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Series 701 - General Financial Guidelines

Adopted: June 1993
Revised: May 2012

1. Financial Accounting System - The district will establish and maintain a financial accounting system in accordance with Minnesota Department of Education standards as outlined in the Uniform Financial Accounting and Reporting Standards (UFARS) manual, other directions from the state, and any additional accounting procedures requested by the School Board and/or superintendent.

2. Fiscal Year - The district’s fiscal year runs from July 1 through June 30.

3. Banking Services

3.1 The administration will seek competitive quotes/proposals on banking services every five years.  Depositories will be chosen based on their fee structures, their provisions for safeguarding district funds, for providing efficient and effective services and for providing special services of importance to the district.

3.2 One or more federally insured financial institutions will be selected by the board at the beginning of each fiscal year to serve as the depository or depositories of district funds.

3.3 The administration is authorized to combine cash for all funds (except building construction funds and debt service funds) into a single account.

4. Authorizations

4.1 The superintendent or designee is authorized to perform routine duties of the board treasurer and to make electronic funds transfers.

4.2 When the board treasurer is out of the district, the board clerk, superintendent, or designee is authorized to sign approvals and releases or substitutes of collateral.

4.3 The superintendent or designee is authorized to open petty cash checking accounts in any of the official district depositories and to designate the authorized signers of the petty cash checking accounts.

4.4 Student activity checking accounts may be set up in any of the official district depositories.

4.5 Facsimile signatures of the board chairperson, treasurer and clerk shall be used for transactions at any of the official depositories.

4.6 The coordinator of finance or designee is authorized to invest district funds. 

5. Borrowing - The district may borrow money to secure funds for school operations or to pay previous loans, within limitations set by state law with prior approval from the board. Borrowing may be through lines of credit, or in anticipation of collection of taxes or state aids.

6. Fund Transfers - The administration may transfer money from one fund to another, within the parameters of state law and UFARS guidelines, with prior approval from the board.

7. Inventories - For insurance purposes, the district will maintain an inventory of furniture, vehicles and other equipment.  The district will also maintain inventories of food, parts and other supplies to increase operational efficiency and to comply with accounting standards.

8. Financial Reports

8.1 Treasurer’s Reports - The superintendent or designee will submit monthly treasurer’s reports to the School Board which reflect the monthly totals of receipts, disbursements and cash balances by fund and by financial institution.

8.2 Annual Financial Report - The district will publish an annual report on the financial position of the district at the end of the preceding fiscal year and the results of district operations for the preceding fiscal year.  (For more information, refer to district Policy 705, Audit and Annual Financial Reports.)

9. Student Activity Funds - The board delegates the control of student activity funds to school administrators who are authorized to direct and control financial accounting for money raised by or for student activities. 

9.1 Student activity funds must be managed in compliance with state accounting guidelines.

9.2 School administrators must submit periodic student activity fund reports to the Finance Department, and the funds will be subject to annual audits to assure the School Board that the funds are being properly administered and that proper records are being kept.

References:

  • Manual of Instruction for Uniform Student Activities Accounting for Minnesota School Districts and Area Vocational-Technical Institutes, Minnesota Department of Education, 1987-88, Rev. July 2009
  • Manual for Activity Fund Accounting, Minnesota Department of Education
  • Minnesota Statute 123B.77, Accounting, Budgeting and Reporting Requirement
  • Minnesota Statute 123B.78, Borrowing for Current Operating Costs
  • Minnesota Statute 123B.79, Permanent Fund Transfers
  • Minnesota Statute 123B.80, Exceptions for Permanent Fund Transfers
  • Minnesota Statute 123B.02, subd. 18, Authorizations for Payment of Claims Prior to Board Approval
  • Minnesota Statute 126C.52, Authority to Borrow Money, Limitations

Policies/701/5-1-12