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Warren County Schools, TN

 "One Team, One Goal, High Levels of Learning for All"

No. 04 Section D Fiscal Management

DA - Goals and Objectives

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

The Board shall practice sound fiscal management procedures which guarantees maximum use of all resources provided. The Board assumes responsibility, within its financial capabilities, for providing at public expense all items of equipment, supplies and services that may be required in the interest of education in the schools under its jurisdiction.1

In fiscal management, the Board seeks to achieve the following goals:

  1. To engage in advance planning, with broad-based staff and/or community involvement;
  2. To establish levels of funding which will provide quality education for the system’s students;
  3. To use the available techniques for budget development and management;
  4. To provide timely and appropriate information to all staff with fiscal management responsibilities; and
  5. To establish efficient procedures for accounting, reporting, purchasing and delivery, payroll, payment of vendors and contractors, and all other areas of fiscal management.

 _______________________________

Legal Reference:

1.  Tennessee Internal School Uniform Accounting Policy Manual; Section 4-19

DC - Annual Operating Budget

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

All school system budgets are the operational plans stated in financial terms which describe the programs to be conducted during the fiscal year beginning July 1 and ending June 30 of the following year.

Central Office

PREPARATION PROCEDURES

Budget planning shall include an analysis of previous staffing, curriculum and facilities, and projections requiring additional staffing, curriculum modifications, and additional facilities.

The budget proposal should be balanced, consistent with Board policy to include provisions for:

  • Programs to meet the needs of the entire student body
  • Staffing arrangements adequate for proposed programs
  • Maintenance of the district’s equipment and facilities
  • Efficiency and economy1     

Budget preparation shall be the responsibility of the Director of Schools/Board Chairman. The Director of Schools will establish procedures for the involvement of staff, including requests from department heads and principals, all of whom shall seek advice and suggestions from other staff and faculty members.

The Director of Schools and the Board Chairman shall develop a budget preparation calendar no later than January 1 of the current school year. The calendar shall be used as a guide for coordinating the budgetary activities of individuals and groups, collecting budget data, reviewing budget problems and making budget decisions.

HEARING AND REVIEWS

The proposed budget will be available for inspection by various interested citizens or groups in the office of the Director of Schools.

FINAL ADOPTION PROCEDURE

The board shall adopt a budget and submit it to the Country Commission no later than forty-five (45) days prior to the actual date the budget is to be adopted by the country commissioners.2

The Director of Schools shall file with the Commissioner of Education a copy of the budget within ten (10) days after its adoption.3 

 _______________________________

Legal References:

  1. Tennessee Internal School Uniform Accounting Policy Manual:  Section 4-19
  2. TCA 6-36-110. TCA 49-2-203 (a) (11)
  3. TCA 49-2-301 (f) (26); TRR/MS 0520-1-2-.13 (2) (a)

DCI - Line Item Transfer Authority

Issued Date:  06/24/99

 

Central Office

Line-item transfers within major categories shall be made upon the recommendation of the Director of Schools and approved by the Board.

Transfer between major budget categories shall be made with the approval of the Count Commissioners.1

______________________________

Legal Reference:

1. OP Tenn. Atty. Gen.  §3-64 (Oct. 26, 1983); Banay v. State ex.rel. Sullivan County Board:  186 TN 11.207 S.W. 2d 1011 (1948)

DD - State and Federal Eligibility Determination

Issued Date:  11/01/95

 

In order to ensure comparability of services1 from local and state funds in all of its schools, the Board shall ensure that:

  1. A system-wide salary schedule is adopted annually.
  2. Teachers, principals, and classified personnel are assigned to schools on an equivalent bases according to grade levels and need; and
  3. Curriculum materials and instructional supplies are provided to schools on an equivalent basis according to grade levels and need.

______________________________

Legal Reference:

  1. Chapter 1, Section 558 (c), Education Consolidation and Improvement Act of 1981; Commissioner of Education Memorandum, May 11, 1982, “Guidance for Complying with Comparability Requirements of Chapter 1, ECIA.

DDA - Asset Capitalization and Depreciation  Policy

Issued Date:  06/24/08

Rescinds:  07/27/06

Issued:  07/27/06

 

The following policy is to address Warren County Board of Education’s compliance with provisions of Board of Educational Accounting Standards Board Statement 34. This policy will address most of the questions concerning implementation of the standard. This policy will take effect upon its passage by the Warren County Board of Education Board of County Commissioners.

1. Capital Assets Definition

Capital assets include: land, land improvements, buildings, building improvements, construction in progress, machinery and equipment, vehicles, infrastructure, easements, and works of art and historical treasures.

A capital asset is to be reported and, with certain exceptions, depreciated in Board of Education-wide statements. In the Board of Education-wide statements, assets that are not capitalized are expended in the year of acquisition.

Infrastructure assets are long-lived capital assets that normally can be preserved for a significant greater number of years than most capital assets and that are normally stationary in nature. Examples include roads, bridges, tunnels, drainage systems, water systems, and dams. Infrastructure assets do not include buildings, drives, parking lots or any other examples given above that are incidental to property or access to the property.

Warren County Board of Education will use the definitions listed as the definitions of capital assets and infrastructure assets. An asset must have an estimated useful life greater than one reporting period (year) to be considered for capitalization and depreciation.

2. Information Needed for an Inventory Record

Board of Educational entities should develop strategies to ensure they have an accurate, complete, and up-to-date record of capital assets. Each Board of Education entity should have such an inventory beginning in 1980 when NCGA Statement No.1 created the General Fixed Asset Account Group.

Completeness and accuracy should be ensured through physical counts, review of purchase records, prior inventory count records, listings maintained by other Board of Education agencies, and other methods deemed necessary.

Board of Educational entities will need to devise a method to determine historical costs or estimated historical cost of capital assets on hand. Future asset acquisition will be valued at the acquisition cost for purchased items and donated items will be capitalized at fair market value on the donated date.

Each Board of Educational entity should have an inventory of all capital assets. Each inventory record should include: description, year of acquisition, method of acquisition (e.g., purchase, donation, etc.),funding source, cost or estimated cost, salvage value, and estimated useful life. The inventory record will also need to identify the function(s) that use the asset.

Warren County Board of Education will have an inventory of all capital assets. Each asset’s inventory record will include: description, year of acquisition, method of acquisition (e.g., purchase, donation, etc.), funding source, cost or estimated cost, salvage value, and estimated useful life. The inventory record will also identify the function(s) that use the asset.  Warren County Board of Education will report capital assets that serve essentially all functions on a separate line or as part of the general administration (or its counterpart) function. If depreciation is reported as a separate line item, the face of the statement must clearly indicate that this line item excludes depreciation expense charged to functions.

Warren County Board of Education will do its best to determine historical costs or estimated historical cost of capital assets on hand. Future asset acquisition will be valued at the acquisition cost for purchased items and donated items will be capitalized at fair market value on the donated date.

3. Recording Land

Land is to be capitalized but not depreciated. It is recorded at historical cost and remains at that cost until disposal. If there is a gain or loss on the sale of land, it is reported as a special item in the statement of activities.

Warren County Board of Education will record land at historical cost, if known. If the historical cost is not known; alternate methods of evaluation, such as land value comparisons, historical values and advice from specialists such as the Assessor of Property will be utilized. Evaluation methods shall be fully documented.

4. Recording Land Improvements

Land improvements include items such as excavation, non-infrastructure utility installation, driveways, sidewalks, parking lots, flagpoles, retaining walls, fencing, outdoor lighting, and other non-building improvements intended to make the land ready for its intended purpose. Land improvements can be further categorized as non-exhaustible and exhaustible.

Non-Exhaustible - Expenditures for improvements that do not require maintenance or replacement, expenditures to bring land into condition to commence erection of structures, expenditures for improvements not identified with structures, and expenditures for land improvements that do not deteriorate with use or passage of time are additions to the cost of land and are generally not exhaustible and therefore not depreciable.

Exhaustible - Other improvements that are part of a site, such as parking lots, landscaping and fencing are usually exhaustible and are therefore depreciable. Depreciation of site improvements is necessary if the improvement is exhaustible.

5. Recording Buildings

Buildings should be recorded at either their acquisition cost or construction cost. The cost of new construction should be carefully evaluated. Existing buildings, if original costs is not known,replacement value figured by county’s insurance agent, will be figured using the CPI Index to back trend into original value.  Usually projects consist of major components such as land, land improvements, building construction (including professional fees and permits), furniture, fixtures and equipment. In addition, buildings include components (e.g., roof, air conditioner system, etc.) that should be recorded separately when significant because these building components have different useful lives. The value of each component needs to be determined and placed within its own category.

Warren County Board of Education will record buildings at either their acquisition cost or construction cost. If the buildings were constructed by debt proceeds, the cost of new construction will be the total amount of debt issued with allowance for components such as land, land improvements, building construction (including professional fees and permits), furniture, fixtures and equipment, roof, air conditioner system, etc. who separate cost can be determined. Warren County Board of Education will record these components separately when significant because these components have different useful lives. The value of each component will be determined and placed within its own category.

6. Recording Building Improvements

Building improvements that extend the useful life should be capitalized. Board of Educational entities should therefore review major maintenance projects for the last several years to determine those that should become part of the restatement of assets for purposes of complying with Statement 34.

Examples of building improvements include roofing projects, major energy conservation projects, remodeling and replacing of major building components. A Board of Educational entity will need to determine the practicality of identification of these projects and prepare an inventory.

The inventory will need to include a project description, the year completed, funding source and dollar amounts. Only those projects that meet the capitalization threshold need to be included. Further, as a practical matter, Board of Educational entities should establish a cutoff date for retroactive recognition of site and facility improvements. It is recommended that Board of Educational entities review projects for the last three to five years unless meaningful data are readily available for preceding years.

Warren County Board of Education will record building improvements that extend the useful life at either their acquisition cost or construction cost.  Warren County Board of Education will record these building improvements separately when significant because these building improvements have different useful lives. The value of each building improvement will be determined and placed within its own category.

7. Recording Construction in Progress

Construction in progress should be capitalized and not depreciated. It should be reported with land and other non-depreciating assets at the Board of Education-wide level. Unspent debt proceeds from capital assets related debt should be reported in the net assets section of the statement of net assets as “restricted for capital projects.”

8. Recording Machinery and Equipment

Assets such as furniture, machinery and equipment (that meet threshold levels) should be identified and inventoried. See Section 13 for threshold level and discussion. Some assets, individually, may fall below the capitalization threshold but may be purchased in large quantities by the Board of Educational entity. Examples include library books, textbooks and computers. Board of Educational entities should aggregate such assets and consider the materiality and significance of them and if material or significant capitalize such items either individually or in the aggregate.

9. Recording Library Books

If library books are considered to have a useful life of greater than one year, they are capital assets and are depreciable. Because most library collections consist of a large number of books with modest values, group or composite depreciation methods (as discussed in Depreciation Methods to Calculate an Asset's Depreciation) may be appropriate. In certain situations, library books may be considered works of art or historical treasures and could be reported using those provisions (see Recording Works of Art and Historical Treasures).

10. Recording Vehicles

Vehicles should be identified, inventoried, and if applicable depreciated. Warren County  Board of Education will record the vehicles at historical cost.

11. Recording Easements

An easement is an interest in land owned by another that entitles its holder to a specific limited use or enjoyment (right to use the land). Therefore, easements are not required to be reported in the financial statements unless the entity paid for the easement.

12. Recording Works of Art and Historical Treasures

Works of Art and Historical Treasures should be recorded at historical costs. Depreciation is not required for collections or works of art that are inexhaustible.

13. Establishing and Setting the Threshold Levels for Recording Capital Assets

As noted earlier, Warren County Board of Education will do its best to determine historical costs or estimated historical cost of capital assets on hand and will value future asset acquisition at the acquisition cost for purchased items and donated items will be capitalized at fair market value on the donated date.

Warren County Board of Education will have two threshold levels of capital asset evaluation that needs to be defined. The tracking threshold is the valuation level that Warren County Board of Education will utilize to provide accountability and care taking for capital assets. The capitalization and depreciation threshold is the valuation level that Warren County Board of Education will utilize to determine which capital assets will be included for capitalization and depreciation purposes for financial statement presentation.  

GASB Statement #34 in its implementation advice, states that, “Care should be taken when determining the threshold. A threshold that is too low may result in a burdensome record-keeping system. A threshold that is too high could cause material misstatement of the Board of Educational entity’s financial condition complete”.

Warren County Board of Education will use the following valuation levels for its tracking threshold and its capitalization and depreciation threshold for capital assets.

Land                                          $1                       Capitalize all

Land Improvements                $25,000

Building                                    $25,000

Building Improvements           $25,000

Construction in Progress        $25,000            Capitalize all

Machinery and Equipment     $25,000

Vehicle                                     $25,000

Infrastructure                          $25,000          

Warren County Board of Education will also consider associated debt of capital assets. Warren County Board of Education will capitalize all assets purchased with debt proceeds in order to minimize the potential of negative net assets being reported in the statement of net assets.

Exceptions - The capitalization policy should address all exceptions. For example:

  • Unique items that you want to track and inventory regardless of the cost (e.g.,weapons for police).
  • Groups/classes of assets where individual asset items are less than the capitalization limit, but when all assets of that group are added together the dollar amount far exceeds the capitalization limit. These groups/classes of assets should be capitalized and depreciated. (e.g., library books in a public library).

14. Depreciation Definition

In accounting terms, depreciation is the process of allocating the cost of tangible property over a period of time, rather than deducting the cost as an expense in the year of acquisition. Generally, at the end of an asset’s life, the sum of the amounts charged for depreciation in each accounting period (accumulated depreciation) will equal original cost less salvage value. Good accounting and financial management practices require that a Board of Education entity take both the cost expiration and the declining value of an asset into consideration. The cost expiration of a Board of Education entity’s assets must be recognized if the cost of providing services is to be realistically reported. Also, the decline in the value of those assets must be considered if the Board of Education entity’s net assets are to be stated correctly.

15. Information Needed to Calculate Depreciation

Warren County Board of Education will calculate depreciation on a capital asset based on the following five factors.

  • the date the asset was placed in service – date purchased or  acquired
  • the asset’s cost or acquisition value – historical or alternate method
  • the asset’s salvage value – worth when no longer useful for purpose
  • the asset’s estimated useful life (in months), and
  • the depreciation method.
     

16. Asset’s Estimated Useful Life

Estimated useful life means the estimated number of months or years that an asset will be able to be used for the purpose for which it was purchased. Capital assets should be depreciated over their estimated useful lives.

Warren County Board of Education will use the following table for estimated useful lives of its Non-Infrastructure capital assets.

Land                                                                                    No Depreciation

Buildings                                                                             40

Buildings – Temporary T-Buildings, Other Portables     25-40     

Buses                                                                                  10

Kitchen Equipment                                                           12

Vehicles                                                                              5

Warren County Board of Education will use the following table for estimated useful lives of its infrastructure capital assets.

Infrastructure

Easements                                                                        No Depreciation

Drainage Systems                                                            25

Water systems                                                                 25

Sewerage disposal Works System                                 25

Waterway

Levees and canals (unlined)                                           No Depreciation

Canal lining                                                                     30

Dams

Concrete                                                                        50

Steel, Sheetpile                                                             30

Earthen embankment                                                  No Depreciation

Roads

Paved                                                                            40

Asphalt - rural                                                              40

Asphalt - urban                                                            20

Non-paved                                                                   50

Bridges – concrete                                                      75

17. Depreciation Methods to Calculate an Asset’s Depreciation

Warren County Board of Education will use the straight-line method to calculate depreciation on its Non-Infrastructure capital assets.

The straight-line method is the simplest and most commonly used for calculating depreciation. It can be used for any depreciable property. Under the straight-line depreciation method, the basis of the asset is written off evenly over the useful life of the asset. The same amount of depreciation is taken each year. In general, the amount of annual depreciation is determined by dividing an asset’s depreciable cost by its estimated life. The total amount depreciated can never exceed the asset’s historic cost less salvage value. At the end of the asset’s estimated life, the salvage value will remain.

18. Reporting Depreciation Expense in the Financial Statements

For general capital assets, depreciation is reported only on Board of Education-wide financial statements. Depreciation expense is reported on the Statement of Activities. Statement 34 requires that depreciation for assets specifically identified with specific functions is to be included in the direct expenses of those functions. Capital assets that serve essentially all functions are reported on a separate line or reported as part of the general administration (or its counterpart) function. If depreciation is reported as a separate line item, the face of the statement must clearly indicate that this line item excludes depreciation expense charged to functions.

Depreciation expense for general infrastructure assets should not be allocated to the various functions. It should be reported as a direct expense of the function (for example, public works or transportation) that the reporting Board of Education normally associates with capital outlays for, and maintenance of, infrastructure assets or as a separate line in the statement of activities.

19. Reporting Capital Assets in the Financial Statements

Capital assets and the associated accumulated depreciation are reported in the Statement of Net Assets. Accumulated depreciation may be reported separately, or capital assets may be presented net of accumulated depreciation on the statement. Capital assets that are not being depreciated, such as land or infrastructure assets reported using the modified approach should be reported separately if the Board of Education has a significant amount of these assets. Capital assets also may be reported in greater detail, such as by major class of asset (for example, infrastructure, buildings and improvements, vehicles, machinery and equipment). It is recommended that all Board of Educational entities report both the historical cost and accumulated depreciation in the face of the statement.

DF - Revenues

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

Any money collected by any school shall be documented by a written receipt.

The schools may receive funds collected from activities and for events held at or in connection with the school, including contracts with other schools for interschool events. To be included in this accounting are all monies collected from lunch rooms, athletics, entertainments, school clubs, fees, concessions and all fund raising activities. Each principal shall determine the reconciliation method to be used for all events which require a ticket.1

The purchase of items intended for resale for profit through the schools shall be subject to sales tax based on the purchase price to the vendor providing the service or item. Resale items are not intended to generate a profit shall be determined by the principal.2

FEES

School fees are to be kept to a minimum and may be expended only for the purpose for which they were collected. The purpose and amounts of all fees must have the approval of the Board. No fees shall be required of any student as a condition to attend the school or use its equipment.3 School fees shall be waived for students who receive free or reduced-price lunches.4 No student will be penalized for non-payment of any material’s fee.

EXTENDED SCHOOL PROGRAM

Extended school funds shall be collected at the individual schools and receipted and deposited with the Warren County Trustee. The director of extended programs shall be responsible for collections of accounts and shall remit all monetary collections to the Central Office and pay the Board by school check.5

FINES

A student will be held responsible for the cost of replacing any materials or property which the student loses or damages,6 including textbooks, library books, equipment and buildings. All money collected as fines shall be placed in the system-wide school fund.

TUITION INCOME

Tuition collected from students shall be placed in the system wide school fund.

RENTAL INCOME

The principal will collect and distribute to the Central Office all monies received for the use of a particular school facility or other school property.

GRANTS

Grants for educational purposes made available by the state and/or federal government may be sought by the school system, but only when the conditions of their availability are in harmony with the purposes and policies of the Board and the laws of the state and county. Principals may apply for and receive grants, but funds must be recorded in a separate restricted fund account.7

All revenue from grants shall be budgeted for the specific purposes of the grant. All employees shall be compensated at the appropriate salary rating the employee is paid by the Board and shall not receive any salary from any grant unless it specifically calls for payment of grant funds to the employee. In this exception, the salary payment will cease when the grant expires.

______________________________________

Legal References:

  1. TCA 49-2-110 (a)
  2. TCA 67-6-102
  3. TCA 49-6-3001 (a); TCA 49-2-110 (b)
  4. TCA 49-2-114
  5. Tennessee Internal School Uniform Accounting Policy Manual; Section 4-32
  6. TCA 37-10-101; 102
  7. Tennessee Internal School Uniform Accounting Policy Manual; Section 4-31

DFGC - Extended Day-Care Parental Financial Write-Off Policy

Issued Date:  03/24/05

 

All outstanding balances are the priority of the Warren County Extended Daycare Program (EDC).  The EDC will make 3 attempts to collect outstanding balances.  If the debt is considered non-collectible by the Director of Extended Day Care at the end of the fiscal year, the outstanding balances will be written off and the parents will be relieved of the debt.  The following circumstances meet the criteria for parental financial write-off at the end of the fiscal year in June:

  1. Parents who have moved out of the school system and there is no forwarding addresses to contact them.
  2. Parents have presented a financial hardship and they have applied for the Upper Cumberland assistance to further allow their child to remain in the program.
  3. Parents who refuse to pay their outstanding balances and their child has been removed from the program.
  4. If an account has been cleared by write-off, the child cannot be readmitted until the balance has been paid.

DFK - Gifts and Bequests

Issued Date:  11/01/95 

 

The Director of Schools is authorized to accept gifts to the school system and may designate others to accept gifts for particular schools in behalf of the Board.1 The Board will officially express appreciation to the donor and all major gifts will be reported to the Board and publicly announced.

In instances where the Director or his designee doubt the appropriateness or usefulness of an offered gift, the gift may be declined or the matter referred to the Board.

In accepting gifts and donations, the following guidelines shall be followed:

  1. Unless otherwise expressly specified in writing, all property contributed, given, or otherwise placed on school premises shall for all intents and purposes be a gift and shall be come school system property subject to the same controls and regulations that govern the use of other school-owned property.
  2. Contributions of equipment or services that may involve major costs for installations, maintenance, or initial or continuing financial commitments from school funds shall be presented by the Director’s office for Board consideration and approval.
  3. Individuals or organizations wanting to contribute supplies or equipment will consult with school officials about the feasibility of accepting such contributions prior to the solicitation of funds or the making of budgetary appropriations.
  4. A list of supplies and equipment contributed primarily for school use shall be reported to the Board by the Director’s office annually.

_______________________________

Legal Reference:

1.  TCA 49-6-2006 (a).

DFL - Investment Earnings

Issued Date:  06/24/99 

Rescinds:  11/01/95

Issued:  11/01/95

 

Individual Schools

The building principal, with consent of the Director of Schools, is authorized to invest excess funds of the school in savings accounts.1 Interest earned on accounts shall be credited to general fund revenue. Interest earned on restricted fund accounts shall be credited to revenue in each restricted account.

School food service funds shall be kept separate from other school funds and interest earned on food service fund deposits shall be credited to food service revenue.

All funds shall be deposited into accounts fully protected by sufficient collateral.

Reports of the investments shall be made to the Board as necessary.

_______________________________

Legal Reference:

1. Tennessee Internal School Uniform Accounting Policy Manual; Section 6-1

DG - Depository of Funds

Issued Date:  11/01/95

 

All income payable to the Board will be deposited with the county trustee, who will credit it to the appropriate account.

All money collected at the building level must be cleared through the principals’ office.

The principal shall deposit funds daily if possible, but no later than three (3) days after being received. Deposit slips will be filed along with other permanent records. Each deposit slip must show the various receipt numbers. The total amount of deposit shall be shown on the last receipt deposited.1

Monies collected at the building level must be deposited to no more than three bank accounts.

  1. General School Fund;
  2. School Food Service Fund; and
  3. Savings.

__________________________________

Legal Reference:

1.  Tennessee Internal School Financial Management Manual.p. 30

DH - Bonded Employees

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

The Director of Schools and all other employees who handle school monies shall be bonded in order to indemnify the school system against the loss of any funds.1

The Board shall determine the amount of the bond giving consideration to the total amount of money and/or property that is handled in each school.2

___________________________________

Legal References:

  1. TCA 8-19-101 through 103, TCA 49-2-110 (a) (1)
  2. Tennessee Internal School Uniform Accounting Policy Manual; Section 4-16

DIA - Accounting System

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

Central Office

The Director of Schools shall maintain a system of accounting, arranged according to the regulations prescribed by the Commissioner of Education, which provide a detailed and accurate account of all receipts and disbursements of the schools.1

Individual Schools

The Board authorized each respective school under its jurisdiction to receive activity and other internal funds, such as athletic ticket money, school lunch funds and school classes funds.2

The Board shall hold each principal responsible for the management of all internal accounts under his/her jurisdiction in accordance with the Tennessee Internal School Uniform Accounting Policy Manual.3

__________________________________

Legal References:

  1. TCA 49-2-301 (f) (4)
  2. TCA  49-2-110 (a)
  3. TCA 49-2-110 (c) (d)

DIB - Financial Reports and Records

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

FINANCIAL REPORTS

Central Office

The Executive Committee shall submit to the Board at each regular meeting a report of all business transacted since the last regular meeting.1

A report indicating all receipts and expenditures will be given quarterly to the County Commission.2 Each report will show the amount of the annual appropriation, the amounts expended by account to date, the amount encumbered and the free balance in each amount.

The Director of Schools shall submit a monthly financial report to the Board and to state and federal agencies as required.3

Individual Schools

Each principal shall submit to the Director of Schools at the end of each calendar month on a prescribed form the receipts, expenditures and cash balance of all accounts under his jurisdiction. These reports shall be made available to the Board at its request.

FINANCIAL RECORDS

General

The Director of Schools shall maintain all financial records as required by the regulation and applicable state and federal law. The Board, from time to time, may determine to extend the retention time for certain records.4

__________________________________

Legal References:

  1. TCA 49-2-206 (5)
  2. TCA 49-2-301 (19)
  3. TCA 49-2-301 (22) (26)
  4. Tennessee Internal School Uniform Accounting Policy Manual:  Section 4-21

DIC - Inventories

Issued Date:  06/28/07

Rescinds:  11/01/95

Issued:  11/01/95

 

Equipment is defined as all items (machinery, implements, tools, furniture, livestock, vehicles, and other apparatus) with a unit cost of $5,000 or more and a minimum useful life expectancy of three years. Freight charges and installation costs shall be included in the cost.*

General

The director of schools shall establish an accurate inventory procedure for all school real and personal (e.g., material and equipment) property, and this system shall be implemented at each school facility. Administrative personnel shall ensure that a physical count of all such property is taken at the end of each fiscal year, and this inventory shall be properly entered on the appropriate records for accounting purposes.'

Each school shall maintain a complete inventory with a duplicate maintained in the central office.

EQUIPMENT PROCURED WITH FEDERAL DOLLARS

The director shall establish procedures for administrators to follow which meet all federal accountability guidelines, including guidelines for the purchasing, inventorying, security and disposition of all equipment purchased with federal funds.'

_________________________________

 Legal Reference:

 1. Tennessee Internal School Uniform Accts. Policy Manual:  Sec 4-13 EDGAR 43 Subtitle A Part 80.32; 34 CFR 80.3-52

DID - Audits

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

An audit of all fiscal accounts, including accounts and records of all school student activity funds, shall be made by a certified public accountant following the end of each fiscal year.1

The Director of Schools shall furnish or make copies of the audit available to the proper authorities as prescribed by law.2

When an administrative change occurs during the fiscal year and the position is responsible for the expenditure of funds, a special audit of accounts involved shall be conducted.

The special audit shall be as extensive as the Board may determine.

_________________________________

Legal References:

  1. TCA 49-2-112 (a) (1); TCA 49-2-110 (a); TCA 6-36-112
  2. TCA 49-2-112 (d) (2) TRR/MS 0520-1-.13 (3) (d)

DJ - Expenditure of Funds

Issued Date:  06/24/99

 

Central Office

All expenditures shall be approved by the Board or the Director of Schools when authorized. No expenditures shall be made except on an approved purchase order or contract. No expenditure may be authorized or made which exceeds the appropriation for any fund of the budget as adopted or amended. Employees of this system will not create or authorize creation of a deficit in any fund. Expenditures or encumbrances will not be authorized, made or incurred in excess of any fund balance.

Individual Schools

Internal activity funds shall not be expended without written approval by the membership of the group. All such expenses shall be in accordance with the Tennessee Internal School Uniform Accounting Policy Manual.  Restricted account expenditures require the account sponsor’s approval prior to expense. No check will be written to employees for the internal school activity fund accounts. Any supplemental compensation owed to the Board for extracurricular activities must be processed through the Director of Schools’ office in the same manner as salary and other payroll payments. The Board will invoice the school for reimbursement. Substitute teacher’s salaries related to the restricted class and club accounts will be paid by the Board and shall be reimbursed by the school from the appropriate class or club account.1

Employees who authorize or contract for any obligation in violation of this policy shall assume personal responsibility for the payment of the obligation shall be subject to dismissal from employment and shall be subject to applicable civil and criminal proceedings. Any obligation or authorization for expenditure or expenditure made in violation of the law and this policy shall be illegal and void.2 

_________________________________

Legal References:

  1. Tennessee Internal School Uniform Accounting Policy Manual, Section 5-22
  2. Tennessee Internal School Uniform Accounting Policy Manual, Section 5-17

DJC - Payroll Procedures

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

Central Office

If the end of a pay period falls on a non-working day, employees will be paid on the last working day prior to the end of the pay period.

Payroll procedures shall be as follows:

1. All certified personnel will be paid in twelve (12) month installments.

2. All support personnel shall be paid once each calendar month for which they are employed.

No advance payments of salary shall be made. Upon resignation or retirement of school personnel, final salary payment shall be withheld until all records and assets in custody of the employee are satisfactorily transferred to his successor or anther designated person.

Specific approval by the Board is required for payroll deductions, except as otherwise provided by law.

DJCB - Salary Deductions

Issued Date:  06/24/99

 

Central Office

Upon appropriate written authorization, the Board shall make deductions approved by the Board from the salary of the employee. Authorization must be made on forms provided by the Board and filed in the office of the Director of Schools.

An employee may change or terminate any salary deduction upon written notification to the Board.

DJD - Expenses and Reimbursements

Issued Date:  12/07/17

Rescinds:  09/27/12

Issued:  06/24/99

 

Board of Education officials and employees are eligible for travel expense reimbursements within budgetary constraints and in compliance with the 1981 Financial Management System Financial Policy and Procedure Manual for Warren County.  WCBOE officials and employees must comply with travel reimbursement procedure in order to obtain reimbursement.

SCHOOL PERSONNEL

School district personnel who incur expenses in carrying out the authorized duties will be reimbursed for eligible expenses upon submission of an approved voucher.

Expenses for travel will be reimbursed when the travel has the advance authorization of the director of schools. The director of schools may grant this authorization without prior board action when the travel expense has been anticipated and incorporated into the operational budget of the particular program involved.

The Board shall be responsible for all expenses pertaining to staff development. Student activity funds shall not be used for this purpose.1

BOARD MEMBERS

The members of the Board shall be paid for transportation, lodging, meals and other pertinent expenses when traveling on business for the Board. Salary and other benefits shall be determined by the local funding body.2 The Board shall authorize travel for attendance at conventions or other educational meetings or the other school purposes in advance.

Expenses shall be submitted to the director of schools’ office within thirty (30) days of the date of completion of such travel. The rate of payment shall be the same as the rate for members of the professional staff.

GUIDELINES (Advisory only- based on current rates and subject to change)

Current travel expense reimbursement amounts and procedure are dictated by the Warren County 1981 Financial Management System Finance Policy and Procedure Manual and are subject to change from time to time as determined by the Finance Committee4.  Expenses shall be paid at the then current rate as set out by the Policy and Procedure Manual.5  In the event that rates in this policy contradict the rates established in the Policy and Procedure Manual, rates in the Policy and Procedure Manual shall be used without the necessity of revising guidelines stated in this policy.

Mileage:

Paid at the rate established by the then current Internal Revenue Service (IRS).

Meal allowances for overnight travel only:

$30.00 daily ($5.00-Breakfast, $10.00-Lunch, $15.00-Dinner)

All day meeting reimbursements:

Travel expenses only (excludes mileage & parking)

(No meal reimbursement available if not staying overnight.)

______________________________________

Legal References:

  1. Tennessee Internal School Uniform Accounting Policy Manual. Section 5-20
  2. TCA 49-2-202 (d)
  3. TCA 49-2-2001
  4. TCA 5-21-105
  5. Warren County Finance Department Policies and Procedures Manual as amended

DJE - Purchasing

Issued Date:  05/25/17

Rescinds:  03/20/14

Issued:  11/01/95

 

General

The school system will purchase competitively and seek maximum education value for every dollar expended. Authorization to purchase shall be provided by the Board. The Director of Schools and the Warren County finance director shall serve as purchasing agents for the system-wide purchasing. Principals and the Warren County finance director shall serve as purchasing agents for individual schools.

Purchases made by anyone not authorized by the appropriate officials shall become the personal responsibility of the persons making the purchase agreement. The Board will not, under any circumstances, be responsible for payment for any material or supplies purchased by unauthorized individuals or in an un-prescribed manner.

No school shall be obligated to pay for any expenditure made by a student or teacher or by any other employee unless he/she first receives a written purchase order from the proper office or unless prior written permission or arrangements are made with the principal.

Individual Schools

The Director of Schools must approve the following purchases:

  1. A single piece of equipment costing more than ten thousand dollars ($10,000);
  2. One that is to be attached to or one that requires alternation of the building; or
  3. One that will become a permanent fixture.

Central Office

ROUTINE PURCHASES

Routine purchases shall include expenditures for supplies, salaries, and routine expenditures required for the operation of the school system. These expenditures shall be anticipated and provided for in the budget and will normally be authorized by the Board at the beginning of the fiscal year. The Director of Schools shall make all routine purchases with further Board authorization; however, the Board shall be promptly informed if any substantial variation from budgeted estimates becomes necessary.

SPECIAL PURCHASES

Special purchases are those which are not routine and which may or may not be specifically identified by line item in the budget. Examples of special purchases are all capital expenditures such as for vehicles, buildings, major contracts, purchase of major equipment, items for long-term use and supplies of an unusual quantity or nature. All purchases in this category shall require specific prior Board approval on an item-by-item basis. In its approval, the Board may place constraints on the Director of School requiring Board evaluation and/or approval at various steps in the procurement process. This will be determined by the Board on an individual basis depending on the nature of the procurement action.

EMERGENCY PURCHASES

Emergency purchases are those which are necessary to avert hazards which threaten health or safety, to protect property from damage or to avoid major disruption of educational activities. If with budgetary limits and deemed essential, emergency purchases may be made by the Director of Schools. However, if the purchase is of such significant magnitude as to impact on the integrity of the budget, the chairman shall call a special or emergency meeting of the Board to deal with the matter. In any event, the Board shall be advised promptly of all emergency purchases.

PURCHASING OF SURPLUS PROPERTY

The Director of Schools and other employees designated by the Board shall be authorized to act for the Board in acquiring federal surplus property through the Tennessee General Services Department for surplus property and in entering into agreements, certifications and covenants of compliance concerning the use of federal surplus property.

Further, the Director of Schools is authorized to purchase any needed items through supplies approved on the state bid list.

COOPERATIVE PURCHASING

The Board, at its option, will join in joint and cooperative purchasing with other school systems or governmental units to take advantage of lower prices for bulk purchasing and to reduce the cost involved in bidding whenever such buying appears to be to the benefit of the system.2,3

________________________________ 

Legal References:

  1. TCA 49-2-206 (3); TCA 6-36-115
  2. TCA 12-3-1009; TCA 12-9-104
  3. TCA 12-3-101 et seq

DJED - Bids and Quotations

Issued Date:  06/25/17

Rescinds:  06/24/99

Issued:  11/01/95

 

All purchases of supplies, materials, equipment, and contractual services in excess of ten thousand dollars ($10,000), including those of individual schools, shall be based on competitive bids.  These bids shall be solicited by advertisement in a newspaper of general circulation within the school system.  However, said newspaper advertisement may be waived by the purchasing agent in an emergency.  The purchasing agent shall advertise for bids and receive quotations.

All purchases of ten thousand dollars ($10,000) or less, including those of individual schools, may be made in the open market without newspaper notice, but shall, whenever possible, be based on at least three (3) competitive bids.

The lowest and best bid shall be accepted, provided the purchaser reserves the right to reject any or all bids on any part of any bid and, if applicable, to accept that bid which is best as evidenced by reasons relative to the purpose of the purchase.  Any bid may be withdrawn prior to the scheduled time for the opening of bids. Any bid received after the time and date specified shall not be considered.

The bidder to whom the award is made may be required to enter into a written contract.

The practice of splitting an order or dividing items to be purchased in order to avoid the use of bidding or other purchasing procedures is prohibited.

Contracts for legal services, architectural or engineering services, educational consultants and similar services by professional person or groups of high ethical standards shall not be based upon competitive bids but shall be awarded on the basis of recognized competence and integrity.

DJEF - Requisitions

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

The Board shall designate personnel to be responsible for making requisitions.

All approved requisitions will be submitted to the purchasing agent (Director of Schools or Principal) on forms provided by the purchasing agent.

The number of each purchase order shall be recorded on the requisition.

After processing, the original copy of the requisition will be filed in the appropriate purchasing office.

DJEG - Purchase Orders and Contracts

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

All purchases made by the school system shall be by purchase order or formal contract, and no purchases shall be made nor payment approved unless covered by an approved purchase order.

Purchase orders will include the following essentials:

  1. A specification which adequately describes to the supplier the characteristics and the quantity standards of the item required;
  2. A firm, quoted, net delivered price, whenever possible; and
  3. Signature of purchasing agent.

Contracts shall be made only with responsible suppliers with the following considerations:

  1. The supplier has the potential ability to perform successfully under the terms and conditions of a proposed procurement.
  2. A system for contract administrative shall be maintained to assure supplier conformance with terms, conditions, and specifications of the contract or purchase order, and to assure adequate and timely follow-up of all purchases;
  3. Contracts shall contain such provisions or conditions which will allow for administrative, contractual, or legal remedies in instances where suppliers violate or breach contract terms, and provide for such sanctions and penalties as may be appropriate.
  4. All contracts, including those of individual schools, will meet all requirements of state and federal laws, rules and regulations.1

MAINTENANCE AND TRANSPORTATION DEPARTMENT

Purchase orders will not be required for any purchase of less than two hundred dollars ($200.00). A list of purchases should be kept and approved by the Director of Schools.

______________________________ 

Legal Reference:

  1. TCA 49-2-203 (a) (4); OMB Circular A102-0. (7), (8), (9), 1977.  Tennessee Internal School Uniform Accounting Policy Manual, Section 5-11; TCA 49-2-206 (b) (2).

DJEI - Vendor Relations

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

General

Each order will be placed on the basis of quality, price, and delivery. Past service will be a factor if all other considerations are equal.

No person officially connected with or employed by the school system will be an agent for, or have any financial compensation or reward of any kind from any vendor for the sale of supplies, materials, equipment or service.1

Individual Schools

Schools shall execute a written agreement with vendors for all fundraisers.2 The agreement shall include, but not limited to, the following information:

  1. The division of profits that result from the activity;
  2. Payment of sales tax;
  3. Delivery date(s);
  4. Package prices or other charges; and
  5. Scheduled dates of service.

Vendors visiting separate schools shall contact and secure the permission of each principal’s office prior to visiting professional staff members. Vendors’ visitations to schools shall not be permitted to interfere with the normal instructional and learning process.

___________________________________ 

Legal References:

  1. TCA 49-6-2003
  2. Tennessee Internal School Uniform Accounting Policy Manual Section 4-27

DJEJ - Payment Procedures

Issued Date:  06/24/99

Rescinds:  11/01/95

Issued:  11/01/95

 

Central Office

The Director of Schools shall approve all claims for payment prior to their submission to the Board.1

As operating procedure, the Director of Schools shall present to the Board each month a list of checks for payment.

Individual Schools

Schools may obligate themselves for the purchase of equipment, supplies, or services, provided payments are completed by June 30 of the current school year or a plan for future payments have been made by the principal and approved by the Board.

__________________________________

Legal Reference:

1. TCA 49-2-206 (b) (3)

DK - Student Activity Funds Management

Issued Date:  07/23/02

Rescinds:  06/24/99

Issued:  11/01/95

 

Individual Schools

 The activity funds of each school shall include athletic and student organization funds and any other fund belonging to any student group, class, or activity.

Whatever the source, all student activity funds shall be under the jurisdiction of the Board and under the specific control of the school principal. Contracts with fund-raising agencies must comply with board policy and be approved in writing by the Director of Schools.

Principals and/or sponsors who knowingly authorize/allow unapproved fund-raising activities shall be subject to disciplinary action.1

Student activity funds shall be deposited in respective school activity accounts. Proper records of receipts and disbursements shall be maintained in accordance with the Tennessee Internal School Uniform Accounting Policy Manual.2

Revenue raised for specific purposes must be expended for that purpose, unless otherwise authorized in writing by both the activity group sponsor and the principal.3

An annual audit of the account and records of all student activity funds shall be conducted as a part of the audit of all other district funds.4

Any unencumbered class or activity funds automatically revert to the general activity fund of the school when a class graduates or any activity is discontinued.

Funds derived from activities sponsored by parent-teacher associations, parent-teacher organizations or other support organizations are not subject to this policy, unless such funds are in sole custody of the school.5

___________________________________

Legal References:

  1. Tennessee Internal School Uniform Accounting Policy Manual;  Section 4-26
  2. TCA 49-2-110 (c) (d)
  3. Tennessee Internal School Uniform Accounting Policy Manual; Section 5-25
  4. TCA 49-2-112 (a)
  5. TCA 49-2-110 (e)

DL - Cash in School Buildings

Issued Date:  11/01/95 

 

Principals are directed to follow these procedures in the handling of any funds in their respective schools:

A.  All monies shall be disbursed by check, and no check shall be issued without supporting papers (invoices, etc.). The checkbook and the pre-numbered receipt book are the backbone of the accounting system and must be kept absolutely accurate and complete. All deposits and their dates shall be recorded, and the bank balance shall be shown. A standard checkbook with three checks to the page shall be used. All checks shall be pre-numbered and provide for the signature of two persons.    

Checks shall not be destroyed for any reason; spoiled or voided checks kept in their proper order can save time in looking for errors and will help the school auditor. Posting to the control account should be done from the checkbook

B.  When money is received from any source, a receipt must be written with a carbon copy to be retained.

C.  A receipt should never be erased or altered. Should an error be made, it should be marked void. Both copies shall be left in the book, and another receipt shall be written.

D.  The principal or his/her designated representative shall issue a signed receipt for all monies turned over to him.

E.  The firm policy of never accepting any money without issuing a receipt will serve two necessary purposes:

(1)The carbon of the receipt will serve, alone with the checkbook, as a basic record or original entry, and

(2) the receipt will help protect the position of the person handling the funds.

DO - Personal School Property Disposal Procedure/Sales

Issued Date:  09/17/13

Rescinds:  06/24/99

Issued:  11/01/95

 

When equipment, books, materials, and other personal property no longer have an intended use by the system or are no longer capable of being used because of condition, the Board shall declare them surplus property and authorize their disposal.1

PERSONAL PROPERTY OTHER THAN TEXTBOOKS

The Director of Schools shall prepare a list of unusable for Board approval. The list shall contain the following information:  name of item, date of purchase and reason for disposal.

All unusable items shall be sold in open market or sealed bid to the highest bidder by the Warren County Financial Management Committee.  Proceeds from the sale of the district’s surplus property shall be deposited in the appropriate school related fund.

If reasonable attempts to dispose of surplus properties fail to produce a monetary return to the system, the Board and the Financial Management Committee shall collaborate and approve other methods of disposal.

TEXTBOOKS

The Director of Schools shall prepare for the Board a list of unusable textbooks which shall include the following information:  title, author, publisher, copyright date, subject, grade level, number of copies on hand, date of purchase and reason for disposal.

The Board shall declare the appropriate textbooks as surplus property and shall dispose of them in the following manner:

  1. Principals shall provide a list of unusable textbook titles to staff members and encourage them to select copies for classroom use;
  2. Students shall be given an opportunity to examine and claim books for their personal use;
  3. The remaining books shall be offered for sale to local, state, and federal agencies with educational programs, various businesses, private schools, or individuals who wish to purchase the materials. All proceeds from the sale of these books must be used to supplement textbook purchasing funds; and
  4. When all attempts to place the unusable textbooks have been exhausted, the Board shall dispose of the remaining textbooks as provided by law3 or any other method approved by the Board.2

___________________________________

Legal References:

  1. TCA 49-6-2007.
  2. TCA 49-6-2208.
  3. TCA 49-12-2-403.