NONINSTRUCTIONAL AND BUSINESS SERVICES
701.1 - DEPOSITORY OF FUNDS
Each year at its annual meeting, the board shall designate by resolution the name and location of the Iowa located financial depository institution or institutions to serve as the official school district depository or depositories. The maximum deposit amount allowed in each depository shall be stated in the resolution. The amount(s) stated in the resolution will include all depositories and include all of the school district's fund(s).
It shall be the responsibility of the business manager to include the resolution in the minutes of the meeting.
Legal Reference: Iowa Code §§ 12C; 279.33 (1995).
Cross Reference: 210.1 Annual Meeting
206.4 Treasurer
704.1 Local - State - Federal - Miscellaneous Revenue
Approved: 1/20/2000
Reviewed: 11/16/15, 3/21/22
Revised:
NONINSTRUCTIONAL AND BUSINESS SERVICES
701.2 - 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.
If all requirements for district use of funds calculated under the teacher leadership supplement are met and funds remain unexpended and unobligated at the end of the fiscal year, the district may transfer all or a portion of remaining funds into the district’s flexibility account in accordance with law.
The district may choose to request approval from the School Budget Review Committee to transfer funds to make a program whole, prior to its elimination.
Temporary transfers (loans) of funds are permitted between funds but must be repaid to the originating fund, with interest, by Oct. 1 following the end of the fiscal year.
It is the responsibility of the business manager to make recommendations to the board regarding transfers and to provide the documentation justifying the transfer.
Legal Reference: Iowa Code §§ 24.21-.22; 279.8; 291.13 (1995).
Cross Reference: 703 Budget
Approved: 1/20/2000
Reviewed: 11/16/15
Revised: 3/21/22
NONINSTRUCTIONAL OPERATIONS AND BUSINESS SERVICES
701.3 - FINANCIAL RECORDS
Financial records of the school district are maintained in accordance with generally accepted accounting principles (GAAP) as required or modified by law. School district monies are received and expended from the appropriate fund and/or account. The funds and accounts of the school district will include, but not be limited to:
Governmental fund type:
· General fund
· Special revenue fund
--Management Levy fund
--Public Education and Recreation Levy fund (PERL)
--Student activity fund
· Capital projects fund
--Physical Plant and Equipment Levy fund (PPEL)
--Secure and Advanced Vision for Education (SAVE)
· Debt service fund
Proprietary fund type:
· Enterprise fund
--School nutrition fund
--Child care fund
· Internal service fund
Fiduciary funds:
· Trust
--Expendable trust funds
--Nonexpendable trust funds
--Pension trust funds
Account groups:
· General capital assets account group
· General long-term debt account group
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. Capital projects funds are used to account for financial resources to acquire or construct major capital facilities (other than those of proprietary funds and trust funds) and to account for revenues from SAVE. A debt service fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Proprietary funds account for operations of the school district operated similar to private business, or 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 capital assets and long-term debt.
The board may establish other funds in accordance with generally accepted accounting principles and may certify other taxes to be levied for the funds as provided by state law. The status of each fund must be included in the annual report.
It is the responsibility of the superintendent in conjunction with the school business official to implement this policy and bring necessary changes in the maintenance of the school district's financial records to the attention of the board.
NOTE: The list of funds above does not include the "Library levy fund," which is only available to one school district. The school district eligible to levy the library levy must add this fund to its policy.
Code No. 701.3
NOTE: For additional information about school district fund structure, please see Chapter 9 of the “Uniform Administrative Procedures for Iowa School District and AEA Officials,” located on the “Uniform Administrative Procedures Manual” section of the Iowa Department of Education’s website.
Legal Reference: Iowa Code §§291; 298; 298A.
281 I.A.C. 98
Cross Reference: 704 Revenue
705 Expenditures
Approved: 3/21/22
Reviewed:
Revised:
NONINSTRUCTIONAL OPERATIONS AND BUSINESS SERVICES
701.4 - 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 business manager 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.
Cross Reference: 701.3 Financial Records
703 Budget
704 Revenue
Approved: 3/21/22
Reviewed:
Revised: