Prior to certification of the budget, the board will review the projected revenues and expenditures for the district and make adjustments where necessary to carry out the education program within the revenues projected. The budget of the district is the authority for the expenditures of the district for the fiscal year for which the budget was adopted and certified. It is the responsibility of the superintendent to operate the district within the budget.

A budget for the district is prepared annually for the board’s review. The budget will include the following:

1. the amount of revenues to be raised by taxation;
2. the amount of revenues from sources other than taxation;
3. an itemization of the amount to be spent in each fund; and
4. a comparison of the amount spent and revenue received in each fund for like purposes in the two prior fiscal years.

It is the responsibility of the superintendent [or designee] to prepare the budget for review by the board prior to the April 30^th deadline each year. The district will provide all of the information necessary for the Proposed Property Tax Statement to the Department of Management by March 15.

Mailing of Proposed Property Tax Hearing Statements is completed by the county auditor by March 20. A public hearing notice for the Proposed Property Taxes shall be published not less than 10 days and not more than 20 days prior to the date of hearing. The hearing notice is published in a newspaper designated for official publication in the district. The hearing notice must also be posted on the district website and district social media accounts on the same day it is published in the newspaper. The hearing on the Proposed Property Tax must be a unique and separate meeting and be the only item on the agenda.

Prior to the adoption of the proposed budget by the board, the public is apprised of the proposed budget for the district. Prior to the adoption of the proposed budget by the board, members of the district community will have an opportunity to review and comment on the proposed budget. A public hearing for the proposed budget of the board is held each year in sufficient time to file the adopted budget no later than April 30^th.

The proposed budget filed by the board with the board secretary and the time and place for the public hearing on the proposed budget is published in a newspaper designated for official publication in the district. It is the responsibility of the board secretary to publish the proposed budget and public hearing information at least 10 but no more than 20 days prior to the public hearing.

The board will adopt and certify a budget for the operation of the district to the county auditor by April 30. It is the responsibility of the board secretary to file the adopted and certified budget with the county auditor and the Iowa Department of Management.

The board may amend the budget for the fiscal year in the event of unforeseen circumstances. The amendment procedures will follow the procedures for public review and adoption of the original budget by the board outlined in these policies.

It is the responsibility of the superintendent and the board secretary to bring any budget amendments necessary to the attention of the board to allow sufficient time to file the amendment with the county auditor no later than May 31st of each year.

---

Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 1/22
Revised: 7/10; 12/18; 1/25
Legal Reference (Code of Iowa): §§ 24; 257; 279.8; 297; 298; 618
IASB Reference: 703.1

When the necessity for a fund has ceased to exist the balance may be transferred to another fund or account by board resolution. District monies received without a designated purpose may be transferred in this manner. District monies received for a specific purpose or upon vote of the people may only be transferred by board resolution when the purpose for which the monies were received has been completed. Voter approval is required to transfer monies to the general fund from the capital projects fund and debt service fund.

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

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

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

Beginning in fiscal year 2024, unexpended and unobligated dollars that remain at the end of a fiscal year in addition to ongoing revenues may be transferred to the Teacher Salary Supplement (TSS) program from Professional Development Supplement (PDS), Talented and Gifted (TAG), and Teacher Leadership Supplement (TLS) without board action.

The district may choose to request approval from the School Budget Review Committee (SBRC) to transfer funds to make a program whole, prior to its elimination.

Temporary transfers (loans) of funds are permitted between funds but must be repaid to the originating fund, with interest, by October 1^st following the end of the fiscal year. 

It is the responsibility of the board secretary to make recommendations to the board regarding transfers and to provide the documentation justifying the transfer.

---

Adopted: 6/70
Reviewed: 10/12; 5/15; 12/18
Revised: 7/10; 12/13; 9/21; 1/22; 8/23; 1/25
Legal Reference (Code of Iowa): §§ 24.21-22; 257.10; 279.8; 279.42; 298A; 289 IAC 6
IASB Reference: 701.02

GENERAL FUND BUDGET
District accounting practices will follow state and federal laws and regulations, Generally Accepted Accounting Principles (GAAP), and the uniform financial accounting system provided by the Iowa Department of Education. As advised by the district’s auditor, determination of liabilities and assets, prioritization of expenditures of governmental funds, and provisions for accounting disclosures shall be made in accordance with governmental accounting standards.

The district shall prepare an annual three-year general fund budget forecast that  includes estimates of unspent authorized budget (spending authority). The estimates shall be prepared utilizing scenarios for likely Supplemental State Aid (SSA) rates and enrollment projections. The projections shall include estimates of property tax rates and income surtax rates, if applicable.

The treasurer shall report to the board as to actual revenue and expenditures for the month and year-to-date as compared to budgeted revenues and expenditures and compared to historical revenues and expenditures (both in dollar amounts and percentages) for each fund maintained by the district. The treasurer shall provide context with respect to current year variances between budgeted and historical revenues and expenditures.

FINANCIAL METRICS
The district is committed to the following financial metrics:

1. Solvency Ratio*: Maintaining a combined unassigned and assigned  general fund balance that is at least 7% of annual revenue (actual or  anticipated). Prior to setting the current year’s cash reserve levy and before staffing and other spending decisions are finalized, the district will take reasonable steps to achieve a total general fund balance at least equal to its unspent  authority. This enables the district to cash flow its legal spending limit.

B. Unspent Authority: Maintaining an unspent authority balance of not less than 7% of that year’s annual expenditures. The current year’s projected  balance will be discussed with the board before staffing and other  spending decisions are finalized for the succeeding year. The district will  measure attainment of these goals as of June 30^th, but only after  completion of the certified annual report.

*Solvency Ratio Calculation:  
Unassigned + Assigned Fund Balances
General Fund Revenues – AEA Flow Through

MODIFIED SUPPLEMENTAL AMOUNT
The district shall solicit from the School Budget Review Committee (SBRC)  additional modified supplemental amount (spending authority) where it may be  available for items such as special education deficit, increasing enrollment,  budget guarantee, open enrollment not on prior year count, English Language  Learner (ELL), and any other lawful purposes. The board shall be provided a  resolution to approve the maximum request authorized. Any award of modified  supplemental amount may be levied as a cash reserve levy, in full, in the next  available budget year. For recurring program deficits that are predictable and  estimable, the district shall levy in advance for the immediately succeeding year  as part of the general cash reserve levy if the deficit causes the estimated  assigned and unassigned to fall below the minimum required. Grants of spending authority not funded by the State or other sources may ultimately be  levied against property taxes.

FUND BALANCE REPORTING
In the Governmental Accounting Standards Board (GASB) Statement No. 54, the  board identifies the order of spending unrestricted resources applying the  highest level of classification of fund balance – restricted, committed, assigned,  and unassigned – while honoring constraints on the specific purposes for which  amounts in those fund balances can be spent. Formal board action is required to establish, modify, and/or rescind a committed fund balance. The resolution will state the exact dollar amount. In the event the board chooses to make changes or rescind the committed fund balance, formal board action is  required.

The board authorizes the superintendent [or designee] to assign amounts to a  specific purpose in compliance with GASB 54. An “assigned fund balance”  should also be reported in the order of spending unrestricted resources but is not  restricted or committed.

1. Nonspendable Fund Balance: Includes amounts that cannot be spent  because they are either not in spendable form, or legally or contractually  required to be maintained intact. This includes items not expected to be converted to cash, including inventories and prepaid expenses. It may  also include other property acquired for resale and the principal of a  permanent fund.
2. Restricted Fund Balance: Should be reported when constraints placed on  the use of resources are either externally imposed by creditors, grantors,  contributors, or laws or regulations of other governments; or imposed by  law through constitutional provisions or enabling legislation. This includes  “categorical balances.”
3. Committed Fund Balance: Reflects specific purposes pursuant to  constraints imposed by formal action of the board. Such constraints can  only be removed or changed by board action.
4. Assigned Fund Balance: Reflects amounts that are constrained by the  government’s intent to be used for specific purposes but meet neither the  restricted nor committed forms of constraint. Unless the amount is  negative, the assigned fund balance is the residual classification for the  governmental funds other than the general fund. If the amount is  negative, then the residual amount is shown as unassigned.
5. Unassigned Fund Balance: The residual classification for the general fund  only. As noted above, if a negative residual amount exists in other  governmental funds, then the amount is reported as unassigned.

It is the responsibility of the superintendent [or designee] to develop  administrative regulations implementing this policy. It is also the responsibility of  the superintendent [or designee] to make recommendations to the board  regarding fund balance designations.

---

Adopted: 12/13
Reviewed: 12/18
Revised: 5/15; 1/22; 2/24; 3/25
Legal Reference (Code of Iowa): §§ 257.31(4); 279.8; 291; 297.22-25; 298A
IASB Reference: 701.04

Revenue raised by students or from student activities is deposited and accounted for in the student activities fund. This revenue is the property of and is under the financial control of the board. Students may use this revenue for purposes approved by the superintendent [or designee].

Whether such revenue is collected from student contributions, club dues, and special activities or result from admissions to special events or from other fundraising activities, all funds will be under the jurisdiction of the board and under the specific control of the superintendent [or designee]. The revenue will be deposited in a designated depository and will be disbursed and accounted for in accordance with instructions issued by the superintendent [or designee].

It is the responsibility of the board secretary to keep student activity accounts up-to-date and complete.

Any unencumbered class or activity account balances will automatically revert to the activity fund when a class graduates or an activity is discontinued.

---

Adopted: 6/70
Reviewed: 7/10; 12/18; 1/22
Revised: 10/12; 12/13; 5/15; 1/25
Related Policy: 801.4
Legal Reference (Code of Iowa): §§ 279.8
IASB Reference: 704.5

The district will establish and maintain a capital assets management system for reporting capitalized assets owned or under the jurisdiction of the district in its financial reports in accordance with Generally Accepted Accounting Principles (GAAP) as required or modified by law; to improve the district’s oversight of capital assets by assigning and recording them to specific facilities and programs and to provide for proof of loss of capital assets for insurance purposes.

Capital assets, including tangible and intangible assets, are reported in the government-wide financial statements (i.e. governmental activities and business type activities) and the proprietary fund financial statements. Capital assets reported include district buildings and sites, construction progress, improvements other than buildings and sites, land, and machinery and equipment. Capital assets reported in the financial reports will include individual capital assets with a historical cost equal to or greater than $5,000, except for intangible right to use lease assets. The federal regulations governing school lunch programs require capital assets attributable to the school lunch program with a historical cost of equal to or greater than $500 be capitalized. Additionally, capital assets are depreciated over the useful life of each capital asset per the schedule below:

Class Description	Useful Life
Buildings	50 years
Site Improvements	20 years
Outdoor Equipment	20 years
Roof Replacements	20 years
Audiovisual Equipment	10 years
Machinery and Tools	15 years
Computers	6 years
Communications Equipment	10 years
Furniture and Accessories	20 years
Licensed Vehicles	8 years
Athletic Equipment	10 years
Custodial Equipment and Appliances	15 years
Musical Instruments	10 years

All intangible assets (except for right to use lease assets) with a purchase price equal to or greater than $175,000, with useful life of two or more years, are included in the intangible asset inventory for capitalization purposes. Such assets are recorded at actual historical cost and amortized over the designated useful lifetime applying a straight-line method of depreciation. If there are no legal, contractual, regulatory, technological, or other factors that limit the useful life of the asset, then the intangible asset needs to be considered to have an indefinite useful life and no amortization should be recorded.

This policy applies to all intangible assets. If an intangible asset that meets the threshold criteria is fully amortized, the asset must be reported at the historical cost and the applicable accumulated amortization must also be reported. It is not appropriate to “net” the capital asset and amortization to avoid reporting. For internally generated intangible assets, outlays incurred by the government’s personnel, or by a third-party contractor on behalf of the government, and for development of internally generated intangible assets should be capitalized.

All equipment used by employees or students to meet the educational mission of the district must be tagged in a manner to identify them as permanent property of the Linn-Mar Community School District.

The district recognizes the importance of classifying leases of intangible assets as assets or liabilities in financial statements. When operating as a lessor, the district will recognize a lease liability and an intangible right-to-use lease asset. When operating as a lessee, the district will recognize a lease receivable and a deferred inflow of resources consistent with the requirements established in GASB 87.

The district recognizes a lease liability and an intangible right-to-use lease asset with an initial value of $5,000.00 or more. At the commencement of a lease, the district initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date plus certain initial direct costs to place the asset in service. The lease asset is them amortized on a straight-line basis over the life of the lease.

The capital assets managements system must be updated annually to account for the addition/acquisition, disposal, and/or relocation/transfer of capital assets. It is the responsibility of the superintendent in conjunction with the chief financial/operating officer to count and reconcile the capital assets with the capital assets management system on June 30th each year.

It is the responsibility of the superintendent in conjunction with the chief financial officer to develop administrative regulations implementing this policy. It will also be the responsibility of the superintendent [or designee] to educate employees about this policy and its supporting administrative regulations.

---

Adopted: 7/03
Reviewed: 7/10; 5/15; 12/18
Revised: 10/12; 12/13; 12/19; 6/21; 1/22; 10/22; 1/25
Legal Reference (Code of Iowa): §§ 257.31(4); 279.8; 297.22-25; 298A
IASB Reference: 802.4
Mandatory Policy

The board expects all board members, employees, volunteers, consultants, vendors, contractors, students, and other parties maintaining any relationship with the district to act with integrity, due diligence, and in accordance with all laws in their duties involving the district’s resources. The board is entrusted with public dollars, and no one connected with the district should do anything to erode that trust.

Internal controls are used to help ensure the integrity of district financial and accounting information. Adherence to district-established internal control procedures is the responsibility of all employees of the district. The superintendent, chief financial officer, business manager, and board secretary shall be responsible for developing internal controls designed to prevent and detect fraud, financial impropriety, or fiscal irregularities within the district subject to review and approval by the board. Administrators shall be alert for any indication of fraud, financial impropriety, or irregularity within the administrator’s area of responsibility.

Any employee who suspects fraud, impropriety, or irregularity shall report their suspicions immediately to their immediate supervisor and/or the superintendent, the business manager, or a member of the Finance/Audit Committee. The superintendent shall have primary responsibility for any necessary investigations and will coordinate investigative efforts with the board’s legal counsel, auditing firm, the Iowa Auditor of State’s Office, and other internal or external departments and agencies, including law enforcement officials, as the superintendent may deem appropriate.

Employees bringing forth a legitimate concern about a potential impropriety will not be retaliated against and those who do retaliate against such an employee will be subject to disciplinary action up to, and including, discharge.

In the event the concern or complaint involves the superintendent, the concern shall be brought to the attention of the board president or vice president, who shall be empowered to contact the board’s legal counsel, Iowa Auditor of State’s Office, insurance agent, auditing firm, and any other agency to investigate the concern or complaint.

The superintendent or board president shall ensure the Iowa Auditor of State’s Office is notified as required by law of any suspected embezzlement, theft, or other financial irregularity pursuant to Iowa law. The superintendent and/or board president in coordination with the Iowa Auditor of State’s Office, will determine whether to conduct a complete or partial audit. The superintendent is authorized to order a complete forensic audit if, in the superintendent’s judgment, such an audit would be useful and beneficial to the district. In the event there is an investigation, records will be maintained for use in the investigation. Individuals found to have altered or destroyed records will be subject to disciplinary action, up to and including termination.

---

Adopted: 5/09
Reviewed: 7/10; 5/15; 12/18; 1/22
Revised: 10/12; 12/13; 1/25
Legal Reference (Code of Iowa): 11, 279.8
IASB Reference: 707.05; 707.05-R(1)

Financial records of the district are maintained in accordance with Generally Accepted Accounting Principles (GAAP) as required or modified by law. District monies are received and expended from the appropriate fund and/or account. The funds and accounts of the district will include, but not be limited to:

GOVERNMENTAL FUND TYPE

1. General Fund: This fund is the chief operating fund of the district. It is used to account for all financial resources except those accounted for and reported in another fund.
2. Special Revenue Fund: These funds account for the proceeds of specific revenue sources other than trusts or major capital projects, that are legally restricted or committed to expenditure for specified purposes other than debt service or capital projects.
   
   1. Management Levy Fund
   2. Public Education and Recreation Levy Fund (PERL)
   3. Student Activity Fund

3. Capital Projects Fund: These funds are used to account for financial resources to acquire or construct major capital facilities or other capital assets (other than those of proprietary funds and trust funds) and to account for revenues from SAVE.
   
   1. Physical Plant and Equipment Levy Fund (PPEL)
   2. Secure and Advanced Vision for Education (SAVE)
4. Debt Service Fund: This fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

PROPRIETARY FUND TYPE
These funds account for operations of the district operated similar to private business for which a fee is charged to external users for goods or services, or they account for the costs of providing goods and services provided by one department to other departments on a cost reimbursement basis.

1. Enterprise Fund
   
   1. School Nutrition Fund
   2. Childcare Fund
   3. Internal Service Fund
   4. Community Education
   5. Preschool (Nonvoluntary, state)
   6. Aquatic Center Fund
   7. Student Store Fund

​FIDUCIARY FUNDS
These funds are used to account for monies or assets held by the district on behalf of, or in trust for, another entity.

1. Trust
   
   1. Expendable Trust Funds
   2. Non-expendable Trust Funds
   3. Pension trust Funds
2. Custodial Funds

NON-FIDUCIARY SCHOLARSHIP FUND

Account Groups: These groups are the accounting records for capital assets and long-term debt.

1. General Capital Assets Account Group
2. General Long Term Debt Account Group

The board may establish other funds in accordance with Generally Accepted Accounting Principles (GAAP) and may certify other taxes to be levied for the funds as provided by state law. The status of each fund must be included in the annual report.

It is the responsibility of the superintendent in conjunction with the school business official to implement this policy and bring necessary changes in the maintenance of the district’s financial records to the attention of the board.

---

Adopted: 3/17
Reviewed: 12/18; 1/22
Revised: 2/21; 1/25
Related Policy: 801.1
Legal Reference (Code of Iowa): §§ 291; 298; 298A; 281 IAC 98
IASB Reference: 701.03

Revenues of the district are received by the board treasurer [or designee]. Other persons receiving revenues on behalf of the district will promptly receipt the money and deposit the money in a timely manner.

Revenue, from whatever source, is accounted for and classified under the official accounting system of the district. It is the responsibility of the board treasurer to deposit the revenues received by the district in a timely manner. To aid the process of collecting revenues, ACH payments, credit card payments, and other electronic payment systems may be allowed on certain payments due to the district. District funds from all sources will not be used for private gain or political purposes.

Tuition fees received by the district are deposited in the general fund. The tuition fees for preschool through 12th grade during the regular academic school year are set by the board based upon the recommendation of the superintendent [or designee] in compliance with current law. Tuition fees for summer school are set by the board prior to offering the program.

The board may charge materials fees for the use or purchase of educational materials. Educational materials fees received by the district are deposited in the general fund. It is the responsibility of the superintendent [or designee] to recommend to the board when educational materials fees will be charged and the amount of the materials fees.

Rental fees received by the district for the rental of district equipment or facilities are deposited in the general fund. It is the responsibility of the superintendent [or designee] to recommend to the board a fee schedule for renting district property.

The board grants the superintendent [or designee] the authority to contract with a collection agency to collect non-sufficient funds (NSF) checks and unpaid student fees. The use of a collection agency must be communicated to all
Linn-Mar patrons in accordance with all state and federal Laws.

Proceeds from the sale of real property are placed in the Physical Plant and Equipment Levy (PPEL) fund. However, following a properly noticed public hearing, the Board of Directors may elect to deposit proceeds from the sale of real property or buildings into any fund under the control of the school corporation. Notice for the public hearing must be published in a newspaper of general circulation within the district not less than 10 and no more than 20 days prior to the proposed public hearing. Notice of the public hearing must include the date, time, and location of the public hearing and a description of the proposed action. The proceeds from the sale of other district property are placed in the general fund.

The board may claim exemption from the law prohibiting competition with private enterprise for the following activities:

1. Goods and services directly and reasonably related to the educational mission;
2. Goods and services offered only to students, employees, or guests which cannot be provided by private enterprise as the same or lower cost;
3. Use of vehicles for charter trips offered to the public, full- or part-time, or temporary students;
4. Goods and services which are not otherwise available in the quantity or quality required by the district;
5. Telecommunications other than radio or television stations;
6. Sponsoring or providing facilities for fitness and recreation;
7. Food service and sales;
8. Sale of books, records, tapes, software, educational equipment, and supplies;
9. Items displaying the emblem, mascot, or logo of the district or that otherwise promote the identity of the district and its programs if sold on district property;
10. Souvenirs and programs relating to events sponsored by or at the district if sold on district property; and
11. Goods, products, or professional services which are produced, created, or sold incidental to the district’s teaching, research, and extension missions.

It is the responsibility of the superintendent [or designee] to bring to the board’s attention additional sources of revenue for the district.

---

Adopted: 6/70
Reviewed: 12/13; 5/15; 12/18
Revised: 7/10; 10/12; 1/22; 1/25
Related Policy: 801.1; 802.8
Legal Reference (Code of Iowa): §§ 12C; 23A; 24.9; 257.2; 279.8; 41; 282.2, .6, .24; 291.12; 297.9-12, .22; 301.1
IASB Reference: 704.01

To eliminate the necessity of collecting small amounts of money throughout the school year for consumable supplies, workbooks, etc., it is policy to collect an educational supply fee from each student at the beginning of each school year.

Students who enroll late or transfer to other schools during the school year will be charged or refunded on a monthly basis. (Refer to Policy 802.3-R)

Educational supply fees for students enrolled in the Homeschool Assistance Program (HSAP) will be the same as regular enrolled students. Students that are enrolled as “homeschool dual enrolled students” will have the educational supply fee prorated for the amount of time they attend classes in a district building.

---

Adopted: 6/70
Reviewed: 7/10; 12/18; 1/22
Revised: 10/12; 12/13; 5/15; 1/25
Related Policy: 802.3-R

District funds in excess of current needs are invested in compliance with this policy. The goals of the district's investment portfolio in order of priority are:

1. To provide safety of the principal;
2. To maintain the necessary liquidity to match expected liabilities; and
3. To obtain a reasonable rate of return.

In making investments, the district will exercise the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use to meet the goals of the investment program.

District funds are monies of the district, including operating funds. “Operating funds” of the district are funds which are reasonably expected to be used during a current budget year or within 15 months of receipt. When investing operating funds, the investments must mature within 397 days or less. If, during the current budget year an amount of public funds will exceed operating funds by at least 33 percent, the amount of public funds that exceed operating funds by greater than 33 percent may be invested in certificates of deposit at federally insured depository institutions which mature within 63 months or less, in accordance with state and federal laws. When investing funds other than operating funds, the investments must mature according to the need for the funds.

The board authorizes the board treasurer to invest funds in excess of current needs in the following investments:

1. Interest bearing savings, money market, and checking accounts at the district's authorized depositories;
2. Iowa Schools Joint Investment Trust Program (ISJIT);
3. Obligations of the United States government, its agencies, and instrumentalities;
4. Certificates of deposit and other evidence of deposit at federally insured Iowa depository institutions.

It is the responsibility of the board treasurer to oversee the investment portfolio in compliance with this policy and the law.

It is the responsibility of the board treasurer to bring a contract with an outside person to invest district funds, to advise on investments, to direct investments, to act in a fiduciary capacity or to perform other services to the board for review and approval. The board treasurer will also provide the board and superintendent with information about and verification of the outside person's fiduciary bond. Contracts with outside persons will include a clause requiring the outside person to notify the district within 30 days of any material weakness in internal structure or regulatory orders or sanctions against the outside person regarding the services being provided to the district and to provide the documents necessary for the performance of the investment portion of the district audit. Contracts with outside persons will not be based on the performance of the investment portfolio.

The board treasurer is responsible for reporting to and reviewing with the superintendent and the board, semi-annually, the investment portfolio's performance, transaction activity, and current investments including the percent of the investment portfolio by type of investment and by issuer and maturities. The report will also include trend lines by month over the last year and year-to-year trend lines regarding the performance of the investment portfolio. It will also be the responsibility of the board treasurer to obtain the information necessary to ensure that the investments and the outside persons doing business with the district meet the requirements outlined in this policy.

It is the responsibility of the board treasurer to deliver a copy of this policy to the district's depositories, auditor, and outside persons doing investment business with the district.

It is will also be the responsibility of the board treasurer to develop a system of investment practices and internal controls over the investment practices. The investment practices are designed to prevent losses, to document the officer's and employees’ responsibility for elements of the investment process, and to address the capability of the management.

The board treasurer will review the investment practices and internal controls process with the superintendent annually.

---

Adopted: 6/70
Reviewed: 7/10; 10/12; 12/18
Revised: 12/13; 5/15; 11/18; 1/22; 1/25
Legal Reference (Code of Iowa): §§ 11.2, .6; 12/62; 12B.10, .10A; 12C; 22.1, .14; 28E.2; 257; 279.29; 283A; 285; 502.701; 633.123
IASB Reference: 704.03 Option II

The board believes gifts, grants, and bequests to the district may be accepted when they will further the interests of the district. The board will have sole authority to determine whether the gift furthers the interests of the district.

Gifts, grants, and bequests with a value over $1,000 will be submitted for approval by the board. Once it has been approved by the board, a board member or the superintendent [or designee] may accept the gift on behalf of the district.

Gifts, grants, and bequests once accepted on behalf of the district become the property of the district. Gifts, grants, and bequests are administered in accordance with terms, if any, agreed to by the board.

All gifts, grants, or bequests below $1,000 in value may be accepted by the superintendent [or designee] or building principals. The donor will be responsible for submitting the appraised value of donated property.

All gifts, grants, or bequests are administered in pursuance of the terms agreed upon at the time of the gift or bequest. Such gifts become the property of the district and are under the control of the Board of Directors.

Acceptance of all gifts, grants, and bequests will be acknowledged in writing with copies going to the donors and to appropriate school files.

---

Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 12/18; 1/22; 1/25
Revised: 4/09
Legal Reference (Code of Iowa): §§ 279.42; 565.6
IASB Reference: 704.04

Each year at its annual meeting, the board will designate by resolution the name and location of the Iowa located financial depository institution(s) to serve as the official district depository or depositories. The maximum deposit amount to be kept in the depository will be stated in the resolution. The amount stated in the resolution must be for all depositories and include all of the district’s funds.

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

---

Adopted: 6/70
Reviewed: 7/10; 10/12; 12/13; 5/15; 12/18; 1/22; 1/25
Revised: 6/99
Related Policy: 204.4; 802.1
Legal Reference (Code of Iowa): §§ 12C2; 279.33
IASB Reference: 701.01

DEBT LIMITS
Credit Ratings: The district seeks to maintain the highest possible credit ratings for all categories of short- and long-term debt that can be achieved without compromising the delivery of services and the achievement of adopted objectives. The district recognizes that external economic, natural, or other events may, from time-to-time, affect the creditworthiness of its debt. Nevertheless, the district is committed to ensuring that actions within their control are prudent.

Debt Limits: For general obligation debt, the district’s outstanding debt limit shall be no more than five percent (5%) of the actual value of property within the district’s boundaries, as prescribed by the Iowa constitution and statutory restrictions.

For revenue debt, the district’s goal is to provide adequate debt service coverage of at least 1.20 times the annual debt service costs.

In accordance with Iowa law, the district may not act as a conduit issuer or issue municipal securities to raise capital for revenue-generating projects where the funds generated are used by a third party (“conduit borrower”) to make payments to investors.

PURPOSES AND USE OF DEBT
Capital Planning: To enhance creditworthiness and prudent financial management, the district is committed to systematic capital planning, intergovernmental cooperation, and coordination and long-term financial planning.

Capital Financing: The district may issue long-term debt for capital projects as authorized by Iowa law which include, but are not limited to, the costs of planning, design, land acquisition, buildings, permanent structures, attached fixtures or equipment, and movable pieces of equipment. Capitalized interest may be included in sizing any capital project debt issue. The types of debt instruments to be used by the district include:

1. General Obligation Bonds;
2. General Obligation Capital Loan Notes;
3. Bond Anticipation Notes;
4. Revenue Anticipation Notes;
5. School Infrastructure Sales, Services, and Use Tax Revenue Bonds; and
6. Lease Purchase Agreements, including Certificates of Participation.

Working Capital Financing: The district may issue debt for working capital for operations after cash flow analysis has determined that there is a mismatch between available cash and cash outflows. The district shall strive to repay working capital debt by the end of the fiscal year in which the debt was incurred. A working capital reserve may be included in sizing any working capital debt issue.

Refundings: Periodic reviews of all outstanding debt will be undertaken to determine if refunding opportunities exist. Refunding will be considered (within federal tax law restraints) if and when there is a net economic benefit of the refunding or if the refunding is otherwise in the best interests of the district, such as to release restrictive bond covenants which affect the operations and management of the district.

In general, advance refundings for economic savings will be undertaken when a net present value savings exceeds three percent of the refunded debt can be achieved. Current refundings, which produce a new present value savings of less than three percent will be considered on a case by case basis taking into consideration bond covenants and general conditions. Refundings with negative savings will not be considered unless there is a compelling public policy objective for doing so.

DEBT STANDARDS AND STRUCTURE

Length of Debt: Debt will be structured for the shortest period consistent with a fair allocation of costs to current and future beneficiaries or users. Long-term debt will not be issued for periods exceeding the useful life or average useful lives of the project or projects to be financed. All debt issued will adhere to state and federal law regarding the length of time the debt may be outstanding.

Debt Structure: Debt will be structured to achieve the lowest possible net cost to the district given market conditions, the urgency of the capital project, the type of debt being issued, and the nature and type of repayment source. To the extent possible, the district will design the repayment of its overall debt to rapidly recapture its credit capacity for future use.

Generally, the district will only issue fixed-rate debt. In very limited circumstances, the district may issue variable rate debt, consistent with the limitations of Iowa law and upon a finding of the board that the use of fixed rate debt is not in the best interest of the district and a statement of the reasons for the use of variable rate debt.

All debt may be structured using discount, par or premium coupons, and as serial or term bonds or notes, or any combination thereof, consistent with Iowa law. The district should utilize the coupon structure that produces the lowest True Interest Cost (TIC) taking into consideration the call option value of any callable maturities.

The district will strive to structure their debt in sinking fund installments for each debt issue that achieves, as nearly as practicable, level debt service within an issue or overall debt service within a particular classification of debt.

Derivatives (including, but not limited to, interest rate swaps, caps, collars, corridors, ceiling and floor agreements, forward agreements, float agreements, or other similar financing arrangements), zero-coupon or capital appreciation bonds are not allowed to be issued consistent with state law.

Decision Analysis to Issue Debt: Whenever the district is contemplating the issuance of debt, information will be developed concerning the following four categories commonly used by rating agencies assessing the district’s credit worthiness, listed below.

Debt Analysis: Debt capacity analysis; purpose for which debt is proposed to be issued; debt structure; debt burden; debt history and trends; and adequacy of debt and capital planning.

Financial Analysis: Stability, diversity, and growth rates of tax or other revenue sources; trend in assessed valuation and collections; current budget trends; appraisal of past revenue and expenditures trends; history and long-term trends of revenues and expenditures; evidence of financial planning, adherence to GAAP; audit results; fund balance status and trends in operating and debt funds; financial monitoring systems and capabilities; and cash flow projections.

Governmental and Administrative Analysis: Government organization structure; location of financial responsibilities and degree of control; adequacy of basic service provision; intergovernmental cooperation/conflict and extent of duplication; and overall planning efforts.

Economic Analysis: Geographic and location advantages; population and demographic characteristics; wealth indicators; types of employment, industry, and occupation; housing characteristics; new construction; evidence of industrial decline; and trend of the economy.

DEBT ISSUANCE
Credit Enhancement: Credit enhancements (i.e., bond insurance, etc.) may be used but only when the net debt service on the debt is reduced by more than the costs of the credit enhancement.

Costs and Fees: All costs and fees related to issuing the debt will be paid out of debt proceeds and allocated across all projects receiving proceeds of the debt issue.

Method of Sale: Generally, all district debt will be sold through a competitive bidding process. Bids will be awarded on a TIC basis providing other bidding requirements are satisfied.

The district may sell debt using a negotiated process in extraordinary circumstances when the complexity of the issue requires specialized expertise, when the negotiated sale would result in substantial savings in time or money, or when market conditions of district credit are unusually volatile or uncertain.

Professional Service Providers: The district will retain external bond counsel for all debt issues. All debt issued by the district will include a written opinion by bond counsel affirming that the district is authorized to issue the debt, stating that the district has met all Iowa constitutional and statutory requirements necessary for issuance and determining the debt’s federal income tax status. The bond counsel retained must have comprehensive municipal debt experience and a thorough understanding of Iowa law as it relates to the issuance of the particular debt.

The district will retain an independent financial advisor. The financial advisor will be responsible for structuring and preparing all offering documents for each debt issue. The financial advisor retained will have comprehensive municipal debt experience, experience with diverse financial structuring and pricing of municipal securities.

The board treasurer shall have the authority to periodically select other service providers (e.g., escrow agents, verification agents, trustees, arbitrage consultants, rebate specialists, etc.) as necessary to meet legal requirements and minimize net debt costs. These services can include debt restructuring services and security or escrow purchases.

Compensation for bond counsel, financial advisor, and other service providers will be as economical as possible and consistent with industry standards for the desired qualification levels.

DEBT MANAGEMENT
Investment of Debt Proceeds: The district shall invest all proceeds received from the issuance of debt separate from the district’s consolidated cash pool unless otherwise specified by the authorizing bond resolution or trust indenture. Investments will be consistent with those authorized by Iowa law and the district’s investment policy to maintain safety of principal and liquidity of the funds.

Arbitrage and Recordkeeping Compliance: The board treasurer shall maintain a system of recordkeeping, reporting, and compliance procedures with respect to all federal tax requirements which are currently, or may become applicable, through the lifetime of all tax-exempt or tax credit bonds.

Federal tax compliance, recordkeeping, reporting, and compliance procedures shall include, but not be limited to:

1. Post-issuance compliance procedures (including proper use of proceeds, timely expenditure of proceeds, proper use of bond financed property, yield restriction and rebate, and timely return filing);
2. Proper maintenance of records to support federal tax compliance;
3. Investments and arbitrage compliance;
4. Expenditures and assets;
5. Private business use; and
6. Designation of primary responsibilities for federal tax compliance of all bond financings.

Financial Disclosure: The district is committed to full and complete financial disclosure and to cooperating fully with rating agencies, institutional and individual investors, other levels of government, and the general public to share comprehensible and accurate financial information. The district is dedicated to meeting secondary disclosure requirements on a timely and comprehensive basis, as promulgated by the Securities and Exchange Commission.

The official statements accompanying debt issues, annual audits, and continuing disclosure statements will meet the standards articulated by the Municipal Securities Rulemaking Board (MSRB), the Government Accounting Standards Board (GASB), the Securities and Exchange Commission (SEC), Generally Accepted Accounting Principles (GAAP), and the Internal Revenue Service (IRS). The board treasurer shall be responsible for ongoing debt disclosure as required by any continuing disclosure certificate for any debt issue and to maintain compliance with disclosure standards promulgated by state and federal regulatory bodies.

---

Adopted: 6/99
Reviewed: 7/10; 10/12; 5/15; 12/18; 1/22
Revised: 12/13; 3/25
Related Policy: 801.4; 802.9-R1
Legal Reference (Code of Iowa): §§ 74-76; 278.1; 298; 298A
IASB Reference: 704.02

The amount of cash that may be kept in the school buildings for any one day is sufficient for that day’s operations. Funds raised by students are kept in a safe in a secured area and then deposited in the authorized depository in a timely manner.

The minimal amount of cash is kept in the central administration office at the close of the day. Excess cash is deposited in the authorized depository of the district.

It is the responsibility of the superintendent [or designee] to develop administrative regulations to determine the amount of cash necessary for each day’s operations, to establish any necessary petty cash accounts, to determine how often deposits must be made, and to comply with this policy.

---

Adopted: 7/10
Reviewed: 10/12; 12/13; 5/15; 12/18
Revised: 1/22; 1/25
Related Policy: 802.8
Legal Reference (Code of Iowa): § 279.8
IASB Reference: 702

The Linn-Mar Board of Education believes that certain online fundraising campaigns, including crowdfunding campaigns, may further the interests of the district. The district has determined that donorschoose.org is the only approved crowdfunding source.

District employees wishing to post a project on donorschoose.org must submit a grant approval request form through the business office. Once the request is approved, the person may post the project on the website.

Any fundraising efforts conducted using the district’s name, symbols, or imagery will be conducted in accordance with all policies, regulations, and rules for fundraising within the district. Items raised by an online fundraising campaign will be the property of the district only upon acceptance by the board and will be used only in accordance with the terms for which they were given as agreed to by the board.

Approval of requests will depend on factors including but not limited to:

1. Compatibility with the district’s educational program, mission, vision, core values, and beliefs;
2. Congruence with the district and school goals that positively impact student performance;
3. The district’s instructional priorities;
4. The manner in which donations are collected and distributed by the crowdfunding platform;
5. Equity in funding; and
6. Other factors deemed relevant or appropriate by the district.

If approved, the requestor is responsible for preparing all materials and information related to the online fundraising campaign and keeping district administration apprised of the status of the campaign.

The requestor is responsible for compliance with all state and federal laws and other relevant district policies and procedures. All items and money generated are subject to the same controls and regulations as other district property and are deposited or inventoried accordingly. No monies raised or items purchased will be distributed to individual employees.

---

Adopted: 6/16
Reviewed: 12/18
Revised: 1/22
Related Policy: 505.1; 801.5; 802.1; 1005.4; 1005.4-R; 1005.4-E1-E2
Legal Reference (Code of Iowa): §§ 279.8; 279.42; 565.6
IASB Reference: 704.06

The board supports economic development in Iowa, particularly in the district community. As permitted by law, purchasing preference will be given to Iowa goods and services from locally-owned businesses located within the district or Iowa based companies if the cost and other considerations are relatively equal and meet the required specifications. However, when spending federal Child Nutrition Funds, geographical preference is allowed only for unprocessed agricultural food items as part of response evaluation. Other statutory purchasing preferences will be applied as provided by law, including goals and reporting with regard to procurement from certified targeted small businesses, minority-owned businesses, and female-owned businesses.

GOODS AND SERVICES
The board shall enter into goods and services contract(s) as the board deems to be in the best interest of the district. It shall be the responsibility of the superintendent to approve purchases, except those requiring board approval as described below or as provided by law. The superintendent may coordinate and combine purchases with other governmental bodies to take advantage of volume price breaks. Joint purchases with other political subdivisions will be considered in the purchase of equipment, accessories, or attachments with an estimated cost of $50,000 or more.

Purchases for goods and services shall conform to the following:

1. The superintendent shall have the authority to authorize purchases without prior board approval and without competitive request for proposals, quotations, or bids for goods and services up to $25,000;
2. For goods and services costing at least $25,000 and up to $50,000, the superintendent shall receive proposals, quotations, or bids for the goods and services to be purchased prior to board approval. The quotation process may be informal and include written or unwritten quotations; and
3. For goods and services exceeding $50,000, the competitive request for proposal (RFP) or competitive bid process shall be used and received prior to board approval. RFPs and bids are formal, written submissions via sealed process.

In the event that only one quotation or bid is submitted, the board may proceed if the quotation or bid meets the contract award specifications.

The contract award may be based on several cost considerations including, but not limited to the following:

1. The cost of the goods and services being purchased;
2. Availability of service and/or repair;
3. The targeted small business procurement goal and other statutory purchasing preferences; and
4. Other factors deemed relevant by the board.

The board may elect to exempt certain professional services contracts from the thresholds and procedures outlined above.

The thresholds and procedures related to purchases of goods and services do not apply to public improvement projects.

PUBLIC IMPROVEMENTS
The board shall enter into public improvement contract(s) as the board deems to be in the best interest of the district. “Public improvement” means “a building or construction work which is constructed under the control of a governmental entity and for which either of the following applies: (1) has been paid for in whole or in part with funds of the governmental entity; (2) a commitment has been made prior to construction by the governmental entity to pay for the building or construction work in whole or in part with funds of the governmental entity. This includes a building or improvement constructed or operated jointly with any public or private agency.”

The district shall follow all requirements, timelines, and processes detailed in Iowa law related to public improvement projects. The thresholds regarding when competitive bidding or competitive quotations is required will be followed. Competitive bidding is required for public improvement contracts exceeding the minimum threshold stated in law. Competitive quotations are required for public improvement projects that exceed the minimum threshold amount stated in law, but do not exceed the minimum set for competitive bidding. The board shall approve competitive bids and competitive quotes. If the total cost of the public improvement does not warrant either competitive bidding or competitive quotations, the district may nevertheless proceed with either of these processes if it so chooses.

The award of all contracts for the public improvement shall be awarded to the lowest responsive, responsible bidder. In the event of an emergency requiring repairs to a school district facility that exceed bidding and quotation thresholds, please refer to Policy 902.7.

The district shall comply with all federal and state laws and regulations required for procurement, including the selection and evaluation of contractors. The superintendent [or designee] is responsible for developing an administrative process to implement this policy including, but not limited to, procedures related to suspension and debarment for transactions subject to those requirements.

---

Adopted: 6/70
Reviewed: 7/10; 4/16; 12/18
Revised: 10/12; 12/13; 5/15; 11/18; 1/22; 6/24
Related Policy: 803.1-R1-R2; 902.7
Legal Reference (Code of Iowa): §§ 26; 28E; 72.3; 73; 73A; 285; 297; 301; 261 IAC 54; 281 IAC 43.25
IASB Reference: 705.01; 802.05

The board supports economic development in Iowa, particularly in The Corridor. Award of construction contracts should take into account the location of the business and should consider Iowa-based companies if the bids submitted are comparable in quality and can be executed without additional cost when compared to those submitted by other bidders. 

Public competitive sealed bids are required for construction projects including renovation and repair with a cost exceeding the statutory minimums required by law. The public competitive sealed bid requirement at the statutory minimums required by law is waived in the case of emergency repairs when the repairs are necessary to prevent the closing of a school. The AEA administrator will certify that the emergency repairs are necessary to prevent the closing of a school. The superintendent [or designee] will comply with the competitive quote process for those projects subject to the competitive quote law. The superintendent [or designee] will determine the process for obtaining quotes for projects below the competitive quote limit. The board will approve competitive bids and competitive quotes.

The award of construction contracts will generally be made to the lowest responsive, responsible bidder. Criteria for consideration in determining responsible bidders includes but is not limited to:

1. History of project completion dates;
2. Timeliness of work progress on prior projects;
3. Number, cost, and quality of change orders on previous projects; and
4. Prior experience and qualifications of sub-contractors to do specified work.

The board in its discretion after considering factors relating to the construction including but not limited to the cost of the construction, availability of service and/or repair, completion date, and any other factors deemed relevant by the board may choose a bid other than the lowest bid. The board may also offer incentives for meeting project deadlines or penalties for exceeding project deadlines or assign contractors a risk factor based on past performance and experience. The board will have the right to reject any or all bids, or any part thereof, and to enter into the contracts deemed to be in the best interest of the school district.

It is the responsibility of the superintendent [or designee] to make a recommendation, and the reason for it, to the board for construction contract bids. The board secretary will recommend to the board which bid to accept.

---

Adopted: 5/09
Reviewed: 5/15; 4/16; 1/25
Revised: 10/12; 12/13; 12/18; 1/22
Related Policy: 803.2-R
Legal Reference (Code of Iowa): §§ 72; 73; 73A.2, .18; 297.7-8; HF 2713

The superintendent [or designee] is authorized to enter into an agreement with a financial institution for the use of district credit cards. Use of credit cards will be limited to expenditures necessary to conduct district business. Actual and necessary expenses incurred in the performance of work-related duties include, but are not limited to, travel expenses related to professional development or fulfillment of required job duties, payment of claims related to professional development of the board and employees, and other expenses required by employees and the board in the performance of their duties.

Employees and officers using a district credit or procurement card must submit a detailed, itemized receipt to substantiate all expenditures. Failure to provide a proper receipt will make the employee responsible for expenses incurred. Those expenses are reimbursed to the district no later than 10 working days following use of the district’s credit or procurement card. In exceptional circumstances, the superintendent [or designee] may allow a claim without proper receipt. Written documentation explaining the exceptional circumstances is maintained as part of the district’s record of the claim.

The superintendent [or designee] designates the employees authorized to use district credit cards for the purchase of appropriate goods and services for district purposes. The superintendent [or designee] will be responsible for establishing administrative procedures that, at a minimum, address the following:

1. Which employees are authorized to use district credit cards.
2. What types of goods and services each employee is authorized to purchase with a district credit card.
3. The maximum amount of any single transaction for each authorized employee.
4. The total maximum dollar amount of purchases for a monthly billing cycle for each authorized employee.

The district will instruct the credit card issuer in writing to block all credit card purchases of unauthorized goods and services, purchases of goods and services from unauthorized merchants, purchases in excess of the single transaction limit, and purchases in excess of the monthly billing cycle limit. District credit card purchases may be made by telephone, facsimile, over the internet, or onsite.

It is the responsibility of the superintendent [or designee] to determine whether the district credit or procurement card use is for appropriate school business. It is the responsibility of the board to determine through the audit and approval process of the board whether the district credit or procurement card used by the superintendent and the board is for appropriate school business.

District credit card users will be held accountable for appropriate use of district credit cards. Unauthorized use of a district credit card will be grounds for disciplinary action including termination of employment.

---

Adopted  2/05
Reviewed: 10/12;12/13; 5/15; 12/18
Revised: 7/08; 1/22
Related Policy: 803.3-R
Legal Reference (Code of Iowa): §§ 279.8, .29, .30; 281 IAC 12.3(1)
IASB Reference: 401.10
Mandatory Policy 

The board acknowledges that expenditures and use of district resources may be needed to support the decision-making process in conducting district business, promoting more efficient time frames for conducting business, promulgating a productive working climate, improving personnel well-being and morale, and nurturing a positive learning environment. To serve these purposes, the board supports appropriate expenditures and use of district resources for attainment of the district mission and strategic goals for official district activities and business.

The district is committed to managing and spending public funds in a transparent and responsible manner. Prior to making a purchase with public funds, an individual should be comfortable defending the purchase/reimbursement to the taxpayers in the district. If the individual is uncomfortable doing so, the purchase may not fulfill a public purpose, and additional guidance should be sought before the purchase is made.

Individuals who have concerns about the public purpose of a purchase or reimbursement should utilize the district’s internal controls policy and regulation as resources for questioning a purchase (Refer to policies 801.7 and 801.7-R). Concerns should be reported to the superintendent and/or the board president.

The superintendent [or designee] shall develop a process for approving expenditures of public funds. The board will review expenditures and applicable reports, as necessary, to ensure proper oversight of the use of public funds. To the extent possible, expenditures shall be pre-approved by the district prior to expending the funds. Purchases of food and refreshments for district staff, even within district, should comply with the district’s employee travel allowance policy and all other applicable policies (Refer to policies 803.10 and 803.10-R). All purchases/reimbursements shall comply with applicable laws, board policies, and district accounting requirements.

Additional guidance regarding appropriate expenditures of school funds is provided in the regulation accompanying this policy.

---

Adopted: 2/00
Reviewed: 7/10; 5/15; 12/18
Revised: 10/12; 12/13; 1/22; 4/25
Related Policy: 801.7; 801.7-R; 803.3; 803.3-R; 803.4-R; 803.10; 803.10-R
Legal Reference (Code of Iowa): §§ 68A.505; 279.8; 721.2; 281 IAC 98.70
Iowa Constitution, Art III, Sec 31
IASB Reference: 705.04

The Board of Directors authorizes the issuance of claims against the district for goods and services. The board will allow the payment after the goods and services have been received and accepted in compliance with board policy.

The board authorizes the board secretary/treasurer, upon approval of the superintendent, to issue payment for verified bills and for reasonable and necessary expenses when the board is not in session. The board secretary/treasurer will examine the claims and verify bills. The board will approve the bills at its next regular meeting.

The board secretary/treasurer will determine to their satisfaction that the claims presented to the board are in order and are legitimate expenses of the district. It is the responsibility of the board secretary/treasurer to bring claims to the board.

The board president and board secretary/treasurer may sign warrants by use of a signature plate or rubber stamp. If the board president is unavailable to personally sign warrants, the vice president may sign warrants on behalf of the president.

It is the responsibility of the superintendent [or designee] to develop the administrative regulations regarding this policy.

---

Adopted: 6/70
Reviewed: 10/12; 5/15; 12/18
Revised: 7/10; 12/13; 1/22; 3/25
Related Policy: 803.1; 803.2; 803.4; 803.7
Legal Reference (Code of Iowa): §§ 279.8, .29, .30, .36; 291.12; 721.2(5); 281 IAC 12.3(1)
IASB Reference: 705.03

The Board of Directors will, only when absolutely necessary, issue warrants for which there are no funds available for the payment of such warrants. 

If warrants are issued for which there are no funds available for payment of such warrants, the board secretary/treasurer will institute such procedures as stated in the Code of Iowa, Chapter 74, Sections 1-7 for the payment of said warrants.

---

Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 12/18; 1/22; 3/25
Related Policy: 803.6
Legal Reference (Code of Iowa): 74.1-7

Unless otherwise established through collective bargaining, it is the policy of the Board of Directors that all personnel of the district be paid monthly in accordance with the length of service stated on their contracts, and that all personnel will be paid on the 20^th day of each month except when the 20^th falls on a Saturday, Sunday, or a school holiday; wherein checks will be issued on the preceding workday.

The board authorizes the superintendent [or designee] to grant pay advances for new hires in an amount not to exceed the amount they would have earned by the time they receive the advance. The pay advance will be received on the next scheduled pay date.

All new employees hired after July 1, 2008, as a condition of employment, will be required to have their wages paid to them as a direct deposit into a financial institution of their own choosing unless any of the following conditions exist:

1. The cost to the employee of establishing and maintaining an account for purposes of the direct deposit would effectively reduce the employee’s wages to a level below the minimum wage provided under section 91D.1 of the Iowa Code;
2. The employee would incur fees charged to the employee’s account as a result of the direct deposit; or
3. The provisions of a collective bargaining agreement mutually agreed upon by the district and the employee organization prohibits the district from requiring the employee to sign up for direct deposit as a condition of hire.

---

Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 12/18; 1/22
Revised: 7/10; 3/25
Related Policy: 803.9
Legal Reference (Code of Iowa): §§ 20; 91A
IASB Reference: 706.01

Ease of administration is the primary consideration for payroll deductions, other than those required by law. Payroll deductions are made for federal income tax withholdings, Iowa income tax withholdings, federal insurance contributions, and the Iowa Public Employees Retirement System (IPERS). In addition, an employee may elect to have payments withheld for district-related and mutually agreed upon group insurance coverage and/or tax-sheltered annuity programs.

Written requests for the purchase of, or a change in, tax-sheltered annuities shall be on file in the payroll department 30 days prior to the desired effective date. Requests for reductions in gross wages for contributions to tax-sheltered annuities shall conform to the standards of the Internal Revenue Service (IRS) and all other governing and regulatory agencies in effect at the time of the request. Deductions for tax-sheltered annuities may be revoked 30 days after receiving a written request from the employee.

The district may deduct wages as required or allowed by state or federal law or by order of the court of competent jurisdiction.

It is the responsibility of the superintendent [or designee] to determine which additional payroll deductions will be allowed.

Payroll deduction requirements stated in the employee handbook, if any, will be followed.

---

Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 1/22
Revised: 7/10; 12/18; 3/25
Related Policy: 803.8
Legal Reference (Code of Iowa): §§ 91A.2(4), .3; 294.8-9; .16
IASB Reference: 706.02

Employees traveling on behalf of the school district and performing approved school district business will be reimbursed for their actual and necessary expenses. Actual and necessary travel expenses will include, but not be limited to, transportation and/or mileage costs, lodging expenses, meal expenses, and registration costs.

Travel within the school district and outside of the school district must be pre-approved by the superintendent [or designee]. Pre-approval will include an evaluation of the necessity of the travel, the reason for the travel, and an estimate of the cost of the travel to qualify as approved school district business.

All personnel of the school district are encouraged to use the district credit card for travel expenses authorized by the superintendent [or designee] and described in policies 803.3, 803.3-R, and 803.10-R for travel incurred under the policies of the Board of Directors. Travel expenses incurred without the use of a district credit card may be reimbursed according to administrative regulations.

All personnel will be reimbursed for any travel from their offices while in the performance of their assigned duties at the mileage rate/per mile as set by the State of Iowa. This does not include travel to and from work and home, but it does include any required travel expenses between district facilities.

---

Adopted: 6/70
Reviewed: 12/13; 5/15; 12/18
Revised: 10/12; 1/22
Related Policy: 205.1; 803.3; 803.3-R; 803.10-R
IASB Reference: 401.07; 401.10

The Board of Directors, when it is deemed necessary, will seek the advice of their attorneys in all cases of special assessments against the district (i.e. paving, sewer, etc.). 

The recommendations of the attorneys will be given deep consideration as they relate to the recommended action of the Board of Directors in any special assessment case.

---

Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 12/18; 1/22; 3/25

The district recognizes the importance and value of fulfilling timely reporting requirements. Regularly providing updated financial information assists the board in making informed decisions for the future financial health of the district.

At the annual meeting, the board treasurer will give the annual report stating the amount held over, received, paid out, and on hand in the general fund and all other funds. This report is in written form and sent to the board with the agenda for the board meeting. The board treasurer will also furnish the board with a statement from each depository showing the balance then on deposit. It is the responsibility of the board treasurer to submit this report to the board annually.

The board secretary will report to the board each month about the receipts, disbursements, and balances of the various funds. This report will be in written form and sent to the board with the agenda for the board meeting.

Following board approval, each month the schedule of bills allowed by the board is published in a newspaper designated as the newspaper for official publication. Annually, the total salaries paid to employees regularly employed by the district will also be published in a newspaper designated as the newspaper for official publication. It is the responsibility of the board secretary to publish these reports in a timely manner.

---

Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 12/18; 1/22
Revised: 7/10; 3/25
Legal Reference (Code of Iowa): § 279; 291.7; 618
IASB Reference: 707.01

In accordance with state law, to review the funds and accounts of the district, the board will employ an independent auditor certified in the state of Iowa to perform an annual audit of the financial affairs of the district. The superintendent [or designee] will use a request for proposal procedure in selecting an auditor. The administration will cooperate with the auditors. Annual audit reports will be filed with the State Auditor and remain on file as permanent records of the district.

To ensure an unbiased audit, if the same firm is conducting the annual audit, then the members of the audit team must be changed every other year. As the board selects and approves the auditors for the annual audits and considers the contract duration, consideration will be given to changing audit firms every six years.

---

Adopted: 6/70
Reviewed: 10/12; 12/18; 1/22
Revised: 7/10; 12/13; 5/15; 3/25
Related Policy: 804.1
Legal Reference (Code of Iowa): §11.6
IASB Reference: 707.04

School district records are housed in the central administration office of the school district. It is the responsibility of the superintendent and board secretary as custodian of district records, or their designee, to oversee the maintenance and accuracy of the records. The following records are kept and preserved according to the schedule below:

Record	Length of Time
Board Secretary's Financial Records	Permanently
Board Treasurer's Financial Records	Permanently
School Board Election Results	Permanently
Board of Directors Open Meeting Minutes	Permanently
Recordings and Minutes of Closed Board Meetings	1 year
Individual Student's Permanent Records	Permanently
Annual Audit Reports	Permanently
Annual Budgets	Permanently
Real Property Records (e.g. Deeds, Abstracts, etc.)	Permanently
Records of Payments of Judgements Against the District	20 years
Bonds and Bond Coupons	11 years after maturity, cancellation, transfer, redemption, and/or replacement
Written Contracts	11 years
Cancelled Warrants, Check Stubs, Bank Statements, Bills, Invoices, and Related Records	5 years
School Meal Program Accounts and Records	3 years after submission of the final claim for reimbursement
Program Grants	As determined by the grant
Non-Payroll Personnel Records	7 years after leaving the district
Payroll Personnel Records	3 years after leaving the district
Payroll Records	3 years
Employment Applications	2 years
Records of complaints of sex discrimination and conduct that reasonably may constitute sex discrimination, plus all responsive records, outcomes, and training materials on the topic	7 years
District Emails	At least 1 year, unless otherwise specified by law based on the subject matter of the email
Surveillance Video Footage	30 days

In the event that any federal or state agency requires a record to be retained for a period of time longer than that listed above for audit purposes or otherwise, the record shall be retained beyond the listed period as long as is required for the resolution of the issue by the federal or state agency.

Employee records are housed in the central administration office of the district. Employee records are maintained by the superintendent, the building administrator, the employee’s immediate supervisor, the human resources director, and the custodian of district records.

An inventory of the furniture, equipment, and other nonconsumable items other than real property of the district is conducted annually under the supervision of the superintendent. This report is filed with the board secretary.

The permanent and cumulative records of students currently enrolled in the district are housed in the central administration office of the attendance center where the student attends. Permanent records shall be housed in a fire resistant safe or vault or electronically with a secure backup file. The building administrator is responsible for keeping these records current. Permanent records of students who have graduated or are no longer enrolled in the district will be housed in an appropriately safe and secure storage area or facility and will be retained permanently. These records will be maintained by the custodian of district records. Cumulative records will be maintained for a period of at least five years after the student graduates or otherwise ends enrollment in the district. Special education records shall be maintained in accordance with applicable federal or state law.

The custodian of district records may digitize or otherwise electronically retain district records and may destroy paper copies of the records. An electronic record which accurately reflects the information set forth in the paper record after it was first generated in its final form as an electronic record and which remains accessible for later reference meets the same legal requirements for retention as the original paper record. 

District officers, administrators, and employees are strongly encouraged to use district-provided accounts and devices to conduct all district business. If an officer, administrator, or employee conducts district business on a personal device or account, the individual is hereby notified that those constitute records of the district and must be retained in accordance with this policy. Furthermore, records of the district that exist on an individual’s personal device or account may be subject to disclosure upon a Freedom of Information Act (FOIA) request.

---

Adopted: 6/99
Reviewed: 10/12; 12/18; 1/22
Revised: 5/15; 4/16; 8/23; 7/25
Related Policy: 403.16-16R; 505.61
Legal Reference (Code of Iowa): §§ 22.3; 22.7; 91A.6; 279.8; 291.6;
554D.114; 554D.119; 614.1(13); 281 IAC 12.3(4); 41.624
IASB Reference: 708
Mandatory Policy

The board will maintain a comprehensive property and casualty insurance program to provide adequate coverage against major types of risk, loss, or damage, as well as legal liability. The board will purchase insurance for the replacement values, when possible, after reviewing the costs and availability of such insurance. The comprehensive insurance program will be reviewed once every three years. Insurance will only be purchased through legally licensed Iowa insurance agents.

The school district will assume the risk of property damage, legal liability, and dishonesty in cases in which the exposure is so small or dispersed that a loss would not significantly affect the operation of the education program or financial condition of the school district.

The board may retain a private appraisal agency for inventory and appraisal value services. An itemized statement of the appraised value of school district facilities will be kept. The appraisal will be updated at least once every five years. Insurance will only be purchased through legally licensed Iowa insurance agents.

Administration of the insurance program, placing the insurance coverage, and loss prevention activities is the responsibility of the superintendent [or designee]. The board secretary/treasurer [or designee] is responsible for maintaining property appraisals, inventory processing claims, and maintaining loss records.

It is the responsibility of the superintendent [or designee] to recommend, when necessary, the use of a private appraisal agency and make recommendations to the board for the purchase of additional insurance coverage.

---

Adopted: 6/70
Reviewed: 10/12; 5/15; 12/18; 3/25
Revised: 12/13; 1/22
Legal Reference (Code of Iowa): §§ 20.9; 85.2; 279.12, .28; 285.5(6), .10(6); 296.7; 298A; 517A.1; 670.7
IASB Reference: 709

The safety and security of the school community is paramount to the Linn-Mar Community School District. While there is no absolute guarantee of safety, it is the goal of the district to encourage and support a physically secure learning and working environment within its buildings. The district shall work in conjunction with community stakeholders including local emergency management coordinators and local law enforcement agencies to create emergency operations plans for all district buildings and school buildings where students are educated.

The superintendent [or designee] shall be responsible for the development, review, and implementation of the district emergency operations plans. The plans shall include procedures for transmitting alerts regarding emergency situations to students, school personnel, and employers for non-school employees whose presence is regularly required in the school buildings. The plans will also identify methods that a parent or guardian of a student may use to communicate with their student during an emergency situation. The district emergency operations plans shall be updated and reviewed annually by the board and shall address responses to natural disasters, active shooter scenarios, and other emergencies as determined by the district. The district emergency operations plans are confidential and shall not be subject to disclosure under Iowa Code Chapter 22. However, the district shall publish procedures for students, parents and family members, and school personnel to report possible safety threats on school grounds and at school activities.

The administration shall hold annual emergency operations drills at each district building covered by an emergency operations plan in accordance with law. The district shall determine which school personnel will participate and whether local law enforcement and students participate in annual drills.

---

Adopted: 9/19
Reviewed: 1/22
Revised: 7/25
Related Policy: 504.7; 504.10; 701.11; 807.1; 902.12
Legal Reference (Code of Iowa): §280.30
IASB Reference: 507.05; 804.02