Each year at its annual meeting, the board will 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 to be kept in the depository will be stated in the resolution.  The amount stated in the resolution must be for all depositories and include all of the school district’s funds.

It is the responsibility of the board secretary to include the resolution in the minutes of the meeting.

Approved November 26, 2018    
Reviewed May 19, 2023        
Revised November 26, 2018

The board may loan monies between funds as it deems necessary.  The board shall exercise this authority judiciously.

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 under the Preschool Foundation Aid, Professional Development Supplement, Home School Assistance Program, Teacher Leadership Supplement or any discontinued fund teacher have been 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 by passage of a board resolution into the district’s flexibility account in accordance with law.  Before the expenditure of amounts in the flexibility account, the district shall publish notice of the time, date, and place of a public hearing on the proposed resolution approving said expenditures. The board must find and certify that the statutory requirements of each original source of funds have been met before adopting the resolution approving the expenditures. The district will present a copy of the signed board resolution to the Department of Education.

The District may transfer by board resolution from the general fund to the student activity fund an amount needed to purchase or refurbish protective and safety equipment required for any extracurricular interscholastic athletic contest or competition sponsored or administered by the Iowa High School Athletic Association of Iowa Girls High School Athletic Union.

If the before and after school program exceeds the amount necessary to operate the program, the excess amount may, following a public hearing, be transferred by resolution of the board of directors of the school corporation for deposit in the general fund of the school corporation to be used for school district general fund purposes. The district will present a copy of the signed board resolution to the Department of Education.

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 board secretary to make recommendations to the board regarding transfers and to provide the documentation justifying the transfer.

Approved November 26, 2018    
Reviewed May 17, 2023        
Revised June 21, 2023

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 an Advanced Vision for Education (SAVE)
• Debt service fund
• State penny sales tax fund

Proprietary fund type:

• Enterprise fund
  • School nutrition fund
  • Childcare fund
• Internal service fund

Fiduciary funds:

• Trust funds 
  • ​​​​​​​Expendable trust funds
  • Nonexpendable trust funds
  • Pension trust funds
• Custodial funds

Account groups:

• General capital 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.

Approved November 26, 2018    
Reviewed May 19, 2023        
Revised June 21, 2023

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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 and school 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 make recommendations to the board regarding fund balance designations.  

Approved: November 26, 2018         
Reviewed: May 17, 2023
Revised: June 21, 2023

Fiduciary Responsibility

The Board recognizes its fiduciary responsibility to oversee the management of school district funds in keeping with the school district’s vision, mission, and goals.  To achieve this purpose, the board may engage in learning about the financial needs, operations, and requirements of the district as appropriate for the board’s understanding of the district’s financial position.  The Board also commits to engaging in annual financial goal setting for the district based upon measurable data and projections for the district.

After the fiscal year has closed, the Superintendent or their designee will provide to the Board concise, timely, well organized financial data.  At least annually, the Board will consider the following financial information in establishing and reviewing annual financial goals:

• Revenues by fund and major sources as of June 30 for each year for the prior three years
• Expenditures by fund and major categories as of June 30 each year for prior three years
• Financial solvency ratio as of June 30 each year for the prior five years
• Unspent Balance as of June 30 each year for the prior five years
• Unspent Balance Ratio as of June 30 each year for the prior five years
• Enrollment Trend for prior ten years
• Staff costs as percent of total general fund as of June 30 each year for prior ten years

Financial Metrics

The District is committed to utilizing the following financial metrics in determining district financial goals:

1. Unspent Authorized Budget (UAB) Percentage:  Unspent Authorized Budget or unspent balance is the amount of spending authority remaining at the end of the fiscal year. The UAB Percentage is calculated by dividing the UAB by the current year spending authority. The District will seek to maintain a UAB Percentage within the 15%-25% range to hedge against overspending and unforeseen expenses. The current year’s projected balance will be discussed with the Board before establishing the succeeding year’s cash reserve levy and before staffing and other spending decisions are finalized for the succeeding year.
2. Solvency Ratio: Solvency Ratio is the hypothetical percentage of remaining revenue assuming the district were to end operations at the end of the current fiscal year, after receiving all yearly revenues and meeting all financial obligations. Solvency Ratio is calculated by dividing the Assigned and Unassigned General Fund Balance by Total General Fund Revenues minus AEA Flow-Through funds. The District will seek to maintain a Solvency Ratio within the 8%-15% target range with 5% being a minimum goal.  The current year’s projected balance will be discussed with the Board before staffing and other spending decisions are finalized for the succeeding year.
3. Enrollment Trends: The Iowa school foundation formula is driven by student enrollment. Both increasing and decreasing enrollment impact the district’s spending authority and costs. The District will seek to monitor long-term and short-term enrollment trends to anticipate staffing needs and likely expenditures.

The District will measure whether these goals were obtained as of June 30, but only after completion of the Certified Annual Report due September 15th each year.

Approved: January 25, 2024

Reviewed:

Revised: