THREE FORKS SCHOOL DISTRICT
7000 SERIES
FINANCIAL MANAGEMENT
TABLE OF CONTENTS
7000 Goals
7008 Tuition
7110 Budget and Program Planning
7121 Budget Adjustments
7210 Revenues
7251 Disposal of School District Property Without a Vote
7260 Endowments, Gifts, and Investments
7310 Budget Implementation and Execution
7320 Purchasing
7325 Accounting System Design
7326 Documentation and Approval of Claims
7329 Petty Cash Funds
7332 Advertising in Schools/Revenue Enhancement
7335 Personal Reimbursements
7336 Travel Allowances and Expenses
7425 Extra- and Co-Curricular Funds
7430 Financial Reporting and Audits
7500 Property Records
7510 Capitalization Policy for Fixed Assets
7530 Procurement of Supplies or Services

7000 Goals Since educational programs are dependent on adequate funding and the proper management of those funds, District goals can best be attained through efficient fiscal management. As trustee of local, state, and federal funds allocated for use in public education, the Board shall fulfill its responsibility to see that funds are used to achieve the purposes intended. Because of resource limitations, fiscal concerns often overshadow the educational program. Recognizing this, the District must take specific action to ensure that education remains primary. This concept shall be incorporated into Board operations and into all aspects of District management and operation. In the District's fiscal management, the Board seeks to achieve the following goals: 1. Engage in advance planning, with staff and community involvement, to develop budgets that will achieve the greatest educational returns in relation to dollars expended. 2. Establish levels of funding which shall provide superior education for the District's students. 3. Provide timely and appropriate information to staff who have fiscal responsibilities. 4. Establish efficient procedures in all areas of fiscal management. Legal Reference: Title 20, Chapter 9, MCA Finance Policy History: Adopted on: April 13, 2004 Revised on:

7008 Tuition Whenever a pupil who does not reside in the District is to be enrolled in the District, either by choice or by placement, an attendance agreement must be filed with the Board. The terms of the agreement must include tuition rate, the party responsible for paying tuition and the schedule of payment, transportation charges, if any, and the party responsible for paying transportation costs. Tuition rates shall be determined consistent with Montana law and approved by the Board annually. Cross Reference: 3141 Discretionary Nonresident Student Attendance Policy Legal Reference: з 20-5-314, MCA Reciprocal attendance agreement with adjoining state or province з 20-5-320, MCA Attendance with discretionary approval з 20-5-321, MCA Attendance with mandatory approval Ц tuition and transportation з 20-5-322, MCA Residency determination Ц notification Ц appeal for attendance agreement з 20-5-323, MCA Tuition and transportation rates 10.10.301, ARM Calculating Tuition Rates Policy History: Adopted on: April 13, 2004 Revised on:

7110 Budget and Program Planning The annual budget is evidence of the Board's commitment to the objectives of the instruction programs. The budget supports the immediate and long-range goals and established priorities within all areas, instructional, non-instructional, and administrative programs. Prior to presentation of the proposed budget for adoption, the Superintendent and business manager shall prepare, for the Board's consideration, recommendations (with supporting documentation) which shall be designed to meet the needs of students within the limits of anticipated revenues. Program planning and budget development shall provide for staff participation and the sharing of information with patrons prior to action by the Board. Policy History: Adopted on: April 13, 2004 Revised on:

7121 Budget Adjustments When any budgeted fund line item is in excess of the amount required, the Board may transfer any of the excess appropriation to another line item(s) within the same fund. The Board authorizes the administration to transfer line items within the same budgeted fund to adjust line item overdrafts or to meet special line item needs. Line item budget transfers to adjust line item overdrafts are at the discretion of the administrators. Total budget expenditures for each fund as adopted in the final budget shall constitute the appropriations of the District for the ensuing fiscal year. The Board shall be limited in the incurring of expenditures to the total of such appropriations. With timely notice of a public meeting, trustees, by majority vote of those present, may declare by resolution that a budget amendment (in addition to the final budget) is necessary. Budget amendments are authorized by з 20-9-161, MCA, for specified reasons. The resolution shall state the facts of the budget amendment, the estimated amount of funds needed, and the time and place the Board will meet for the purpose of considering and adopting a budget amendment. The meeting to adopt a budget amendment shall be open and shall provide opportunity for any taxpayer to appear and be heard. Budget procedures shall be consistent with statutory requirements. When applicable, the District shall apply for state financial aid to supplement that amount to be collected from local taxes. Legal Reference: з 20-9-133, MCA Adoption and expenditure limitations of final budget з 20-9-161, MCA Definition of budget amendment for budgeting purposes з 20-9-162, MCA Authorization for budget amendment adoption з 20-9-163, MCA Resolution for budget amendment Ц petition to superintendent of public instruction з 20-9-164, MCA Notice of budget amendment resolution з 20-9-165, MCA Budget amendment limitation, preparation, and adoption procedures з 20-9-166, MCA State financial aid for budget amendments з 20-9-208, MCA Transfers among appropriation items of fund Ц transfers from fund to fund Policy History: Adopted on: April 13, 2004 Revised on:

7210 Revenues The District will seek and utilize all available sources of revenue for financing its educational programs. This includes revenues from non-tax, local, state, and federal sources. All revenues received for the District will be properly credited to the appropriate fund and account as specified by federal and state statute and the accounting and reporting regulations for Montana school districts. The District will collect and deposit all direct receipts of revenues as necessary but at least once monthly. The District will make an effort to collect all revenues due from all sources, including, but not limited to, rental fees, bus fees, fines, tuition fees, other fees and charges. Uncollectible checks may be turned over to the county attorney for collection. Legal Reference: з 20-9-303, MCA Nonisolated school BASE budget funding Ц special education funds Policy History: Adopted on: April 13, 2004 Revised on:

7251 Disposal of School District Property Without a Vote The Board is authorized to dispose of a site, building, or any other real or personal property of the District, that is or is about to become abandoned, obsolete, undesirable, or unsuitable for school purposes. To effect proper disposal, the trustees shall pass a resolution stating their decision concerning property disposal. The resolution will not become effective until fourteen (14) days after the resolution is published in a newspaper of general circulation in the District. Should any taxpayer properly protest the resolution during the fourteen (14) days after the date of publication, the trustees shall submit testimony to the court with jurisdiction. Once the resolution is effective, or if appealed the decision has been upheld by the court, the trustees shall sell or dispose of the real or personal property in a reasonable manner determined to be in the best interests of the District. Proceeds from the sale of fixed assets can be deposited to the general, debt service, building, or any other appropriate fund. Legal Reference: з 20-6-604, MCA Sale of property when resolution passed after hearing Ч appeal procedure Policy History: Adopted on: April 13, 2004 Revised on:

7260 Endowments, Gifts, and Investments The Board may accept gifts, endowments, legacies, and devises subject to the lawful conditions imposed by the donor. Endowments received by the District will be deposited to an endowment fund as an expendable or non-expendable trust. Neither the Board nor the Superintendent will approve any gifts that are inappropriate. Unless the conditions of the endowment instrument require immediate disbursement, money deposited in the endowment fund shall be invested by the Board according to the provisions of the Uniform Management of Institutional Funds Act (Title 72, chapter 30, MCA). The Board authorizes the Superintendent to establish procedures for determining the suitability or appropriateness of all gifts to be received and accepted by the District. Educational foundations which seek to promote, enhance, and enable educational opportunities and school improvement activities in the District may solicit and receive tax-deductible funds from donors. Educational foundations may be sanctioned by the Board but not managed or directed by it. The Board may appoint non-voting advisors to the foundation board if the bylaws of the foundation permit that action. The Board directs that all school funds be invested in a prudent manner so as to achieve maximum economic benefit to the District. Funds not needed for current obligations may be invested in investment options as set out in Montana statutes, whenever it is deemed advantageous to the District to do so. Legal Reference: з 20-6-601, MCA Power to accept gifts з 20-7-803, MCA Authority to accept gifts з 20-9-212, MCA Duties of county treasurer з 20-9-213(4), MCA Duties of trustees з 20-9-604, MCA Gifts, legacies, devises, and administration of endowment fund Policy History: Adopted on: April 13, 2004 Revised on:

7310 Budget Implementation and Execution Once adopted by the Board, the operating budget shall be administered by the Superintendent's designees. All actions of the Superintendent/designees in executing the programs and/or activities delineated in that budget are authorized according to these provisions: 1. Expenditure of funds for the employment and assignment of staff shall meet the legal requirements of the State of Montana and adopted Board policies. 2. Funds held for contingencies may not be expended without approval from the Board. 3. A listing of warrants describing goods and/or services for which payment has been made must be presented for Board ratification each month. 4. Purchases shall be made according to the legal requirements of the State of Montana and adopted Board policy. Legal Reference: з 20-3-332, MCA Personal immunity and liability of trustees з 20-9-213, MCA Duties of trustees Policy History: Adopted on: April 13, 2004 Revised on:

7320 page 1 of 2 Purchasing Authorization and Control The Superintendent is authorized to direct expenditures and purchases within the limits of the detailed annual budget for the school year. Board approval for purchase of capital outlay items is required when the aggregate total of a requisition exceeds Twenty-Five Thousand Dollars ($25,000), except the Superintendent shall have the authority to make capital outlay purchases without advance approval when it is necessary to protect the interests of the District or the health and safety of the staff or students. The Superintendent shall establish requisition and purchase order procedures as a means of controlling and maintaining proper accounting of the expenditure of funds. Staff who obligate the District without proper authorization may be held personally responsible for payment of such obligations. Bids and Contracts Whenever the cost of any supplies, equipment, or work shall exceed Twenty-Five Thousand Dollars ($25,000), formal bids shall be called for by issuing public notice as specified in statute. Specifications shall be prepared and be made available to all vendors interested in submitting a bid. The contract shall be awarded to the lowest responsible bidder, except that the trustees may reject any bids. In making a determination as to which vendor is the lowest responsible bidder, the Board will not only take into consideration the amount of each bid, the Board will consider the skill, ability, and integrity of a vendor to do faithful, conscientious work and promptly fulfill the contract according to its letter and spirit. The bidding requirements do not apply to: a registered professional engineer, surveyor, real estate appraiser, or registered architect; a physician, dentist, pharmacist, or other medical, dental, or health care provider; an attorney; a consulting actuary; a private investigator licensed by any jurisdiction; a claims adjuster; or an accountant licensed under Title 37, Chapter 50. The advertisement for bid must be made once each week for two (2) consecutive weeks, and the second (2nd) publication must be made not less than five (5) nor more than twelve (12) days before consideration of bids. The Superintendent shall establish bidding and contract awarding procedures. Bid procedures shall be waived only as specified in statute. Any contract required to be let for bid shall contain language to the following effect: In making a determination as to which vendor is the lowest responsible bidder, if any, the District will not only take into consideration the pecuniary ability of a vendor to perform the contract, the District will consider the skill, ability, and integrity of a vendor to do faithful, conscientious work and promptly fulfill the contract according to its letter and spirit. References must be provided and will be contacted. The District further reserves the right to contact others with whom a vendor has conducted business, other than those listed as references, in making a determination as to whether a vendor is the lowest responsible bidder. Additional information and/or inquiries into a vendor's skill, ability, and integrity are set forth in the bid specifications. Cooperative Purchasing The District may enter into cooperative purchasing contracts with one or more districts for the procurement of supplies or services. Such contracts must be awarded to the lowest responsible bidder, except that the trustees may reject all bids. Legal Reference: зз 18-1-101, et seq., MCA Public Contracts зз 18-1-201, et seq., MCA Bid Security з 20-9-204, MCA Conflicts of interest, letting contracts, and calling for bids Debcon v. City of Glasgow, 305 Mont. 391 (2001) Policy History: Adopted on: April 13, 2004 Revised on:

7325 Accounting System Design The District accounting system shall be established to present, with full disclosure, the financial position and results of the financial operations of the District funds and account groups in conformity with generally accepted accounting principles. The accounting system must be in compliance with the accounting system requirements established by legislative action. The accounting system shall be able to demonstrate compliance with finance-related legal and contractual provisions. Policy History: Adopted on: April 13, 2004 Revised on:

7326 Documentation and Approval of Claims All financial obligations and disbursements must be documented in compliance with statutory provisions and audit guidelines. The documentation will specifically describe acquired goods and/or services, the budget appropriations applicable to payment, and the required approvals. All purchases, encumbrances and obligations, and disbursements must be approved by the administrator designated with the authority, responsibility, and control over the budget appropriations. The responsibility for approving these documents cannot be delegated. The District business office will be responsible for the development of the procedures and forms to be used in the requisition, purchase, and payment of claims. Policy History: Adopted on: April 13, 2004 Revised on:

7329 Petty Cash Funds The use of petty cash funds shall be authorized for specific purchases only. Those purchases will include individual purchases of supplies and materials under the amount of Fifty Dollars ($50), postage, delivery charges, and freight. Individual personal reimbursements which exceed Fifty Dollars ($50) should not be made from petty cash funds. The petty cash account will be maintained as cash on hand, and the total dollar amount of the petty cash account will be limited to Two Hundred Fifty Dollars ($250). The administrator may appoint and designate a fund custodian to carry out the bookkeeping and security duties for the petty cash fund. Moneys which are not specifically petty cash moneys shall not be co-mingled with the petty cash fund. At the conclusion of each school year, the petty cash fund must be closed out and the petty cash vouchers and cash on hand returned to the business office for processing. The District business office shall be responsible for establishing the procedures involving the use and management of the petty cash fund. Policy History: Adopted on: April 13, 2004 Revised on:

7332 Advertising in Schools/Revenue Enhancement Revenue enhancement through a variety of District-wide and District-approved marketing activities, including, but not limited to, advertising, corporate sponsorship, signage, etc., is a Board-approved venture. These opportunities are subject to certain restrictions as approved by the Board in keeping with the contemporary standards of good taste. Such advertising will seek to model and promote positive values for the students of the District, through proactive educational messages and not just traditional advertising of a product. Preferred advertising includes messages that encourage student achievement and the establishment of high standards of personal conduct. All sponsorship contracts will allow the District to terminate the contract at least on an annual basis, if it is determined that it will have an adverse impact on implementation of curriculum or the educational experience of students. The revenue derived should: 1. Enhance student achievement; 2. Assist in the maintenance of existing District athletics and activity programs; and 3. Provide scholarships for students participating in athletic, academic, and activity programs, who demonstrate financial need and merit. Appropriate opportunities for these marketing activities include, but are not limited to: 1. Fixed signage. 2. Banners. 3. District-level publications. 4. Television and radio broadcasts. 5. Athletic facilities, to include stadiums, high school baseball fields, and high school gymnasiums. 6. District-level projects. 7. Expanded usage of facilities beyond traditional use (i.e., concerts, rallies, etc.). 8. Interior and exterior of a limited number of District buses, only if the advertising is associated with student art selected by the District. The only advertising information will note that the student art is sponsored by the participant in the District sponsorship. Maintenance for these buses will include but not exceed normal maintenance costs. 9. Individual school publications (when not in conflict with current contracts) Advertising will not be allowed in classrooms, and corporate-sponsored curriculum materials are subject to the requirements of Board policy. 7332 The following restrictions will be in place when seeking revenue enhancement. Revenue enhancement activities will not: 1. Promote hostility, disorder, or violence 2. Attack ethnic, racial, or religious groups 3. Discriminate, demean, harass, or ridicule any person or group of persons on the basis of gender 4. Be libelous 5. Inhibit the functioning of the school and/or District 6. Promote, favor, or oppose the candidacy of any candidate for election, adoption of any bond/budget issues, or any public question submitted at any general, county, municipal, or school election 7. Be obscene or pornographic, as defined by prevailing community standards throughout the District 8. Promote the use of drugs, alcohol, tobacco, firearms, or certain products that create community concerns 9. Promote any religious or political organization 10. Use any District or school logo without prior approval Cross Reference: 2120 Curriculum Development and Assessment 2309 Library Materials 2311 Instructional Materials Policy History: Adopted on: April 13, 2004 Revised on:

7335 Personal Reimbursements While it is recommended that all purchases of goods or services be made within established purchasing procedures, there may be an occasional need for an employee to make a purchase for the benefit of the District from personal funds. In that event, an employee will be reimbursed for a personal purchase under the following criteria: 1. It is clearly demonstrated that the purchase is of benefit to the District. 2. The purchase was made with the prior approval of an authorized administrator. 3. The item purchased was not available from resources within the District. 4. The claim for personal reimbursement is properly accounted for and documented with an invoice/receipt. The District business office will be responsible for the development of the procedures and forms to be used in processing claims for personal reimbursements. Policy History: Adopted on: April 13, 2004 Revised on:

7336 Travel Allowances and Expenses Every District employee and trustee will be reimbursed for travel expenses while traveling outside the District and engaged in official District business. District employees who are not exempted by another policy will be reimbursed according to the current State levels pursuant to Montana law. All travel expenses must be reported on the established travel expense and voucher forms and approved by the employee's supervisor and the Superintendent. The District business office will be responsible for the development of procedures and forms to be used in connection with travel expense claims and reimbursements. Legal Reference: з 2-18-501, MCA Meals, lodging, and transportation of persons in state service з 2-18-502, MCA Computation of meal allowance з 2-18-503, MCA Mileage Ц allowance Policy History: Adopted on: April 13, 2004 Revised on:

7425 Extra- and Co-Curricular Funds The Board is responsible for the establishment and management of student extra- and co-curricular funds. The purpose of student extra- and co-curricular funds shall be to account for revenues and disbursements of those funds raised by students through recognized student body organizations and activities. The funds shall be deposited and expended by check, in a bank account maintained by the District for student extra- and co-curricular funds. The use of the student extra- and co-curricular funds is limited to the benefit of the students. Students shall be involved in the decision-making process related to the use of the funds. The Board shall follow the Guideline to Student Activity Funding Accounting in establishing accounting procedures for administration of the student extra- and co-curricular funds and appoint a fund administrator. Specific procedures are available in the office of the clerk. Legal Reference: з 2-7-503, MCA Financial reports and audits of local government entities з 20-9-504, MCA Extracurricular fund for pupil functions Policy History: Adopted on: April 13, 2004 Revised on:

7430 Financial Reporting and Audits The Board directs that financial reports of all District funds shall be prepared in compliance with statutory provisions and generally accepted accounting and financial reporting standards. In addition to the reports required for local, state, and federal agencies, financial reports will be prepared monthly and annually and presented to the Board. The financial reports shall reflect the financial activity and status of the District funds. Appropriate interim financial statements and reports of financial position, operating results, and other pertinent information will be prepared to facilitate management control of financial operations. The Board directs that District audits shall be conducted in accordance with Montana law. Each audit shall be a comprehensive audit of the affairs of the District and the District funds. The audits shall comply with all statutory provisions and generally accepted governmental auditing standards. Audits may be conducted annually. Legal Reference: зз 2-7-501, et seq., MCA Audits of Political Subdivisions з 20-9-212, MCA Duties of county treasurer з 20-9-213, MCA Duties of trustees Policy History: Adopted on: April 13, 2004 Revised on:

7500 Property Records Property records and inventory records shall be maintained on all land, buildings, and physical property under the control of the District. Such records shall be updated annually. For purpose of this policy, "equipment" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus or a set of articles which retains its shape and appearance with use, is nonexpendable, and does not lose its identity when incorporated into a more complex unit. The Superintendent shall ensure that inventories of equipment are systematically and accurately recorded and are updated annually. Property records of facilities and other fixed assets shall be maintained on an ongoing basis. No equipment shall be removed for personal or non-school use except according to Board policy. Property records shall show, appropriate to the item recorded, the: 1. description and identification 2. manufacturer 3. date of purchase 4. initial cost 5. location 6. serial number, if available 7. model number, if available Equipment may be identified with a permanent tag that provides appropriate District and equipment identification. Cross Reference: 7510 Capitalization Policy for Fixed Assets Legal Reference: з 20-6-602, MCA Trustees' power over property з 20-6-608, MCA Authority and duty of trustees to insure district property Policy History: Adopted on: April 13, 2004 Revised on:

7510 Capitalization Policy for Fixed Assets A fixed asset is a property that meets all the following requirements. 1. Must be tangible in nature. 2. Must have a useful life of longer than the current fiscal year. 3. Must be of significant value. Fixed assets may be acquired through donation, purchase, or may be self-constructed. The asset value for donations will be the fair market value at the time of donation. The asset value, when purchased, will be the initial cost plus the trade-in value of any old asset given up, plus all costs related to placing the asset into operation. The cost of self-constructed assets will include both the materials used and the cost of labor involved in the construction of the asset. The following significant values will be used for different classes of assets: Class of Fixed Asset Significant Value Equipment and machinery $5000.00 or more Buildings - Improvements $5000.00 or more Improvements other than buildings $5000.00 or more Land Any amount Cross Reference: 7500 Property Records Policy History: Adopted on: April 13, 2004 Revised on:

7530 Procurement of Supplies or Services The Board adopts the following provisions of the Montana Procurement Act (i.e., з 18-4-101, et seq., MCA): 1. з 18-4-303, MCA Ц Competitive sealed bidding. With the exception of construction contracts, allows the District to negotiate an adjustment of the bid price with the lowest responsible bidder in order to bring the bid within the amount of available funds, if, and only if, all bids exceed available funds and the lowest responsible bid does not exceed available funds by more than five percent (5%). 2. з 18-4-306, MCA Ц Sole source procurement. Allows the District to purchase supplies or services without having to comply with required bidding procedures, when and only when it is determined that there is only one (1) source for the required supply or service item.) Legal Reference: з 18-4-101, et seq., MCA Montana Procurement Act 2.5.604, ARM Sole Source Procurement Policy History: Adopted on: April 13, 2004 Revised on:

School Policy