FISCAL MANAGEMENT GOALS AND OBJECTIVES

The financial records and statements of this school district will be kept and presented in accordance with generally accepted accounting principles and the requirements and procedures outlined in the current Mississippi Public School District Financial Accounting Manual, July 1, 2002, as amended.

The department of audit of the office of the state auditor of public accounts is hereby authorized and directed to prescribe and formulate for use by all school districts adequate accounting systems and other essential financial records which shall be uniform for all school districts. Such uniform system shall include a method of accounting for and keeping records of all funds received, handled, and disbursed by such school district, whether derived from taxation or otherwise, including funds from donations, athletic events, and other special activities of the school district. MS Code §37-37-1

Standard 7 is as follows: The school district employs a school business officer/administrator whose qualifications meet the criteria established by the Mississippi Department of Education and whose primary job responsibilities are conducting, supervising, and/or directing the financial affairs and operations of the school district. (SB Policy GBBA)

Standard 10 is as follows: The school district operates with a financial accounting system as prescribed by the State Auditor’s Office. The most recent annual audit report of the school district, as conducted under the guidelines of the State Auditor’s Office, indicates that the auditor has issued an unqualified opinion (as defined by generally accepted auditing standards) on the general purpose financial statements of the school district. {MS Code 27-9-18, 37-37-1, and 37-61-23}

10.1 The board of education has implemented a fixed asset system of accountability that complies with the standards established by the State Auditor’s Office for the verification of fixed assets and the auditing of fixed assets records. {MS Code 37-17-6(16)}

10.2 The financial accounting data and the corresponding annual audit report as submitted to the Mississippi Department of Education reflect no less than a zero fund balance (as defined by generally accepted accounting principles) for all funds of the school district. {MS Code 37-61-9}

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

CROSS REF.: Policies ABB ─ Board Powers and Duties

CA ─ General School Administration Goals and Objectives

CEB ─ Duties of Superintendent

DJ ─ Expenditures of Funds

BACK

DISTRICT REQUEST FOR STATE AND LOCAL FUNDS

DAAB

It is the policy of the Board of School Trustees of the Long Beach School District to comply with directives and guidelines issued by the State Auditor’s Office in requesting state and federal funds approved for use by the district.

The administrative staff of the Long Beach School District shall keep on file appropriate guidelines and directives for fund requests and shall comply with all federal and state directives in requesting funds.

BACK

ANNUAL OPERATING BUDGET

The annual operating budget is the plan of current expenditures and the proposed means of financing them.

The annual operating budget is the primary means by which most of the financing acquisition, spending, and service delivery activities of this school district are controlled. The annual operating budget as required by law is essential to the sound financial management of this school district.

Standard 7 is as follows: The school district employs a school business officer/administrator whose qualifications meet the criteria established by the Mississippi Department of Education and whose qualifications meet the criteria established by the Mississippi Department of Education and whose primary job responsibilities are conducting, supervising, and/or directing the financial affairs and operations of the school district. (SB Policy GBBA)

Standard 11 is as follows: The board of education budgets and expends from the District Maintenance Fund (Fund #1120) a minimum of $20.00 per student for instructional/library supplies, materials, and equipment.

Standard 12 is as follows: Funds available for classroom supplies, materials, and equipment from the Education Enhancement Fund (Fund #2440) are allotted and expended in compliance with Section 37-61-33, Mississippi Code of 1972, as amended, and State Board of Education Policy DFBI.

1. BUDGET DEVELOPMENT PROCEDURE

The Superintendent of Schools with the approval of the Board may revise the budget at any time during the fiscal year. No revision of any budget under the provisions hereof shall be made which will permit a functional expenditure in excess of the amounts available for such purpose.

The Board shall approve all transfers between individual funds except those approved as part of the budget. Transfers approved as part of the budget already have Board approval and a second approval of the actual transaction is unnecessary unless different from the budget.

Since it is impossible to change the income during the school year, expenditures must be kept within the allocations of the adopted budget. Items within the budget are determined as follows:

A. Salaries - On schedule as adopted by the Board of Trustees or by specific approval.

B. Equipment and Furniture - Based on individual school needs as expressed by requisition from the building principals and in accordance with the purchasing schedule each year. When these requests are approved by appropriate staff members, they are allowed insofar as funds permit.

C. Instructional Materials and Supplies - Allocations are based on teacher needs and on the projected enrollment of students for the next school year in accordance with past experiences and accreditation standards.

Classroom teachers should continuously evaluate materials and supplies to determine the most effective teaching aids. They should discuss these materials with the building principal before preparing requisitions. The principal will evaluate the requisitions submitted as to the needs of the school in keeping with available funds, or request that additional funds be appropriated. Such requests must be accompanied by justification in writing.

D. Building Repairs and Upkeep - This is based on an annual survey of needs as determined by the building principal and maintenance supervisor, within available funds.

2. BUDGET ALLOCATIONS

The allocation of the monies to the various departments within a school is the responsibility of the principal and/or the administrative officer of a particular division of a school and shall not exceed the total annual allocation for the school. Accreditation standards should be followed in making allocations.

3. BUDGET REQUISITIONS

Instructional supplies and equipment shall be requisitioned according to the district's purchasing cycle.

Also see DCCA, DCE.

BACK

FISCAL YEAR/SCHOLASTIC YEAR

DCB

The “fiscal year” of this school district shall commence on July 1 and end on June 30 of each year. The “scholastic year” of this school district shall likewise commence on July 1 and end on June 30 of each year. MS CODE §37-61-1 (1987)

However, for the purposes of determining ad valorem tax receipts for a preceding fiscal year, the term "fiscal year" means the fiscal year beginning October 1 and ending September 30. §37-57-107 (1994)

BACK

BUDGET DEADLINES AND SCHEDULES

DCCA

On or before the fifteenth day of August of each year, the school board, with the assistance of the superintendent of schools, shall prepare and file with the levying authority for the school district, as defined in Section 37-57-1, at least two (2) copies of a budget of estimated expenditures for the support, maintenance and operation of the school district for the fiscal year commencing on July 1 of such year. Such budget shall be prepared on forms prescribed and provided by the State Auditor and shall contain such information as the State Auditor may require. MS Code §37-61-9 (1) (2000)

In addition, on or before the fifteenth day of August of each year, the school board, with the assistance of the superintendent of schools, shall prepare and file with the State Department of Education such budgetary information as the State Board of Education may require. The State Board of Education shall prescribe and provide forms to each school district for this purpose. MS Code §37-61-9 (2) (2000)

The school board, with the assistance of the superintendent of schools, shall propose and vote on a budget calendar for each new fiscal year.

· Month of August Publish synopsis of budget for local newspaper

· By August 15 Provide two copies of budget to the Board of

Supervisors/Alderman

· By August 15 Furnish information to the Mississippi Department of

Education on prescribed forms

LEGAL REF.: MS CODE as cited

CROSS REF.: Policy DCE ─ Annual Operating Budget Final Adoption Procedures

DC — Annual Operating Budget

DCH— Periodic Budget Reconciliation

BACK

ANNUAL OPERATING BUDGET FINAL ADOPTION PROCEDURES

DCE

Prior to the adoption of a budget pursuant to this section, this school board shall hold at least one (1) public hearing to provide the general public with an opportunity to comment on the taxing and spending plan incorporated in the proposed budget. The public hearing shall be held at least one (1) week prior to the adoption of the budget with advance notice. After final adoption of the budget a synopsis of such budget in a form prescribed by the State Department of Audit shall be published in a newspaper having general circulation in the school district on a date different from the date on which the county or any municipality therein may publish its budget. §37-61-9 (3)

A public body may hold an executive session for the transaction of business and discussions regarding employment and termination of employees. The exemption provided in this paragraph includes the right to hold closed meetings concerning employees as such exemption relocates to their deletion from any budget subject to approval of the public body. Final budgetary adoption shall not be taken in executive session. §25-41-7(4) (k)

“Executive Session” provides the right to hold closed meetings concerning employees as such exemption relates to their deletion from any budget subject to approval of the public body. FINAL BUDGETARY ADOPTION SHALL NOT BE TAKEN IN EXECUTIVE SESSION.

LEGAL REF.: MS CODE as cited

CROSS REF.: Policies BCAE ─ Public Hearings

BCBK ─ Executive Sessions

DCCA ─ Budget Deadlines and Schedules

DC — Annual Operating Budget

BACK

LINE ITEM TRANSFER AUTHORITY

DCI

If it should appear to the Superintendent of Schools or the School Board of this school district that the amounts to be received from state appropriations, taxation or any other source will be more than the amount estimated in the budget filed and approved, or if it should appear that such amounts shall be less than the amount estimated, the School Board of the school district, with assistance from the superintendent, shall revise the budget at any time during the fiscal year by increasing or decreasing the fund budget, in proportion to the increase or decrease in the estimated amounts. If it should appear to the Superintendent of Schools or the School Board of this school district that some function of the budget as filed is in excess of the requirement of that function and that the entire amount budgeted for such function will not be needed for expenditures therefor during the fiscal year, the School Board of the school district, with assistance from the superintendent, may transfer resources to and from functions and funds within the budget when and where needed; however, no such transfer shall be made from fund to fund or from function to function which will result in the expenditure of any money for any purpose different from that for which the money was appropriated, allotted, collected or otherwise made available or for a purpose which is not authorized by law. No revision of any budget under the provisions hereof shall be made which will permit a fund expenditure in excess of the amounts available for such purpose. The revised portions of the budgets shall be incorporated in the minutes of the School Board by spreading them on the minutes or by attaching them as an addendum. Final budget revisions, pertinent to a fiscal year, shall be approved on or before August 15 of the following fiscal year. §37-61-21 (1991)

The School Board shall approve all transfers between individual funds except those approved as part of the budget. Transfers approved as part of the budget already have Board approval and a second approval of the actual transaction is unnecessary unless different from the budget.

Standard 10.2 is as follows: The financial accounting data and the corresponding annual audit report as submitted to the Mississippi Department of Education reflect no less than a zero fund balance (as defined by generally accepted accounting principles) for all funds of the school district. {MS Code 37-61-9}

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

BACK

DEBT LIMITATION

1. No school district shall, except as provided in section 37-59-7, hereafter issue bonds for the purposes authorized by law in an amount which, added to all of its then outstanding bonded indebtedness, shall result in the imposition on any of the property in such district of an indebtedness for school purposes of more than fifteen percent of the assessed value of the taxable property within such district, according to the then last completed assessment for taxation, regardless of whether any of such indebtedness shall have been incurred by such district or by another school district or districts. §37-59-5 (1968)

2. Any school district in which the total number of students enrolled at any one time during the school year shall have increased by at least fifty percent (50%) within the preceding five (5) years shall not issue bonds for the purposes authorized by law in an amount which when added to all of its then outstanding bonded indebtedness, shall result in the imposition on any of the property in such district of an indebtedness for school purposes of more than fifty percent (50%) of the assessed value of the taxable property within such district according to the then last completed assessment for taxation.

The pupil increase mentioned hereinabove shall apply only to growth in pupil enrollment and shall not apply to pupil increases brought about by consolidation of school districts.

3. Any school district may hereafter issue bonds in an amount exceeding the limit of Section 37-59-5 for the purpose of constructing, reconstructing, repairing, equipping, remodeling or enlarging school buildings and related facilities, as described in subsection (a) of Section 37-59-3, but no such district shall issue bonds in an amount which when added to all of its then outstanding bonded indebtedness, shall result in the imposition on any of the property in such district of an indebtedness for such school purposes of more than twenty percent (20%) of the assessed value of the taxable property in such district, according to the then last completed assessment for taxation, regardless of whether any of such indebtedness shall have been incurred by such district or by another school district or districts:

a. In the event of the damage to or destruction of any school building or school buildings, or related facilities of any such district by fire, windstorm, flood or other providential and unforeseeable cause; or

b. In the event such school district has lost its accreditation and the constructing, reconstructing, repairing, equipping, remodeling or enlarging of such school buildings and related facilities is necessary for the restoration of such accreditation.

4. In any school district wherein more than nine percent (9%) of the total land area of the school district is owned by the federal government and situated in a flood control reservoir or maintained as a part of the national forest system, the said school district may issue bonds in an amount, which when added to all of its then outstanding bonded indebtedness for school purposes, shall result in the imposition on any of the property in such school district of an indebtedness for school purposes of not more than twenty percent (20%) of the assessed value of the taxable property within such district, according to the then last completed assessment for taxation, regardless of whether any of such indebtedness shall have been incurred by such district or by another school district or districts. If bonds in an amount in excess of fifteen percent (15%) of the total assessed value of the property of a school district are issued under the provisions of this subsection, not less than twenty-five percent (25%) of the total funds received by the school district under the provisions of Section 49-19-23, Mississippi Code of 1972, shall be paid into the bond and interest sinking fund of such district and used for the retirement of the bonds so issued.

5. In any district where the assessed valuation per pupil is less than seventy-five percent (75%) of the average of all school districts, such school district may issue bonds for the purposes authorized by Section 37-59-3 in an amount exceeding the fifteen percent (15%) debt limitation set forth in Section 39-59-5, but not exceeding an amount which, when added to all of the school district's then outstanding bonded indebtedness, shall result in the imposition on any of the property in such district of an indebtedness for such school purposes of more than twenty-five percent (25%) of the assessed value of the taxable property in such district, according to the then last completed assessment for taxation if:

a. The Board of Trustees or Board of Education of the school district adopts a resolution finding that issuing bonds in an amount exceeding the limitation stated in Section 37-59-5 is necessary to provide or maintain adequate educational facilities within the school district; and

b. The notice of the bond election required by Section 3759-13 contains a provision notifying the qualified electors in the school district:

(i) Of the fact that the proposed bonds, if issued, will exceed the fifteen percent (15%) debt limit contained in Section 37-59-5; and

(ii) Of the reasons why the school district is proposing to exceed said limitation;

c. The election is held and the proposed bond issue receives the requisite voter approval as set forth in Section 37-59-17. §37-59-7 (1995)

REDUCED OR INTEREST-FREE DEBT PURSUANT TO FEDERAL LAW

Notwithstanding any law or any provision of any law to the contrary, the following additional and supplemental powers and authorizations are hereby granted to each public school district in connection with the issuance of any debt, as defined herein.

(a) For purposes of this act, “debt” means any note, bond, lease or other evidence of indebtedness, that a district is authorized to issue under any provision of law.

(b) Any school district issuing debt may, by resolution of its board of trustees or board of education, do all things regarding the form, payment structure, purchase price and terms of such debt which may be helpful in qualifying the debt for reduced or interest-free treatment under federal law or the regulations promulgated thereunder and to assure that such debt will be readily acceptable in the municipal bond market, provided the same is not inconsistent with the Constitution of the state. Provided, however, that nothing in this act shall be construed as allowing a school district to exceed the final maturity term or exceed any debt limitation provided in the applicable state law authorizing the debt.

(c) This act shall be construed to be supplemental and additional to any powers conferred by other laws on school districts and not in derogation of any such powers not existing. The act is remedial in nature and shall be liberally construed. Provided, however, that this act shall not grant any extra authority to a school board to issue debt in any amount exceeding statutory limitations on assessed value of taxable property within such school district or the statutory limitations on debt maturities, and shall not grant any extra authority to impose, levy or collect a tax which is not otherwise expressly provided for. §37-59-301 (2000)

LEGAL REF.: MS CODE as cited

CROSS REF.: Policy ABB — Board Powers and Duties

DFD — Bond Sales

BACK

LOCAL TAX REVENUES

DFA

Tax levy and collection of taxes for the Long Beach School District shall be in accordance with applicable state law.

BACK

EDUCATIONAL ENHANCEMENT FUNDS

DFBA

The school district will be in compliance with state regulations and requirements and State Audit Department requirements regarding Educational Enhancement Funds.

BACK

FEDERAL AID

DFC

The directors of the various federal projects of this school district shall manage cash so that draws of federal monies are as close as administratively feasible to the related program expenditures.

It shall be unlawful for this school district to expend any public funds from any source(s) for purposes which are political. Prohibited expenditures shall include but not be limited to the purchase of partisan political materials, contributions to any candidate for public office, and use of school property, equipment or employees in support of a candidate(s).

Standard 23 is as follows: The school district is in compliance with state and/or federal requirements for the following programs:

23.1 Early Childhood Programs (kindergarten and teacher assistant) {MS Code 37-21-1 et seq.} (SB Policy IDAC)

23.2 Vocational-Technical Education {MS Code 37-31-1 et seq.} (SB Policies CT, DCK, DFBC, ECK, FJ, GBEA, IDAA, IL, JHF and Federal Code)

23.3 Special Education {MS Code 37-23-1 through 9} (SB Policies IDDF and Federal Code)

23.4 Child Nutrition {MS Code 37-11-7} (SB Policies EE and EEH and Federal Code)

23.5 No Child Left Behind Act: Titles I, II, IV, and VI (IDDBB 2, 3 and Federal Code)

23.6 Technology in the Classroom {MS Code 37-151-19(3)} (SB Policy IM)

23.7 Driver Education {MS Code 37-25-1 et seq.}(SB Policy IDDE)

23.8 Pre-Kindergarten (Refer to the Mississippi Pre-Kindergarten Curriculum.)

23.9 Mississippi Curriculum Content Assessment System (See Appendix F.) {MS Code 37-16-1 through 4} {SBE Policy IIB-1, 3-6 and IHF-1 and 2}

23.10 Transportation Program {MS Code 37-41-53} (SB Policies ED-3, JGG-1, and IDDE)

23.11 School Safety Plan, including facilities that are clean, safe, and equipped to meet the instructional needs of students and staff {MS Code 37-3-81, 37-7-301(c)(d)(j), 37-11-5 and 49, 37-17-6(20), and 45-11-10}

In order to provide the best educational opportunities possible for children of the district, it shall be the objective of the Board to seek as many sources of revenue as possible to supplement the funds provided by local taxation and the aid offered by the state.

Therefore, the district shall participate in federal aid programs which provide direct educational auxiliary services or opportunities to students enrolled in the district schools.

All applications for federal aid and special grants shall be prepared by the central office administrative staff and approved by the Board.

The Long Beach School District will request funds from appropriate sources so that there is a minimum of time between the request for funds and the expected expenditure of those funds. Adequate controls will be in place and maintained to insure the implementation of this policy.

The School District shall be in compliance with applicable laws and regulations governing the use of federal assistance funds and the operation of federal assistance programs.

Internal control systems shall be in place to provide reasonable assurances that laws and regulations are being followed.

No federal assistance programs funds shall be used in any way for partisan political activity. (Also see GAHB.)

The school district shall use all federal assistance funds designated for specific programs to supplement, not supplant, state and local funds. After federal funds are discontinued, the programs shall be maintained as needed and within district financial constraints as determined by the administration.

The district shall treat all children in an equitable manner by seeing that all regular programs are available to all students.

Also see DJ.

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

CROSS REF.: Policy DG ─ Depository of Funds

DFCB — Cash Management of Federal Funds

BACK

FEDERAL AND SCHOOL CENSUS

DFCA

The superintendent shall give a report to the Board as to the enrollment of students. This report shall be given in the fall after the opening of the new school year.

The superintendent shall make application for all such state and federal programs and grants as shall be approved by the Board and to conduct such surveys as are required.

Federal programs will be used to strengthen the district's educational plan.

BACK

CASH MANAGEMENT OF FEDERAL FUNDS

DFCB

It shall be the policy of the School Board to draw down only enough federal fund monies for payroll and/or other payable expenses each month. It shall also be the policy that the draw-down will be in the amount so as not to accumulate federal funds.

Also see DFC, DJ.

BACK

BOND SALES

DFD/FFA

The word “bonds” as used herein shall mean and include banks, notes, or certificates of indebtedness. §37-59-1 (1955)

This School Board is authorized to issue negotiable bonds of the school district to raise money for the following purposes in accordance with state law:

a. Purchasing, erecting, repairing, equipping, remodeling and enlarging school buildings and related facilities, including gymnasiums, auditoriums, lunch rooms, vocational training buildings, libraries, teachers' homes, school barns, transportation vehicles and garages for transportation vehicles, and purchasing land therefor.

b. Establishing and equipping school athletic fields and necessary facilities connected therewith, and purchasing land therefor.

c. Providing necessary water, light, heating, air conditioning and sewerage facilities connected therewith, and purchasing land therefor.

d. Paying part of the costs to be incurred in erecting, repairing, equipping, remodeling and enlarging school buildings and related facilities which are owned and operated by state-supported institutions of higher education as a demonstration or practice school attended by students, grades, or one or more, or parts of grades from the educable children of such school district pursuant to a contract or agreement between said institution and said school district.

The authority to issue the bonds hereinabove set forth shall include the authority for the School Board to spend the money for the purposes for which said money is raised. Section 37-59-3 (1987)

REDUCED OR INTEREST-FREE DEBT PURSUANT TO FEDERAL LAW

(a) For purposes of this act, “debt” means any note, bond, lease or other evidence of indebtedness, that a district is authorized to issue under any provision of law.

(b) Any school district issuing debt may, by resolution of its board of trustees or board of education, do all things regarding the form, payment structure, purchase price and terms of such debt which may be helpful in qualifying the debt for reduced or interest-free treatment under federal law or the regulations promulgated thereunder and to assure that such debt will be readily acceptable in the municipal bond market, provided the same is not inconsistent with the constitution of the state. Provided, however, that nothing in this act shall be construed as allowing a school district to exceed the final maturity term or exceed any debt limitation provided in the applicable state law authorizing the debt.

NOTE: For details and procedures for issuance of bonds see MS Code §37-59-7 et seq. As to additional powers conferred in connection with issuance of bonds see §37-59-25 and §31-21-5. See also MS Code §37-61-33, Education Enhancement Fund.

LEGAL REF.: MS CODE as cited.

CROSS REF.: Policy CD — Annual Operating Budget

DE — Debt Limitation

DFE — Short Term Notes

BACK

SHORT-TERM NOTES

DFE

This School Board, with the approval of the State Board of Education, may borrow money for the purchase of school transportation equipment or to establish, erect and equip school bus shops or garages, and purchase land therefor, and issue the negotiable notes or bonds of the school district as evidence of the indebtedness so incurred. §37-41-89 (1987)

All notes or bonds issued under the authority of Section 37-41-89 shall mature in approximately equal annual installments over a period of not exceeding six (6) years from the date of the issuance of such notes or bonds. Such notes or bonds may bear interest at a rate not exceeding that allowed in Section 75-17-105, and such interest may be payable annually or semiannually.

In the event the funds borrowed under the authority of Section 37-41-89 are to be expended for the purchase of used transportation equipment, then all notes or bonds evidencing such loans shall be made to mature within two (2) years from the date of the issuance of such notes or bonds. §37-41-93 (1985)

All notes or certificates or indebtedness for purposes of financing of school buses and transportation equipment shall mature in approximately equal installments of principal and interest over a period not to exceed ten (10) years from the date of issuance thereof. Provided, however, that if negotiable notes used to finance such noncapital improvements are outstanding from not more than one (1) previous issue authorized under the provisions of this article, then the schedule of payments for a new or supplementary issue may be so adjusted that the schedule of maturities of all notes or series of notes hereunder shall, when combined, mature in approximately equal installments of principal and interest over a period of ten (10) years from the date of the new or supplemental issue, or if a lower interest rate will thereby be secured on notes previously issued and outstanding, a portion of the proceeds of any issue authorized hereunder may be used to refund the balance of the indebtedness previously issued under the authority of this article. §37-59-11 (2000)

NOTE: For details and procedures see MS Code §37-41-91 through §37-41-99. Please also see §37-59-101 through 115 and §37-61-33, Education Enhancement Fund.

LEGAL REF.: MS CODE as cited

CROSS REF.: Policies DFD ─ Bond Sales

DFEA ─ Tax Anticipation Notes

DFEAB Shortfall Borrowing

BACK

TAX ANTICIPATION NOTES

DFEA

The School Board of this school district shall have the power and authority to borrow money for the current expenses of such school district in anticipation of the collection of ad valorem taxes and other revenues of such school district for the then current fiscal year. The money so borrowed shall bear interest at a rate not greater than that allowed in Section 75-17-105 and shall be repaid within fourteen (14) months from the date of such borrowing out of the taxes and revenues in anticipation of which such money is borrowed. Such money shall be used for no other purpose than the payment of the current expenses of this school district.

Pending the expenditure of funds borrowed under the provisions of this section, such funds may be invested in any manner in which any school district, municipality, county, state agency or other public body may invest surplus funds.

The amount borrowed under the provisions of this section shall in no event exceed the estimated amount of taxes and revenues collected or to be collected during the last preceding fiscal year, unless the tax levy for the current fiscal year has been made, then the amount borrowed under the provisions of this section shall in no event exceed the estimated amount of taxes and revenues collected or to be collected during the current fiscal year. Revenue anticipation notes issued under the provisions of this section shall be issued within the same fiscal year during which the tax levy is or will be made and other revenues received which it is anticipated will produce the funds from which the said notes will be repaid.

In borrowing money under the provisions of this section, it shall not be necessary to publish notice of intention so to do or to secure the consent of the qualified electors of such school district, either by election or otherwise. Such borrowing shall be authorized by order or resolution of the School Board and may be evidenced by negotiable note or notes, signed and executed in such form as may be prescribed in such order or resolution. Money may be borrowed in anticipation of ad valorem taxes and other revenues under the provisions of this section, regardless of whether or not such borrowing shall create an indebtedness in excess of statutory limitations.

Money may likewise be borrowed by this school district, as herein provided, for the purpose of paying current interest maturities on any bonded indebtedness of such school district in anticipation of the collection of taxes for the retirement of such bonded indebtedness or the payment of any interest thereon. MS Code §37‑59‑37 (2001)

LEGAL REF.: MS CODE as cited

CROSS REF.: Policy DFE — Short Term Notes

BACK

SHORTFALL BORROWING

DFEAB

Any school district which, during a fiscal year, estimates that the amount of the ad valorem taxes or other anticipated revenue from local sources to be collected therein is less than the amount estimated at the time of formulation of its budget for the fiscal year due to circumstances which were unanticipated at the time of formulation of the budget and which will prevent the political subdivision from meeting its financial obligations may, with the approval of the levying authority for such political subdivision, issue promissory notes in an amount equal to the estimated shortfall of ad valorem taxes and/or revenue from local sources but in no event to exceed twenty-five percent (25%) of its budget anticipated to be funded from the sources of the shortfall for the fiscal year.

The proceeds of such notes shall be used in the budget or budgets in which the shortfall occurred and shall be used solely to offset the shortfall in such budgets for the fiscal year. The rate of interest paid thereon shall not exceed that amount set forth in Section 75-17-105, Mississippi Code of 1972. The indebtedness shall be repaid in full, including interest thereon, in equal installments, during the three (3) fiscal years next succeeding the fiscal year in which the notes were issued. For the payment of such indebtedness, the levying authority for the political subdivision shall, at its next regular meeting at which ad valorem taxes are lawfully levied, levy an ad valorem tax sufficient to repay the indebtedness in full, including interest. The proceeds of the notes shall be included as proceeds of ad valorem taxes for the purposes of the limitation on increases in revenue for the next succeeding fiscal year under Section 27-39-305, 27-39-320, 27-39-321 or 37-57-107, Mississippi Code of 1972, whichever is applicable depending upon the purpose for which such proceeds are used.

For the purposes of Sections 27-39-305, 27-39-320, 27-39-321 and 37-57-107, the terms “revenue” and “receipts” when used in connection with the amount of funds generated in a preceding fiscal year shall include excess receipts collected in the next preceding fiscal year and deposited into a special account under Section 27-39-323.

LEGAL REF.: MS CODE as cited

CROSS REF.: Policies DFE ─ Short Term Notes

DFEA ─ Tax Anticipation Notes

BACK

GRANTS, AWARDS, SCHOLARSHIPS AND PROGRAMS INVOLVING FINANCIAL ASSISTANCE

DFF

Any employee of the School District who wishes to apply for or accept any grant or award or participate in any program involving financial assistance for the district must receive the approval of the superintendent or his/her designee prior to writing proposals for submission to grant agencies, organizations, or individuals. All grants over $500.00 must be officially approved by the school board.

A written description shall be submitted to the Superintendent of Schools for approval, including the following:

1. Purpose (goals, objectives); nature of program

2. Source

3. Project or program timelines

4. Educational justification

5. Amount requested; total amount required to implement program/project

6. Subsequent cost to the district to maintain program, if applicable

7. Reports required

The superintendent or his/her designee shall approve or disapprove each request to apply for a grant.

All grants must be accepted by the Board prior to implementation, and salaries identified in grants must be in conformance with the district salary schedule.

All funds received in the form of grants, awards, or program support must be turned in to the central business office to be deposited to a special account for each program or project. Requests for expenditure of funds will be made through requisitions as required in the handling of all other such requests for expenditures.

Grant recipients and/or supervisors of programs receiving financial assistance shall be required to keep a running account of grant expenses and maintain a working knowledge of budgetary considerations during implementation of the program or project. Grant recipients and/or supervisors of programs receiving financial assistance shall also be responsible for making all reports required in connection with receipt of such financial assistance, including final reports made to grant agencies or organizations.

The superintendent or his/her designee may approve the submission of any grant proposals, with the stipulation that if funding is approved, the proposal will be brought to the Board for acceptance prior to obligating the district in any way.

BACK

FEES, PAYMENTS, RENTALS

DFG

This school district by resolution of the School Board is empowered, without public or competitive bidding, to sell, lease, lend, grant, or convey to a corporation, individual or partnership pursuant to Sections 37-7-351 through 37-7-359 or to permit such corporation, individual or partnership to use, maintain or operate as part of any public school facility, any real or personal property which may be necessary, useful or convenient for the purposes of the school district.

All such actions taken by the Board shall be in accordance with state laws governing sale, lease, lending, grant, rental, or conveyance of school facilities or other property.

See EBH and KG.

BACK

GIFTS AND BEQUESTS TO SCHOOL DISTRICTS/DONATED ASSETS

DFK

This school district will require any person or association who desires to donate assets to the district to have Board approval prior to the donation of said asset, and the fair market value at the date of donation shall be recorded. This school district will maintain title of ownership to donated assets.

GAAP requires fixed assets to be recorded at historical cost or estimated historical costs. Historical cost is the actual cost of assets. Assets acquired through contribution or donation must be recorded at fair market value on the date donated. The School Board must acknowledge in its official minutes who will maintain title of ownership to the donated assets.

LEGAL REF.: Public School Districts Financial Accounting Manual

Also see DIDA; DFM.

BACK

INVESTMENT EARNINGS/SURPLUS FUNDS

DFL

(1) Whenever any school district or levying authority, as defined in Section 37-57-1(1)(b), acting on behalf of a school district, shall have on hand any bond and interest funds, any funds derived from the sale of bonds, or any other funds in excess of the sums which will be required for payment of current obligations and expenses as they come due, and which are not needed or cannot by law be used for the payment of the current obligations or expenses of the school district, the School Board of the district shall have the power and authority to invest such excess funds in any bonds or other direct obligations of the United States of America or the State of Mississippi, or of any county or municipality of this state, which such county or municipal bonds have been approved by a reputable bond attorney or have been validated by a decree of the chancery court; or in interest-bearing time certificates of deposit or interest-bearing accounts with any financial institution approved for the deposit of state funds; and such institution shall be eligible to hold school district funds to the extent that it is qualified as a depository for state funds; or in any type of investment permitted by Sections 27-105-33(d) and 27-105-33(e). The rate of interest on such time certificates of deposit and interest-bearing accounts may be negotiated. The negotiated rate of interest shall be at the highest rate possible at the date of purchase or investment for such time certificates of deposit or interest-bearing accounts. In any event, the bonds or obligations in which such funds are invested shall mature or be redeemable prior to the time the funds so invested will be needed for expenditure. When bonds or other obligations have been so purchased, the same may be sold or surrendered for redemption at any time, except certificates of deposit which must mature, by order or resolution of such School Board, and the president of the School Board, when authorized by such order or resolution, shall have the power and authority to execute all instruments and take such other action as may be necessary to effectuate the sale or redemption thereof. In addition, a school board may invest any such funds in the same manner as provided for the investment of sixteenth section principal funds under Section 29-3-113.

(2) All earnings from funds other than bond funds or bond sinking funds, in excess of One Hundred Dollars ($100.00) in any fiscal year, invested according to the provisions of subsections (1) and (2) of this section shall be deposited in the district fund from which the investment was made. Earnings from such school district funds which are less than One Hundred Dollars ($100.00) in any fiscal year may be deposited in the school district maintenance fund, or in the district fund from which the investment was made, in the discretion of the School Board. Earnings from funds invested out of the bond funds or bond sinking funds together with the principal thereof, shall be deposited in the fund from which the investment was made.

(3) Nothing contained in this section shall be construed to prevent the payment of the earnings derived from the investment of bond proceeds or any other amounts in the bond fund or related reserve or sinking funds to the federal government to the extent required by the federal laws applicable to such bonds or the interest income thereon in order to maintain their tax exempt status. §37-59-43 (1993)

BACK

CAPITALIZATION AND DEPRECIATION OF FIXED ASSETS

DFM

This school district shall maintain detailed subsidiary records documenting the valuation (cost of fair market value at the date of purchase or donation) of buildings and equipment under the General Fixed Assets Account Group for any item that costs over $500 and has a useful life of greater than one year and all highly walkable items. Items under $500 shall not be capitalized unless they are highly walkable items. A financial accounting shall be made for all items over $500 by coding object 730 and items under $500 will be coded 610. Expenditures made for the renovation of buildings and major repairs to buildings that add square footage to the building shall also be capitalized.

This school district shall depreciate General Fixed Assets #1 as prescribed by the State Auditor in accordance with the provisions of GASBY 34. This school district shall not have fixed assets associated with Proprietary Funds nor shall it have Proprietary Funds.

BACK

REVENUES: SIXTEENTH SECTION LAND MANAGEMENT

DFO

The Superintendent of Schools for the School District will manage Sixteenth Section lands in such a way to provide maximum benefits to the school district.

See FDD DFG.

BACK

DEPOSITORY OF FUNDS

This School Board has full control of the receipt, distribution, allotment and disbursement of all funds which may be provided for the support and maintenance of the schools of such district whether such funds be MAEP allotments, funds derived from supplementary tax levies as authorized by law, or funds derived from any other source whatsoever except as may otherwise be provided by law for control of the proceeds from school bonds or notes and the taxes levied to pay the principal of and interest on such bonds or notes. The tax collector of the taxing authority shall pay over all such school district taxes collected by him/her for the support of said school district directly to said Superintendent of Schools.

All such allotments or funds shall be placed in the depository or depositories selected by the School Board in the same manner as provided in Section 27-105-305 for the selection of county depositories. Provided, however, the annual notice to be given by the School Board to financial institutions may be given by the School Board at any regular meeting subsequent to the Board's regular December meeting but prior to the regular May meeting. The bids of financial institutions for the privilege of keeping school funds may be received by the School at some subsequent meeting, but no later than the regular June meeting; and the selection by the School Board of the depository or, depositories shall be effective on July 1 of each year. School Boards shall advertise and accept bids for depositories no less than once every three (3) years, when such Board determines that it can obtain a more favorable rate of interest and less administrative processing. Such depository shall place on deposit with the superintendent the same securities as required in Section 27-105-315.

In the event a bank submits a bid or offer to this school district to act as a depository for the district and such bid or offer, if accepted, would result in a contract in which a member of this School Board would have direct or indirect interest, the School Board shall not open or consider any bids received. The superintendent shall submit the matter to the State Treasurer, who shall have the authority to solicit bids, select a depository or depositories, make all decisions and take any action within the authority of the School Board under this section relating to the selection of a depository or depositories. §37-7-333 (1997)

Also see BHA.

BACK

BONDED EMPLOYEES

Before entering upon the discharge of the duties of his office, each member of this School Board shall give a surety bond in the penal sum of Fifty Thousand Dollars ($50,000.00), with sufficient surety, to be payable, conditioned and approved in the manner provided by law.

This School Board may execute a blanket surety bond for each school district official and employee (who receipts and/or disburses school district funds) in the penalty of Fifty Thousand Dollars ($50,000.00), unless a different penalty is prescribed by law. The premium on said bond shall be paid out of the school district maintenance fund. §37‑6‑15 (1996)

The superintendent of this school district, before entering upon the duties of his office, shall furnish a good and sufficient surety bond in the penal sum of One Hundred Thousand Dollars ($100,000.00), with sufficient surety. Such bond shall be filed and recorded in the office of the clerk of the chancery court in which this school district is located, and shall be payable, conditioned and approved in the manner provided by law. The premium on said bond shall be paid out of the school district maintenance fund. §37‑9‑27 (1987)

The purchasing agent(s) of this School Board, before entering upon his official duties in such capacity, shall furnish a good and sufficient surety bond in the penal sum of Fifty Thousand Dollars ($50,000.00), with sufficient surety. Such bonds shall be payable, conditioned and approved in the manner provided by law, and shall be filed and recorded in the office of the clerk of the chancery court in which the school district is located. The premium on said bond shall be paid out of the school district(s) maintenance fund(s). §37‑39‑21 (1987)

A principal acting as purchasing agent must be bonded for total statutorily required coverage of $75,000.00. The positions of principal may be covered by blanket bond, but the position of purchasing agent requires individual bond. (Attorney General’s Opinion, Middleton, 4-26-96)

The School Board of this school district may, in its discretion, employ one or more persons as security personnel and shall be authorized to designate them as peace officers in or on any property operated for school purposes by such Board upon taking such oath and making such bond as required of a constable of said county. §37‑7‑321 (1987)

All school principals and attendance center principals shall furnish good and sufficient surety bonds in like manner as required of superintendents. The amount of such bonds shall be Twenty‑five Thousand Dollars ($25,000.00), with sufficient surety. The premium upon said bond shall be paid from the maintenance funds of the district served by such principal. Such bond shall be payable, conditioned and approved in the manner provided by law. All such bonds shall be filed and recorded in the office of the clerk of the chancery court of the county in which the school district is located. §37‑9‑31 (1987)

INDIVIDUAL BOND: A new bond in the amount required by law shall be secured at the beginning of each new term of office or every four (4) years, whichever is less. §25-1-15 (2000)

BLANKET BOND: A new bond in an amount not less than that required by law for public employees shall be secured upon employment and coverage shall be secured at the beginning of each new term of office of the public or appointed official by whom they are employed, if applicable, or at least every four (4) years concurrent with the normal election cycle of the Governor. §25-1-15 (2000)

LEGAL REF.: MS CODE as cited

CROSS REF.: Policies AAA — School District Liability Exemptions

DIA — Internal Control of Cash Receipts

DJE — Purchasing

BACK

ACCOUNTING AND REPORTING

The Superintendent of Schools shall open and keep regular sets of books, as prescribed by the State Auditor, which shall be subject to inspection during office hours by any citizen so desiring to inspect the same. The books for each fiscal year shall be kept separately and same shall be safely preserved by the Superintendent of Schools. §37-61-23 (1987)

The Department of Audit of the office of the state auditor of public accounts is hereby authorized and directed to prescribe and formulate for use by all school districts of this state, including municipal separate school districts, adequate accounting systems and other essential financial records which shall be uniform for all of the school districts of this state. Such uniform system shall include a method of accounting for and keeping records of all funds received, handled, and disbursed by such school district, whether derived from taxation or otherwise, including funds derived from donations, athletic events, and other special activities of the school district. The uniform system of accounts so prescribed and formulated by the department of audit shall be distributed and disseminated to all of the school districts of this state and it shall be mandatory that the Boards of Trustees of all such school districts install, utilize, and follow said uniform system of accounts in keeping the financial records of the school district. §37-37-1 (1953)

ACCOUNTING PROCEDURES

A. Teachers will be called upon to collect funds from students from time to time. All monies collected by the teacher shall be receipted, using a receipt provided by the principal. Strictest care must be taken in the handling of these funds. The following points are to be adhered to:

1. Any collection of money must receive prior approval of the principal.

2. Receipt all money collected when it is collected.

3. Keep receipted money in a secure place.

4. Turn in money as directed by the administration

B. The principal is responsible for all funds collected and disbursed in the school. For this reason, no collection of funds or purchases of any kind may be made without the prior knowledge and written approval of the principal. If approval of a purchase is given, a purchase order will be provided. When it is properly filled out the appropriate signatures will validate it and the approved purchase may be made.

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

CROSS REF.: Policy DIB ─ Financial Reports and Statements

Also see DM, DP.

BACK

ACCOUNTING SYSTEM – INTERNAL CONTROL OF CASH RECEIPTS

DIAB

The superintendent shall develop a plan of organization under which employees' duties are so arranged and records and procedures so designed as to make it possible to exercise effective accounting control over assets, liabilities, revenues, and expenditures. The work of employees shall be subdivided so that no single employee performs a complete cycle of operations. The procedures to be followed shall be definitely laid down and require proper authorization by designated officials for all actions to be taken.

All monies shall be receipted to the school district using pre-numbered receipts in a bound book or ledger. Under no circumstances shall monies be deposited to any bank account without a proper receipting of such monies. Any and all documentation necessary to support the cash receipts shall be maintained on file.

Administrative controls include, but are not limited to, the plan of organization and the procedures and records that are concerned with the decision processes leading to management's authorization of transactions. Such authorization is a management function directly associated with the responsibility of achieving the objectives of the organization and is the starting point for establishing accounting control of transactions.

Accounting controls comprise the plan of organization and the procedures and records that are concerned with the safeguarding of assets and the reliability of financial records and consequently are designed to provide reasonable assurance that:

1. Transactions are executed in accordance with management's general or specific authorization.

2. Transactions are recorded as necessary (a) to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements and (b) to maintain accountability for assets.

3. Access to assets is permitted only in accordance with management's authorization.

4. The recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

Characteristics of reliable internal control systems are:

1. Segregation of Responsibilities - This characteristic is sometimes referred to as "division of duties." There should be segregation of the three main duties associated with transactions. These are:

a. Authorization to execute a transaction.

b. Recording the transaction.

c. Custody of assets involved in the transaction.

2. Authorization and Record Procedures - This characteristic refers to "a system of authorization and record procedures." Such a system means that approved procedures and methods should be employed by management's accounting function.

3. Sound Practices - This characteristic refers to "sound practices in the performance of duties and functions." Sound practices refers to the many and varied error-checking routines that may be performed in connection with recordkeeping, including periodic comparison of recorded amounts with existing assets and liabilities.

4. Quality of Personnel - This characteristic is the most important and the most difficult to evaluate. This refers to the "competence of personnel."

5. Actual System Performance - Any system may be beautifully designed, but if the personnel do not operate the system as designed, then the system exists only on paper.

Also see DH, DI, DJAA, DJB.

BACK

FINANCIAL REPORTS AND STATEMENTS

DIB

This school district shall prepare annual financial statements, including the notes to the financial statements, in accordance with generally accepted accounting principles at June 30 of each fiscal year. The financial statements, including the notes to the financial statements, shall be prepared at June 30 for each fiscal year (July 1 – June 30).

Standard 10 is as follows: The school district operates with a financial accounting system as prescribed by the State Auditor’s Office. The most recent annual audit report, of the school district, as conducted under the guidelines of the State Auditor’s Office, indicates that the auditor has issued an unqualified opinion (as defined by generally accepted auditing standards) on the general purpose financial statements of the school district. {MS Code 37-9-18, 37-37-1, and 37-61-23}

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

CROSS REF.: Policies DI ─ Financial Reports and Statements

DID ─ Audits

BACK

AUDITS

DID

The State Department of Audit is hereby authorized and empowered to post-audit and investigate the financial affairs and all transactions involving the school funds of the district including the MAEP funds and supplementary district school funds, and to make separate and special audits thereof, as now provided by Mississippi Code of 1972. §37-7-201 to 37-7-215; §37-61-29 (1954)

Single Audit Act

Mississippi public school districts will have single audits performed by the Mississippi State Auditor’s Office or by an independent accounting firm for each fiscal year ending June 30.

Federal cost-sharing can help in part to defray the cost of single audits. Reimbursement by the federal government is generally limited to the ratio of total federal assistance expended by the recipient during the year audited to the recipient’s total expenditures for that year.

The Mississippi State Department of Education shall have cognizant agency responsibilities for all Mississippi public school districts. School districts should contact the audit resolution officer with the Mississippi State Department of Education to resolve any audit findings that affect federal programs in their districts.

NOTE: Please refer to the Financial Accounting Manual for Mississippi Public School Districts.

Standard 10 is as follows; The school district operates with a financial accounting system as prescribed by the State Auditor’s Office. The most recent annual audit report of the school district, as conducted under the guidelines of the State Auditor’s Office, indicates that the auditor has issued an unqualified opinion (as defined by generally accepted auditing standards) on the general purpose financial statements of the school district. {MS Code 37-9-18, 37-37-1, and 37-61-23}

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

CROSS REF.: Policy DIB ─ Financial Reports and Statements

BACK

EXPENDITURE OF FUNDS/FEDERAL FUNDS

This School Board has the power, authority and duty to make orders directed to the Superintendent of Schools for the issuance of pay certificates for lawful purposes on any available funds of the district and to have full control of the receipt, distribution, allotment and disbursement of all funds provided for the support and-operation of the schools of such school district whether such funds be derived from state appropriations, local ad valorem tax collections, or otherwise. §37-7-301 (o) (1993)

The MAEP allotments of this school district and the funds derived from the supplemental school district tax levies authorized by law shall be used exclusively for the support, maintenance and operation of the schools in the manner provided by law for the fiscal years for which such funds were appropriated, collected or otherwise made available, and no part of said funds or allotments shall be used in paying any expenses incurred during any preceding fiscal year. However, this shall not be construed to prohibit the payment of expenses incurred during the fiscal year after the close of such fiscal year from amounts remaining on hand at the end of such fiscal year, provided that such expenses were properly payable from such amounts. Moreover, this shall not be construed to prohibit the payment of the salaries of superintendents, administrative superintendents, principals and teachers and other school employees whose salaries are payable in twelve (12) monthly installments after the close of the fiscal year from amounts on hand for such purpose at the end of the fiscal year. §37-61-3 (1991)

It shall be the duty of the Superintendents of Schools or his designee, and the School Boards of all school districts, to limit the expenditure of school funds during the fiscal year to the amounts set forth in the respective school budgets as reflected in the Board minutes or an addendum to Board minutes, unless such school fund budgets be revised in the manner provided in this chapter. It shall be unlawful for any school district to budget expenditures from a fund in excess of the resources available within that fund for such expenditures. Furthermore, it shall be unlawful for any contract to be entered into or any obligation incurred or expenditure made in excess of the budgeted funds available for such purposes for such fiscal year. Any member of the School Board, Superintendent of Schools, or other school official, who shall enter into any contract, incur any obligation, or make any expenditure in excess of the amount available for that purpose for the fiscal year shall be personally liable (a) in the event of any reduction in MAEP payments by action of the Governor acting through the Department of Finance and Administration, or (b) for claims, damages, awards or judgments, on account of any wrongful or tortious act or omission or breach of implied term or condition of any warranty or contract; provided, however, that the foregoing immunity provisions shall not be a defense in cases of fraud, criminal action or an intentional breach of fiduciary obligations imposed by statute. §37-61-19 (1993)

EXPENDITURES OF FEDERAL FUNDS

State and local expenditures for the special education program supported by P.L. 94-142 funds will be comparable to expenditures for any similar program that may be supported from other sources. Records are maintained which show that this requirement is met.

Federal funds expended from the project will be used to pay only the excess costs directly attributable to the education of children with disabilities and will be used to supplement local and state funds; furthermore, P.L. 94-142 funds will not be used to supplant state and local funds for any particular cost. If state/local funds are available to pay for the education of nondisabled children ages birth through five, funds equal to the amount expended per nondisabled child will be made available to children with disabilities in that age range before Preschool Grant funds are used. If no state/local funds are available for a particular age group, Preschool Grant funds may be used to pay for all of the costs directly attributable to the education of these children.

The monitoring system for P.L. 94-142, Part B funds, must undergo the same Procedures as all district funds, such as Board approval for additions or deletions and signed purchase orders.

EHA Part B Project fund requests, amendments and reimbursements are submitted to the State Department of Education for approval.

Also see DFC, GAHB.

Standard 11 as follows: The board of education budgets and expends from the District Maintenance Fund (Fund #1120) a minimum of $20.00 per student for instructional/library supplies, materials, and equipment.

Also see DJE, DFC.

BACK

CHECKING ACCOUNTS – AUTHORIZED SIGNATURES

DJA/DJAA

The School Board shall authorize designated district employees to sign checks on all school district accounts. If mechanical check signers are utilized, written policies and procedures shall be developed to safeguard such mechanical check signers.

The School Board authorizes the superintendent or his designee to sign any and all legally authorized checks written on all school accounts with the following exception: any check made out specifically to the superintendent or his designee apart from regular payroll or accounts payable check(s) shall be signed by the other party.

The superintendent is directed to develop safeguard procedures and policies, in writing, for mechanical check signers and stamps and monitor implementation of same.

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

CROSS REF.: Policies DH ¾ Bonded Employees

DI ¾ Accounting and Reporting

DIAB — Internal Control of Cash Receipts

BACK

PETTY CASH ACCOUNTS

DJB

A petty cash fund may be established to handle small payments for incidental items that occur at the local school and/or at the district administrative office(s). This would include such items as postage, express charges, small supplies and similar items. The School Board must determine the amount of the fund, designate the person responsible for the fund, determine if the person responsible shall be bonded, and provide adequate safeguards for the fund. At no time shall any type loan, personal or otherwise, be made from the petty cash fund.

The fund will be established by writing a check on the activity fund for the proper amount as authorized by the School Board. The check will be made payable to the school responsible for the petty cash fund. At no time should a petty cash fund be established by writing a check on a fund which is under the control of the person who is responsible for the petty cash fund.

Disbursements from the petty cash fund shall be supported by invoices, statements, receipts or other documentation. This documentation shall remain with the petty cash fund until the fund is replenished. The sum of this documentation and the remaining cash shall, at all times, be equal to the original amount of the petty cash fund. This shall be periodically checked by the superintendent's office. The petty cash fund will be replenished when the cash is nearly exhausted. Replenishment takes place by presenting an itemized listing of all disbursements with documentation to the superintendent's office. After verification by the superintendent's office, a check is written for the amount of the itemized listing and made payable to the person responsible. At this time the superintendent's office will enter the accounting data for the petty cash fund disbursements into the accounting records.

LEGAL REF.: Public School Districts Financial Accounting Manual

Also see DIA.

BACK

PAYROLL PROCEDURE

DJC

The salaries of the superintendent, principals and licensed employees of this school district shall be paid by pay certificates issued by the school district superintendent or by direct deposit. Such pay certificates may be issued without additional authorization of this School Board where the amount of salary has been fixed and a contract entered into as provided by law. All pay certificates shall be preserved by him/her as a part of the official records of his/her office for the same time and in the same manner as other records are preserved. Except as is herein provided, the said warrants shall be governed in all respects by the same laws regulating the issuance of other warrants for other purposes. All pay certificates and warrants issued shall show the gross amount of the salary and all authorized deductions therefrom for income taxes, social security, retirement contributions and other lawful purposes. §37-9-41 (1987)

PAYROLL CLEARING FUND

A payroll clearing fund shall be established by each school district to account for salaries and the related salary withholdings paid from governmental funds. Each pay period, the total gross amount of the payroll shall be transferred from the governmental funds to the payroll clearing fund. The gross amount transferred will be charged to the appropriate expenditure functions in the expenditure register of each governmental fund. The net payroll amounts due to school district personnel shall then be written from the payroll clearing fund. The matching portion of benefits paid by the Local Educational Agency (LEA) shall be transferred from the governmental funds to the payroll clearing fund. The LEA's portion transferred will be charged to the appropriate expenditure functions in the expenditure register of each governmental fund. The total amount due to outside entities for withholdings or benefits shall then be written from the payroll clearing fund.

The payroll clearing fund shall be classified as an Agency Fund and maintained in a separate depository (bank) account.

LEGAL REF.: Mississippi Code, as cited above

Public School Districts Financial Accounting Manual

BACK

PAYDAY SCHEDULE

DJCA

The amount of the salary to be paid any appointed superintendent, principal or licensed employee shall be fixed by the School Board, provided that the requirements of Chapter 19 of this title are met as to superintendents, principals and licensed employees paid in whole or in part from MAEP funds. In employing such superintendents, principals and licensed employees and in fixing their salaries, the School Boards shall take into consideration the character, professional training, experience, executive ability and teaching capacity of the licensed employee, superintendent or principal. It is the intent of the Legislature that whenever the salary of the school district superintendent is set by a School Board, the Board shall take into consideration the amount of money that the district spends per pupil, and shall attempt to insure that the administrative cost of the district and the amount of the salary of the superintendent are not excessive in comparison to the per pupil expenditure of the district.

§37-9-37 (1997)

The annual salaries so fixed shall be made payable in equal monthly or, within the discretion of the School Board, in equal semimonthly installments for the number of scholastic months for which the school is to be operated. However, the Superintendent of Schools, at the request of the principal or licensed employee being contracted with, or at the request of the noninstructional employee, shall make such salary payable in equal monthly or semimonthly installments for a period of months in excess of the number of months for which the school is to be operated, but not exceeding twelve (12) months.

If the contract is based on the number of scholastic months for which the school is operated, the monthly payments shall be made on the last regular school day of each calendar month or semimonthly payments shall be made on the 15th of the month or last working day prior to the 15th except for the month of December; provided, however, that the last monthly payment may, at the discretion of the School Board, be made on the last day of the scholastic term when such principal, licensed or noninstructional employee has completed his or her assigned responsibilities.

If the contract is based on a period of months in excess of the number of months for which the school is to be operated, the first such payment shall be made on the last regular school day of the calendar month in which the school opens and the remaining payments shall be made on the last regular school day of each calendar month thereafter for the number of months provided by the contract; provided, however, if the last scholastic month ends during the calendar month in months when school is not in session payments shall be made on what would have been the last regular school day of the month if school were in session.

An appointed superintendent, principal, licensed or noninstructional employee who completes the entire scholastic year shall be entitled to payment for the full number of monthly payments provided by the contract without regard to his activity at the time when his services are not required by the school. If an appointed superintendent, principal, licensed or noninstructional employee is released during the school term by agreement between the School Board and such superintendent, principal, licensed or noninstructional employee, then such superintendent, principal, licensed or noninstructional employee shall be entitled to such proportion of the annual salary as the time which he shall have taught shall bear to the total school term, and any balance which may be due him shall be paid at such time as the Board may determine, but not later than the close of the then current scholastic year.

LEGAL REF.: MS CODE as cited

CROSS REF.: Policy DJC — Payroll Procedure

BACK

SALARY DEDUCTIONS

DJCB

It shall be unlawful for the Long Beach School District to deduct or permit to be deducted from the salary of any superintendent, principal or teacher any dues, fines or penalities payable or alleged to be payable because of the membership of such superintendent, principal or teacher in any organization or association. However, dues or premiums in health associations or corporations and tax sheltered annuity deductions authorized by the United States internal revenue code may be deducted upon written authorization from the superintendent, principal or teacher involved.

BACK

PURCHASE OF FOOD, DRINKS, FOOD SUPPLIES FROM PUBLIC FUNDS

DJDA

An Attorney General’s opinion issued on July 30, 1999 outlined the guidelines that a School Board must approve as policy in order for a school district to be able to provide food, drinks, and food supplies at certain school meetings. The Long Beach School District shall adhere to the policies stated below.

All activities for which food, drinks, and food supplies are purchased must be activities related to the goals and functions of the school district. These activities are noted in the next paragraph.

Purchase of food, drinks, and food supplies will be allowable for meetings, seminars, workshops, staff meetings, or similar events of the Long Beach School District if that event will span the normal meal hour. Also, if the event extends beyond the normal working hours, and/or if breaking for a meal would be disruptive of the meeting agenda, purchase of food, drinks, and food supplies will be allowable. These events could include, but are not limited to:

1. School Board meetings,

2. Business meetings with community leaders,

3. District staff development sessions or workshops,

4. District staff meetings

5. Community Service and Parent Education Programs funded through specific grants that have been written to include funding for meals, and

6. Any other event as determined by the Superintendent of Schools that meets the above stated requirements.

Purchases of food, drinks, and food supplies will be made by following the normal required purchasing procedures of the school district. All paperwork submitted for the purchase of the food items must have a meeting agenda attached.

In addition to the above, expenditures for athletic and other student recognition banquets are allowable from activity funds only.

Expenditures of public funds, including activity funds, for employee or teacher recognition banquets or meals are allowable if such meetings accomplish the goal of increasing teacher incentives and improving the educational setting.

Meals produced as part of the school district’s instructional program can be provided or sold to the district staff or other individuals.

BACK

PARTISAN POLITICAL EXPENDITURES

DJDE

No expenditure of public funds will be made for the support of partisan political candidates or partisan political activities.

BACK

PURCHASING

DJE

The Long Beach School District shall make purchases in accordance with the Mississippi Code of 1972, Annotated. Additional procedures, requirements, and regulations are to be found in the Financial Accounting Manual for Mississippi Public School Districts, prescribed by the Office of the State Auditor. The Manual includes a “Quick Reference Index of School Related Laws” that indicates the most significant code sections affecting purchasing are 37-7-1, 31-7-12, 31-7-13, and 37-39-1 et seq.

Purchasing procedures to be followed by all staff members are made available annually, and all personnel must adhere to procedures established by the business office and approved by the superintendent and the Board of Education.

REMINDER: Purchases made from federal funds are also subject to applicable federal regulations.

NOTE: The Mississippi public purchasing laws have been amended by the Legislature each year for the past few years. To keep current, this district shall obtain and review a copy of any amended public purchasing laws as soon as possible after the bill making the change is passed. These amended code sections may be obtained from the Secretary of State. If the legislative bill number is known, the amended law may also be obtained by calling the Senate Docket Room at 359-3229 or the House Docket Room at 359-3358. Also, bill status may be obtained online at the State Legislature website: http://www.is.state.ms.us/.

LEGAL REF.: MS CODE as cited

CROSS REF.: Policy DJE — Purchasing

DJ — Expenditure of Funds

DJEJ — Payment Procedures

BACK

BIDS AND QUOTATIONS

DJED

The term “purchase” shall mean the total amount of money encumbered by a single purchase order.

Each “notice to bidders” shall contain the following language:

1. The school board reserves the right to reject any and all bids.

2. The school board reserves the right to waive any irregularities.

The results of all competitive bid openings shall be tabulated and presented to the school board at its next regular or special meeting.

GENERAL AUTHORITY

All agencies and governing authorities shall purchase their commodities and printing; contract for fire insurance, automobile insurance, casualty insurance (other than workers’ compensation) and liability insurance; contract for garbage collection or disposal; contract for sewage collection or disposal; and contract for public construction as provided by law. §37-7-13 (1999) (For purchase of commodities, see §31-7-12.)

1. $3,500.00 or Less

Purchases which do not involve an expenditure of more than Three Thousand Five Hundred Dollars ($3,500.00) exclusive of freight or shipping charges, may be made without advertising or otherwise requesting competitive bids. Provided, however, that nothing contained in this paragraph shall be construed to prohibit any agency or governing authority from establishing procedures which require competitive bids on purchases of Three Thousand Five Hundred Dollars ($3,500.00) or less. §31-7-13(a).

2. Purchases Over $3,500.00 But Not Over $15,000.00: See §31-7-13 (b)

3. Purchases Over $15,000.00; See §31-7-13 (c)

4. Lowest and Best Bid Decision Procedure: See §31-7-13 (d)

5. Lease-Purchase Authorization: §31-7-13 (e)

6. Alternate Bid Authorization: See §31-7-13 (f)

7. Construction Contract Change Authorization: See §31-7-13 (g)

8. Petroleum Purchase Alternative: See §31-7-13 (h)

9. Road Construction Petroleum Products Price Adjustment Clause Authorization: See §31-7-13 (i)

10. Governing Authority Emergency Purchase Procedure: See §31-7-13 (k)

11. Exceptions from Bidding Requirements: See §31-7-13 (m)

12. Term Contract Authorization: See §31-7-13 (n)

13. Purchase Law Violation Prohibition and Vendor Penalty: See §31-7-13 (o)

14. Electrical Utility Petroleum-Based Equipment Purchase Procedure: See §31-7-13 (p)

15. Fuel Management System Bidding Procedure: See §31-7-13 (q)

16. Solid Waste Contract Proposal Procedure: See §31-7-13 (r)

17. Minority Set Aside Authorization: See §31-7-13 (s)

18. Construction Punch List Restriction: See §31-7-13 (t)

PREFERENCE

Whenever two (2) or more competitive bids are received, one or more of which relates to commodities grown, processed or manufactured within this state, and whenever all things stated in such received bids are equal with respect to price, quality and service, the commodities grown, processed or manufactured within this state shall be given preference. A similar preference shall be given to commodities grown, processed or manufactured within this state whenever purchases are made without competitive bids, and when practical the Department of Finance and Administration may by regulation establish reasonable preferential policies for other commodities, giving preference to resident suppliers of this state.

Any foreign manufacturing company with a factory in the state and with over fifty (50) employees working in the state shall have preference over any other foreign company where both price and quality are the same, regardless of where the product is manufactured. §31-7-15 (1992)

In the letting of public contracts, preference shall be given to resident contractors, and a nonresident bidder domiciled in a state, city, county, parish, province, nation or political subdivision having laws granting preference to local contractors shall be awarded Mississippi public contracts only on the same basis as the nonresident bidder’s state, city, county, parish, province, nation or political subdivision awards contracts to Mississippi contractors bidding under similar circumstances. Resident contractors actually domiciled in Mississippi, be they corporate, individuals or partnerships, are to be granted preference over nonresidents in awarding of contracts in the same manner and to the same extent as provided by the laws of the state, city, county, parish, nation or political subdivision of domicile of the nonresident. §31-7-47 (1995)

EXEMPTIONS

Supplies that are perishable or foods purchased for use in connection with the school lunch and homemaking programs shall be exempt from competitive bid requirements. However, each school board shall adopt and place in ts minutes definite policies for guidance of agents of such boards in connection with purchases of perishable supplies or foods which are unstable or variable in price. Such policies shall have the effect of law and any violations shall be subject to the penalties as provided by law. §37-39-15 (1987)

Purchases of items regularly used in connection with school operation shall not be made in small quantities for the purpose of circumventing the law requiring competitive bids or quotations, but shall be purchased by contract when feasible. School boards shall have the authority, however, to award such contracts for supplies or equipment to be delivered to different points in the school district or county, to different bidders, when the best interests of the district or county warrant such action. Reasons for awarding such contracts to different bidders for different areas in the district shall be recorded on the minutes of the school board. In no event shall the price paid exceed the lowest and best bid received. §37-39-17 (1981)

GRATUITIES

Any rebates, refunds, coupons, merit points, gratuities or any article of value tendered or received by their school district from any vendor of material, supplies, equipment or other articles shall inure to the benefit of this school district. This school district may, in accordance with its best interest, either take delivery of the article of value tendered and use the same or convert it to cash by selling it for its fair and reasonable value, making use of the proceeds from such sale for the exclusive benefit of the school district. §31-7-23 (1981)

It is hereby declared to be unlawful and a violation of public policy of the State of Mississippi for this school board or any designated purchasing agent for this school district to make any purchases without the full compliance with the provisions of Chapter 7, Title 31, Mississippi Code of 1972.

Except as otherwise provided in subsection (4) of this section, any person who intentionally, willfully and knowingly violates the provisions of Chapter 7, Title 31, Mississippi Code of 1972, shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than One Hundred Dollars ($100.00) and not more than five Hundred Dollars ($500.00) for each separate offense, or sentenced to the county jail for not more than six (6) months, or both such fine and imprisonment, and shall be removed from his office or position.

Any person who intentionally, willfully and knowingly violates the provisions of subsection (1) of §31-7-57 shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than One Hundred Dollars ($100.00) and not more than Five Hundred dollars ($500.00), or sentenced to the county jail for not more than six (6) months, or both such fine and imprisonment, and shall be removed from his office or position.

Any person diverting the benefits of any article of value tendered or received by this school district to his or her personal use, in violation of §31-7-23, if the value of such article be less than Five Hundred Dollars ($500.00), shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than One Hundred Dollars ($100.00) or more than Five Hundred Dollars ($500.00), or sentenced to the county jail for not more than six (6) months, or by both such fine and imprisonment, shall be removed from his office or position, and shall be required to return the money value of the article unlawfully diverted to this school board. If the value of the article be Five Hundred Dollars ($500.00) or more, such person shall be guilty of a felony and, upon conviction, shall be punished by a fine of not less than One Thousand Dollars ($1000.00) nor more than Five Thousand Dollars ($5,000.00), or sentenced to the Department of Corrections for not less than one (1) year nor more than five (5) years, or by both such fine and imprisonment, shall be removed from his office or position, and shall be required to return the money value of the article unlawfully diverted to this school board.

The provisions of this section are supplemental to any other criminal statutes of this state. §31-7-55 (1988)

LIABILITY

The superintendent, any employee or agent of this school board, who appropriates or authorizes the expenditure of any money to an object not authorized by law, shall be liable personally for up to the full amount of the appropriation or expenditure as will fully and completely compensate and repay such public funds for any actual loss caused by such appropriation or expenditure, to be recovered by suit in the name of the school board or in the name of any person who is a taxpayer suing for the use of the school board, and such taxpayer shall be liable for costs in such case. In the case of the school board, only the individual members of the board who voted for the appropriation or authorization for expenditure shall be liable under this subsection.

No individual member of this school board, or agent of this school board shall let contracts or purchase commodities or equipment except in the manner provided by law; nor shall this school board ratify any such contract or purchase made by any individual member, employee or agent thereof, or pay for the same out of public funds unless such contract or purchase was made in the manner provided by law; provided, however, that any vendor who, in good faith, delivers commodities or printing or performs any services under a contract to or for the school board shall be entitled to recover the fair market value of such commodities, printing or services, notwithstanding some error or failure by this school board to follow the law, if the contract was for an object authorized by law and the vendor had no control of, participation in, or actual knowledge of the error or failure by this school board.

The individual members, employees or agents of this school board as defined in Section 31-7-1 causing any public funds to be expended, any contract made or let, any payment made, in any manner whatsoever, contrary to or without complying with any statute of the State of Mississippi, regulating or prescribing the manner in which such contracts shall be let, payment on any contract made, purchase made, or any other payment or expenditure made, shall be liable, individually, and upon their official bond, for compensatory damages, in such sum up to the full amount of such contract, purchase, expenditure or payment as will fully and completely compensate and repay such public funds for any actual loss caused by such unlawful expenditure.

In addition to the foregoing provision, for any violation of any statute of the State of Mississippi prescribing the manner in which contracts shall be let, purchases made, expenditure or payment made, any individual member, employee or agent of this school board who shall substantially depart from the statutory method of letting contracts, making payments thereon, making purchases or expending public funds shall be liable, individually and on his official bond, for penal damages in such amount as may be assessed by any court of competent jurisdiction, up to three (3) times the amount of the contract, purchase, expenditure or payment. The person so charged may offer mitigating circumstances to be considered by the court in the assessment of any penal damages.

Any sum recovered under the provisions hereof shall be credited to the account from which such unlawful expenditure was made.

Except as otherwise provided, any individual member of the school board as defined in Section 31-7-1 shall not be individually liable under this section if he voted against payment for contracts let or purchases made contrary to law and had his vote recorded in the official minutes of the school at the time of such vote, or was absent at the time of such vote. §31-7-57 (1988)

LEGAL REF.: MS CODE as cited

CROSS REF.: Policies DJE-E — Purchase Law Policies

DJEA —Purchasing Authority

DJEG — Purchase Orders and contracts

DJEDA — Procedures To Open Bids

BACK

SALES CALLS AND DEMONSTRATIONS

DJEIA

Sales representatives are not permitted to call on teachers or other staff members without authorization from the school administration.

School principals may give permission to sales representatives of educational products to see members of the school staff at times that will not interfere with the educational program. No solicitation or contributions shall be collected by the students, employees or spectators without written permission by the Superintendent or his designee.

BACK

PAYMENT PROCEDURES

DJEJ/DJE

This School Board has the power, authority and duty to make orders directed to the Superintendent of Schools or assistant superintendent for the issuance of pay certificates for lawful purposes on any available funds of the district and to have full control of the receipt, distribution, allotment and disbursement of all funds provided for the support and operation of the schools of such school district whether such funds be derived from state appropriations, local ad valorem tax collections, or otherwise. §37-7-301 (o) (1993)

A docket of claims of all bills will be presented to the Board at its regular monthly meeting for approval. Copies of all bills submitted for payment shall be available for Board review.

LEGAL REF.: MS CODE as cited

Mississippi Public School Accountability Standards (2001)

Also see DJE — Purchasing.

BACK

NOTES AND BOND PAYMENTS

DJG

The principal of and interest upon all notes or bonds issued under the authority of Section 37-41-89 shall be paid out of such transportation funds of the school district as may be available for such purpose. It shall be the duty of the school board to set aside each year out of such transportation funds a sufficient amount to pay the principal of and interest upon said notes or bonds as and when the same shall respectively mature and accrue. It shall be the duty of the superintendent of schools or his designee to include in the school budget each year separate items showing the amount required for the payment of the principal of and interest upon all notes or bonds issued under the authority of said section. §37-41-99 (1987)

The levying authority, as defined in Section 37-57-1 (1) (b), acting for and on behalf of any school district, shall annually levy a special tax upon all of the taxable property within such school district, which shall be sufficient to provide for the payment of the principal and interest on school bonds issued under the provision of this article according to the terms thereof. §37-59-23 (1988)

REDUCED OR INTEREST-FREE DEBT PURSUANT TO FEDERAL LAW

(a) For purposes of this act, "debt" means any note, bond, lease or other evidence of indebtedness, that a district is authorized to issue under any provision of law.

NOTE: For details and procedures for issuance of bonds see MS Code §37-59-1 et seq. For bonds issued under Section 37-59-21, see MS Code §37-59-23. As to additional powers conferred in connection with issuance of bonds see §37-59-25 and §31-21-5. See also MS Code §37-61-33, Education Enhancement Fund.

LEGAL REF.: MS CODE as cited

CROSS REF.: Policies DFD – Bond Sales

DFE – Short Term Notes

DFEA – Tax Anticipation Notes

BACK

STUDENT ACTIVITIES FUND MANAGEMENT

This School Board has the power, authority and duty to expend local school activity funds, or other available school district funds, other than MAEP funds, for the purposes described under this paragraph. "Activity funds" shall mean all funds received by school officials paid or collected to participate in any school activity, such activity being part of the school program and partially financed with public funds or supplemented by public funds. The term "activity funds" shall not include any funds raised and/or expended by any organization unless commingled in a bank account with existing activity funds, regardless of whether the funds were raised by school employees or received by school employees during school hours or using school facilities and regardless of whether a school employee exercises influence over the expenditure or disposition of such funds.

Organizations shall not be required to make any payment to any school for the use of any school facility if, in the discretion of this School Board, the organization's function shall be deemed to be beneficial to the official or extracurricular programs of the school. For the purposes of this provision, the term "organization" shall not include any organization subject to the control of this School Board.

Activity funds may only be expended for any necessary expenses or travel costs, including advances, incurred by students and their chaperons in attending any in-state or out-of-state school related programs, conventions or seminars and/or any commodities, equipment, travel expenses, purchased services or school supplies which this School Board, in its discretion, shall deem beneficial to the official or extracurricular programs of the district, including items which may subsequently become the personal property of individuals, including yearbooks, athletic apparel, book covers and trophies. Activity funds may be used to pay travel expenses of school district personnel.

This School Board shall be authorized and empowered to promulgate rules and regulations specifically designating for what purposes school activity funds may be expended. The local school governing board shall provide (a) that such school activity funds shall be maintained and expended by the principal of the school generating the funds in a centralized school bank account, or (b) that such school activity funds shall be maintained and expended by the Superintendent of Schools in a central depository approved by this Board.

This School Board shall provide that such school activity funds be audited as part of the annual audit required in §37-9-18. The State Auditor shall prescribe a uniform system of accounting and financial reporting for all school activity fund transactions. §37-7-301(s) (1996)

Pursuant to the authority granted under §37-7-301(s), Miss. Code 1972, as amended, this School Board hereby authorizes the expenditure of local school activity funds, or other available school district funds other than MAEP funds, for any necessary expenses or travel costs incurred by students and their chaperons in attending any in-state or out-of-state school related programs, conventions or seminars and/or any commodities, equipment, travel expenses, purchased services or school supplies which the School Board, in its discretion, shall deem beneficial to the official or extracurricular programs of the district, including items which may subsequently become the personal property of individuals, including yearbooks, athletic apparel, book covers, and trophies.

The activity funds account shall be audited annually.

Legal Ref.: Mississippi Code, as cited above.

Also see JHB Student Activities Fund Management.

BACK

CASH IN SCHOOL BUILDINGS

The principal is responsible for all funds collected and disbursed in the school. For this reason, no collection of funds or purchases of any kind may be made without the prior knowledge and written approval of the principal.

Any teacher who has collected money during the school day should turn the money and the appropriate receipt book in to the office secretary at the close of the school day.

No principal should leave large sums of money in a school overnight. Frequent deposits are encouraged.

BACK

FIXED ASSET ACCOUNTABILITY

Revised 8-27-07 DM

FIXED ASSET ACCOUNTABILITY PLAN

The Long Beach School District will implement the following plan as its Fixed Asset Accountability Plan.

A. PRELIMINARY CONSIDERATIONS

1. The fixed asset accountability plan will consist of the following data elements to satisfy both internal and external reporting requirements:

a. Major Asset Class

b. Acquisition Date

c. Location Code (will be the same as the sde)

d. Identification Tag Number

e. Description (will include serial and model number)

f. Acquisition Cost

g. Funding Source

h. Check/Purchase Order Number

i. Source of Acquisition

j. Cost Center

2. Accounting Policies

a. The Long Beach School District will use the following terms to define all major fixed asset classifications:

1. Land – This includes all land owned by the school district.

2. Buildings – This includes all buildings owned by the district, such as school buildings, administration buildings, athletic field houses, gymnasiums and portable classrooms.

3. Improvements other than buildings – This includes athletic fields, lighting, bleachers, and other improvements that can not be directly associated with a particular building.

4. Mobile Equipment – This includes all school buses and district owned automobiles, trucks and vans. This classification also includes all lawn maintenance equipment, tractors, etc.

5. Furniture and Equipment – This includes all furniture and equipment contained in the buildings of the school district that meet the asset capitalization requirements of the school district.

6. Leased Property under Capital Leases – This includes all fixed assets that are being acquired under a lease/purchase arrangement.

7. Construction in Progress – This includes all buildings and facilities that are currently under construction.

8. State-owned vocational equipment.

b. The Long Beach School District will use the following costing methods to address the valuation of fixed assets:

Actual Historical Cost – Actual historical cost will be documented by invoices, purchase orders, canceled checks, vouchers, contracts and/or board minutes.

c. The Long Beach School District will capitalize all assets purchased or donated with a historical cost or estimated cost of $500.00 or more and all highly walkable items. Highly walkable items will include the following: all televisions, video cassette recorders, cellular telephones, radio equipment, overhead projectors, printers, calculators with a value greater than $150.00, lawn maintenance equipment greater than $200.00, fax machines, typewriters, public address systems and stereo equipment. (NOTE: This is not an all inclusive list of highly walkable items.) Expenditures made for the renovation of buildings and major repairs to buildings that add square footage to the buildings shall also be capitalized.

d. The Long Beach School District will not depreciate its fixed assets unless over $5,000.00.

e. The Long Beach School District will not capitalize interest on acquired assets.

f. The Long Beach School District will not capitalize infrastructure.

3. The Long Beach School District will prepare the following reports:

a. Summary of Fixed Assets – This report is a fixed asset summary by major fixed asset classification that includes a summary of additions and deletions by major fixed asset classification. This report will be prepared on a quarterly basis.

b. Fixed Asset Additions – This report includes a detailed listing of additions by major fixed asset classification. This report will be prepared on a quarterly basis.

c. Fixed Asset Deletions – This report includes a detailed listing of deletions by major fixed asset classifications. This report will be prepared on a quarterly basis.

d. Detailed Listing of Fixed Assets – This report is a detailed listing of all fixed assets by major fixed asset classification. This report will be prepared on a annual basis.

4. The Long Beach School District will utilize a revised inventory input data form that requests information that is consistent with the established data elements. The inventory input form will be used at the time of the initial inventory to capture the information about the assets. The inventory data input forms will consist of the following information: Major Asset Class, Acquisition Date, Location Code, Identification Tag Number, Description, Serial Number, Model Number, Acquisition Cost, Funding Source, Check/Purchase Order Number, Source of Acquisition, Cost Center, Costing Method and Deletion Date. The inventory input data form will be in three parts which will be distributed as follows: Accounting Department, Location, and Program. Long Beach School District will use the following inventory input data forms: Form 8.01 – Inventory Input Data Form for Personal Property.

B. INVENTORYING

1. The Long Beach School District will provide the following instructions to the inventory teams for the initial physical inventory:

a. Items to be included in the inventory – All assets purchased or donated with a historical cost or estimated cost of at least $500.00 or more and all highly walkable items. Highly walkable items will include all televisions, video cassette recorders, cellular telephones, radio equipment, overhead projectors, printers, calculators with a value greater than $150.00, lawn maintenance equipment with a value greater than $200.00, fax machines, typewriters, public address systems and stereo equipment. This is not to be considered an all inclusive list.

b. Any state inventory will be included with district inventory.

C. TAGGING

1. The bookkeeper and administrative assistant/fixed assets will be responsible for the tagging of assets identified by the initial inventory.

2. All capitalized fixed assets, including highly walkable items as defined in Section 3-C, will be tagged.

3. The Long Beach School District will use a self- adhesive, bar coded tag to identify fixed assets.

4. The fixed assets tag will have a control number, bar code and an inscription “Property of Long Beach School District.”

5. The tag will be placed in a highly visible location and on a permanent part of equipment (example – Tag the mobile radio, not the battery part of the radio).

6. The tagging of fixed assets will be completed by June of each fiscal year.

D. VALUING AND COSTING