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: