800 Series: Business Procedures

FISCAL MANAGEMENT

Reviewed 1/22 801.1 Planning, Preparation, Requirements, and Publication of the Budget
Reviewed 1/22 801.2 Budget Implementation
Revised 8/23 801.3 Transfer of Funds
Revised 1/22 801.4 General Fund Reserves and Fund Balance Reporting
Reviewed 1/22 801.5 Student Activities Fund
Revised 10/22 801.6 Capital Assets
Reviewed 1/22 801.7 Internal Controls
Reviewed 1/22 801.7-R Administrative Regulations Regarding Internal Control Procedures
Reviewed 1/22 801.8 Financial Records

INCOME

Revised 1/22 802.1 Local, State, Federal, and Miscellaneous Revenue
Reviewed 1/22 802.3 Educational Supply Fees
Revised 1/22 802.3-R Administrative Regulations Regarding Educational Supply Fees
Revised 1/22 802.6 Investments
Reviewed 1/22 802.7 Gifts, Grants, and Bequests
Reviewed 1/22 802.8 Depository of Funds
Reviewed 1/22 802.9 Debt Management
Revised 1/22 802.9-R1 Administrative Regulations Regarding Debt Management
Reviewed 1/22 802.9-R2 Administrative Regulations Regarding Post-Issuance Compliance Regulations
Revised 1/22 802.10 Cash in School Buildings
Revised 1/22 802.11 Online Fundraising Campaigns/Crowdfunding

EXPENDITURES

Revised 1/22 803.1 Purchasing/Bidding: Goods and Services
Reviewed 1/22 803.1-R1 Administrative Regulations Regarding Purchasing
New 1/22 803.1-R2 Purchasing/Bidding: Procedures for Contracts and Purchases Paid with Federal Funds
Revised 1/22 803.2 Bids and Awards for Construction Contracts
Revised 1/22 803.2-R Administrative Regulations Regarding Bids and Awards for Construction Contracts
Revised 1/22 803.3 District Credit Card Use
Revised 1/22 803.3-R Administrative Regulations Regarding District Credit Card Use
Revised 1/22 803.4 Public Purpose and Use of Public Funds
Revised 1/22 803.4-R Administrative Regulations Regarding Public Purpose and Use of Public Funds
Reviewed 1/22 803.5 Receiving Equipment, Supplies, and Services
Revised 1/22 803.6 Approval and Payment for Goods and Services
Reviewed 1/22 803.7 Unpaid Warrants
Reviewed 1/22 803.8 Payroll Periods
Reviewed 1/22 803.9 Payroll Deductions
Revised 1/22 803.10 Travel Allowances
Revised 1/22 803.10-R Administrative Regulations Regarding Travel Allowances
Reviewed 1/22 803.11 Special Assessments

REPORTS

Reviewed 1/22 804.1 Financial Reports and Statements
Revised 1/22 804.2 Treasurer's Annual Report
Reviewed 1/22 804.3 Audits

RECORDS

Revised 8/23 805.2 Care, Maintenance, and Disposal of Records

BUSINESS MANAGEMENT

Revised 1/22 806.1 Insurance Program and Review

EMERGENCY PLANS

Reviewed 1/22 807.2 District Emergency Operations Plans

        

801 - Fiscal Management

801.1 - Planning, Preparation, Requirements, and Publication of the Budget

The planning of the budget document will be a continuous process and will involve long-term planning, study, and deliberation by the Superintendent of Schools, the Board of Directors, administrative staff, faculty, and citizens of the school district.

This budget process will include the following three phases:

  1. Educational program and its impact upon the budget
  2. Estimated income
  3. Estimated expenditures

Prior to certification of the budget, the board will review the projected revenues and expenditures for the school district and make adjustments where necessary to carry out the education program within the revenues projected.

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

  1. The amount of revenues from sources other than taxation
  2. The amount of revenues to be raised by 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 15th deadline each year.

Prior to the adoption of the proposed budget by the board, the public will be apprised of the proposed budget for the school district. Prior to the adoption of the proposed budget by the board, members of the school 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 15th.

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 school district. It is the responsibility of the board secretary to publish the proposed budget and public hearing information at least 10 days, but no more than 20 days, prior to the public hearing.

The board will adopt and certify a budget for the operation of the school district to the county auditor by April 15th. It is the responsibility of the board secretary to file the adopted and certified budget with the county auditor and other proper authorities.

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. Prior to the board approving the amendment, the board secretary will publish the proposed budget amendment and public hearing information at least 10 days, but no more than 20 days, prior to the public hearing.


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

801.2 - Budget Implementation

The final certified budget will be considered as the authority for all expenditures to be made during the fiscal year.

Any expenditure to be made that exceeds the final certified budget will be made only in accordance with procedures specified by the Code of Iowa.

These procedures permit the expenditure of closing cash balances of the preceding fiscal year and the expenditure of unanticipated income from sources other than taxation during a fiscal year by amending the budget. 


Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 1/22
Revised: 7/10; 12/18
Legal Reference (Code of Iowa): § 24.9
IASB Reference: 703.2

801.3 - Transfer of Funds

The board may loan monies between funds through an official board resolution. The resolution must specify the funds from which and to which the transfer will be made. The board will exercise this authority judiciously.

When the necessity for a fund has ceased to exist, or when the board is given authority to transfer categorical or other funds and has met the conditions of exercising the authority, the balance may be transferred to another fund or account or the expenditures may be directed by board resolution, as required. School district monies received for a specific purpose or upon vote of the people may only be transferred by board resolution when the purpose for which the monies were received has been completed or when authority to exercise local discretion to expend funds flexibility has been granted. Voter approval is required to transfer monies to the general fund from the capital projects fund and debt service fund unless state authority allows such a transfer without a vote.

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 public hearing, be transferred by resolution of the school board for deposit into the general fund to be used for district general fund purposes. The district will present a copy of the signed board resolution to the Department of Education.

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

A temporary transfer, a loan from one fund to another, will be at a rate of interest consistent with the state rate. The loan will be paid off by October 1st of the following fiscal year to which the loan was made. 

It is the responsibility of the board secretary [or designee] to make recommendations to the superintendent and the board regarding loans and transfers and to provide supporting evidence for the transfer.


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

801.4 - General Fund Reserves and Fund Balance Reporting

General Fund Budget: The district shall prepare an annual five-year general fund budget forecast that includes estimates of unspent authorized budget (spending authority) as well as restricted, assigned and unassigned fund balances available at the end of each fiscal year. The estimates shall be prepared utilizing scenarios for likely State Supplementary Assistance (SSA) rates and enrollment projections. The projections shall include estimates of property tax rates and income surtax rates, if applicable.

The treasurer shall report monthly to the school 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.

A contingency reserve will be established at 0.2% of budgeted general fund expenses at the beginning of each fiscal year to provide for unanticipated expenditures of a non-recurring nature, to meet unexpected minor increases in service delivery costs, and to pay for needs caused by unforeseen emergencies.

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). 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.
  2. 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 30th, but only after completion of the certified annual report.

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: Financial reporting for the balances in the district’s governmental funds is based on Governmental Accounting Standards Board (GASB) Statement 54, Fund Balance Reporting, and Governmental Fund Type Definitions.

Fund balance refers to the difference between assets and liabilities in the governmental funds balance sheets. GASB Statement 54 establishes a hierarchy that is based on, “the extent to which the government is bound to honor constraints on the specific purpose for which the amounts in those funds can be spent.”

The governmental funds can have up to five fund balance classifications. The classifications are defined below from most to least restrictive.

  1. Non-spendable Fund Balance: Includes amounts that cannot be spent because they are either: (a) Not in spendable form or (b) 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: (a) Externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. This includes categorical balances.
  3. Committed Fund Balance: Reflects specific purpose 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.

The board authorizes the chief financial officer to assign general fund balance amounts for specific purposes in compliance with GASB 54.

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


Adopted: 12/13
Reviewed: 12/18
Revised: 5/15; 1/22
Legal Reference (Code of Iowa): §§ 257.31(4); 279.8; 291; 297.22-25; 298; 298A
IASB Reference: 701.3; 701.4

801.5 - Student Activities Fund

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. Upon recommendation by the respective building principal, students may use this revenue for purposes approved by the superintendent [or designee].

Whether such revenue is collected from student contributions, club dues, 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]. They 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 [or designee] to keep student activity accounts up-to-date and complete.

Any unencumbered activity account balances will automatically revert to the activity fund of the school when an activity is discontinued.


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

801.6 - Capital Assets

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 (ex: 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, 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). The federal regulations governing school meal programs requires capital assets attributable to the school meal 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 with a purchase price equal to or greater than $175,000, with a 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 capital assets managements system must be updated to account for the addition/acquisition, disposal, and/or relocation/transfer of capital assets. It is the responsibility 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
Legal Reference (Code of Iowa): §§ 257.31(4); 279.8; 297.22-25; 298A
IASB Reference: 802.4
Mandatory Policy

801.7 - Internal Controls

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

Internal control is the responsibility of all employees of the school district. The superintendent, chief financial officer, business manager, and board secretary [or designee] are responsible for developing internal controls designed to prevent and detect fraud, financial impropriety, or fiscal irregularities within the school district subject to review and approval by the board.  Administrators will 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 will report their suspicions immediately to their immediate supervisor, the superintendent, the business manager, or a Finance/Audit Committee member. The superintendent will have primary responsibility for any necessary investigations and will coordinate investigative efforts with the board’s legal counsel, auditing firm, 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 about a potential financial impropriety involves the superintendent, the concern will be brought to the attention of the board president or vice president who will be empowered to contact the board’s legal counsel, insurance agent, auditing firm, and any other agency to investigate the concern or complaint. As the elected leader of the board, the board president will manage the board and related actions including board meetings, analysis of information related to concerns and/or complaints, and all communication internally and externally to the district.

Upon approval of the board, the superintendent [or designee] may contact the state auditor or elect to employ the school district’s auditing firm to conduct a complete or partial forensic, internal control, SAS99 audit annually, or otherwise as often as deemed necessary.

The superintendent will ensure the state auditor is notified of any suspected embezzlement or theft pursuant to Iowa law. 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 school 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
Legal Reference (Code of Iowa): 11, 279.8
IASB Reference: 707.5; 707.5R1

801.7-R - Administrative Regulations Regarding Internal Control Procedures

Fraud, financial improprieties, or irregularities include but are not limited to:

  • Forgery or unauthorized alteration of any document or account belonging to the district.
  • Forgery or unauthorized alteration of a check, bank draft, or any other financial document.
  • Misappropriation of funds, securities, supplies, or other assets.
  • Impropriety in the handling of money or reporting of financial transactions.
  • Profiteering because of insider information of district information or activities.
  • Disclosing confidential and/or proprietary information to outside parties.
  • Accepting or seeking anything of material value other than items used in the normal course of advertising from contractors, vendors, or persons providing services to the district.
  • Destroying, removing, or inappropriately using district records, furniture, fixtures, or equipment.
  • Failing to provide financial records to authorized state or local entities.
  • Failure to cooperate fully with any financial auditors, investigators, or law enforcement.
  • Any other dishonest or fraudulent act involving district monies or resources.
  • Acting for purposes of personal financial gain, rather than in the best interest of the district.
  • Providing false, inaccurate, or misleading financial information to district administration or the board of directors.

The superintendent [or designee] will investigate reports of fraudulent activity in a manner that protects the confidentiality of the parties and the facts. All employees involved in the investigation will be advised to keep information about the investigation confidential.

If an investigation substantiates the occurrence of a fraudulent activity, the superintendent and/or board president or board vice president, if the investigation centers on the superintendent, will issue a report to the board and appropriate personnel. If final disposition of the matter and any decision to file or not file a criminal complaint or to refer the matter to the appropriate law enforcement and/or regulatory agency for independent investigation will be made in consultation with district legal counsel. The results of the investigation will not be disclosed to or discussed with anyone other than those individuals with a legitimate right to know until the results are made public.


Adopted: 5/09
Reviewed: 10/12; 12/13; 5/15; 12/18; 1/22
IASB Reference: 707.5; 707.5R1

801.8 - Financial Records

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

Governmental Fund Type:

  • General Fund
  • Special Revenue Fund
    • Management Levy Fund
    • Public Education and Recreation Levy Fund (PERL)
    • Student Activity Fund
  • Capital Projects Fund
    • Physical Plant and Equipment Levy Fund (PPEL)
    • Secure and Advanced Vision for Educaiton (SAVE)
  • Debt Service Fund

Proprietary Fund Type:

  • Enterprise Fund
    • School Nutrition Fund
    • Aquatic Center Fund
    • Student Store Fund
  • Internal Service Fund

Fudiciary Funds:

  • Trust
    • Expendable Trust Funds
    • Non-expendable Trust Funds
    • Pension trust Funds
  • Custodial Funds

Account Groups:

  • General Capital Assets Account Group
  • General Long Term Debt Account Group

The general fund is used primarily for the education program. Special revenue funds are used to account for monies restricted to a specific use by law. Capital project funds are used to account for financial resources to acquire or construct major capital facilities (other than those of proprietary funds and trust funds) and to account for revenues from SAVE. A debt service fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Proprietary funds account for operations of the school district operated similar to private business, or they account for the costs of providing goods and services provided by one department to other departments on a cost reimbursement basis. Fiduciary funds are used to account for monies or assets held by the school district on behalf of, or in trust for, another entity. The account groups are the accounting records for capital assets and long term debt.

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 chief financial officer to implement this policy and bring necessary changes in the maintenance of the school district’s financial records to the attention of the board.


Adopted: 3/17
Reviewed: 12/18; 1/22
Revised: 2/21
Related Policy (Code#): 801.1
Legal Reference (Code of Iowa): §§ 291; 298; 298A; 281 IAC 98
IASB Reference: 701.3

802 - Income

802.1 - Local, State, Federal, and Miscellaneous Revenue

Revenues of the school district are received by the board treasurer [or designee]. Other persons receiving revenues on behalf of the school 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 school district. It is the responsibility of the board treasurer to deposit the revenues received by the school 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. School district funds from all sources will not be used for private gain or political purposes.

Tuition fees received by the school 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 in accordance with state code. Materials fees received by the school district are deposited in the general fund. It is the responsibility of the superintendent [or designee] to recommend to the board when materials fees will be charged and the amount of the materials fees.

Rental fees received by the school district for the rental of school 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 school 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 school 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:

  • Goods and services directly and reasonably related to the educational mission;
  • Goods and services offered only to students, employees, or guests which cannot be provided by private enterprise as the same or lower cost;
  • Use of vehicles for charter trips offered to the public, full- or part-time, or temporary students;
  • Goods and services which are not otherwise available in the quantity or quality required by the school district;
  • Telecommunications other than radio or television stations;
  • Sponsoring or providing facilities for fitness and recreation;
  • Food service and sales; and
  • Sale of books, records, tapes, software, educational equipment, and supplies.

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


Adopted: 6/70
Reviewed: 12/13; 5/15; 12/18
Revised: 7/10; 10/12; 1/22
Related Policy (Code #): 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: 704.1

802.3 - Educational Supply Fees

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.


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

802.3-R - Administrative Regulations Regarding Educational Supply Fees

Students who are enrolled after the beginning of the school year will be charged a fee for consumable materials on the following schedule:

Enrolling In Amount of Fee
September 100%
October 100%
November 100%
December 85%
January 60%
February 60%
March 45%
April 45%
May 0%

 

 

 

 

 

 

 

 

 

 

Students who drop from enrollment in the district are entitled to a refund on the following schedule:

Withdrawing Enrollment Amount of Refund
September 50%
October 50%
November 50%
December 50%
January 25%
February 25%
March 0%
April 0%
May 0%

 

 

 

 

 

 

 

 

 

 

As granted by Policy 802.1 Local, State, Federal, and Miscellaneous Revenue, the district will use a collection agency to collect non-sufficient fund (NSF) checks and unpaid fees. At minimum, two attempts will be made via written correspondence.


Adopted: 4/05
Reviewed: 7/10; 10/12; 12/13; 5/15; 12/18
Revised: 1/13; 1/22
Related Policy (Code#): 802.3

802.6 - Investments

The Board of Directors hereby directs the board treasurer in conjunction with the board secretary to manage the investment of funds for the district. School 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
  3. To obtain a reasonable rate of return

In making investments, the school 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.

School district funds are monies of the district, including operating funds. Operating funds of the school 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%, the amount of public funds that exceed operating funds by greater than 33% 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 in conjunction with the board secretary to invest funds in excess of current needs in the following investments:

  • Interest bearing savings, money market, and checking accounts at the school district's authorized depositories
  • Iowa Schools Joint Investment Trust Program (ISJIT)
  • Obligations of the US government and its agencies and instrumentalities
  • Certificates of deposit and other evidence of deposits at federally insured Iowa depository institutions
  • All other investments authorized or hereafter authorized by the Code of Iowa

It is the responsibility of the board treasurer in conjunction with the board secretary to oversee the investment portfolio in compliance with this policy and the law and to report portfolio compliance to the superintendent semi-annually.

Where possible, it is the policy of the district to diversify its investment portfolio. Assets are diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer, or a specific class of securities.

It is the responsibility of the board treasurer in conjunction with the board secretary to bring a contract with an outside person to invest school 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 in conjunction with the board secretary 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 school 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 school district and to provide the documents necessary for the performance of the investment portion of the school district audit. Contracts with outside persons will not be based on the performance of the investment portfolio.

The board treasurer in conjunction with the board secretary is responsible for reporting to and reviewing with the superintendent, semi-annually, and with the board 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 is also the responsibility of the board treasurer in conjunction with the board secretary to obtain the information necessary to ensure that the investments and the outside persons doing business with the school district meet the requirements outlined in this policy.

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

It is also the responsibility of the board secretary in conjunction with 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 employee's responsibility for elements of the investment process, and to address the capability of the management. The board secretary in conjunction with 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
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: 704.3 Option III

802.7 - Gifts, Grants, and Bequests

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

Gifts, grants, and bequests with a value over $1,000 will be submitted for approval by the board. Once 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 accepted on behalf of the school 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 school 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
Revised: 4/09
Legal Reference (Code of Iowa): §§ 279.42; 565.6
IASB Reference: 704.4

802.8 - Depository of Funds

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 school district depository or depositories. The maximum deposit amount to be kept in the depository will be stated in the resolution. The amount stated in the resolution must be for all depositories and include all of the school district’s funds.

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


Adopted: 6/70
Reviewed: 7/10; 10/12; 12/13; 5/15; 12/18; 1/22
Revised: 6/99
Related Policy (Code #): 204.4; 802.1
Legal Reference (Code of Iowa): §§ 12C2; 279.33
IASB Reference: 701.1

802.9 - Debt Management

The school 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 school district recognizes that external economic, natural, or other events may, from time-to-time, affect the creditworthiness of its debt. Nevertheless, the school district is committed to ensuring that actions within their control are prudent.

The board may conduct an election for the authority to issue bonded indebtedness.  Revenues generated from an approved bond issue will be used only for the purpose stated on the ballot. Once the purpose on the ballot is completed, any balance remaining in a capital projects fund may be retained for future capital projects in accordance with the purpose stated on the ballot, or any remaining balance may be transferred by board resolution to the debt service fund or the physical plant and equipment levy (PPEL) fund. Voter approval is required to transfer monies to the general fund from the capital projects fund.

Revenues received from the issuing of bonded indebtedness will be deposited into the capital projects fund.


Adopted: 6/99
Reviewed: 7/10; 10/12; 5/15; 12/18; 1/22
Revised: 12/13
Related Policy (Code #): 801.4; 802.9-R1-R2
Legal Reference (Code of Iowa): §§ 74-76; 278.1; 298; 298A
IASB Reference: 704.2

802.9-R1 - Administrative Regulations Regarding Debt Management

GENERAL

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

For revenue debt, the school 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 school 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 USES OF DEBT

Capital Planning: To enhance creditworthiness and prudent financial management, the school district is committed to systematic capital planning, inter-governmental cooperation and coordination, and long-term financial planning. The district maintains, and annually updates, a 10-year facility plan and holds regular meetings of the Facility Advisory Committee to keep the plan updated.

Capital Financing: The school 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 school district include:

  • General Obligation Bonds
  • General Obligation Capital Loan Notes
  • Bond Anticipation Notes
  • Revenue Anticipation Notes
  • School Infrastructure Sales, Services, and Use Tax Revenue Bonds
  • Lease Purchase Agreements including Certificates of Participation

Working Capital Financing: The school 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 school 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.

Refunding: 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 school district, such as to release restrictive bond covenants which affect the operations and management of the school district.

In general, advance refunding for economic savings will be undertaken either: (a) When a net present value savings of at least four percent of the refunded debt can be achieved or (b) if the escrow structure results in a material negative arbitrage (i.e., the cost of the escrow is more expensive than the permitted cost of the escrow using then-current IRS rules), the net present value savings must be at least five percent of the refunded debt. Current refunding which produces a net present value savings of less than three percent (3%) will be considered on a case-by-case basis taking into consideration bond covenants and general conditions. Refunding 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 laws 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 school 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 school district will design the repayment of its overall debt to rapidly recapture its credit capacity for future use. 

Generally, the school district will only issue fixed-rate debt. In very limited circumstances, the school 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 school 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 school 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 school 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 school district is contemplating the issuance of debt, information will be developed concerning the following four categories commonly used by rating agencies assessing the school district’s credit worthiness:

  1. 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.
  2. 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 expenditure 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.
  3. Governmental and Administrative Analysis: Government organization structure, location of financial responsibilities and degree of control, adequacy of basic service provision, inter-governmental cooperation/conflict and extent of duplication, and overall planning efforts.
  4. Economic Analysis: Geographic and location advantages, population and demographic characteristics, wealth indicators, types of employment, industry and occupation, housing characteristics, new construction, evidences 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 school 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 school 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 the school district credit are unusually volatile or uncertain.

Professional Service Providers: The school district will retain external bond counsel for all debt issues. All debt issued by the school district will include a written opinion by bond counsel affirming that the school district is authorized to issue the debt and stating that the school 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 school 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 [or designee] shall have the authority to periodically select other service providers (e.g., escrow agents, verification agents, trustees, arbitrage consultants, rebate specialist, 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 school district shall invest all proceeds received from the issuance of debt separate from the school 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 school district’s investment policy to maintain safety of principal and liquidity of the funds.

Arbitrage and Record Keeping Compliance: The district will maintain a system of record-keeping, reporting, and compliance procedures with respect to all federal tax requirements which are currently or may become applicable through the lifetime of all bonds in accordance with all arbitrage rules and rebate requirements. Such issues of compliance to review should include but are not limited to:

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

Financial Disclosure: The school 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 school 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, certified annual financial reports, annual fiscal audits, and continuing disclosure statements will meet the standards articulated by the appropriate regulatory body including but not limited to the Municipal Securities Rulemaking Board (MSRB), the Government Accounting Standards Board (GASB), and the Internal Revenue Service (IRS). The district may hire a consultant to assist with continuing disclosure statements as required by state and federal regulatory bodies. Any significant financial reports affecting or commenting upon the district will be forwarded to rating agencies and any material events will be reported.

The issuance of securities subjects the district to regulation and risk regarding disclosure provided to investors. The district is committed to providing timely, accurate, and complete disclosure. The district shall assess the risk based on the type of security being issued and the type of offering contemplated and shall hire third-party professional experts in their field to assist the district with the bond sale process and assist with risk mitigation.

In the event that the district is selling securities in a full public offering, the district shall engage legal counsel (whether bond counsel, disclosure counsel, or both) whose engagement shall include an opinion (often called a 10b-5 opinion) regarding the accuracy and completeness of the offering materials (often called the bond official statement). Bond counsel’s legal opinion shall cover all material legal and tax-related representations of the district.

The district shall weigh the merits and costs of hiring other third party professionals including financial advisors, underwriters, bank trustees, registrar and paying agent, and continuing disclosure dissemination agents on a case by case basis. The district notes that each potential professional offers specific skill sets not generally available to the district that may be advantageous to the district with respect to the specific offering being contemplated.


Adopted: 12/13
Reviewed: 5/15; 12/18
Revised: 1/22
Related Policy (Code #): 802.9; 802.9-R2; 804.1
Legal Reference (Code of Iowa): §§ 74-76; 278.1; 298; 298A
IASB Reference: 704.2; 704.2R1

802.9-R2 - Administrative Regulations Regarding Post Issuance Compliance Regulations

I. Role of Compliance Coordinator/Board Treasurer: The board treasurer shall:

  • Be responsible for monitoring post-issuance compliance
  • Maintain a copy of the transcript of proceedings or minutes in connection with the issuance of any tax-exempt obligations and obtain records that are necessary to meet the requirements of this regulation
  • Consult with bond counsel, rebate consultant, financial advisor, IRS publications, and such other resources as are necessary to understand and meet the requirements of this regulation
  • Seek out training and education to be implemented upon the occurrence of new developments in the area and upon the hiring of new personnel to implement this regulation

II. Financing Transcripts Filing and Retention: The board treasurer shall confirm the proper filing of an IRS 8038 Series return and maintain a transcript of proceedings and minutes for all tax-exempt obligations issued by the school district including but not limited to all tax exempt bonds, notes, and lease-purchase contracts. Each transcript shall be maintained until 11 years after the tax exempt obligation documents have been retired. The transcript shall include, at a minimum:

  1. Form 8038
  2. Minutes, resolutions, and certificate
  3. Certifications of issue price from the underwriter
  4. Formal elections required by the IRS
  5. Trustee statements
  6. Records of refunded bonds, if applicable
  7. Correspondence relating to bond financings
  8. Report of any IRS examinations for bond financings

III. Proper Use of Proceeds: The board treasurer shall review the resolution authorizing issuance for each tax exempt obligation issued by the school district and the district shall:

  1. Obtain a computation of the yield on such issue from the district’s financial advisor.
  2. Create a separate project fund (with as many sub-funds as shall be necessary to allocate proceeds among the projects being funded by the issue) into which the proceeds of issue shall be deposited.
  3. Review all requisitions, draw schedules, requests, invoices, and bills requesting payment from the project fund.
  4. Determine whether payment from the project fund is appropriate and, if so, make payment from the project fund (and appropriate sub-fund, if applicable).
  5. Maintain records of payment requests and corresponding records showing payment.
  6. Maintain records showing the earnings on, and investment of, the project fund.
  7. Ensure that all investments acquired with proceeds are purchased at fair market value.
  8. Identify bond proceeds or applicable debt service allocations that must be invested with a yield restriction and monitor the investments of any yield-restricted funds to ensure that the yield on such investments do not exceed the yield to which such investments are restricted.
  9. Maintain records related to any investment contracts, credit enhancement transactions, and bidding of financial products related to the proceeds.

IV. Timely Expenditure and Arbitrage/Rebate Compliance: The board treasurer shall review the tax exemption certificate (or equivalent) for each tax exempt obligation issued by the school district and the expenditure records provided in Section II of this regulation above and shall:

  1. Monitor and ensure that proceeds of each such issue are spent within the temporary period set forth in such certificate.
  2. Monitor and ensure that the proceeds are spent in accordance with one or more of the applicable exceptions to rebate as set forth in such certificate if the school district does not meet the small issuer exception for said obligation.
  3. Not less than 60 days prior to a required expenditure date, confer with bond counsel and a rebate consultant if the school district will fail to meet the applicable temporary period or rebate exception expenditure requirements of the tax exemption certificate.  In the event the school district fails to meet a temporary period or rebate exception:
  • Procure a timely computation of any rebate liability and, if rebate is due, file a Form 8038-T and arrange for payment of such rebate liability.
  • Arrange for timely computation and payment of yield reduction payments (as such term is defined in the Code and Treasury Regulations), if applicable.

V. Proper Use of Bond Financed Assets: The board treasurer shall:

  1. Maintain appropriate records and a list of all bond financed assets. Such records shall include the actual amount of proceeds (including investment earnings) spent on each of the bond financed assets.
  2. Monitor and confer with bond counsel with respect to all proposed bond financed assets:
    • Management contracts
    • Service agreements
    • Research contracts
    • Naming rights contracts
    • Leases or sub-leases
    • Joint venture, limited liability or partnership arrangements
    • Sale of property
    • Any other change in use of such asset
  3. Maintain a copy of the proposed agreement, contract, lease, or arrangement together with the response by bond counsel with respect to said proposal for at least three years after retirement of all tax exempt obligations issued to fund all or any portion of bond financed assets.
  4. Contact bond counsel and ensure timely remedial action under IRS regulations Sections 1.141-12, in the event the school district takes an action with respect to a bond financed asset which causes the private business tests or private loan financing test to be met.

VI. General Project Records: For each project financed with tax exempt obligations the board treasurer shall maintain, until three years after retirement of the tax exempt obligations or obligations issued to refund those obligations, the following:

  1. Appraisals, demand surveys, or feasibility studies
  2. Applications, approvals, and other documentation of grants
  3. Depreciation schedules
  4. Contracts respecting the project

VII. Advance Refunding: The board treasurer shall be responsible for the following current, post issuance, and record retention procedures with respect to advance refunding bonds.

  1. Identify and select bonds to be advance refunded with advice from internal financial personnel and a financial advisor.
  2. Identify, with advice from the financial advisor and bond counsel, any possible federal tax compliance issues prior to structuring any advance refunding.
  3. Review the structure with the input of the financial advisor and bond counsel of advance refunding issues prior to the issuance to ensure:
  • That the proposed refunding is permitted pursuant to applicable federal tax requirements if there has been a prior refunding of the original bond issue.
  • That the proposed issuance complies with federal income tax requirements which might impose restrictions on the redemption date of the refunded bonds.
  • That the proposed issuance complies with federal income tax requirements which allow for the proceeds and replacement proceeds of an issue to be invested temporarily in higher yielding investments without causing the advance refunding bonds to become arbitrage bond.
  • That the proposed issuance will not result in the issuer’s exploitation of the difference between tax exempt and taxable interest rates to obtain a financial advantage nor overburden the tax exempt market in a way that might be considered an abusive transaction for federal tax purposes.
  1. Collect and review data related to arbitrage yield restriction and rebate requirements for advance refunding bonds. To ensure such compliance, the board treasurer shall engage a rebate consultant to prepare a verification report in connection with the advance refunding issuance. Said report shall ensure said requirements are satisfied.
  1. Whenever possible, purchase state and local government series (SLGS) to size each advance refunding escrow. The financial advisor shall be included in the process of subscribing SLGS. To the extent SLGS are not available for purchase, the board treasurer shall, in consultation with bond counsel and the financial advisor, comply with IRS regulations.
  2. Ensure, after input from bond counsel, compliance with any bidding requirements set forth by the IRS regulations to the extent as issuer elects to the purchase of a guaranteed investment contract.
  3. In determining the issue price for any advance refunding issuance, obtain and retain issue price certification by the purchasing underwriter at closing.
  4. After the issuance of an advance refunding issue, ensure timely identification of violations of any federal tax requirements and engage bond counsel in attempt to remediate same in accordance with IRS regulations.

VIII. Continuing Disclosure: The board treasurer shall assure compliance with each continuing disclosure certificate and annually, per continuing disclosure agreements, file audited annual financial statements and other information required by each continuing disclosure agreement. The board treasurer will monitor material events as described in each continuing disclosure agreement and assure compliance with material event disclosure. Events to be reported shall be reported promptly, but in no event not later than 10 business days after the day of the occurrence of the event. Currently, such notice shall be given in the event of:

  1. Principal and interest payment delinquencies
  2. Non-payment related defaults, if material
  3. Unscheduled draws on debt service reserves reflecting financial difficulties
  4. Unscheduled draws on credit enhancements relating to the bonds reflecting financial difficulties
  5. Substitution of credit or liquidity providers or their failure to perform
  6. Adverse tax opinions, the issuance by the IRS of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax exempt status of the bonds or material events affecting the tax exempt status of the bonds
  7. Modifications to rights of holders of the bonds, if material
  8. Bond calls (excluding sinking fund mandatory redemptions), if material and tender offers
  9. Defeasances of the bonds
  10. Release, substitution, or sale of property securing repaying of the bonds, if material
  11. Rating changes on the bonds
  12. Bankruptcy, insolvency, receivership, or similar event of the issuer
  13. The consummation of a merger, consolidation, or acquisition involving the issuer or the sale of all or substantially all of the assets of the issuer other than in the ordinary course of business, the entry into a definitive agreement to undertake such action, or the termination of a definitive agreement relating to any such actions other than pursuant to its terms, if material
  14. Appointment of a successor or additional trustee or the change of name of a trustee, if material

Adopted: 12/13
Reviewed: 5/15; 12/18; 1/22
Related Policy (Code#): 802.9; 802.9-R1
Legal Reference (Code of Iowa): §§ 74-76; 278.1; 298; 298A
IASB Reference: 704.2; 704.2R1; 704.2R2

802.10 - Cash in School Buildings

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 school district.

It is the responsibility of the superintendent [or designee] to determine the amount of cash necessary for each day’s operations and to comply with this policy.


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

802.11 - Online Fundraising Campaigns/Crowdfunding

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 school 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: 704.6

803 - Expenditures

803.1 - Purchasing/Bidding: Goods and Services

The board supports economic development in Iowa. Purchases should take into account Iowa goods and services from locally-owned businesses located within the Corridor or from an Iowa based company which offers these goods or services if the cost and other considerations 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.

It is the responsibility of the superintendent [or designee] to approve purchases, except those authorized by or requiring direct board action. The superintendent [or designee] 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.

The superintendent [or designee] will have the authority to authorize purchases without competitive bids for goods and services costing under $25,000 without prior board approval. For goods and services costing more than $25,000 and less than $50,000, the superintendent [or designee] will receive quotes of the goods and services to be purchased prior to board approval. Major item purchases costing at least $50,000, including school buses, will require competitive sealed bids or proposals, except for emergency purchases and those professional services annually appointed/approved by the board for continual and ongoing services (i.e. legal and audit) or board-selected professional services such as those exempted by law from the requirements of competitive bids or quotations (i.e. architect or engineering design services). The purchase will be made from the lowest responsible bidder based upon total cost considerations including but not limited to the cost of the goods and services being purchased, availability of service and/or repair, delivery date, the targeted small business procurement goal, and other factors deemed relevant by the board. 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 board may elect to exempt certain professional service 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.

The board and superintendent [or designee] will have the right to reject any or all bids, or any part thereof and to re-advertise. If it is determined that a targeted small business which bid on the project may be unable to perform the contract, the superintendent [or designee] will notify the Department of Economic Development. The board will enter into such contracts as they deem are in the best interest of the school district.

The district will 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 the 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
Related Policy (Code #): 803.1-R1
Legal Reference (Code of Iowa): §§ 26; 28E; 72.3; 73; 73A; 285; 297; 301; 261 IAC 54; 281 IAC 43.25
IASB Reference: 705.1

803.1-R1 - Administrative Regulations Regarding Purchasing

The following regulations have been developed for the proper procurement of equipment, supplies, and services:

  1. All purchases must have prior authorization.
  2. All procurements will be initiated in the district’s electronic purchase order system.
  3. Persons authorized to use district-issued credit cards in conjunction with job responsibilities are permitted within the guidelines of Policy 803.3 District Credit Card Use to procure goods and/or services without a purchase order.

Adopted: 6/70
Reviewed: 712/13; 5/15; 12/18; 1/22
Revised: 10/12
Related Policy (Code #): 803.1

803.1-R2 - Purchasing/Bidding: Procedures for Contracts and Purchases Paid with Federal Funds

All vendors and/or contractors paid with federal funds shall be checked for suspension and debarment on www.sam.gov. The district shall not enter into transactions with parties that are debarred, suspended, or otherwise ineligible for participation in federal assistance programs or activities.

The district shall take affirmative steps as required by federal law with respect to small business, minority-owned business, and female-owned businesses, such as: (1) placing such businesses on solicitation lists; (2) soliciting such businesses whenever they are potential sources; (3) when economically feasible, dividing contracts into smaller tasks or quantities to allow participation from such businesses; (4) establishing delivery schedules that encourage participation by such businesses; (5) when appropriate, utilizing the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (6) requiring the primary contractor, when applicable, to follow these steps with respect to subcontractors.

Procurement for contracts paid with federal funds may be conducted by noncompetitive proposals when one or more of the following circumstances apply: (1) the intem is only available from a single source; (2) public exigency or emergency will not permit the delay resulting from competitive bids; (3) the federal awarding agency expressly authorizes noncompetitive proposals; or (4) competition is inadequate after soliciation of a number of sources.

The district shall ensure that contracts paid with federal funds contain the following provisions when applicable: (1) contracts over $150,000 shall address remedies, sancations, and/or penalties for breach of contract terms by contractors; (2) contracts over $10,000 shall address termination for cause and for convenience; (3) all contracts shall address Equal Employment Opportunity; (4) prime construction contracts in excess of $2,000 shall include a provision for compliance with the Davis-Bacon Act; (5) contracts over $100,000 that involve mechanics or laborers shall include a provision for compliance with 40 U.S.C. §§ 3701-3708; (6) if the federal award meets the definition of "funding agreement" under 37 CFR § 401.2, a provision regarding compliance with 37 CFR Part 401; (7) contracts and sub grants over $150,000 shall include a provision for compliance with the Clean Air Act and the Federal Water Pollution Controla Act; (8) all contracts shall include a provision for compliance with federal debarment and suspension requirements; (9) contractors that paply or bid for an award exceeding $100,000 must file the required certification under the Byrd Anti-Lobbying Amendment.

No district employee, officer, or agent may participate in the selection, award, and administration of contracts supported by a federal award if they have a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of their immediate family, their partner, or an organization which employes or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for contract. District officers, employees, and agents may neither solicit for or accept gratuities, favors, or anything of monetary values from contractors or parties to subcontracts. Violation of this requirement may result in disciplinary action for the district employee, officer, or agent.


Adopted: 1/22
Related Policy (Code #): 803.1; 803.1-R1
Legal Reference: Title 2 Code of Federal Regulation (CFR) Grants and Agreements,
Part 200 Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards

803.2 - Bids and Awards for Construction Contracts

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:

  • History of project completion dates
  • Timeliness of work progress on prior projects
  • Number, cost, and quality of change orders on previous projects
  • 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
Revised: 10/12; 12/13; 12/18; 1/22
Related Policy (Code #) 803.2-R
Legal Reference (Code of Iowa): §§ 72; 73; 73A.2, .18; 297.7-8; HF 2713

803.2-R - Administrative Regulations Regarding Bids and Awards for Construction Contracts

Public competitive sealed bids are required for construction projects including renovations and repairs with an estimated cost exceeding the statutory minimums required by law.

The competitive quote process is required for projects that exceed the statutory minimums stated by law but that do not exceed the minimums set for competitive bidding.

The superintendent [or designee] will determine the process for obtaining quotes for projects below the competitive quote statutory minimums.

The bid and quote process, while herein specified, may be adjusted with notice to accommodate exceptional conditions not limited to budget, time requirements, or construction conditions but shall not exceed statutory limits.


Adopted: 12/13
Revised: 5/15; 12/18; 1/22
Related Policy (Code#): 803.2

803.3 - District Credit Card Use

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 expenditures 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 school 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 school district no later than 10 working days following use of the school 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 school 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 school 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 school district credit or procurement card used by the superintendent and 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
 

803.3-R - Administrative Regulations Regarding District Credit Card Use

The Linn-Mar Community School District feels that credit cards can help aid administration take care of school business in an efficient manner. With this in mind, the use of a credit card will only be allowed for certain purchases. These purchases include the following:

  1. Hotel/Motel Expenses: Employees are expected to use the most cost effective lodging option when traveling. Additional costs incurred above the cost of the room not related to business are the responsibility of the employee.
     
  2. Travel:
    1. Employees are expected to use the most cost effective airfare when traveling to a destination with a distance exceeding 350 miles. Only coach class tickets are allowed.
    2. Vehicle parking charges.
       
  3. Meals:
    1. Are allowed in an amount not to exceed $50.00 per person per day. No single meal (e.g. breakfast, lunch, or dinner) should exceed $30.00. The total cost of meals will be the actual cost (less tips and any unwaived sales tax) not exceeding $50.00 for a full day’s total.
    2. Gratuities are allowed up to 20 percent. Gratuities above 20 percent will require reimbursement from the employee to the district.
    3. Reimbursement for alcoholic beverages is not permitted.
       
  4. Registrations: Conference registrations are allowed to be charged as long as the conference has been approved.
     
  5. Internet Purchases: Purchase of materials via the Internet are allowed with prior approval of the district or site administrator.
     
  6. Other Purchases: Other purchases will be allowed with prior approval of the site administrator. Credit card purchases in excess of $5,000 need approval of the superintendent [or designee].

All employees who use a district credit card will turn in itemized receipts. Any charges made without verifiable receipts will require the employee to reimburse the district for the charges.

It is also a requirement of the employee to present a copy of the district’s tax exempt certificate with all purchases to ensure that sales tax is not charged, failure to do so could require the employee to reimburse the district the sales tax charge.


Adopted: 3/05
Reviewed: 7/10; 5/15
Revised: 10/12; 12/13; 8/17; 12/18; 1/22
Related Policy (Code#): 803.3
IASB Reference: 401.10

803.4 - Public Purpose and Use of Public Funds

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 districts internal controls policy and regulations (Refer to policies 801.7 and 801.7-R) as resources for questioning a purchase. Concerns should be reported to the superintendent and/or the board president.

The superintendent 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 (Refer to policies 803.10 and 803.10-R), and all other applicable policies. All purchases/reimbursements shall comply with applicable laws, board policies, and district accounting requirements.


Adopted: 2/00
Reviewed: 7/10; 5/15; 12/18
Revised: 10/12; 12/13; 1/22
Related Policy: 801.7; 801.7-R; 803.3; 803.3-R; 803.4-R; 803.10; 803.10-R
IASB Reference: 705.4; 705.4R1

803.4-R - Administrative Regulations Regarding Public Purpose and Use of Public Funds

The following is a list of examples organized by activity for what is allowable, or not allowable, as a purchase/reimbursement using public funds. This regulation is intended as guidance and there may be situations that are not listed here. Any questions regarding the appropriateness of an expenditure should be submitted prior to expending funds.

  • Use of Credit/Procurement Card: All purchases through a district-owned credit or procurement card shall be pre-approved and comply with district policies 803.3 and 803.3-R.
  • Mileage: Individuals who are required to travel (other than to and from work) as part of fulfilling their job duties to the district shall be reimbursed for mileage costs in accordance with the requirements stated in policies 803.10 and 803.10-R regarding travel allowances.
  • Travel Accommodations: Employees who are required to travel and stay overnight as part of fulfilling their job duties to the district shall be reimbursed for costs in accordance with the requirements stated in policies 803.10 and 803.10-R regarding travel allowances.
  • Alcohol: Alcohol is a personal expense and is never allowable for purchase or reimbursement using public funds.
  • Retirement and Recognition Gifts: Recognizing an employee or volunteer’s years of dedication to educating the community and commitment to the district serves a public purpose by honoring individuals with a token gift or honorarium in recognition of their service. The same is true for individual awards, mementos, or items purchased in recognition of employee service to the district. These purchases may use public funds provided the expenditures are modest and approved by the superintendent.
  • Honoraria: District employees may, at times, receive an honorarium from an outside source as compensation for the employee’s time devoted to preparing and delivering a presentation within the scope of their professional field. Honorariums may only be accepted by employees when they have used their personal time outside of their work for the district to prepare and deliver the presentation. If the employee uses district time or resources to prepare or deliver a presentation, any honorarium shall be given to the district.
  • Memorial Gifts: Memorial flowers to convey sympathy or congratulations are allowable as a public expense if they have been approved by the superintendent. Memorial cards are always appropriate. Memorial gifts of any sort other than flowers and/or a card are a personal expense.
  • Breakroom Supplies: The purchase of perishable or disposable supplies for employee breakrooms is primarily designed for individual consumption and is a personal expense. This includes items such as coffee, coffee filters, plates, cups, spoons, napkins, etc.
  • Supplies for Public Areas: Limited refreshments, such as water and coffee, may be available in public reception areas of the district including, but not limited to, the central office, the building administrator’s office, etc. These refreshments may be purchased with the use of public funds as they provide light refreshment to members of the community.
  • Food/Refreshments: Food and refreshments are typically a personal expense. Meetings spanning mealtimes should be avoided when possible. When a district meeting is required to take place spanning a customary mealtime, the superintendent [or designee] shall determine whether food and/or refreshments will be provided to employees whose presence is required during the meeting. The cost of food and refreshments for employees shall be reasonable and, when possible, a separate itemized receipt for each employee is required. If an itemized receipt is not available, approval is required by the school business official prior to reimbursement

The superintendent [or designee] may approve payment from the general fund in a reasonable amount for the following expenditures:

  1. Expenditures for food items and refreshments for district staff for meetings held before normal start times, during the lunch hour, after normal work times, and anytime during the day when food and refreshments are served.
  2. Expenditures for food items and refreshments for district staff meetings with outside organizations and associations.
  3. Expenditures for food items and refreshments for board members and staff during board meetings or work sessions.
  4. Expenditures for food items and refreshments for board committees or superintendent committees during meetings.
  5. Expenditures for food items, refreshments, and recognition items for recognizing the services of employees, retirees, or volunteers.
  6. Expenditures for food items, refreshments, and recognition/retention items given to staff for recognizing and promoting wellness program participation and initiatives.
  7. Expenditures for food items, refreshments, and/or tokens supplied for service-related or recognition activities.

The superintendent [or designee] may also approve public money to be used for:

  1. Volunteer service recognition items, not to exceed $25 per volunteer.
  2. Meals (food and drink) for student participants, coaches, and staff including end of season banquets. This pertains to meals at a Linn-Mar facility or offsite.
  3. Recognition items paid for from student activity funds, not to exceed $50 per student participant for trophies, plaques, awards, and other non-cash items.
  4. Token items supplied to students for service-related or recognition activities paid for from the general fund not to exceed $10 per student for similar items such as t-shirts, water bottles, awards, and other non-cash items. Items purchased for student Positive Behavioral Interventions and Supports (PBIS) incentives are allowable if the cost does not exceed $10 per student.
  5. Purposes clearly specified in approved fundraising activities and shared with patrons in fundraising materials.
  6. One apparel item for coaches and sponsors to be worn for team competitions and/or performances not to exceed $50 per season per coach. Such apparel must be clearly specified on fundraising forms and shared with patrons in fundraising materials. Apparel must adhere to district licensing agreements for registered marks and logos.

Public money may not be used for:

  1. All other apparel for coaches, sponsors, employees, and other individuals not listed above;
  2. Personalized apparel;
  3. Personal apparel: underwear, bras, socks, shoes, etc.;
  4. Gifts for coaches, sponsors, or their family members;
  5. Meals (food or drink) for family members of the coaches, sponsors, and/or the student participants;
  6. Individual camp or clinic fees for students;
  7. Gift cards/cash incentives given to students, employees, or other individuals; and
  8. Gifts, decorations, meals, or other costs for staff birthdays, holiday parties, or other occasions that are personal in nature.

Adopted: 1/13
Reviewed: 5/15; 12/18
Revised: 12/13; 1/22
Related Policy: 801.7; 801.7-R; 803.3; 803.3-R; 803.4; 803.10; 803.10-R
IASB Reference: 705.4; 705.4R1

803.5 - Receiving Equipment, Supplies, and Services

All equipment and supplies purchased in the name of the district should be received and verified through the administrative office originating the purchase order. Whenever this procedure is impossible and/or impractical the business office will be notified by the school personnel receiving such equipment, supplies, and services.

It is the duty of the business office to certify the receipt of all equipment, supplies, and services.


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

 

803.6 - Approval and Payment for Goods and Services

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

Each payment must be made payable to the person entitled to receive the money. The board authorizes the board secretary, upon approval of the superintendent, to issue payments when the board is not in session for payment of reasonable and necessary expenses but only upon verified bills filed with the board secretary or treasurer and for the payment of salaries pursuant to the terms of a written contract. Each payment must be made payable only to the person (business, corporation, or other qualified entity) performing the service or presenting the verified bill and must state the purpose for which the payment is issued.

All bills and salaries for which payments are issued prior to audit and allowance by the board must be approved by the board at the next board meeting and be entered in the regular minutes by the board secretary.

The board president and board secretary may sign warrants by use of a signature plate.


Adopted: 6/70
Reviewed: 10/12; 5/15; 12/18
Revised: 7/10; 12/13; 1/22
Related Policy (Code #): 803.1; 803.2; 803.4; 803.7
Legal Reference (Code of Iowa): §§ 279.8, .29, .30, .36; 291.12; 721.2(5)
IASB Reference: 705.3

803.7 - Unpaid Warrants

The Board of Directors will, only when absolute 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 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
Related Policy (Code#): 803.6
Legal Reference (Code of Iowa): 74.1-7

803.8 - Payroll Periods

Unless otherwise established through collective bargaining, it is the policy of the Board of Directors that all personnel of the school district be paid monthly in accordance with the length of service stated on their contracts, and that all personnel will be paid on the 20th day of each month except when the 20th 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.

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.
  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
Related Policy (Code#): 803.9
Legal Reference (Code of Iowa): §§ 91A
IASB Reference: 706.1

803.9 - Payroll Deductions

The requirements stated in the master contract between employees in a certified collective bargaining unit and the board regarding payroll deductions of such employees will be followed.

Payroll deductions for employees not covered by negotiated agreements will consist of federal income tax withholdings, Iowa income tax withholdings, social security, insurance premiums, and the Iowa Public Employees Retirement System (IPERS).

Employees may elect to have payments withheld for district-related and mutually agreed upon group insurance coverage and/or tax sheltered annuity programs. Requests for these deductions will be made in writing to the superintendent [or designee]. Other payroll deductions, similar to United Way or the Linn-Mar School Foundation, will be permitted after recommendation by administration and approval of the board. These employees may elect to have payments withheld for insurance and/or annuity programs provided such programs have been approved by the Board of Directors.


Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 1/22
Revised: 7/10; 12/18
Related Policy (Code#): 803.8
Legal Reference (Code of Iowa): §§ 91A.2(4), .3; 294.8-9; .16
IASB Reference: 706.2

803.10 - Travel Allowances

Employees traveling on behalf of the school district and performing approved school district business may 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 803.1, 803.1-R1, 803.1-R2, 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 (Code #): 205.1; 803.1-R; 803.3; 803.3-R; 803.10-R
IASB Reference: 401.7; 401.10

803.10-R - Administrative Regulations Regarding Travel Allowances

Reimbursement for actual and necessary expenses may be allowed for travel within the school district and outside the school district if the employee received pre-approval for the travel. Personal reimbursements of travel expenses will be limited as all personnel of the school district are encouraged to use a district credit card for travel expenses. Prior to reimbursement of actual and necessary expenses, the employee must provide the school district with a detailed, itemized receipt indicating the date, purpose, and nature of the expense for each claim item. Employees may also be required to provide an explanation as to why a district credit card was not used for travel purposes. 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 school district’s record of the claim. Detailed expense reports must be submitted to the appropriate administrator’s office upon return from travel within 30 calendar days of the last day of travel. These reports will be filed on forms provided by the district or by using the online district mileage reimbursement program. Claims presented for reimbursement beyond the 30 calendar days will not be approved unless an exception is made by the superintendent [or designee].

Reimbursement Regulations

Out of Town Meals and Lodging:

  1. The cost of each meal will be itemized separately by date. No single meal (e.g. breakfast, lunch, or dinner) will exceed $30.00. The total cost of meals will be the actual cost (less tips and any unwaived sales tax) not exceeding $50.00 for a full day's total, except for meals which may be paid for through convention registration or as verified by a receipt.
  2. Tips for any one meal should not exceed 20%.
  3. Meals in the immediate Cedar Rapids/Marion area are not reimbursable unless an exception is made by the superintendent [or designee].
  4. State sales tax for meals is allowed if the vendor cannot waive it for public schools that are tax exempt.
  5. No reimbursement will be paid for alcoholic beverages.
  6. Hotel/motel bills should be filed with the expense report. The amount claimed for reimbursement should include the actual cost of the room charges and any applicable hotel taxes and fees only [if they are unable to waive them for public schools that are tax exempt] and must be reflected on an itemized hotel receipt.
  7. Travel costs for a spouse or anyone other than the district employee shall be a personal expense and not allowed by the district.
  8. Charges for phone calls will not be reimbursed unless specifically noted as related to business.

Transportation:

  1. Whenever possible, travel should be by school vehicle rather than by a private vehicle.
  2. When a school-owned vehicle is not available, a private vehicle may be used and the mileage rate per mile set by the State of Iowa will be allowed. The cost of the use of a private vehicle should not exceed the cost of coach rate by commercial airfare.
  3. Fees for parking will be reimbursed when verified by a receipt and reasonable in nature (i.e. valet parking is not considered reasonable). Fees for tollways will also be reimbursed.

Transportation by Public Carrier, Taxi, or other Rideshare Services:

  1. Employees are expected to use the most cost-effective airfare when traveling to a destination with a distance exceeding 350 miles. Reimbursement is provided for coach rate on commercial airlines or other public carriers when appropriate. A claim for reimbursement must be accompanied by a receipt from the public carrier.
  2. When approved, public carrier tickets may be purchased through a designated local travel agency which will bill the proper account directly.
  3. Reimbursement is provided for taxi or other rideshare services if related to business and reasonable in nature. Receipts are required in order to receive reimbursement.
  4. Tips for taxis and/or rideshare services should not exceed 20% per transaction.

Use of District-Owned Vehicles:

Certain district employment positions may require regular and extensive in-district travel. Due to the required duties of these positions, the district may provide certain positions with use of district-owned vehicles. Employees who utilize district-owned vehicles during the course of their job duties are fulfilling the public purpose of meeting the needs of the educational community in an efficient and time-sensitive manner. District-owned vehicles are purchased and maintained with public money and must be used strictly in accordance with fulfilling a public purpose. These vehicles represent the district in carrying out its educational mission. Therefore, district-owned vehicles will be clearly marked at all times to identify the district.

The superintendent [or designee] is responsible for developing administrative regulations regarding actual and necessary expenses, in-school district travel allowances, and assignment and proper use of school district vehicles. The administrative regulations will include the appropriate forms to be filed for reimbursement to the employee from the school district and the procedures for obtaining approval for travel outside of and within the school district.


Adopted: 2/77
Reviewed: 10/12; 5/15
Revised: 12/13;12/18; 1/22
Related Policy (Code#): 205.1; 803.1; 803.1-R; 803.3; 803.3-R; 803.10
IASB Reference: 401.7; 401.10

 

803.11 - Special Assessments

The Board of Directors, when it is deemed necessary, will seek the advice of their attorneys in all cases of special assessments against the school 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

804 - Reports

804.1 - Financial Reports and Statements

On a monthly basis, the board secretary will file with the Board of Directors a complete financial statement of the preceding month’s business. Whenever possible, this statement will be enclosed with the board agenda sent to the members of the board in advance of the regular monthly meetings.

Each month, the schedule of bills allowed by the board will be published in a newspaper designated as the newspaper for official district publication.

Annually, the total salaries paid to employees regularly employed by the school district will also be published in a newspaper designated as the newspaper for official district publication.


Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 12/18; 1/22
Revised: 7/10
Legal Reference (Code of Iowa): § 279.35-36; 618
IASB Reference: 707.1; 707.3

804.2 - Treasurer's Annual Report

At the board’s annual meeting, the board treasurer will give the annual report stating the amounts held over; received; paid out; and on hand in the following funds: general, management, physical plant and equipment levy (PPEL), playground equipment and recreation levy (PERL), debt service, student activities, capital projects, and school nutrition, and other enterprise funds. This report will be in written form and sent to the board with the agenda for the annual meeting.

The board treasurer will also furnish the board with a sworn statement from each depository showing the balance on deposit.

It is the responsibility of the board treasurer to submit this report to the board on an annual basis.


Adopted: 6/70
Reviewed: 10/12; 12/13; 5/15; 12/18
Revised: 4/09; 1/22
Related Policy (Code #): 204.4
Legal Reference (Code of Iowa): §§ 279.31, .33
IASB Reference: 707.2

804.3 - Audits

To review the funds and accounts of the school district, the board will employ an auditor [or designee] to perform an annual audit of the financial affairs of the school district. The superintendent [or designee] will use a request for proposal procedures in selecting an auditor. The administration will cooperate with the auditors.

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
Related Policy (Code #): 804.1
Legal Reference (Code of Iowa): §11.6
IASB Reference: 707.4

805 - Records

805.2 - Care, Maintenance, and Disposal of Records

School district records are housed in the central administration office of the school district. It is the responsibility of the superintendent and board secretary [or designees]  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
Secretary's financial records Permanently
Treasurer's financial records Permanently
Open meeting minutes of the Board of Directors Permanently
Annual audit reports Permanently
Annual budgets Permanently
Permanent records of individual students Permanently
School election results Permanently
Real property records (e.g., deeds, abstracts, etc.) Permanently
Records of payment of judgments against the school 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
Recordings and minutes of closed meetings 1 year
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
Employment applications 2 years
Payroll records 3 years
School meal program accounts/records 3 years after submission of the final claim for reimbursement

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 will be retained beyond the listed period as long as is required for the resolution of the issue by the federal or state agency.

Current employee records are housed in the central administration office of the district. Records of employees no longer working for the district can be stored in a secure off-site location. Employee records will be maintained by the superintendent [or designee], the building administrator, immediate supervisor, human resources director, and 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 will be housed in a fire resistant safe or vault or electronically with a secure backup file. The building administrator [or designee] 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 superintendent [or designee]. Special education records will be maintained in accordance with the law.

The superintendent [or designee] 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. 


Adopted: 6/99
Reviewed: 10/12; 12/18; 1/22
Revised: 5/15; 4/16; 8/23
Related Policy (Code #): 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

806 - Business Management

806.1 - Insurance Program and Review

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 [or designee] is responsible for maintaining property appraisals and inventories, 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
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

807 - Emergency Plans

807.2 - District Emergency Operations Plans

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 will 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] is responsible for the development, review, and implementation of the district emergency operations plans. The plans will 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 district emergency operations plans will be updated and reviewed annually by the Board of Education and will address responses to natural disasters, active shooter scenarios, and other emergencies as determined by the district. The district emergency operations plans are confidential and will not be subject to disclosure under Iowa Code Chapter 22. However, the district will 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 will hold annual emergency operations drills at each district building covered by an emergency operations plan in accordance with law. The district will determine which school personnel will participate and whether local law enforcement and/or students will participate in the annual drills.


Adopted: 9/19
Reviewed: 1/22
Related Policy (Code#): 504.7; 504.10; 701.11; 807.1; 902.12
Legal Reference (Code of Iowa): §280.30
IASB Reference: 507.5; 804.2