQUISITIONS/PURCHASE ORDERS
 
Requisitions for equipment, supplies, and services shall be made on properly authorized forms.  Forms must be signed by officially designated personnel before being processed.
 
The procurement of all supplies, equipment, and services shall begin with the issuance of an official purchase order signed by the superintendent of schools or by an authorized member of the staff. Only those supplies, equipment, and services procured by formal contract shall be exempt.
 
 
Cross Reference:           803.1    Purchasing and Bidding
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

803.4 Receiving Goods and Services

RECEIVING GOODS AND SERVICES
 
Whenever possible, all supplies, equipment, and services purchased in the name of the school district shall be cleared through the superintendent.  Whenever this procedure is impossible or impractical, the superintendent shall be notified by the school personnel who receive goods or services that these have been delivered directly.
 
It shall be the duty of the superintendent to certify to the accounting department the receipt of all goods and services.
 
 
Cross References:          803.1    Purchasing and Bidding
803.2/803.3    Requisitions/Purchase Orders
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

803.5 Approval and Payment for Goods and Services

APPROVAL AND PAYMENT FOR GOODS AND SERVICES
 
The Board of Directors shall issue warrants, upon audit and allowance by the Board, for all just claims against the school district for payment of freight, postage, printing, utilities, travel expenses, and other goods and services, and for payment of salaries pursuant to the terms of written contract entered into by the Board.
 
Just claims may be paid prior to the regular board meeting for freight, drainage, express, postage, printing, water, light and telephone rents, registration and entry fees, credit card bills as allowed for in board policy, refunds, and for salaries pursuant to the terms of a written contract, including officials’ fees and hot lunch salaries, with approval of board president or vice-president.
 
All claims and salaries for which warrants have been issued prior to audit and allowance by the Board shall be passed upon by the Board at its first meeting thereafter, and shall be entered on records in the regular minutes of the secretary.  Warrants may be signed by the board president or vice-president and co-signed by the board secretary or in his/her absence, the superintendent of schools may co-sign using the board secretary’s signature stamp.
 
 
Signature stamps may only be stored and used by the person stamping his/her own signature.  All warrants shall include at least one live signature.
 
* In situations where emergency repairs are needed to prevent the closing of a school, a school district may make repairs of more than $25,000 without advertising for bids.  A certificate of prior approval must be secured from the Area Education Agency administrator that the emergency repair is necessary to prevent closing of the school.
 
 
Legal Reference:           Iowa Code Sections 279.36;  291.8;  291.12;  279.30
 
 
Cross References:          802.9    Authorized Use of School District Credit Cards
803.6    Unpaid Warrants
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 19, 1999          
July 19, 2004                                                                                                                 
February , 2009
February 17, 2014                 
Revised:  November 15, 1994
November 13, 1995
August 12, 1996
November 11, 1996
January 17, 2000
January 15, 2001

803.6 Unpaid Warrants

UNPAID WARRANTS
 
Only in the case of absolute necessity will the Board issue warrants for which no funds are available.  In such a case, the treasurer shall institute the procedures required by the Code of Iowa, Chapter 74, Sections 1-7, for payment of the warrants.
 
 
Legal Reference:           Iowa Code Sections 74.1 through  74.7
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

803.7 Payroll Periods

PAYROLL PERIODS
 
It shall be the policy of the Board of Directors that all certificated personnel of the school district be paid on the 20th day of each month.  When the paydays fall on or during holidays or weekends, employees shall receive their paychecks on the last prior working day.
 
The above policy is subject to review and revision through the collective bargaining process where one exists.
 
 
Legal Reference:           Iowa Code Section 20.9
 
 
Cross References:          402.4    Salary Schedule for Certified Personnel
408.3    Salary Schedule for Noncertified Personnel
803.8    Payroll Deductions
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

803.8 Payroll Deductions

PAYROLL DEDUCTIONS
 
Payroll deductions shall consist of federal income tax withholdings, Iowa income tax withholdings, social security, and the Iowa Public Employees' Retirement System.  In addition, any employee may elect to have payments withheld for professional dues, United Way Fund, United State Savings Bonds, credit union, district-related and mutually agreed-upon group insurance coverage and/or tax-sheltered annuity program.  Written requests for purchase or change of tax-sheltered annuities will be administered according to the master contract.
 
 
Legal Reference:           Iowa Code Sections 294.8;  294.15;  294.16
 
 
Cross References:          402.4    Salary Schedule for Certificated Personnel
408.3    Salary Schedules for Support Personnel
803.7    Payroll Period
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

803.9 Travel Allowance

TRAVEL ALLOWANCE
 
All personnel of the school district shall be reimbursed for travel expenses incurred for travel outside the district authorized by the superintendent of schools.
 
Travel shall be (1) by common carrier when such transportation is available and will serve the time schedule of the individual; or (2) by private automobile.  If the individual chooses to go by automobile, the maximum travel cost shall not exceed the cost of economy/coach class air travel.
 
The rates for reimbursement shall be administered according to the master contract for teachers and the support staff handbook for non certificated personnel.
 
All administrative personnel shall be reimbursed for any travel necessary to the performance of their assigned duties.  This does not include travel between their homes and their offices.
 
All personnel shall be reimbursed for any travel from building to building in the line of duty at a rate determined by the Board of Education.  This does not include travel to and from work and home.
 
 
Legal Reference:           Iowa Code Sections 79.9;  279.32
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

803.10 Special Assessments

SPECIAL ASSESSMENTS
 
When it is deemed necessary, the Board of Directors shall seek the advice of its attorney in cases of special assessments against the school district.  The recommendations of the attorney shall be given careful consideration in formulating any recommended action of the Board of Directors in a spacial assessment case.
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

804 Reports

804.1 Secretary's Monthly Reports

SECRETARY'S MONTHLY REPORTS
 
The secretary of the Board shall file each month the Board of Directors a financial statement of the preceding month's business.  This statement shall be sent to the members of the Board together with the agenda of the regular monthly Board meeting.
 
 
Legal Reference:           Iowa Code Section 291.7
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

804.2 Treasurer's Annual Report

TREASURER'S ANNUAL REPORT
 
At the regular July Board meeting, the treasurer of the Board shall make an annual report which shall show the amounts of the general fund and the school house fund held over, received, paid out, and on hand, with the several accounts to be separately stated.  The treasurer shall immediately file a copy of this report with the superintendent of the Area Education Agency.
 
 
Legal Reference:           Iowa Code Section  291.15
 
 
Cross References:          202.5    Treasurer of the Board
204.5    Annual Meetings of the Board
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

804.3 Quarterly Financial Report Published

QUARTERLY FINANCIAL REPORT PUBLISHED
 
The Board of Directors shall cause to have published quarterly, in at least one newspaper published in the district, a statement verified by affidavit of the secretary of the Board showing the financial matters of the school district for the previous quarter.  This statement shall include a list of all warrants issued by the Board (except payroll); the names of persons, firms, or corporations receiving the warrants; the amount of each warrant; and the reason for the warrant.
 
 
Legal Reference:           Iowa Code Section,  279.36
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

804.4 Annual Financial Statement, Published

ANNUAL FINANCIAL STATEMENT, PUBLISHED
 
The Board of Directors shall cause to have published, as soon as possible following the annual meeting of each year and in at least one newspaper in the district, a summarized statement verified by affidavit of the secretary of the Board showing the receipts and disbursements of all funds for the preceding fiscal year.  Annual payroll disbursements shall be included in this publication, listing total annual payments to each individual.
 
 
Notes:                
                        (1)        If a consolidated, community , or independent school district has a population of 125,000 or more, the summarized statement is to show the names of persons, firms, or corporations, and the total amount paid to each during the school year.
 
                        (2)        In every other school district, and in districts in which no newspaper is published, the president and secretary of the Board shall file the above statement with the AEA administrator and post copies in three conspicuous places in the district.
 
 
Legal Reference:           Iowa Code Sections 279.32 through 279.34
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

804.4 Annual Financial Statement, Published

ANNUAL FINANCIAL STATEMENT, PUBLISHED
 
The Board of Directors shall cause to have published, as soon as possible following the annual meeting of each year and in at least one newspaper in the district, a summarized statement verified by affidavit of the secretary of the Board showing the receipts and disbursements of all funds for the preceding fiscal year.  Annual payroll disbursements shall be included in this publication, listing total annual payments to each individual.
 
 
Notes:                
                        (1)        If a consolidated, community , or independent school district has a population of 125,000 or more, the summarized statement is to show the names of persons, firms, or corporations, and the total amount paid to each during the school year.
 
                        (2)        In every other school district, and in districts in which no newspaper is published, the president and secretary of the Board shall file the above statement with the AEA administrator and post copies in three conspicuous places in the district.
 
 
Legal Reference:           Iowa Code Sections 279.32 through 279.34
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

804.5 Audits

AUDITS
 
The Board of Directors shall engage an auditing agency to perform an annual audit of the financial affairs of the school district, in accordance with the laws of the State of Iowa.
 
Annual audit reports shall remain on permanent file in the administrative offices of the school district.
 
 
Legal Reference:           Iowa Code Section,  11.18
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

805 Records

805.1 Board of Directors' Records

BOARD OF DIRECTORS' RECORDS
 
The secretary of the Board of Directors shall cause to be kept and preserved, according to the schedule below, the following records:
 
TYPE OF RECORD / LENGTH OF PRESERVATION
 
1.   Secretary's financial records / Permanently
2.   Treasurer's financial records / Permanently
3.   Minutes of the Board of Directors / Permanently
4.   Annual audit reports /  Permanently
5.   Annual budget /  Permanently
6.   Permanent record of individual pupil  / Permanently
7.   Records of payment of judgments against the school district / 20 years
8.   Bonds and bond coupons / 10 years
9.   Written contracts / 10 years
10  Canceled warrants, check stubs, bank statements, bills, invoices, and related records / 5 years
 
 
The secretary of the Board shall be required to preserve Board of Directors' records permanently, but is authorized, after microfilming them, or using other electronic copying options, to destroy by burning or shredding any records that have been in his/her custody for three years.  A properly authenticated reproduction of any microfilmed record meets the same legal requirements as the original record.
 
 
Legal References:          Iowa Code Sections 291.6 through 291.11;  Chapter 304
DPI School Officers' Manual, 1982
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999              
July 19, 2004
February , 2009
February 17, 2014

805.2 Personnel Records

PERSONNEL RECORDS
 
The school district shall maintain personnel records on employees.  The records are important for the daily administration of the educational program, for implementing board policy, for budget and financial planning, and for meeting state and federal requirements.
 
The records shall include, but not be limited to, records necessary for the daily administration of the school district, salary records, evaluations, application for employment, references, and other items needed to carry out board policy.  Employee personnel files are school district records and are considered confidential records and therefore are not generally open to public inspection or accessibility.  Only in certain limited instances, when the employee has given a signed consent, will employee personnel records be accessible to individuals other than the employee or authorized school officials.
 
Employees may have access to their personnel files, with the exception of letters of reference, and copy items from their personnel files at a time mutually agreed upon between the superintendent and the employee.  The school district may charge a reasonable fee for each copy made. However, employees will not be allowed access to the employment references written on behalf of the employee.  Board members will generally only have access to an employee’s file when it is necessary because of an employee related matter before the board.
 
It shall be the responsibility of the superintendent to keep employees’ personnel files current.  The board secretary shall be the custodian of employee records.
 
 
Legal References:          Iowa Code chs. 20;  21;  22;  91B (1999)
Clymer. City of Cedar Rapids, No 208/97 - 1705 (Iowa 1999)
Des Moines Independent Community School District v. Des Moines Register and Tribune Company 487 N.W. 2d 666 (Iowa 1992)
City of Dubuque  v. Telegraph Herald, Inc., 297 N.W. 2d 523 (Iowa 1980)
 
 
Adopted:  February 10, 1986                
 
Reviewed:  July 19, 2004                
February, 2009                                
February 17, 2014
Revised:  August 10, 1998
March 20, 2000

805.2R1 Personnel Records Regulation

PERSONNEL RECORDS REGULATION
 
Personnel Records Content
 
1.   Employee Personnel records may contain the following information:

  • Personal information including, but not limited to, name, address, telephone number, emergency numbers, birth date and spouse
  • Individual employment contract
  • Evaluations
  • Application, resume and references
  • Salary information
  • Copy of the employee’s license or certificate, if needed for the position
  • Educational transcripts
  • Assignment
  • Records of disciplinary matters

 
2.   Employee health and medical records shall be kept in a file separate from the employee’s personnel records.  Health and medical records may contain, but are not limited to:

  • Medical professional signed physical form
  • Sick or long-term disability leave days
  • Worker’s compensation claims
  • Reasonable accommodation made by the school district to accommodate the employee’s disability
  • Employee’s medical history
  • Employee emergency names and numbers
  • Family and medical leave request forms

 
Applicant File Records Content
 
Records on applicants for positions with the school district shall be maintained in the central administration office.  The records shall include, but not be limited to:
 

  • Application for employment
  • Resume
  • References
  • Evidence of appropriate license or certificate, if necessary for the position for which the individual applied
  • Affirmative action form, if submitted

 
Records Access
 
Only authorized school officials shall have access to an employee’s records without the written consent of the employee. Authorized school officials may include, but not be limited to, the superintendent, building principal, or board secretary.  In the case f a medical emergency, the school nurse or other first aid or safety personnel may have access to the employee’s health or medical file without the consent of the employee.  Board members will generally only have access to an employee’s personnel file without the consent of the employee when necessary for the conducting of board business.
 
Confidential records include, but are not necessarily limited to, birth dates, addresses, gender, employment applications, performance evaluations and individual test scores.
 
 
 
Employee Record Retention
 
All employee records, except payroll and salary records, shall be maintained for  a minimum of seven years after termination of employment with the district.  Applicant records shall be maintained for a minimum of seven years after the position was filled.  Payroll and salary records shall be maintained for a minimum of three years after payment.
 
 
Adopted:  August 10 , 1998                  
 
Reviewed:  July 19, 2004                
February , 2009
February 17, 2014
 
Revised:  March 20, 2000

805.4 Bonds for Officers and Employees

BONDS FOR OFFICERS AND EMPLOYEES
 
The secretary and treasurer of the Board of Directors shall each give bond to the school district in such amount as the Board may require, with sureties to be approved by the Board.  Bonds shall be filed with the president of the Board.
 
All other employees shall be covered by a blanket bond in the amount of $5,000.
 
 
Legal Reference:           Iowa Code Sections 291.2;  291.3
 
 
Adopted:  February 10, 1986                
 
Reviewed:   March 8, 1999             
July 19, 2004
February , 2009
February 17, 2014

805.5 Fixed Assets Management System

FIXED ASSETS MANAGEMENT SYSTEM
 
To improve the school district's oversight of fixed assets by assigning and recording them to specific facilities and programs and to provide proof for loss of fixed assets for insurance purposes, the school district shall establish and maintain a fixed assets management system for reporting capitalized fixed 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.
 
A separate fixed assets listing shall be prepared for fixed assets in the general fixed assets account group (GFAAG) and for the fixed assets of each proprietary and fiduciary fund.  "Fixed assets" in the GFAAG shall include school district buildings and sites, construction in progress, improvements other than buildings and sites, land and machinery and equipment.  Fixed assets in the proprietary funds shall include school district buildings and sites, capitalized interest, infrastructure, land and machinery and equipment.  Fixed assets reported in the financial reports shall include individual fixed assets with an historical cost equal to or greater than $5000.  Fixed assets accounted for and reported in the proprietary funds shall be depreciated over the useful life of each fixed asset.
 
The fixed assets management system shall be updated monthly to account for the addition/acquisition, disposal, relocation/transfers of fixed assets.  It shall be the responsibility of the superintendent to count and reconcile the fixed assets listing for the general fixed assets account group and for each proprietary and fiduciary fund with the fixed assets management system on June 30 each year.
 
It shall be the responsibility of the superintendent to develop administrative regulations implementing this policy.  It shall also be the responsibility of the supporting administrative regulations.
 
 
Adopted: February 10, 1986                 
 
Reviewed:   March 8, 1999              
July 19, 2004
February  2009
February 17, 2014
 
Revised:  January 21, 2002

805.5E1 Fixed Assets Additions/Acquisitions Form

See attachment.

Attachment: 

805.5E2 Fixed Assets Relocation/Transfer Form

See attachment.

Attachment: 

805.5E3 Fixed Asset Disposal, Lost, Damaged, or Stolen Form

See attachment.

Attachment: 

805.5E8 Lost, Damaged, or Stolen Fixed Assets Report

See attachment.

Attachment: 

805.5R1 Fixed Assets Management System Regulation

FIXED ASSETS MANAGEMENT SYSTEM REGULATION
 
A.        Fixed assets management team.
 
1.         The fixed assets manager shall appoint a fixed assets management team.              Members of the fixed assets management team shall include:
                        a.         Superintendent, chair;
                        b.         Fixed assets manager;
                        c.         Building principals;
                        d.         Transportation director;
                        e.         One or more facility maintenance personnel;
                        f.          One or more technology personnel; and
                        g.         Others deemed necessary by the fixed assets manager.
 
            2.         The fixed assets manager, in conjunction with the fixed assets management team, shall:
                        a.         Conduct the initial fixed assets physical count;
                        b.         Develop the initial fixed assets listing;
                        c.         Tag fixed assets included in the fixed assets management system with a bar code identification number;
                        d.         Enter the necessary data into the fixed assets management system and compile the appropriate reports;
                        e.         Develop forms and procedures for maintaining the integrity of the fixed assets management system; and
                        f.          Maintain responsibility for an accurate fixed assets management system.
 
            3.         The initial fixed assets listing process must be completed by June 30, 1997.
 
B.         Initial machinery and equipment fixed assets listing process.
           
            1.         Assign up to three individuals from each building, one of which is a member of the fixed assets management team to oversee their building.
                        a.         Director of buildings and grounds is responsible for classrooms, offices, storage areas, recreation facilities.
                        b.         Transportation directors are responsible for school district vehicles.
                        c.         Food service supervisors are responsible for their food service areas.

 
            2.         An Initial Machinery and Equipment Fixed Assets Listing Form must be completed for each fixed asset with a historical cost equal to or greater than $5000.  The following information must be collected and entered into the fixed assets management system.
                        a.         Name of location-building/department /room;
                        b.         Location-building/department/room code;
                        c.         Balance sheet accounting/class code;
                        d.         General fixed assets account group or proprietary fund asset (state proprietary fund);
                        e.         Addition/acquisition date;
                        f.          Check/purchase order number or gift;
                        g.         Bar code or other type of identification number assigned to and placed on the fixed assets in a consistent manner by the fixed assets manager;
                        h.         Serial/model number;
                        i.          Cost-historical/addition/acquisition or estimated cost;
                        j.          Estimated useful life (proprietary funds only);
                        k.         Vender;
                        l.          Purchasing fund;
                        m.        Description of fixed asset;
                        n.         Fair market value on acquisition date (donated fixed assets only);
                        o.         Department/person charged with custody;
                        p.         Method of addition/acquisition-purchase, trade, gift, etc.;
                        q.         Quantity; and
                        r.          Replacement cost.
 
C.         Initial real property fixed assets listing process.
 
            1.         The fixed assets manager is responsible to complete the initial real property fixed assets listing.
 
            2.         An Initial Real Property Fixed Assets Listing Form must be completed.  The following information must be collected and entered into the fixed assets management system.
                        a.         Acquisition date;
                        b.         Seller;
                        c.         Cost-historical/addition/acquisition, including legal, architect, surveying and other related fees;
                        d.         Fair market value on acquisition date (donated fixed assets only);
                        e.         Estimated useful life of buildings (proprietary funds only);
                        f.          Balance sheet accounting/class code;
                        g.         Legal description;
                        h.         Location/address; and
                        i.          Addition/acquisition authorization.
 

 
D.        Determining historical cost.
 
            1.         The historical cost of a fixed asset is based on the actual cost expended in making the fixed assets serviceable.  For the initial fixed assets listing of currently owned fixed assets, records indicating the actual costs expended in making the fixed assets serviceable may be available in the central administrative office.
 
            2.         Gifts of fixed assets are given an "historical cost" of the estimated fair market value on the addition/acquisition date.
 
            3.         Fixed assets purchased under a capital lease are given an historical cost of their net present value of the minimum lease payments on the addition/acquisition date.
 
            4.         The historical cost of fixed assets in the proprietary funds must include capitalized interest and infrastructure.
 
            5.         Fixed assets for which the historical cost cannot be determined.
                        a.         Search board minutes to determine the approximate acquisition date, contract approval date or project approval date.
                        b.         Search central administrative office records at the time of the presumed addition/acquisition date, including those in storage, on microfiche or archives, to determine the actual costs expended in making the fixed assets serviceable.
                        c.         If no records can be found to determine the actual costs expended in making the fixed assets serviceable the school district may estimate the historical cost using back trending/standard costing after consulting with the school auditor.
 
E.         Annual fixed assets listing reconciliation.
 
            1.         The fixed assets manager, in conjunction with the fixed assets management team, shall conduct an annual fixed assets physical count to develop the annual fixed assets listing in a manner similar to the initial fixed assets listing process in B above.  At least every three years, someone other than the person in custody of the fixed assets in the building/department/room shall perform the fixed assets physical count for the building/department/room.
 
            2.         Upon completion of the annual fixed assets listing, the fixed assets listing is reconciled to the fixed assets management system data base.
 
            3.         Fixed assets found to have been excluded from the data base are added to the fixed assets management system.  The fixed assets management system process is reviewed to prevent future incidents of excluding a fixed asset.
 
            4.         Fixed assets unaccounted for are reported to the fixed assets manager who contacts the supervisor of and the employee/person in charge/control/custody of the fixed asset.  The employee/person in charge/control/custody of the fixed asset has thirty days to account for the fixed asset.

 
            5.         Fixed assets unaccounted for after thirty days are reported to the fixed assets manager 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 fixed asset to replace the fixed asset.
 
            6.         The fixed assets manager is responsible for documenting the reasons each fixed asset was not reconciled to the fixed assets management system.
 
F.         Addition/acquisition of machinery and equipment fixed assets.
           
            1.         The school district's required purchasing administrative regulations and procedures must be followed to acquire machinery and equipment fixed assets.  The school district's required administrative regulations and procedures must be followed for receiving a gift of machinery and equipment fixed assets.
 
            2.         The Machinery and Equipment fixed assets Addition/Acquisition Form must be completed for each additional machinery and equipment fixed assets with an addition/acquisition cost of equal to or greater than $5000.  The following information must be collected.
                        a.         Name of location-building/department/room;
                        b.         Location-building/department/room code;
                        c.         Balance sheet accounting/class code;
                        d.         General fixed assets account group or proprietary fund asset (name proprietary fund);
                        e.         Addition/acquisition date;
                        f.          Check/purchase order number or gift;
                        g.         Bar code identification number assigned to and placed on the fixed asset;
                        h.         Serial/model number;
                        i.          Cost-historical;
                        j.          Fair market value on acquisition date (donated fixed assets only);
                        k.         Estimated useful life (for proprietary funds only);
                        l.          Vendor;
                        m.        Purchasing fund;
                        n.         Description of fixed asset;
                        o.         Department/person charged with custody;
                        p.         Method of addition/acquisition-purchase, trade, gift etc.;
                        q.         Quantity;
                        r.          Replacement cost; and
                        s.          Addition/acquisition authorization.
 
            3.         Machinery and equipment fixed assets acquired in a month must be entered into the fixed assets management system in the same month.
 

 
G.        Addition/acquisition of real property fixed assets.
 
            1.         The school district's required purchasing administrative regulations and procedures must be followed to acquire a real property fixed asset.  The school district's required administrative regulations and procedures must be followed for receiving a gift of a real property fixed asset.
 
            2.         The Real Property Fixed Assets Addition/Acquisition Form must be completed for each additional real property fixed asset.  The following information must be collected.
                        a.         Addition/acquisition date;
                        b.         Seller;
                        c.         Cost-historical/addition/acquisition, cost including legal, architect, surveying and related fees;
                        d.         Balance sheet accounting/class code;
                        e.         Fair market value on a requisition date (donated fixed assets only);
                        f.          Estimated useful life of buildings (for proprietary funds only).
                        g.         Legal description,
                        h.         Location/address; and
                        i.          Addition/acquisition authorization.
 
            3.         For real property fixed assets in the general fixed assets account group, the actual costs of construction in progress, other than infrastructure, is entered into the fixed 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.
 
            4.         For real property fixed assets in the proprietary funds, the actual costs of construction in progress, including infrastructure construction, is entered into the fixed 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.         Real property fixed assets acquired in a month must be entered into the fixed assets management system in the same month.
 

 
H.        Relocation/transfer of machinery and equipment fixed assets.
 
            1.         A fixed assets Relocation/Transfer Form must be completed prior to removing machinery and equipment fixed assets from their current location.  The following information must be collected:
                        a.         Relocation/transfer date;
                        b.         Quantity;
                        c.         Bar code identification number;
                        d.         Current location-building/department/room code;
                        e.         Name of current location-building/department/room;
                        f.          New location-building/department/room code;
                        g.         Name of new location-building/department/room;
                        h.         Date placed at new location-building/department/room;
                        i.          Department/person charged with custody; and
                        j.          Relocation/transfer authorization.
 
            2.         Machinery and equipment fixed assets relocated/transferred in a month must be entered into the fixed assets management system in the same month.
 
I.          Disposal of machinery and equipment and real property fixed assets.
 
            1.         A Machinery and Equipment fixed assets Disposal Form must be completed prior to disposing of machinery and equipment fixed assets.  The following information must be collected:
                        a.         Disposal date;
                        b.         Quantity;
                        c.         Bar code tag identification number;
                        d.         Disposal method-junk, trade, sale, trade-in, etc.; and
                        e.         Disposal authorization.
 
            2.         A Real Property fixed assets Disposal Form must be completed prior to disposing of real property fixed assets.  The following information must be collected.
                        a.         Disposal date;
                        b.         Legal description;
                        c.         Location/Address;
                        d.         Purchaser;
                        e.         Disposal method-trade, sale, stolen, etc.; and
                        f.          Disposal authorization.
 
            3.         Machinery and equipment/real property fixed assets disposed of in a month must be entered into the fixed assets management system in the same month.
 

 
J.          Lost, damaged or stolen machinery and equipment fixed assets.
           
            1.         A Lost, Damaged or Stolen fixed assets Report must be completed when a fixed asset has been lost, damaged or stolen.  The following information must be collected:
                        a.         Date of loss, damage or theft;
                        b.         Employee/person discovering;
                        c.         Quantity;
                        d.         Description of fixed asset;
                        e.         Bar code tag identification number
                        f.          Location-building/department/room;
                        g.         Description of loss, damage, etc.;
                        h.         Filing of police report-yes or no;
                        i.          Filing of insurance report-yes or no;
                        j.          Sent for repair-yes or no;
                        k.         Date returned from repair;
                        l.          Date returned to location-building/department/room;
                        m.        Department/person charged with custody; and
                        n.         Authorization.
 
            2.         Fixed assets damaged, lost or stolen in a month must be entered into the fixed assets management system in the same month.
 
K.        Fixed Assets Reports
 
            1.         Annual reports for June 30 each year.
                        a.         fixed assets listing including the following items for the school auditor:
                                    1)  Balance sheet accounting/class code;
                                    2)  Purchasing fund;
                                    3)  Bar code tag identification number;
                                    4)  Description of the fixed asset;
                                    5)  Historical cost; and
                                    6)  Location
                        b.         fixed assets listing by location/building
                        c.         fixed assets listing by department/employee/person charged with custody; and
                        d.         fixed assets listing by replacement cost.
 

805.5R2 Fixed Assets Management System Definitions

FIXED ASSETS MANAGEMENT SYSTEM DEFINITIONS
 
Back trending/standard costing -     an estimate of the historical original cost using a known average installed cost for alike units as of the estimated addition/acquisition date.  This cost is only applied to the fixed assets initially counted upon implementation of the fixed assets management system when the historical original cost cannot be determined.  It is inappropriate to apply the back trending/standard costing method to any fixed asset acquired after the fixed assets management system implementation date.
 
Balance sheet accounting/class codes -     the codes set out for fixed assets in the Iowa Department of Education Uniform Accounting Manual.  They are:  211-sites; 221-site improvements; 222-accumulated depreciation on site improvement; 231-buildings and building improvements; 232-accumulated depreciation on buildings and building improvements; 241-machinery and equipment; 242-accumulated depreciation on machinery and equipment, and 251-construction in progress.
 
Book value -     The value of a fixed assets on the records of the school district, which can be the cost or, in the case of fixed assets in the proprietary fund, the cost less the appropriate allowances, such as depreciation.
 
Buildings and building improvements - A fixed assets account reflecting the addition/acquisition cost of permanent structures owned or held by a government and the improvements thereon.
 
Capital expenditures/expenses -    Expenditures/expenses resulting in the addition/acquisition of or addition/acquisition to the school district's general or proprietary fixed assets.
 
Capital fixed assets -     Fixed assets with a value of equal to or greater than $5,000 based on the historical cost.
 
Capitalization policy -   The criteria used by the school district to determine which fixed assets will be reported as fixed assets on the school districts financial statements and records.
 
Capitalization threshold -  Dollar limit set for capitalizing fixed assets.
 
Capitalized interest -- Interest accrued and reported as part of the cost of the fixed assets during the construction phase of a capital project.  The construction phase extends from the initiation of preconstruction activities until the time the asset is placed in service.
 
Construction in progress - Buildings in the process of being constructed other than infrastructure.
 

Contributed capital -  The permanent fund capital of a proprietary fund.  It is created when a residual equity transfer is received by a proprietary fund;  a general fixed assets is "transferred" to a proprietary fund;  or a grant received is restricted to a capital acquisition or construction.
 
Cost - The amount of money or other consideration exchanged for goods or services.
 
Depreciation -   Expiration in the service life of fixed assets, other than wasting assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence.  In accounting for depreciation, the cost of a fixed 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.
 
Fixed assets -    Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances.  Fixed assets include buildings, construction in progress, improvements other than facilities, land and machinery and equipment.
 
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 fixed assets -    Capital fixed assets that are not fixed assets of any fund, but of the governmental unit as a whole.  Most often these fixed assets arise from the expenditure of the financial resources of governmental funds.
 
General fixed assets account group (GFAAG) -  a self-balancing group of accounts established to account for fixed assets of the school district, not accounted for through specific proprietary funds.
 
Historical (acquisition) cost -     The actual costs expended to place a fixed assets into service.  For land and building, 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 other than buildings -  Attachments or annexations 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 assets -    Public domain fixed assets such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems and similar assets that are immovable and of value only to the governmental unit.
 
Investment in general fixed assets -       An account in the GFAAG representing the school district's investment in general fixed assets.  The balance in this account generally is subdivided according to the source of the monies that finance the fixed assets addition/acquisition, such as general fund revenues and special assessments.
 
Land and building - Real property owned by the school district.
 
Machinery and equipment - Fixed 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 is 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 $5000 and fixed assets under capital leases and fixed assets being acquired under a lease/purchase agreement.
 
Proprietary fund fixed assets -   Capital fixed assets that are fixed assets specific to a proprietary fund, such as school nutrition fund or child care fund.  Most often these fixed assets arise from the expenditure of financial resources of a proprietary fund.
 
Replacement cost -    The amount of cash or other consideration required today to obtain the same fixed assets or its equivalent.
 
 
 

805.6 Financial Records

FINANCIAL RECORDS
 
Financial records of the school district shall be maintained in accordance with generally accepted accounting principles (GAAP) as required or modified by law.  School district monies shall be received and expended from the appropriate fund and/or account.  The funds and accounts of the school district shall include, but not be limited to:
 
Governmental fund type:
                                    *          General fund
                                    *          Special revenue fund
                                    *          --Management levy fund
                                                --Physical plant and equipment levy fund
                                                --School house levy fund
                                                --Public education and recreation levy fund
                                                --Student activity fund
                                    *          Capital projects fund
                                    *          Debt service fund
Proprietary fund type:
                                    *          Enterprise fund
                                                --School nutrition fund
                                    *          --Child care fund
                                    *          Internal service fund
Fiduciary funds:
                                    *          Trust or agency funds
                                                --Expendable trust funds
                                                --Nonexpendable trust funds
                                                --Agency funds
                                                --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 similar 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 school district on behalf of, or in trust for, another entity.  The account groups are the accounting records for fixed assets and long-term debt.
 
It shall be the responsibility of the superintendent to implement this policy and bring necessary changes in the maintenance of the school district's financial records to the attention of the board.
 
 
Legal Reference:           Iowa Code §§ 11.23; 298A (1997)
 
Adopted:  December 8, 1997                
 
Reviewed:   March 8, 1999              
July 19, 2004
February  2009
February 17, 2014

806 Insurance

806.1 Insurance Program

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 at 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 does 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 be purchased to cover loss exposures with a minimum deductible of $250. 
 
The board may retain a private organization for fixed assets management services.
 
Administration of the insurance program, making recommendations for additional insurance coverage, placing the insurance coverage and loss prevention activities shall be the responsibility of the superintendent.  The fixed assets manager shall be responsible for maintaining the fixed assets management system, processing claims and maintaining loss records.
 
 
Legal References:          Iowa Code §§ 20.9;  85.2;  279.12, .28; 285.5(6), .10(6); 296.7; 298A;
517A.1; 670.7 (1997).
1974 Op. Att'y Gen. 171
1972 Op. Att'y Gen. 676
 
 
Cross Reference:           Board Member Liability
 
 
Adopted: February 10, 1986                 
 
Reviewed:   March 8, 1999             
July 19, 2004
February  2009
February 17, 2014
 
Revised: December 8, 1997

806.2 Periodic Review of Insurance Program

PERIODIC REVIEW OF INSURANCE PROGRAM
 
The Board of Directors shall periodically review the insurance program of the school district to ensure adequate coverage.  Such review may be made annually, but must be made at least once every three years.
 
The superintendent of school, after consultation with the agent of record and any other individuals or organizations, shall make recommendations for the districts' insurance coverage.
 
 
Cross Reference:           806.1    Insurance Program
 
 
Adopted:  February 10, 1986     
 
Reviewed:   March 8, 1999             
July 19, 2004
February  2009   
February 17, 2014