SECTION D: FISCAL MANAGEMENT
____________________________________________________________________________
DB Annual Budget and Appropriations Measure
DBK Budget Modification Authority
DD Funding Proposals and Applications
DG Depository of Funds, Authorized Signatures and Check-Writing Services
DH Bonded Employees and Officers
DI Fiscal Accounting and Reporting
DID Inventories (Fixed Assets)
FISCAL MANAGEMENT GOALS
The quantity and quality of learning programs are related to the funding provided and the effective, efficient management of those funds. It follows that the District’s purposes can best be achieved through prudent fiscal management.
As trustees of the community’s investment in the facilities, materials and operational funds, the Board has a fiduciary responsibility to ensure that the investment is protected and used wisely. Competent personnel and efficient procedures are essential for sound management of fiscal affairs. The Board expects that the Superintendent and the Treasurer keep it informed through reports, both oral and written, of the fiscal management of the District.
With the assistance of the Treasurer and other designated personnel, the Superintendent is expected to develop an efficient and effective procedure for fiscal accounting, purchasing and the protection of plant, grounds, materials and equipment through prudent and economical operation, maintenance and insurance.
The Board seeks to achieve the following goals:
1. to engage in thorough advance planning, with staff and community involvement, in order to develop budgets and to guide expenditures to achieve the greatest educational returns for the dollars expended;
2. to establish levels of funding which provide high quality education for the District’s students;
3. to use the best available techniques for budget development and management;
4. to provide timely and appropriate information to all staff with fiscal management responsibilities and
5. to establish effective regulations for accounting, reporting, business, purchasing and delivery, payroll, payment of vendors and contractors and all other areas of fiscal management.
ANNUAL BUDGET AND APPROPRIATIONS MEASURE/
BUDGET MODIFICATION AUTHORITY
Budget
The purpose of the annual tax budget is to identify adequate financial resources for the education program and to provide a basis for accountability in fiscal management. The District budget is also the legal basis for the establishment of tax rates.
Public school budgeting is regulated and controlled by Ohio law and requirements of the Board. A budget is required for every fund that a district uses in its yearly operation.
The Superintendent and Treasurer/staff are responsible for the preparation of the annual budget and presentation of the budget to the Board for adoption.
Appropriations
As permitted by law, at the start of the fiscal year, the Board may pass a temporary appropriations measure to provide for meeting the ordinary expenses of the District until such time as the Board approves the annual appropriations resolution for the year, which is not later than October 1. If by October 1 the county budget commission has not certified all amended certificates of estimated resources to the Board of Education (or submitted a certification that no amended certificates are necessary), the Board can delay action on the annual appropriation measure until such time as the certificates are received.
The Treasurer files both the temporary and final appropriations measures at the proper times with the office of the County Auditor.
The Superintendent/designee notifies each school administrator and/or department head of the allocations approved for expenditure.
Budget Modification
Modification of funds between line item appropriations within each major fund and any transfers permitted by law from major fund to major fund require Board approval.
Transfers Among Categories
During the final quarter of the fiscal year, appropriations categories are examined, and the year-end status of each is estimated. Before the close of the fiscal year, the Board authorizes the Treasurer to transfer moneys from those categories in which a surplus is anticipated into those in which a deficit is anticipated as permitted by State or Federal statutes.
Transfers among funds as permitted by statutes require Board action and may require approval from the Court of Common Pleas and the Tax Commissioner.
It is the responsibility of the Superintendent and the Treasurer to examine the appropriations categories and make the necessary recommendations to the Board.
LEGAL REFS.: ORC 9.34
3311.40
3313.18
5705.14; 5705.15; 5705.16; 5705.28; 5705.29; 5705.35-5705.412
BUDGET PLANNING
Budget planning is an integral part of program planning so that the annual operating budget may effectively express and implement all programs and activities of the District. Budget planning is a year-round process involving broad participation by administrators, teachers and other personnel throughout the District.
The Superintendent and Treasurer are responsible for preparing financial forecasts for at least five years beyond the current fiscal year.
The budget reflects the District’s goals, objectives and programs. Any changes or alterations in programs are approved by vote of the Board.
The budget is approved by January 15 of each year and covers the period from July 1 to June 30 of the succeeding year.
LEGAL REFS.: ORC 5705.01; 5705.28-5705.32; 5705.35; 5705.36; 5705.37; 5705.39; 5705.391
CROSS REF.: AE, School District Goals and Objectives
FUNDING PROPOSALS AND APPLICATIONS
The Board considers whether to apply for any State or Federal grants for which it is eligible. The Superintendent/designee evaluates federally funded programs and State grants, including their possible benefits to the students in the District, and apprises the Board of the worth of each and makes recommendations accordingly.
The District participates to its limit of eligibility in the use of funds provided by the State of Ohio for the educational benefit of its students.
REVENUES FROM TAX SOURCES
In an attempt to provide sufficient financial resources, the Board:
1. requests that voters approve adequate local funds for the operation of the District and determines the amount of the individual levies at the time of the initial request, or at the time of a request for renewal or replacement, to yield sufficient revenue for the operating expenses of the District;
2. accepts available State funds to which the District is entitled by law or through regulations of the State Board of Education and
3. accepts Federal funds which are available, provided that there is a specific need for them and that the required matching funds are available.
LEGAL REFS.: Ohio Const. Art. XII, § 2
ORC 3301.07
3311.21
3313.02-3313.91
3317.01-3317.11
3323.09
Chapters 5701; 5705; 5727
5747.01
5748.01-5748.06
REVENUES FROM INVESTMENTS
The investment of school district funds must be in accordance with state statutes. The purpose of the investment policy is to maximize the returns on the Brunswick City School District excess cash balances consistent with complete safety of the portfolio's principal value and the liquidity and yield desired.
Objective
To invest in such a way as to be consistent with the Ohio Revised Code, as well as policies and regulations prescribed by the Auditor of the State of Ohio.
To safeguard cash and equivalents from loss due to theft and/or credit risk.
To allow for diversification of investments to avoid incurring unreasonable and avoidable risks regarding specific security types.
Policy
Criteria
Investments
The following investments shall be permitted by this policy and are those defined in Section 135 of the Ohio Revised Code.
Guidelines
An institution designated by the Board as a public depository shall safe-keep pledged securities on deposit. The Treasurer will four times per year require public depositories to report the amount of public moneys deposited by the Treasurer, the total value of the pool of securities pledged to secure public moneys held by the depository, including those deposited by the Treasurer and provide an itemized list of the securities in the collateral pool.
If any security purchased under the authority of this section is issued to a designated payee or to the order of the designated payee, the name of the Treasurer and the title of that office shall be designated. If any such securities are registered either as to principal or interest, or both, then such securities shall be registered in the name of the Treasurer as such.
All investments shall be made with a securities brokerage headquartered within the State of Ohio, or a primary dealer of the Federal Reserve. These dealers shall be a member of the National Association of Securities Dealers, Inc., or through an institution regulated by the Superintendent of Banks, Superintendent of Savings and Loans Association, Comptroller of the Currency, Federal Deposit Insurance Corporation, Board of Governors of the Federal Reserve or Federal Home Loan Bank Board.
Payment for investments shall be made only upon the delivery of security representing such investments to the Treasurer. If the securities transferred are not represented by a certificate, payment shall be made only upon receipt of confirmation of transfer from the custodian by the Treasurer. The Treasurer shall report to the Board of Education the amount, type and maturity of investments as a part of the regular monthly financial report to that Board.
Prudence
The standard of prudence to be used by the Treasurer in the context of managing the overall portfolio shall be the prudent investor rule, which states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment considering the probable safety of their capital as well as the probable income to be derived."
The Treasurer and/or staff, acting in accordance with this policy and exercising due diligence, shall not be held personally responsible for a specific security's credit risk or market price changes, provided that these deviations are reported as soon as practical and that appropriate action is taken to control adverse developments.
Implementation
To ensure the proper implementation of this policy, the administration is authorized to:
Credit interest on at least a quarterly basis for the following funds, or other funds as required by ORC, based on an individual minimum ending monthly fund balance of $1,000 at a rate of return equivalent to the STAR Ohio rate, and the remainder of all earnings shall be deposited into the General Fund (001):
Investments shall not be made unless the district reasonably expects to hold the security until its maturity.
LEGAL REFS.: Uniform Depository Act ORC 135.01-135.21; 3313.51
Board Adopted: January 16, 2007
DEPOSITORY OF FUNDS, AUTHORIZED SIGNATURES AND
CHECK-WRITING SERVICES
The Board of Education will establish and follow legal requirements for the depository of funds, authorized signatures and check-writing services.
LEGAL REF.: ORC Chapter 135
BONDED EMPLOYEES AND OFFICERS
At the time of appointment or re-appointment of the Treasurer, the Board authorizes the Treasurer to execute a bond in an amount determined and approved by the Board. The bond must be deposited with the Treasurer and a certified copy must be filed with the County Auditor and the Board President. The premium is paid by the Board.
The Superintendent, Board President, staff and other employees who handle school funds are included, at Board expense, in a Position Schedule Bond. Position Schedule Bonds pertain to a specific position, not to an individual.
LEGAL REFS.: ORC 3.06
131.18
3313.25; 3313.83
3319.05
5705.412
CROSS REF.: DM, Cash in School Buildings
FISCAL ACCOUNTING AND REPORTING
The District’s accounting system is in conformance with the Uniform School Accounting System as prescribed by the Auditor of State for the use of school districts. The Treasurer is responsible for receiving and properly accounting for all funds of the District.
The financial records must be adequate to:
1. guide the making or deferring of purchases, the expansion or curtailing of programs and the controlling of expenses;
2. ensure that current data are immediately available and in such form that routine summaries can be readily made;
3. serve as a guide to budget estimates for future years and to hold expenditures to the amounts appropriated and
4. show that those in charge have handled funds within limitations established by law and in accordance with Board policy.
The Board receives monthly financial statements from the Treasurer which show receipts, disbursements, appropriations, encumbrances, balances, assets and liabilities. The Treasurer makes all other financial reports required by law or by State agencies and submits them to the proper authorities.
The Treasurer provides the Board with any other financial management reports that the Board determines necessary.
Financial records are permanent; the supporting documents may be destroyed only in compliance with the provisions of Ohio law and in compliance with specifications of the District’s records commission, the Auditor of State and the Ohio Historical Society.
LEGAL REFS.: ORC 117.101; 117.38; 117.43
3301.07
3313.29; 3313.32
3315.04; 3315.13
Chapter 1347
Chapter 5705
CROSS REF.: EHA, Data and Records Retention
INVENTORIES
(FIXED ASSETS)
The Board, as steward of this District’s property, recognizes that efficient management and full replacement upon loss requires accurate inventory and properly maintained property records.
The District shall conduct a complete inventory every five years, by physical count, of all District-owned equipment and supplies. For purposes of this policy, "equipment" means a unit of furniture or furnishings, an instrument, a machine, an apparatus or articles which retain shape and appearance with use, is nonexpendable and does not lose its identity when incorporated into a more complex unit.
This District shall maintain a fixed asset accounting system. The fixed asset system shall maintain sufficient information to permit the:
1. preparation of year-end financial statements in accordance with generally accepted accounting principles;
2. adequate insurance coverage and
3. control and accountability.
Each building and additions to buildings are identified by location or name and are described in detail (e.g., size, number of floors, square footage, type of construction, etc.) with the value shown for all individual structures.
Fixed equipment is inventoried by building, floor and room name or number; each item to be listed individually. (Leased equipment that the District will eventually own must be inventoried.)
Movable equipment is inventoried by building, floor and room name or number; each item to be listed individually. Any item that has a model number or serial number has that number noted in the description for full identification. All items assigned to a building are the building administrator’s responsibility.
All equipment purchased, after the initial inventory, as capital outlay or replacement with a cost of $500.00 or more and with an estimated useful life of five years or more is tagged and made part of the equipment inventory.
Televisions, VCRs, computers and any other items highly susceptible to theft have a permanent number engraved on them.
Audio-visual equipment and computer equipment are inventoried through the library with sublisting of location. Each component is inventoried and a number is engraved on each. An accurate official record of textbooks, computer software and library books shall be kept.
A computer-generated listing of all equipment is supplied to each building and department. This listing is updated annually by the close of the school year, or not later than the second Friday in June of each year. This updated listing is then submitted to the Business Manager’s office for computer update.
A physical inventory of supplies is taken at the building level at the close of the school year, or not later than the second Friday in June of each year. This updated listing is then submitted to the Business Manager’s office for computer update.
The Treasurer shall be assisted by the Business Manager, principals, directors, supervisors and professional and support staffs in the performance of this function.
LEGAL REF.: ORC 117.38
AUDITS
In accordance with State statutes, all District financial records are subject to audit by the Bureau of Inspection and Supervision of Public Offices of the State Auditor’s office. The Board has the right to request an independent audit with the approval of the State Auditor’s office.
A copy of the Auditor’s report is placed on file in the State Auditor’s Office; another copy is submitted to the Board. The Board makes the audit report available for public inspection.
LEGAL REFS.: ORC 117.09; 117.10; 117.101; 117.11; 117.12; 117.26; 117.27; 117.28
3313.27; 3313.29; 3313.483
PURCHASING
The function of purchasing is to serve the educational program by providing the necessary supplies, equipment and services. The Board’s authority for the purchase of materials, equipment, supplies and services is extended to the District administration through its adoption of the annual appropriations resolution.
The Board declares its intention to purchase competitively without prejudice and to seek maximum educational value for every dollar expended. The purchase of items and services found on lists from the appropriations resolution requires no further Board approval, except in those instances in which, by law or Board policy, the purchases or services must be put to bid.
The acquisition of supplies, equipment and services is centralized in the business office, which functions under the supervision of the Superintendent through whose office all purchasing transactions are conducted.
The Board assigns the Superintendent the responsibility for the quality and quantity of purchases made. The Treasurer is charged with the responsibility to ensure that all purchases do not exceed appropriations and that they are consistent with the approved educational goals and programs of the District.
LEGAL REFS.: ORC 3313.171; 3313.172; 3313.18; 3313.33; 3313.37; 3313.46
3319.04
3327.08
5705.41
Ohio Const. VIII, § 2e
CROSS REF.: DK, Payment Procedures
PURCHASING AUTHORITY
The Board's authority for the purchase of materials, equipment, supplies and services is extended to the District administration through the detailed listing of such items compiled as part of the budget-making process and approved by the Board through its adoption of the annual appropriations resolution.
The purchase of items and services on such lists require no further Board approval except in those instances where by law or Board policy the purchases or services must be put to bid.
In an effort to bring about the smooth and efficient operation of the school system, the Board will pass, annually specific authorizations for the procurement of supplies, equipment and services for the budget year and for the disposal of obsolete equipment and materials.
LEGAL REFS.: ORC 3313.17; 3313.171-172; 3313.18
PETTY CASH ACCOUNTS
The petty cash accounts must be pre-approved by the Board and regularly monitored by the Treasurer.
CROSS REF.: DM, Cash in School Building
BIDDING REQUIREMENTS
Contracts for construction, furnishing or demolition of buildings or for any improvements or repairs which exceed $25,000 will be let only after bids are solicited and received in compliance with law.
When requested by the Superintendent, purchases in the range of $5,000 to $25,0000 will be based on price quotations submitted by more than one vendor.
The Superintendent, through the Business Manager, will assemble the proper specifications and make the necessary arrangements for public bidding and price quotations. The Treasurer will receive the bids and price quotations and record them. The Business Manager makes his/her recommendations to the Superintendent who will present recommendations to the Board of Education. Upon approval by the Board, those bidders awarded contracts and the other bidders will be notified of the results of the bidding.
[Adoption date: June 21, 1999]
[Modified date: May 19, 2008]
LEGAL REF: ORC 153.50; 153.54; 3313.372; 3313.373; 3313.46; 3319.04; 3327.08
CROSS REFS:
ECF, Energy Conservation
EBC, Emergency/Safety Plan
ECG, Integrated Pest Management
PURCHASING PROCEDURES
Moneys under the jurisdiction of the Board may not be expended except upon a warrant drawn against a specific appropriation and against a specific fund. Therefore, no contract or purchase order for the expenditure of money will be made unless there is attached to it a certificate of the Treasurer certifying that the amount required to meet the contract or purchase order has been appropriated and is in the treasury, or is in the process of collection, and is free from previous encumbrance.
Any contract or purchase order issued without such a certificate attached is void, except as the law allows later issuance within 30 days of the certificate and except that, if the amount involved is less than $1,000, the Treasurer may authorize it to be paid without the ratification or affirmation of the Board. Under certain conditions, the law also allows the Treasurer to issue blanket certification, subject to limitations of time and amount as set by law.
Purchasing procedures are designed to ensure the best possible price for the desired products and services. Procedures for purchasing are developed to require that all purchases are made on properly approved purchase orders and that, for items not put up for bid, price quotations are solicited.
In compliance with the State Use Law, the Board directs the administration to determine if products and services needed by the District may be purchased from the Ohio Industries for the Handicapped. If applicable, the District will purchase products and/or services from the OIH.
Special arrangements may be made for ordering perishable and emergency supplies.
LEGAL REFS.: ORC 3313.46
3327.08
5705.41; 5705.412; 5705.44; 5705.45
PAYMENT PROCEDURES
All claims for payment from District funds are processed by the Treasurer. Payment is authorized against invoices and supporting documents verifying receipt, supported by approved purchase orders or in accordance with salaries and salary schedules approved by the Board.
As an operating procedure, the Board has adopted an annual resolution authorizing payment by the Treasurer for debts or claims.
The Treasurer is responsible for ensuring that appropriate allocations are observed and that total expenditures do not exceed the amounts appropriated for all items.
LEGAL REFS.: ORC 3313.18
3315.08
5705.41; 5705.412
CROSS REF.: DJ, Purchasing
SALARY DEDUCTIONS
Except for deductions for absence not covered by paid leave or those required by law, salary deductions are allowed only upon authorization by the employee and approval by the Board.
The following deductions are required:
1. Federal, State and local income tax;
2. employee’s share of retirement contribution according to current rate as set by law;
3. unexcused or excused absence not covered by paid leave and
4. Medicare deduction in compliance with Federal law.
If requested by employees, the Board will implement payroll deductions for the Ohio Deferred Compensation Program. Other deductions are in accordance with negotiated agreements and/or Board policy.
The District may limit the right of an individual employee to designate the agent, broker or company to write tax-sheltered annuities by requiring designation by at least one percent of the District’s full-time employees or at least five, whichever is greater, except that a District may not require that a company be designated by more than 50 employees.
When a teacher is absent from duty and there is no leave applicable, the absence is unauthorized. The salary deduction for each day of unauthorized absence is based on the current annual salary divided by the number of teacher work days in the official school calendar as adopted by the Board. In no case will only the salary of the substitute be deducted or a teacher be allowed to employ and pay for the substitute.
When an employee is absent from duty and there is no leave applicable, the absence is unauthorized. The salary deduction for an unauthorized absence is made on a per diem basis in accordance with the required work year for that particular job classification.
Unauthorized absences should not occur. Repeated unauthorized absences can result in the teacher or other employee being disciplined.
LEGAL REFS.: ORC 9.41-9.43; 9.80; 9.81; 9.90; 9.91
145.37; 145.71-145.73
3307.51
3313.262
3917.04
CROSS REF.: GCBD, Professional Staff Leaves and Absences
CONTRACT REFS.: Teachers’ Negotiated Agreement
Support Staff Negotiated Agreement
EXPENSE REIMBURSEMENTS
District personnel who incur expenses in carrying out their authorized duties are reimbursed by the District upon submission of a properly filled out and approved voucher with such supporting receipts as required by the Administrative Regulations. Such expenses may be approved and incurred within the limits of budgetary allocations for the specific type of expense.
When official travel by personally owned vehicle has been authorized, mileage payment is made at the rate currently approved by the Board and within the limitations of Federal law.
A traveler on official school business is expected to exercise the same care in incurring expenses that a prudent person would exercise in traveling on personal business. Excessive costs, such as those caused by circuitous routes or luxury services or accommodations, are not considered prudent, nor are they accepted for reimbursement.
LEGAL REFS.: ORC 3313.12; 3313.20
3315.15
CROSS REF.: GCL, Professional Staff Development Opportunities
CASH IN SCHOOL BUILDINGS
Moneys collected by employees and by student treasurers are handled with prudent business procedures, in order to demonstrate the ability of employees to operate in that fashion and to teach such procedures to our students.
All moneys collected are receipted, accounted for and deposited every 24 hours.
LEGAL REF.: ORC 9.38
CROSS REFS.: DH, Bonded Employees and Officers
IGDG, Student Activities Funds Management
FEES AND ANCILLARY CHARGES
In conjunction with Board of Education Policy JN, the Board of Education authorizes the Treasurer's Office to assess and levy charges to individuals, organizations, or corporations for, but not limited to, the following circumstances:
1. Non-Sufficient Funds Checks
The Treasurer's Office has the authority to charge the maker of any instrument (check, money order, or credit card charge) a fee of up to thirty dollars ($30.00) for a financial institution's failure to honor said instrument for lack of available funds, closed account, or reasons otherwise deemed non-collectible.
The Treasurer's Office has the authority to refuse any negotiable instrument from the maker of said instrument when the individual/company has previously passed a non-sufficient funds item to this government body during the prior twelve (12) months.
The Treasurer's Office has the right to refuse payment by personal check for an amount greater than one hundred dollars ($100) for delinquent student fees/fines when payment is made less than ten (10) days prior to graduation. (Alternate payment methods remain available.)
2. Vendor Initiation and Annual Fees for Tax Deferred Annuity Plan Vendors
The Board of Education has authorized the Treasurer to collect a one-time initiation fee of one thousand dollars ($1,000) and an annual fee of five hundred dollars ($500) for vendor companies who offer and have active employee-participants in Tax Deferred Annuity Plans (also known as Tax Sheltered Annuity Plans) under Internal Revenue Code (IRC) 403 (b) regulations.
Said vendors/companies are required to execute a Vendor Certification Agreement and remit the initiation fee with the Board of Education prior to becoming an authorized vendor for soliciting eligible clients from the staff of the Brunswick City School District.
3. Contractor Documents
The Board of Education has authorized the Business Manager or designee the authority to collect a reasonable fee for the issuance of copies of Architect Specifications or Construction Specifications for the submission of bid or quotes by the contractor.
[Adoption date: December 10, 2007]
LEGAL REF.: ORC 3313.642
CROSS REF: JN, Student Fees, Fines, and Charges