Code No. 704.1A

FUND BALANCE REPORTING

The Governmental Accounting Standards Board (GASB) Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes accounting and financial reporting standards for all governments that report governmental funds, and requires the District to disclose certain requirements.  Therefore, the District identifies the following as District operating policy.

The fund balance identified as 'committed fund balance' will be determined by the Board of Directors and will require formal board action.  An identified committed fund balance should be for a specific purpose pursuant to constraints imposed by the formal action of the Board of Directors.  The Board of Directors will take action to 'commit' a fund balance prior to year-end (June 30) of the year the original committed amount is determined.  The exact amount of the committed balance may be determined after the year-end; however, in compliance with GASB 54 the intended committed purpose must be identified, prior to year-end (June 30).

In the event that a committed fund balance is identified subsequent to year-end (June 30), the amount will be reflected on the balance sheet as assigned for that year.

The committed amounts cannot be used for any other purpose unless the Board of Directors at a public meeting by formal action makes changes or rescinds the committed balance. 

The Board of Directors authorizes the Director of Business Services to assign amounts to a specific purpose in compliance with GASB 54.  An assigned Fund Balance should be reported for constraints by the District's intent to be used for specific purpose, but is not restricted or committed. 

In accordance with the GASB 54 the District identifies that when an expenditure is incurred, it is applied to the highest level of classification of fund balance and then subsequently applied to honor constraints on the specific purposes for which amounts in those fund balances can be spent.

Date of Review:  April 9, 2018

877087

DECORAH COMMUNITY SCHOOL BOARD OF DIRECTORS

Code No. 704.2

MONTHLY FINANCIAL REPORTS

The Board Secretary or Director of Business Services shall file each month with the Board of Directors a financial statement of the preceding month's business showing all receipts and disbursements from the various funds during the preceding month and also the balance of each fund at the close of the month.

The Board Secretary or Director of Business Services shall publish a schedule of bills allowed at least once monthly including the name of the person or firm making the claim, the purpose of the claim and the amount of the claim.  Salaries paid to individuals regularly employed by the District need only be published once annually.

Date of Review:  April 9, 2018

885959

DECORAH COMMUNITY SCHOOL BOARD OF DIRECTORS

Code No. 704.3

ANNUAL FINANCIAL REPORT

At a regular or special meeting held on or after August 31 of each year, and prior to the organizational meeting held after the regular school election, the Director of Business Services/Treasurer shall make a financial report to the Board, which shall show the amounts of each fund held over, received, paid out, and on hand, with the several accounts to be separately stated as of June 30.  The Treasurer shall file a copy of the annual report with any agency prescribed by law, including a sworn statement from each depository showing the balance then on deposit in each depository.  The annual financial report shall be available for public inspection.

Date of Review:  April 9, 2018

885960

DECORAH COMMUNITY SCHOOL BOARD OF DIRECTORS

Code No. 704.4

AUDITS

The Board of Directors shall cause to be initiated annually by the state auditing agency or by a certified public accounting firm an audit of the financial affairs of the District, in accordance with the laws of the State of Iowa.  It shall be the responsibility of the Director of Business Services to utilize procedures, including a request for proposals, to solicit proposals from auditing agencies and certified public accounting firms and to provide information to the Board of Directors regarding agencies and firms to enable the Board to select an auditing agency or firm.

Annual audit reports shall remain on permanent file in the administrative offices of the District and shall be open to public inspection.

Date of Review:  April 9, 2018

01462799

DECORAH COMMUNITY SCHOOL BOARD OF DIRECTORS

Code No. 704.5

FISCAL YEAR

The District fiscal year shall begin July 1 and end June 30 each year.

Date of Review:  April 9, 2018

DECORAH COMMUNITY SCHOOL BOARD OF DIRECTORS

Code No. 704.6

INTERNAL CONTROLS

All Board members, employees, volunteers, consultants, vendors, contractors, students and other parties shall act with integrity, due diligence, and in accordance with all laws when involved with the District’s resources.

Internal control is the responsibility of all employees of the District.  The Superintendent and Director of Business Services shall be responsible for developing internal controls designed to prevent and to detect fraud, financial impropriety, or fiscal irregularities within the District, subject to review and approval by the Board.  Each administrator and supervisor shall be alert for any indication of fraud, financial impropriety, or irregularity within the administrator’s or supervisor’s area of responsibility.

Persons who suspect fraud, impropriety, or financial irregularity shall report their suspicions immediately to their immediate supervisor or to the Superintendent.  The Superintendent shall have primary responsibility for any necessary investigations and shall coordinate investigative efforts with the District’s legal counsel, auditing firm, and other agencies, including law enforcement officials, as the Superintendent may deem appropriate.

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

In the event the concern or complaint involves action of the Superintendent, the concern shall be brought to the attention of the Board President, who shall be empowered to contact the District’s legal counsel, auditing firm, and any other agency to investigate the concern or complaint.

Upon approval of the Board, the Superintendent may contact the State auditor or the District’s auditing firm to conduct a complete or partial forensic/internal control/SAS99 audit.  The Superintendent is authorized to order a complete forensic audit if, in the Superintendent’s judgment, such an audit would be useful and beneficial to the District.  The Superintendent shall ensure the State Auditor is notified of any suspected embezzlement or theft pursuant to Iowa law.  In the event there is an investigation, records will be maintained for use in the investigation.  Individuals found to have altered or destroyed records will be subject to disciplinary action, up to, and including discharge.

Date of Review:  April 9, 2018

DECORAH COMMUNITY SCHOOL BOARD OF DIRECTORS

Code No. 704.7

GOVERNMENTAL ACCOUNTING PRACTICES AND REGULATIONS

School district accounting practices will follow state and federal laws and regulations, generally accepted accounting principles (GAAP) and the uniform financial accounting system provided by the Iowa Department of Education.  As advised by the school district’s auditor, determination of liabilities and assets, prioritization of expenditures of governmental funds and provisions for accounting disclosures shall be made in accordance with governmental accounting standards.

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

The Board authorizes the Director of Business Services to assign amounts to a specific purpose in compliance with GASB 54.  An ‘assigned fund balance’ should also be reported in the order of spending unrestricted resources, but is not restricted or committed.

It is the responsibility of the Superintendent to develop administrative regulations implementing this policy.  It is also the responsibility of the Superintendent to make recommendations to the Board regarding fund balance designations.

Date of Review:  April 9, 2018

01435268

DECORAH COMMUNITY SCHOOL BOARD OF DIRECTORS