701.5 Fiscal Management
The Board recognizes its fiduciary responsibility to oversee the management of school district funds in keeping with the school district 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. The Board will exercise its oversight responsibilities by reviewing relevant PK-12 public education sector indicators to understand the financial trends of the district.
The board will establish and review financial goals annually. 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.
Providing the best possible educational experience for all students and meeting federal, state, and local academic goals for each student requires maximizing General Fund resources for use in the instructional program. The board may request from the School Budget Review Committee (SBRC) additional modified spending authority (MSA) where it may be available for items such as:
Any award of modified supplement amount will be levied as a cash reserve based on the recommendation of the superintendent/designee and approved by the Board of Education in keeping with the fiscal management performance measures provided for in district policy.
Legal Reference: Iowa Code §§ 257.7, 31; 279.8
701.5R1 Fiscal Management – Financial Metrics
The following relevant PK-12 public sector indicators will be provided to the Board annually to better understand the financial trends of the district. These indicators will be an accurate depiction as of June 30th of the preceding fiscal year and will depict at a minimum of 3 years of data.
Total revenues and expenditures by fund and major sources;
Financial Solvency Ratio - assigned plus unassigned fund balances divided by total revenue minus AEA flow through;
Unspent Authorized Budget Ratio - amount of maximum spending authority left at year end after deducting the general fund expenditures incurred during the year;
Unspent Authorized Balance Ratio Net of Restricted Fund Balances (Categorical Fund Balances) - amount of maximum spending authority left at year end after deducting both the general fund expenditures incurred during the year and the total restricted fund balances (categorical fund balances) at year end;
Enrollment Trend - funding follows the student so it is important to understand district enrollment numbers;
Staff costs as a percent of total general fund.
Financial Projections
The general fund is the operating fund of the district where the majority of salaries and benefits are funded. Projections will help the board determine sustainability of the annual operating budget and help make future budgetary decisions.
The District is committed to utilizing the following financial metrics in determining district financial goals:
Unspent Authorized Budget Ratio: Maintain unspent authorized budget ratio within the 5-10% target range. The current year’s projected balance will be discussed with the Board before staffing and other spending decisions are finalized for the succeeding year.
Unspent Authorized Budget Net of Restricted Fund Balances (Categorical Balances): Maintain unspent authorized budget ratio net of restricted fund balances (categorical balances) within the 20% target range. The district will attempt to spend the restricted (categorical) annual allocation in the year received to the extent possible.
Solvency Ratio: Maintain an unrestricted, uncommitted general fund balance within the 10-20% target range with 10% being a minimum goal. 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.
Employees may use school district credit cards for the actual and necessary expenses incurred in the performance of work-related duties. Actual and necessary expenses incurred in the performance of work-related duties include, but are not limited to, fuel for school district transportation vehicles used for transporting students to and from school and for school-sponsored events, payment of claims related to professional development of the board and employees, and other expenses required by employees and the board in the performance of their duties.
Employees and officers using a school district credit card must submit a detailed receipt in addition to a credit card receipt indicating the date, purpose and nature of the expense for each claim item. Failure to provide a proper receipt will make the employee responsible for expenses incurred. Those expenses are reimbursed to the school district no later than ten working days following use of the school district's credit card. In exceptional circumstances, the superintendent or board may allow a claim without proper receipt. Written documentation explaining the exceptional circumstances will be maintained as part of the school district's record of the claim.
The school district may maintain a school district credit card for actual and necessary expenses incurred by employees and officers in the performance of their duties. The superintendent may maintain a school district credit card for actual and necessary expenses incurred in the performance of the superintendent's duties.
It is the responsibility of the superintendent to determine whether the school district credit card use is for appropriate school business. It is the responsibility of the board to determine through the audit and approval process of the board whether the school district credit card use by the superintendent and the board is for appropriate school business.
The superintendent is responsible for developing administrative regulations regarding actual and necessary expenses and use of a school district credit card. The administrative regulations will include the appropriate forms to be filed for obtaining a credit card.
Legal Reference:
Iowa Constitution, Art. III, § 31.
Iowa Code §§ 279.8, .29, .30
281 I.A.C. 12.3(1).
Cross Reference:
216.3 Board of Directors' Member Compensation and Expenses
401.7 Employee Travel Compensation
Approved July 1999
Reviewed May 2023
Revised May 2023