Strafford R-VI School District Policy Manual

FILE: DA

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FISCAL RESPONSIBILITY

The Board acknowledges its fiduciary responsibility for funds received by the district. Board members, staff and others who have a business relationship with the Strafford R-VI School District will act with integrity, diligence and professionalism in matters involving the fiscal resources of the district.

Prohibited Activity

No person will be permitted to alter, destroy, mutilate, conceal, cover up or falsify any record or document with the intent to impede, obstruct or influence an investigation pursuant to this policy.

All district employees who have a reasonable cause to suspect fraud or theft must report that suspicion to a member of the audit committee immediately. Reports will be kept confidential to the extent allowed by law.

No Board member or employee of the district will take adverse employment action against any individual who, in good faith, reports suspected fraud or financial misconduct to the audit committee. No Board member or employee of the district will retaliate against any individual for providing truthful information to law enforcement regarding alleged financial misconduct.

Students who, in good faith, report suspected fraud or financial misconduct to the audit committee will not be disciplined or penalized for making such a report.

Employees who violate any portion of this policy are subject to discipline up to and including termination and referral for prosecution when appropriate.

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Note: The reader is encouraged to check the index located at the beginning of this section for other pertinent policies and to review administrative procedures and/or forms for related information.

Adopted: January 25, 2007

Revised:

Cross Refs: BBF, School Board Member Ethics

BBFA, Board Member Conflict of Interest and Financial Disclosure

BCE, Board Committees/Advisory Committees to the Board

GBCA, Staff Conflict of Interest

Strafford R-VI School District, Strafford, Missouri

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For Office Use Only: DA-C.1A (11/06) Page 1

FILE: DB

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ANNUAL BUDGET

One of the primary responsibilities of the Board of Education is to secure adequate funds to conduct a quality program of education in the school district. The annual school budget represents a written document presenting the Board's plan for allocation of the available financial resources into an explicit expenditure plan to sustain and improve the educational function of the school district. It is a legal document describing the programs to be conducted during the fiscal year and is the basis for the establishment of tax rates for the district.

The planning and preparation of the budget is a continuing process. It must involve a number of people who have knowledge of the educational needs of the community and who can provide accurate data in regard to the financial potential of the district. Members of the Board, citizens, students and professional and support staff members should be involved in the planning process, which culminates in the preparation of the budget document. The superintendent will establish procedures that seek input from the appropriate people on budgetary needs and that consider the priorities established by the Board.

The Board designates the superintendent to serve as the budget officer of the district. As budget officer, the superintendent will direct the planning and preparation of the budget and will submit it to the Board for approval. The superintendent will present to the Board a tentative budget proposal for the following year and will present the final budget proposal before the new fiscal year begins, as provided by law.

The Board may revise the items contained therein and will at that meeting adopt the portion of the budget dealing with the salary schedule and the needed tax rate for the district. Should the adopted budget require an increase in the tax levy above the authorized level that the Board may levy, the tax levy increase shall be presented to the voters for approval. The budget shall be appropriately adjusted if the voters fail to pass the tax levy increase. The Board will conduct at least one (1) public hearing regarding the proposed budget and taxation rate.

The annual budget document shall present a completed financial plan for the ensuing fiscal year and shall include at least the following statutory requirements:

Ø A budget message describing the important features of the budget and major changes from the preceding year.

Ø Estimated revenues to be received from all sources for the fiscal year, with a comparative statement of actual or estimated revenues for the two (2) years next preceding, itemized by year, fund and source.

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For Office Use Only: DB-C.1B (2/03) Page 1

FILE: DB

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Ø Proposed expenditures for each department, office and other classification for the fiscal year, with a comparative statement of actual or estimated expenditures for the two (2) years preceding, itemized by year, fund, activity and object.

Ø The amount required for the payment of interest, amortization and redemption charges on the debt of the school district.

Ø A general budget summary.

In no event shall the total proposed expenditures from any fund exceed the estimated revenues to be received plus any unencumbered balance or less any deficit estimated for the beginning of the fiscal year. Upon the recommendation of the superintendent, the Board will approve a system of internal accounting to ensure proper financial accounting of revenues and expenditures.

The adopted budget of the Strafford R-VI School District serves as the control to direct and limit expenditures in the district. Overall responsibility for assuring control rests with the superintendent, who will establish procedures for budget control and reporting throughout the district.

The total amounts that may be expended during the fiscal year for the operation of the school district are set forth in the budget. The total budgeted expenditure for each program is the maximum amount that may be expended for that classification of expenditures during the school year unless a budget transfer is recommended by the superintendent and is approved by the Board.

The Board will review the financial condition of the district monthly and shall require the superintendent to prepare a monthly reconciliation statement. This statement will show the amount expended during the month, total (to date) for the fiscal year, receipts and remaining balances in each fund. This statement will be used as a guide for projected purchasing and as a guide for budget transfers.

During the fiscal year the superintendent may transfer any unencumbered balance or portion thereof from the expenditure authorization of one (1) account to another, subject to limitations provided by state laws and approval by the Board.

All moneys received by the school district shall be disbursed only for the purposes for which they are levied, collected or received.

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Note: The reader is encouraged to review administrative procedures and/or forms for related information in support of this policy area.

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For Office Use Only: DB-C.1B (2/03) Page 2

FILE: DC

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TAXING AND BORROWING AUTHORITY/LIMITATIONS

The Board is responsible for levying ad valorem property taxes as necessary to operate the Strafford R-VI School District in a manner that promotes achievement for all students. Taxes will be levied in accordance with law.

Increasing Taxing Authority

The Board is authorized to set an operating tax rate of $2.75. The Board will seek voter approval to increase the tax rate ceiling, in accordance with law and as necessary to better serve the students of the district. The district may also seek voter approval to forgo all or part of the reduction of the operating levy due to Proposition C sales tax receipts, as allowed by law.

The Board may also seek voter approval to increase the bonded indebtedness of the district in accordance with law and as necessary to provide an appropriate learning environment for district students. The Board of Education has a bonded indebtedness limit of 15 percent of the value of taxable tangible property as shown by the last completed assessment for state and county purposes.

Tax Rate Hearing Notice

The Strafford R-VI School District will annually set the tax rate after first notifying the public and conducting at least one (1) public hearing. Notice of the hearing will be given by publication in a newspaper of general circulation or by posting such notice in at least three (3) public places within the district, in accordance with law. The district will publish or post the notice at least seven (7) days prior to the hearing, and the notice will include the:

1. Date, time and place of the hearing.

2. Assessed valuation by category of real, personal and other tangible property in the district for the fiscal year for which the tax is to be levied and the preceding tax year.

3. Amount of revenue required to be provided from the property tax as set forth in the adopted annual budget for each rate levied.

4. Tax rates proposed to be set for the various purposes of taxation.

5. Increase in tax revenue due to an increase in assessed value as a result of new construction and improvement.

6. Increase, both in dollar value and percentage, in tax revenue as a result of reassessment if the proposed tax rate is adopted.

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For Office Use Only: DC-C.1H (12/07) Page 1

FILE: DC

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Tax Rate Hearing

The superintendent will provide the Board the same information included in the tax rate hearing notice prior to the tax rate hearing. The tax rate hearing will include an opportunity for citizens to speak before the Board. The Board will set the tax rate after the hearing.

The tax rate will be calculated to produce substantially the same revenues as required in the annual budget. The Board will have sole authority in determining what part of the total authorized rate shall be used to provide revenue for each of the funds. Before setting the rates for the teachers' and incidental funds, the Board will set the rate for the capital projects fund as necessary to meet the district's obligations.

Submitting the Tax Rate

The Board shall forward a tax rate to the county clerk of every county in which the district is located on or before September 1 of each year. If the rate is less than one (1) dollar, the rate will be calculated to the nearest one-tenth of a cent, and the district will round up a fraction greater than or equal to five/one-hundredths of a cent to the next higher one-tenth of a cent. If the rate is in excess of one (1) dollar, the estimate will be calculated to one/one-hundredths of a cent, and the district will round up a fraction greater than or equal to five/one-thousandths of one (1) cent to the next higher one/one-hundredth of a cent.

Legal Compliance

If the district receives from the county clerk the state auditor's finding that the proposed rate does not comply with Missouri law, the Board will have 15 days from the date of receipt of the finding to accept or reject in writing the rate change certified by the state auditor and to submit all requested information to the state auditor. A copy of the Board's acceptance or rejection and any information submitted to the state auditor shall also be mailed to the county clerk.

Borrowing Authority

The Board may borrow money in anticipation of collection of taxes for the purpose of securing funds for school operations, including the debt service fund. Issuance of all tax and revenue anticipation notes requires approval of the majority of the members of the Board. The notes may be issued at any time in any year, and the aggregate outstanding principal amount of the notes issued in one (1) year for any fund shall not exceed the amount of the Board's estimate of the year's requirement for the fund. The notes shall be payable within 12 months from date of issuance.

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For Office Use Only: DC-C.1H (12/07) Page 2

FILE: DC

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Bonded Indebtedness

The Board may borrow money and issue bonds for:

1. Purchasing schoolhouse sites and other land for school purposes.

2. Erecting or furnishing schoolhouses or library buildings.

3. Building additions to or repairing old buildings.

4. Purchasing school buses and other transportation equipment.

5. Paying off and discharging assessments made by counties, cities, towns and villages or other political subdivisions or public corporations of the state against the district.

Funds raised through the sale of bonds may be used only for the purposes set forth in the election that authorized the sale of bonds.

The following points of state law shall govern the Board's issuance of bonds:

1. A four-sevenths vote is required before the issuance of bonds if the issue is submitted at a municipal election or at the general or primary election held in even-numbered years. At all other elections, a two-thirds vote is required.

2. The Board of Education has a limit of bonded indebtedness of 15 percent of the value of taxable tangible property as shown by the last completed assessment for state and county purposes.

3. Bonds shall be issued in denominations of $1,000 or in any multiples of $1,000.

4. The number of years the whole or any part of the bonds are to run shall not exceed 20 years from the date of the bonds.

5. The revenues from taxes levied for the purpose of satisfying bonded indebtedness obligations, both principal and interest, shall be recorded in the debt service fund.

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Note: The reader is encouraged to check the index located at the beginning of this section for other pertinent policies and to review administrative procedures and/or forms for related information.

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For Office Use Only: DC-C.1H (12/07) Page 3

FILE: DC

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Adopted: April 10, 2000/May 16, 2001

Revised: May 15, 2008

Cross Refs: BBBB, School Board Ballot Issues

MSIP Refs: 8.5

Legal Refs: Mo. Const., art. VI, ' 26(b)

Mo. Const., art. X, ' 11(c)

'' 67.110, 108.150 - .280, 137.010, .055, .072, .100, .245, 164.011, .121 - .301, 165.011, .131, .141, RSMo.

Strafford R-VI School District, Strafford, Missouri

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For Office Use Only: DC-C.1H (12/07) Page 4

FILE: DD

Basic

GRANTS

Application for Grants

The district directs the superintendent or designee to pursue all grants and other alternative sources of funds, goods and services that are consistent with the district’s goals and educational strategies and that will enhance the educational offerings of the district.

All grants must:

Ø Be based on a specific set of internal objectives that relate to the established goals and objectives of the district.

Ø Provide measures for evaluating whether project objectives are being or have been achieved.

Ø Conform to state and federal laws and to the policies of the Board in the execution of the project.

All grant proposals shall be approved by the Board before being submitted to the funding agency regardless of the amount of funding involved. Before a grant application is presented to the Board, the superintendent or designee will determine whether the district has the appropriate staff to support the grant project and to maintain accurate records required by the granting entity, as well as adequate resources if matching funds are required.

All grants that involve district property, students or personnel in their capacity as employees are considered district grants and are subject to the requirements of this policy. No individual will use grant proceeds in the district without district permission.

Administration of Grants

Every grant involving the district must have a designated contact for the grant who is an employee of the district to oversee grant activity and ensure the appropriate records, evaluations and procedures are used.

All grant funds received must be deposited in district accounts. District policies regarding purchasing, expenditure of funds and employment will be followed when expending grant funds. Staff positions created through grant funding will be filled pursuant to Board policy.

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For Office Use Only: DD-C.1A (12/03) Page 1

FILE: DEA

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REVENUES FROM TAX SOURCES

Local

The Board of Education, through the adoption of the annual budget, shall prepare an estimate of the amount of money to be raised by taxation for the ensuing school year, the rate required to produce the amount, and the rate necessary to sustain the district meeting principal and interest payments on the bonded indebtedness and providing the funds to meet other legitimate district purposes.

Whenever it becomes necessary, in the judgment of the Board, to increase the tax rate beyond the authorized level (the amount last approved by the voters of the district or as subsequently revised according to law), the Board shall determine the rate of taxation necessary to be levied in excess of the existing rate and submit the proposition to the voters of the district. Election procedures shall be in compliance with state law and Article X, Section 11(c) of the Missouri Constitution.

State

The Board of Education will accept all available state funds to which the district is entitled by law or through regulations of the Missouri State Board of Education and/or Missouri Department of Elementary and Secondary Education. State funds, both categorical and general, are based upon objective formulae. The superintendent shall be responsible for ensuring that the district files the required reports and forms to secure the amount of state funds to which it is entitled.

Federal

Applications shall be made for federal funds when available, provided that none of the conditions of acceptance is in disharmony with state law, the policies, rules and regulations of the Board of Education and the objectives of the district. The school district shall comply with all federal requirements governing these moneys, and shall account for each federal project separately and expend said funds as authorized by the approved project application only.

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Adopted: October 19, 2000

Cross Refs: CGC, State and Federal Programs Administration

DC, Taxing and Borrowing Authority/Limitations

DI, Fiscal Accounting and Reporting/Accounting System

KNC, Relations with State/Federal Governmental Authorities

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For Office Use Only: DEA-C.1C (3/00) Page 1

SECTION D: FISCAL MANAGEMENT