Ease of administration is the primary consideration for payroll deductions, other than those required by law.  Payroll deductions are made for federal income tax withholdings, Iowa income tax withholdings, federal insurance contributions, and the Iowa Public Employees' Retirement System (IPERS).

The district may deduct wages as required or allowed by state or federal law or by order of the court of competent jurisdiction.  Employees may elect to have amounts withheld from their pay for items authorized by law, subject to agreement of the district.  Requests for these deductions will be made in writing to the superintendent.

It is the responsibility of the superintendent or superintendent's designee to determine which additional payroll deductions will be allowed.

Approved:  4/10/23                   Reviewed:                     Revised:   

Each year at its annual meeting, the board shall designate by resolution the name and location of the Iowa located financial depository institution or institutions to serve as the official school district depository or depositories. The board will also designate the maximum amount which may be kept on deposit in each bank.  This amount will be designated the first time a new depository is identified, and will be reviewed at least once every five years or when an increase or additional depository is needed. The amount stated in the resolution must be for all depositories and include all of the school district's funds.

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

Approved:        10/21/2019                   Reviewed:                     Revised: 02/26/2024

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

If all requirements for district use of funds under the Preschool Foundation Aid, Professional Development Supplement, Home School Assistance Program, Teacher Leadership Supplement or any discontinued fund teacher  have been met and funds remain unexpended and unobligated at the end of the fiscal year, the district may transfer all or a portion of remaining funds by passage of a board resolution into the district’s flexibility account in accordance with law.  Before the expenditure of amounts in the flexibility account, the district shall publish notice of the time, date, and place of a public hearing on the proposed resolution approving said expenditures. The board must find and certify that the statutory requirements of each original source of funds have been met before adopting the resolution approving the expenditures. The district will present a copy of the signed board resolution to the Department of Education.

The District may transfer by board resolution from the general fund to the student activity fund an amount needed to purchase or refurbish protective and safety equipment required for any extracurricular interscholastic athletic contest or competition sponsored or administered by the Iowa High School Athletic Association of Iowa Girls High School Athletic Union.

If the before and after school program exceeds the amount necessary to operate the program, the excess amount may, following a public hearing, be transferred by resolution of the board of directors of the school corporation for deposit in the general fund of the school corporation to be used for school district general fund purposes. The district will present a copy of the signed board resolution to the Department of Education.

Beginning in FY 2024, unexpended and unobligated dollars that remain at the end of a fiscal year in addition to ongoing revenues may be transferred to the Teacher Salary Supplement (TSS) program from Professional Development Supplement (PDS), Talented and Gifted (TAG), and Teacher Leadership Supplement (TLS) without board action.

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

Temporary transfers (loans) of funds are permitted between funds but must be repaid to the originating fund, with interest, by Oct. 1 following the end of the fiscal year. 

It is the responsibility of the board secretary to make recommendations to the board regarding transfers and to provide the documentation justifying the transfer.
 

Approved:        10/21/2019                   Reviewed:                     Revised:  02/26/2024 

Financial records of the school district shall be maintained in accordance with generally accepted accounting principles (GAAP) as required or modified by law. School district monies shall be received and expended from the appropriate fund and/or account. The funds and accounts of the school district shall include, but not be limited to:

Governmental fund type:

• General fund - This fund is the chief operating fund of the district. It is used to account for all financial resources except those accounted for and reported in another fund.

• Special Revenue Fund - These funds account for the proceeds of specific revenue sources other than trusts or major capital projects, that are legally restricted or committed to expenditure for specified purposes other than debt service or capital projects.   

  • Management levy fund

  • Public education and recreation levy fund

  • Student activity fund

• Capital projects fund - These funds are used to account for financial resources to acquire or construct major capital facilities or other capital assets (other than those of proprietary funds and trust funds) and to account for revenues from SAVE.

  • Physical plant and equipment levy fund

  • Secure and Advanced Vision for Education (SAVE)

• Debt service fund – This fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.  

Proprietary fund type: – These funds account for operations of the school district operated similar to private business for which a fee is charged to external users for goods or services, or they account for the costs of providing goods and services provided by one department to other departments on a cost reimbursement basis.  

• Enterprise fund

  • School nutrition fund

  • Child care fund

  • Internal Service Fund

  • Community Education

  • Preschool (nonvoluntary, state)

Fiduciary funds: -These funds are used to account for monies or assets held by the school district on behalf of, or in trust for, another entity.  

• Trust

  • Expendable trust funds

  • Nonexpendable trust funds

  • Pension trust funds

• Custodial Funds

Non-Fiduciary Scholarship Funds

Account groups: - The groups are the accounting records for capital assets and long-term debt.

• General fixed assets account group

• General long-term debt account group

As necessary, the board may, by board resolution, create additional funds within the governmental, proprietary and fiduciary fund types. The resolution shall state the type of fund, name of the fund, and purpose of the fund.

The board may establish other funds in accordance with generally accepted accounting principles and may certify other taxes to be levied for the funds as provided by state law.  The status of each fund must be included in the annual report. 

It is the responsibility of the superintendent in conjunction with the school business official to implement this policy and bring necessary changes in the maintenance of the school district's financial records to the attention of the board.

Approved:        10/21/2019                   Reviewed:                     Revised: 02/26/2024  

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 Accounting 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 superintendent 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.  

Fund Balance Reporting

Financial reporting for the balances in the District’s governmental funds is based on Governmental Accounting Standards Board (GASB) Statement 54, Fund Balance Reporting and Governmental Fund Types Definitions.  Fund balance refers to the difference between assets and liabilities in the governmental funds balance sheets.  GASB 54 established a hierarchy that is based on “the extent to which the government is bound to honor constraints on the specific purpose for which the amounts in those funds can be spent.”

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

Nonspendable Fund Balance includes amounts that cannot be spent because they are either not in spendable form, or legally or contractually required to be maintained intact.  This includes items not expected to be converted to cash, including inventories and prepaid expenses.  It may also include other property acquired for resale and the principal of a permanent fund.

Restricted Fund Balance should be reported when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or law or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation.  This includes “categorical balances.”

Committed Fund Balance reflects specific purposes pursuant to constraints imposed by formal action of the board. Such constraints can only be removed or changed by board action.

Assigned Fund Balance reflects amounts that are constrained by the government’s intent to be used for specific purposes but meet neither the restricted nor committed forms of constraint.  Unless the amount is negative, the assigned fund balance is the residual classification for the governmental funds other than the general fund.  If the amount is negative, then the residual amount is shown as unassigned.

Unassigned Fund Balance is the residual classification for the general fund only.  As noted above, if a negative residual amount exists in other governmental funds then the amount is reported as unassigned.

It is the responsibility of the superintendent or designee to develop administrative regulations implementing this policy.  It is also the responsibility of the superintendent or designee to make recommendations to the board regarding fund balance designations.   

Approved:                        Reviewed:                        Revised: 02/26/2024

The following relevant PK-12 public sector indicators will be provided to the Board annually to better understand the financial trends of the district.  These indicators will be an accurate depiction as of June 30th of the preceding fiscal year and will depict at a minimum of 5 years of data.  

• Total revenues and expenditures by fund and major sources; 
• Financial Solvency Ratio - assigned plus unassigned fund balances divided by total revenue minus AEA flow through;
• Unspent Authorized Budget Ratio - amount of maximum spending authority left at year end after deducting the general fund expenditures incurred during the year;
• Unspent Authorized Balance Ratio Net of Restricted Fund Balances (Categorical Fund Balances) - amount of maximum spending authority left at year end after deducting both the general fund expenditures incurred during the year and the total restricted fund balances (categorical fund balances) at year end;
• Enrollment Trend - funding follows the student so it is important to understand district enrollment numbers;
• Staff costs as a percent of total general fund. 

Financial Projections

Five-year financial projections of the general fund will be prepared and updated annually. The general fund is the operating fund of the district where the majority of salaries and benefits are funded.  Projections will help the board determine sustainability of the annual operating budget and help make future budgetary decisions.

The District is committed to utilizing the following financial metrics in determining district financial goals:

1. Unspent Authorized Budget Ratio:  Maintain unspent authorized budget ratio within the10-25% target range.  The current year’s projected balance will be discussed with the Board before staffing and other spending decisions are finalized for the succeeding year.
2. Unspent Authorized Budget Net of Restricted Fund Balances (Categorical Balances): Maintain unspent authorized budget ratio net of restricted fund balances (categorical balances) within the 10-25% target range. The district will attempt to spend the restricted (categorical) annual allocation in the year received to the extent possible.
3. Solvency Ratio: Maintain an unrestricted, uncommitted general fund balance within the 10-20% target range with 10% being a minimum goal.  The current year’s projected balance will be discussed with the Board before establishing the succeeding year’s cash reserve levy and before staffing and other spending decisions are finalized.

Adopted:  01/23/2023                     Reviewed: 03/20/2023                   Revised 01/08/2024

General Fund Budget

The District shall prepare an annual 5-year general fund budget forecast that includes estimates of unspent authorized budget (spending authority), as well as restricted, assigned and unassigned fund balances available at the end of each fiscal year.  The estimates shall be prepared utilizing scenarios for likely State Supplementary Assistance (SSA) rates and enrollment projections. The projections shall include estimates of property tax rates and income surtax rates, if applicable.

Monthly Update

The Treasurer shall report monthly to the Board as to actual revenue and expenditures for the month and year-to-date, as compared to budgeted revenues and expenditures and compared to historical revenues and expenditures (both in dollar amounts and percentages), for each fund maintained by the district.  The Treasurer shall provide context with respect to current year variances between budgeted and historical revenues and expenditures.

Budget Amendments

The District shall amend the certified budget, when necessary, at the earliest practical date after receipt of knowledge indicating that the budget must be amended and prior to any statutory deadline.  Monthly budget reports shall include amended amounts at the earliest possible date after the receipt of knowledge indicating that the budgets must be amended.

Solvency Ratio

The District’s goal is to maintain an unassigned general fund balance that will allow the solvency ratio to fall within the 10-20% target range.  The current year’s projected balance will be discussed with the Board before establishing the succeeding years cash reserve levy and before staffing and other spending decisions are finalized.

Unspent Budget Authority

The Unspent Budget Authority is the remaining legal spending authority at the end of the fiscal year.  The district’s Unspent Budget Authority at June 30 shall be no less than 10 percent with target of 20 percent and a maximum of 25 percent of its general fund budget (spending) authority.  The calculation shall divide the Unspent Budget Authority by the Maximum Authorized Budget to determine the percentage. Maintaining an adequate Unspent Budget Authority provides legal authority to spend the undesignated, unreserved fund balance. A report on meeting this target will be made annually to the Board.

Contingency

The district shall prepare a budget that includes a contingency of at least 0.5 percent of the general fund budgeted expenditures.

Modified Supplemental Amount  

The district shall solicit from the School Budget Review Committee additional Modified Supplemental Amount (spending authority) where it may be available for items such as special education deficit, increasing enrollment, budget guarantee, open enrollment not on prior year count, English Language Learner, and any other lawful purposes.  The board shall be provided a resolution to approve the maximum request authorized. Any award of Modified Supplemental Amount may be levied as a cash reserve levy, in full, in the next available budget year. For recurring program deficits that are predictable and estimable, the district shall levy in advance for the immediately succeeding year as part of the general cash reserve levy if the deficit causes the estimated assigned and unassigned to fall below the minimum required. Grants of spending authority not funded by the state or other sources may ultimately be levied against property taxes. 

Approved:      10/21/2019                   Reviewed:                     Revised:   

The Board recognizes its fiduciary responsibility to oversee the management of school district funds in keeping with the school district vision, mission and goals.  To achieve this purpose, the board may engage in learning about the financial needs, operations and requirements of the district as appropriate for the board’s understanding of the district’s financial position.  The Board also commits to engaging in annual financial goal setting for the district based upon measurable data and projections for the district.

After the fiscal year has closed, the Superintendent or their designee will provide to the Board concise, timely, well organized financial data.  The Board will exercise its oversight responsibilities by reviewing relevant PK-12 public education sector indicators to understand the financial trends of the district.  

The board will establish and review financial goals annually.  The District will measure whether these goals were obtained as of June 30, but only after completion of the Certified Annual Report due September 15th each year.

Providing the best possible educational experience for all students and meeting federal, state, and local academic goals for each student requires maximizing General Fund resources for use in the instructional program. The board may request from the School Budget Review Committee (SBRC) additional modified spending authority (MSA) where it may be available for items such as:

• Special education deficit balances
• Advances to support increasing student enrollment
• Supports for students identified as English Learners
• At risk / dropout prevention programming
• Initial staffing associated with opening new buildings or programs
• Any other lawful purpose

Any award of modified supplement amount will be levied as a cash reserve based on the recommendation of the superintendent/designee and approved by the Board of Education in keeping with the fiscal management performance measures provided for in district policy.

Adopted: 01/23/2023    Reviewed:  03/20/2023    Revised:  

The amount of cash that may be kept in the school building for any one day shall be sufficient for that day's operations. Funds raised by students shall be kept in the central office for a maximum of five day and then deposited in the student activity fund.

A minimal amount of cash shall be kept in the central administration office at the close of the day. Excess cash shall be deposited in the authorized depository of the school district.

Approved:          10/21/2019                   Reviewed:                     Revised:   

Prior to certification of the budget, the board will review the projected revenues and expenditures for the school district and make adjustments where necessary to carry out the education program within the revenues projected. The budget of the school district is the authority for the expenditures of the school district for the fiscal year for which the budget was adopted and certified.  It is the responsibility of the superintendent to operate the school district within the budget. 

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

• the amount of revenues from sources other than taxation;

• the amount of revenues to be raised by taxation;

• an itemization of the amount to be spent in each fund; and,

• comparison of the amount spent and revenue received in each fund for like purposes in the two prior fiscal years.

It shall be the responsibility of the Superintendent and Business Manager to prepare the budget for review by the board prior to the April 30 Certified Budget deadline each year. The District will provide all of the information necessary for the Proposed Property Tax Statement to the Department of Management by March 15.

Mailing of Proposed Property Tax Hearing Statements is completed by the county auditor by March 20.  A public hearing for the Proposed Property Taxes is then held not less than 10 days and not more than 20 days prior to the date of hearing. The hearing notice is published in a newspaper designated for official publication in the school district.  The hearing notice must also be posted on the district website and district social media accounts on the same day it is published in the newspaper. The hearing on the Proposed Property Tax must be a unique and separate meeting and be the only item on the agenda. 

Prior to the adoption of the proposed budget by the board, the public shall be apprised of the proposed budget for the school district. Prior to the adoption of the proposed budget by the board, members of the school district community shall have an opportunity to review and comment on the proposed budget. A public hearing for the proposed budget of the board shall be held each year in sufficient time to file the adopted budget no later than April 30.

The proposed budget filed by the board with the board secretary and the time and place for the public hearing on the proposed budget shall be published in a newspaper designated for official publication in the school district. It shall be the responsibility of the board secretary to publish the proposed budget and public hearing information not less than ten days nor more than 20 days prior to the public hearing.

The board shall adopt and certify a budget for the operation of the school district to the county auditor by April 30. It shall be the responsibility of the board secretary to file the adopted and certified budget with the county auditor and other proper authorities.

The board may amend the budget for the fiscal year. The amendment procedures shall follow the procedures for public review and adoption of the original budget by the board outlined in these policies.

Approved:          10/21/2019                   Reviewed:                     Revised: 02/24/2026  

I.         Definition of Intangible Assets

           A.       Intangible Asset:  

Intangible assets are assets that are:

           (1)       Identifiable – Either the assets:

(a)       Can be separated or divided from the District and sold, transferred, licensed, rented or exchanged; or

(b)       Arose from some legal right (i.e., a contractual right), regardless of whether those rights are separable or dividable;

           (2)       Lacking physical substance;

           (3)       Non-financial in nature – The assets are not in a monetary form, such as cash or investment securities; and

           (4)       Possessing a useful life that extends beyond a single financial reporting period.[1]

Examples of intangible assets include the following:

(1)       Easements or land use rights (i.e., water rights, timber rights and mineral rights);

(2)       Patents, trademarks and copyrights; and

(3)       Computer software or websites that are purchased, licensed or internally generated.

Examples of assets that are not intangible assets for purposes of this Policy include only the following:

(1)       Assets acquired or created primarily for purposes of obtaining income or profit, as these are considered investment assets;

(2)       Assets from capital lease transactions reported by lessees, except licensing agreements to lease commercially available computer software; and

(3)       Goodwill established or created between the District and another entity.

           B.       Outlays Associated with Internally Generated Intangible Assets

Intangible assets that are generated or created internally likely have outlay expenses associated with the generation or creation.  Intangible assets are considered to be generated or created internally if they are:

(1)       Created by the District;

(2)       Created by a third-party contracted by the District; or

(3)       Acquired by the District from a third-party and require more than minimal incremental effort on the part of the District to begin to achieve the expected level of service capacity.

           C.       Outlays Associated with Internally Generated Computer Software

Computer software that is generated or created internally likely has outlay expenses associated with the generation or creation.  Computer software is considered to be generated or created internally if it is:

1. Developed by the District;

2. Developed by a third-party contracted by the District; or

3. Commercially available software acquired, purchased or licensed by the District from a third-party that is modified using more than minimal incremental effort before being put into operation.

II.        Measuring of Intangible Assets

           A.       Threshold for Capitalization of Intangible Assets

The District shall adopt an intangible asset capitalization threshold policy to govern the amount at and above which intangible assets must be reported in the District’s annual reporting statements and audits.  More specifically, the policy shall provide a threshold to be applied to individual intangible assets and shall prohibit the aggregation of items, including intangible assets and outlays, to meet the threshold.[2]  The policy shall be approved by the Board of Education prior to its adoption.

[Note: The District’s policy regarding intangible asset capitalization threshold should generally be designed to capture eighty percent (80%) of the total cost of the District’s intangible assets.  Therefore, prior to creating a policy regarding intangible asset capitalization threshold, the District must know the total value of its intangible assets.]

           B.       Recognition of Intangible Assets

The District shall record individual intangible assets exceeding the threshold amount outlined in the District’s intangible asset capitalization threshold policy as follows:

1. Intangible assets received in an exchange transaction or purchased shall be recorded at actual historical cost, which includes direct costs, and excludes indirect costs;          

2. Intangible assets in the form of business activities and enterprise funds received in an exchange transaction or purchased shall be recorded at actual historical cost, which includes direct costs, specifically capitalized interest and ancillary charges, and excludes indirect costs; and

3. Intangible assets received in a non-exchange transaction or donated shall be recorded at estimated fair market value at the time of acquisition, which requires implementation of a rational method to determine or estimate the value at which the asset could be exchanged between willing parties not involved in a forced sale.

4. Intangible assets reported retroactively[3] shall be recorded at actual historical cost,[4] regardless of whether the asset is fully amortized prior to June 30, 2009.  If an intangible asset reported retroactively is fully amortized prior to June 30, 2009, the District shall record the value of the intangible asset separately from the value of the amortization.

III.       Accounting for Intangible Assets

A.       Intangible Assets

Intangible assets exceeding the threshold shall be accounted for as capital assets.  Therefore, all financial requirements concerning capital assets, including, but not limited to, all accounting and reporting requirements, such as those associated with recognition, measurement, presentation and disclosure, shall be followed.

           B.       Outlays Associated with Internally Generated Intangible Assets

Outlays from internally generated intangible assets exceeding the threshold shall not be accounted for as capital assets until they are identifiable and the “specified conditions criteria” have occurred (see below).  Outlays exceeding the threshold not meeting these requirements and/or incurred prior to these criteria occurring shall be accounted for as an expense when the expense is incurred.

Outlays from internally generated intangible assets exceeding the threshold shall be accounted for as capital assets if they occur after such time as:

1. The assets are identifiable – See the definition outlined in Section I of this Policy; and

2. The “specified conditions criteria” have occurred, as follows:

(a)       Determination of the specific objective of the project and the nature of the service capacity that is expected to be provided by the intangible asset upon completion of the project;

(b)       Demonstration of the technical or technological feasibility for completing the project so that the intangible asset will provide its expected service capacity; and

(c)       Demonstration of the current intention, ability, and presence of effort to complete or, in the case of a multiyear project, continue development of the intangible asset.

          C.       Outlays Associated with Internally Generated Computer Software

Outlays from internally generated computer software developed by the District or by a third-party contracted by the District exceeding the threshold shall be accounted for as follows:

(1)       During the preliminary project stage, all outlays exceeding the threshold shall be accounted for as an expense when the expense is incurred.  The preliminary project stage involves the conceptual formulation and evaluation of alternatives, the determination of the existence of needed technology and the final selection of alternatives for development of the software.

(2)       During the application development stage, outlays that occur before the specified conditions criteria have occurred and exceed the threshold shall be accounted for as an expense when the expense is incurred; outlays that occur after the specified conditions criteria have occurred[5] and exceed the threshold[6] shall be accounted for as capital assets; and outlays that occur after the computer software is substantially complete and operational and exceed the threshold shall be accounted for as an expense when the expense is incurred.  The application development stage involves the design of the chosen path, including, but not limited to the purchase of the software or license;[7] the software configuration and the software interfaces; the coding; the installation to hardware; the testing; any minor modifications made to the software before it is placed into operation;[8] and the data conversion, if such was deemed necessary in order to make the software operational.

(3)       During the post-implementation and operation stage, all outlays exceeding the threshold shall be accounted for as an expense when the expense is incurred.  The post-implementation and operation stage includes the data conversion, if such was not deemed necessary during the application development stage in order to make the software operational; the application training; and the software maintenance.

Outlays from internally generated computer software extensively modified by the District or by a third-party contracted by the District exceeding the threshold shall be accounted for as follows:

(1)       All outlays from the modification of computer software exceeding the threshold shall be accounted for as capital assets if one of the following conditions exist:

(a)       The modification causes an increase in the functionality of the software (the software is able to perform tasks that it was previously incapable of performing);

(b)       The modification causes an increase in the efficiency of the software (the software offers an increased level of service without the need for an increased performance of tasks); or

(c)       The modification extends the estimated useful life of the software.

(2)       All outlays from the modification of computer software exceeding the threshold shall be accounted for as an expense when the expense is incurred if none of the above conditions exists.

IV.      Amortization of Intangible Assets

In amortizing an intangible asset that is capitalized because it exceeds the threshold and meets the requirements above,[9] the following general rules shall apply:

(1)       The useful life of an intangible asset generally shall be estimated.  Therefore, the intangible asset has a determinable useful life, even if it must be estimated, and shall be amortized using the straight-line method.

(2)       The useful life of an intangible asset that arises from and is limited by contractual or other legal rights shall not exceed the period of the intangible asset’s service capacity provided under the contract or other legal provision.  Therefore, the intangible asset has a determinable useful life, even if it must be estimated, and shall be amortized using the straight-line method.

(3)       The useful life of an intangible asset that is not limited by any legal, contractual, regulatory, technological or other factors shall be indefinite.  Therefore, the intangible asset has no determinable useful life and shall not be amortized.

In considering changes in circumstances that affect the amortization of an intangible asset, the following rules shall apply:

(1)       An intangible asset that arises from and is limited by contractual or other legal rights shall take into consideration contract renewal periods for purposes of determining its useful life and its amortization schedule only if the following requirements are met:

(a)       There is evidence that the District will seek and be able to achieve contract renewal; and

(b)       The anticipated outlay for contract renewal is nominal in relation to the level of service capacity obtained by the contract renewal.

(2)       An intangible asset that was once not limited by any legal, contractual, regulatory, technological or other factors, but now is limited by such factors due to changes in conditions, shall be tested for impairment[10] because the expected duration of the useful life of the asset has changed, and then the following rules shall apply:

(a)       If an impairment is determined not to exist, the intangible asset has a determinable useful life and shall be amortized using the straight-line method.

(b)       If an impairment is determined to exist, the following must occur:

(i)        The loss due to the impairment shall be accounted for as a loss;

(ii)       The intangible asset has a useful life that must be estimated and is determinable; and

(iii)      The carrying value, or the value remaining after accounting for the impairment, shall be amortized using the straight-line method over the remaining estimated useful life.

V.       Selling or Disposing of Intangible Assets

In selling or disposing of intangible assets, the District shall calculate and report a gain or loss on the sale or disposal.  The gain or loss shall be calculated by subtracting the net book value, which consists of the historical cost less any accumulated amortization, from the net amount realized on the sale or disposal.

VI.      Application of Policy

The requirements of this Policy shall apply to all financial statements covering periods beginning after June 30, 2009.  Consequently,

The requirements of this Policy shall apply retroactively to intangible assets that were in existence from July 1, 1980, through June 30, 2009.[11]  However, the following intangible assets shall not be retroactively reported as capital assets:

(1)       Intangible assets considered to have an indefinite useful life as of June 30, 2009;

(2)       Intangible assets considered to be internally generated as of June 30, 2009;

(3)       Outlays from internally generated computer software incurred in the application development stage on or prior to June 30, 2009;[12]

(4)       Any intangible asset held by a “Phase 3” District, characterized as such for purposes of implementing GASB Statement 34.  [Note: The District needs to include a specific statement regarding whether the District was classified as “Phase 3” for purposes of implementing GASB Statement 34.]

[Note: This effectively means that the District, which is on an accrual basis of accounting, will be required to restate its beginning net assets, fund balances, or fund net assets in order to fully report, as of July 1, 2009, the beginning of fiscal year 2010, the appropriate value and amortization of certain intangible assets that were in existence from July 1, 1980 to June 30, 2009.]

____________________________________________________________________________ 

[1] This requirement also applies to an intangible asset in the form of a computer software license purchased or renewed, and the useful life must extend beyond a single reporting period in order for the computer software license to be capitalized.

[2] With intangible assets in the form of computer software licenses purchased or renewed, each individual license must be accounted for separately and all licenses cannot be aggregated for purposes of measuring wither the assets have exceeded the threshold.

[3] Reference Section VI of this Policy for the retroactive reporting of intangible assets.

[4] If actual historical cost cannot be determined for intangible assets acquired prior to June 30, 2009, due to lack of sufficient records, estimated historical cost shall be used.

[5] The specified conditions criteria are considered to be met for internally generated computer software developed by the District or a third-party contracted by the District when the preliminary project stage is complete and the Board authorizes and/or commits to funding the development of new computer software.

[6] In determining whether the outlays exceed the threshold, each outlay shall be accounted for separately and no outlay shall be aggregated with any other outlay for purposes of measuring wither the outlays have exceeded the threshold.  For example, the initial purchase of the computer software or license and the modifications made to the computer software or license should be accounted for separately and should not be aggregated for purposes of measuring wither the outlays have exceeded the threshold.

[7] The purchase of the computer software or license shall be treated as an outlay that shall be capitalized.

[8] Making minor modifications to the computer software or license shall be treated as an outlay that shall be capitalized.

[9] This includes intangible assets that were in existence from July 1, 1980, through June 30, 2009, and must be retroactively reported.

[10] Internally generated intangible assets and computer software commonly experience impairment with development stoppage, including, but not limited to, stoppage of development of computer software due to changes in the priorities of management.

[11] This includes computer software purchased prior to June 30, 2009, that is currently still in use.

[12] Reference Section III, Subsection C of this Policy for the accounting of outlays from internally generated computer software incurred in the application development stage after June 30, 2009.

Approved:        10/21/2019                   Reviewed: 02/26/2024                    Revised:   

General

The board strives to maintain adequate fund balances and reserves in order to:

1.              Provide sufficient cash flow for daily financial needs;

2.              Secure and maintain investment-grade bond ratings;

3.              Offset significant economic downturns or revenue shortfalls; and

4.              Provide funds for unforeseen expenditures related to emergencies.

Reporting Fund Balances

The board shall engage in accounting and financial reporting procedures in compliance with the Governmental Accounting Standards Board’s Statement No. 54 (“GASB 54”) or successor.

Pursuant to GASB 54, governmental fund balances shall be identified for purposes of reporting as one of the following types of funds:

1.              “Nonspendable”- fund balances that can never be spent because the balances are either not in spendable form because they cannot currently be spent or cannot ever be spent (i.e., supply inventory funds, prepaid items, long-term loans receivables (including from loans to other funds of the District) and non-financial assets held for resale) or the District is legally or contractually required to maintain the balances in-tact (i.e., principal of an endowment fund).

2.              “Restricted”- fund balances that can be used only for the specific purposes permitted in externally enforceable legal restrictions, including, but not limited to, the constitution, enabling legislation or external resource providers (i.e., PPEL funds, Debt Service funds, Capital Project funds, state grant carryover funds, categorical funds including for example, per pupil supplement funds, special education funds, drop-out prevention funds).

3.              “Committed”- fund balances that can be used only for the specific purposes determined by a formal action of the Board.

4.              “Assigned”- fund balances that are constrained by the District’s intent to use the funds for specific purposes determined by the Board and/or designee, but which are neither restricted nor committed (i.e., cash flow fund, funds for book fairs or field trips that are within the general fund).

5.              “Unassigned”- fund balances that have not been restricted, committed or assigned (i.e., residual classification for the general fund or a deficit balance from overspending for specific purposes for which amounts have been restricted, committed or assigned for other funds).

Governmental fund balances shall first be distinguished based upon whether the fund balance is nonspendable, as defined above, and then shall be distinguished based upon whether the fund balance is restricted, classified, assigned or unassigned, all as defined above. 

Governmental fund balances shall be identified at the highest category of identification possible, regardless of whether the fund balance also fits into a lower category of identification (i.e., a PPEL fund balance should be reported as “restricted,” even if a separate Board action “committed” a portion of the PPEL fund balance to a specific purpose).

Governmental fund balances identified as committed fund balances after the end of the fiscal year, the amount shall be reflected as assigned on the balance sheet for that year.

Authority to Commit or Assign Fund Balances

The Board shall have the authority to determine whether a governmental fund balance in the District’s general fund is committed and/or assigned, both as defined above.  The Board delegates to the [superintendent and/or the Board secretary] the authority to assign a fund balance in the District’s general fund to be used for a specific purpose.

The Board shall take formal board action prior to committing a fund balance, modifying the commitment of a fund balance or removing the commitment of a fund balance.  The Board shall approve by a majority vote the commitment of a fund balance, the modification of the commitment of a fund balance and the removal of the commitment of a fund balance.  The Board shall take action to commit a fund balance prior to the end of each fiscal year in which the original committed amount is determined. The Board may take action to commit a fund balance without determining the exact amount of the committed fund balance prior to the end of the fiscal year, provided the intended committed purpose is identified prior to the end of the fiscal year and the exact amount of the committed fund balance is determined after the end of the fiscal year.

Spending Fund Balances

Pursuant to GASB 54 and absent any other specific direction in place at the District, the District shall spend and/or reduce governmental fund balances in the following order: restricted fund balance, committed fund balance, assigned fund balance and unassigned fund balance.

Approved:        10/21/2019                   Reviewed:                     Revised:   

Revenues of the school district are received by the board treasurer.  Other persons receiving revenues on behalf of the school district will promptly turn them over to the board treasurer.

Revenue, from whatever source, is accounted for and classified under the official accounting system of the school district.  It is the responsibility of the board treasurer to deposit the revenues received by the school district in a timely manner.  School district funds from all sources will not be used for private gain or political purposes.

Tuition fees received by the school district are deposited in the general fund.  The tuition fees for kindergarten through twelfth grade during the regular academic school year are set by the board based upon the superintendent's recommendation in compliance with current law.  Tuition fees for summer school, driver's education and adult education are set by the board prior to the offering of the programs.

The board may charge materials fees for the use or purchase of educational materials.  Materials fees received by the school district are deposited in the general fund.  It is the responsibility of the superintendent to recommend to the board when materials fees will be charged and the amount of the materials fees.

Rental fees received by the school district for the rental of school district equipment or facilities are deposited in the general fund.  It is the responsibility of the superintendent to recommend to the board a fee schedule for renting school district property.

Proceeds from the sale of real property are placed in the physical plant and equipment levy (PPEL) fund.  However, following a properly noticed public hearing, the board of directors may elect to deposit proceeds from the sale of real property or buildings into any fund under the control of the school corporation.  Notice for the public hearing must be published in a newspaper of general circulation within the district not less than ten and no more than twenty days prior to the proposed public hearing.  Notice of the public hearing must include the date, time and location of the public hearing, and a description of the proposed action.  The proceeds from the sale of other school district property are placed in the general fund.

The board may claim exemption from the law prohibiting competition with private enterprise for the following activities:

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

It is the responsibility of the superintendent to bring to the board's attention additional sources of revenue for the school district.

Approved:  4/10/23                   Reviewed:                     Revised:   

DEBT LIMITS

Credit Ratings

The school district seeks to maintain the highest possible credit ratings for all categories of short- and long-term debt that can be achieved without compromising the delivery of services and the achievement of adopted objectives.  The school district recognizes that external economic, natural, or other events may from time to time affect the creditworthiness of its debt. Nevertheless, the school district is committed to ensuring that actions within their control are prudent.

Debt Limits

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

For revenue debt, the school district’s goal is to provide adequate debt service coverage of at least 1.20 times the annual debt service costs.

In accordance with Iowa law, the school district may not act as a conduit issuer or issue municipal securities to raise capital for revenue-generating projects where the funds generated are used by a third party (“conduit borrower”) to make payments to investors.

PURPOSES AND USES OF DEBT 

Capital Planning

To enhance creditworthiness and prudent financial management, the school district is committed to systematic capital planning, intergovernmental cooperation and coordination and long-term financial planning.

Capital Financing

The school district may issue long-term debt for capital projects as authorized by Iowa law, which include, but are not limited to, the costs of planning, design, land acquisition, buildings, permanent structures, attached fixtures or equipment, and movable pieces of equipment. Capitalized interest may be included in sizing any capital project debt issue.  The types of debt instruments to be used by the school district include:

• General Obligation Bonds

• General Obligation Capital Loan Notes

• Bond Anticipation Notes

• Revenue Anticipation Notes

• School Infrastructure Sales, Services and Use Tax Revenue Bonds

• Lease Purchase Agreements, including Certificates of Participation

Working Capital Financing

The school district may issue debt for working capital for operations after cash flow analysis has determined that there is a mismatch between available cash and cash outflows.  The school district shall strive to repay working capital debt by the end of the fiscal year in which the debt was incurred.  A Working Capital Reserve may be included in sizing any working capital debt issue.

Refundings

Periodic reviews of all outstanding debt will be undertaken to determine if refunding opportunities exist. Refunding will be considered (within federal tax law restraints) if and when there is a net economic benefit of the refunding or if the refunding is otherwise in the best interests of the school district, such as to release restrictive bond covenants which affect the operations and management of the school district.

In general, advance refundings for economic savings will be undertaken when a net present value savings exceeds three percent of the refunded debt can be achieved.  Current refundings, which produce a new present value savings of less than three percent will be considered on a case by case basis taking into consideration bond covenants and general conditions.  Refundings with negative savings will not be considered unless there is a compelling public policy objective for doing so.

DEBT STANDARDS AND STRUCTURE

Length of Debt

Debt will be structured for the shortest period consistent with a fair allocation of costs to current and future beneficiaries or users.  Long-term debt will not be issued for periods exceeding the useful life or average useful lives of the project or projects to be financed.  All debt issued will adhere to state and federal law regarding the length of time the debt may be outstanding.

Debt Structure

Debt will be structured to achieve the lowest possible net cost to the school district given market conditions, the urgency of the capital project, the type of debt being issued, and the nature and type of repayment source.  To the extent possible, the school district will design the repayment of its overall debt to rapidly recapture its credit capacity for future use.

Generally, the school district will only issue fixed-rate debt.  In very limited circumstances, the school district may issue variable rate debt, consistent with the limitations of Iowa law and upon a finding of the board that the use of fixed rate debt is not in the best interest of the school district and a statement of the reasons for the use of variable rate debt

All debt may be structured using discount, par or premium coupons, and as serial or term bonds or notes, or any combination thereof, consistent with Iowa law.  The school district should utilize the coupon structure that produces the lowest True Interest Cost (TIC) taking into consideration the call option value of any callable maturities.

The school district will strive to structure their debt in sinking fund installments for each debt issue that achieves, as nearly as practicable, level debt service within an issue or overall debt service within a particular classification of debt.

Derivatives (including, but not limited to, interest rate swaps, caps, collars, corridors, ceiling and floor agreements, forward agreements, float agreements, or other similar financing arrangements), zero-coupon or capital appreciation bonds are not allowed to be issued consistent with State law.

Decision Analysis to Issue Debt

Whenever the school district is contemplating the issuance of debt, information will be developed concerning the following four categories commonly used by rating agencies assessing the school district’s credit worthiness, listed below.

Debt Analysis – Debt capacity analysis; purpose for which debt is proposed to be issued; debt structure; debt burden; debt history and trends; and adequacy of debt and capital planning.

Financial Analysis – Stability, diversity, and growth rates of tax or other revenue sources; trend in assessed valuation and collections; current budget trends; appraisal of past revenue and expenditure trends; history and long-term trends of revenues and expenditures; evidences of financial planning; adherence to GAAP; audit results; fund balance status and trends in operating and debt funds; financial monitoring systems and capabilities; and cash flow projections.

Governmental and Administrative Analysis – Government organization structure; location of financial responsibilities and degree of control; adequacy of basic service provision; intergovernmental cooperation/conflict and extent of duplication; and overall planning efforts.

Economic Analysis – Geographic and location advantages; population and demographic characteristics; wealth indicators; types of employment, industry and occupation; housing characteristics; new construction; evidences of industrial decline; and trend of the economy.

DEBT ISSUANCE 

Credit Enhancement

Credit enhancements (.i.e., bond insurance, etc.) may be used but only when the net debt service on the debt is reduced by more than the costs of the credit enhancement.

Costs and Fees

All costs and fees related to issuing the debt will be paid out of debt proceeds and allocated across all projects receiving proceeds of the debt issue.

Method of Sale

Generally, all school district debt will be sold through a competitive bidding process.  Bids will be awarded on a TIC basis providing other bidding requirements are satisfied.

The school district may sell debt using a negotiated process in extraordinary circumstances when the complexity of the issue requires specialized expertise, when the negotiated sale would result in substantial savings in time or money, or when market conditions of school district credit are unusually volatile or uncertain.

Professional Service Providers

The school district will retain external bond counsel for all debt issues.  All debt issued by the school district will include a written opinion by bond counsel affirming that the school district is authorized to issue the debt, stating that the school district has met all Iowa constitutional and statutory requirements necessary for issuance and determining the debt’s federal income tax status.  The bond counsel retained must have comprehensive municipal debt experience and a thorough understanding of Iowa law as it relates to the issuance of the particular debt.

The school district will retain an independent financial advisor.  The financial advisor will be responsible for structuring and preparing all offering documents for each debt issue.  The financial advisor retained will have comprehensive municipal debt experience, experience with diverse financial structuring and pricing of municipal securities.

The treasurer shall have the authority to periodically select other service providers (e.g., escrow agents, verification agents, trustees, arbitrage consultants, rebate specialist, etc.) as necessary to meet legal requirements and minimize net debt costs.  These services can include debt restructuring services and security or escrow purchases.

Compensation for bond counsel, financial advisor and other service providers will be as economical as possible and consistent with industry standards for the desired qualification levels.

DEBT MANAGEMENT

Investment of Debt Proceeds

The school district shall invest all proceeds received from the issuance of debt separate from the school district’s consolidated cash pool unless otherwise specified by the authorizing bond resolution or trust indenture.  Investments will be consistent with those authorized by Iowa law and the school district’s Investment Policy to maintain safety of principal and liquidity of the funds.

Arbitrage and Record Keeping Compliance

The treasurer shall maintain a system of record keeping reporting and compliance procedures with respect to all federal tax requirements which are currently, or may become applicable through the lifetime of all tax-exempt or tax credit bonds.

Federal tax compliance, record-keeping reporting and compliance procedures shall include not shall not be limited to: 

1)     post-issuance compliance procedures (including proper use of proceeds, timely expenditure of proceeds, proper use of bond financed property, yield restriction and rebate, and timely return filing);

2)     proper maintenance of records to support federal tax compliance;

3)     investments and arbitrage compliance; 

4)     expenditures and assets; 

5)     private business use; and

6)     designation of primary responsibilities for federal tax compliance of all bond financings.

Financial Disclosure

The school district is committed to full and complete financial disclosure, and to cooperating fully with rating agencies, institutional and individual investors, other levels of government, and the general public to share comprehensible and accurate financial information.  The school district is dedicated to meeting secondary disclosure requirements on a timely and comprehensive basis, as promulgated by the Securities and Exchange Commission.

The Official Statements accompanying debt issues, Annual Audits, and Continuing Disclosure statements will meet the standards articulated  by the Municipal Securities Rulemaking Board (MSRB), the Government Accounting Standards Board (GASB), the Securities and Exchange Commission (SEC), Generally Accepted Accounting Principles (GAAP) and the Internal Revenue Service (IRS).  The treasurer shall be responsible for ongoing debt disclosure as required by any Continuing Disclosure Certificate for any debt issue and for maintain compliance with disclosure standards promulgated by state and federal regulatory bodies.

Approved:      5/11/2020                   Reviewed:                     Revised:   

School district funds in excess of current needs shall be invested in compliance with this policy. This policy applies to all operating funds, bond proceeds, and other funds.

The goals of the school district's investment portfolio in order of priority are:

• To provide safety of the principal;

• To maintain the necessary liquidity to match expected liabilities; and

• To obtain a reasonable rate of return.

The responsibility for conducting investment transactions resides with the treasurer and those authorized by resolution.  It shall be the responsibility of the treasurer to oversee the investment portfolio in compliance with this policy and Iowa Code Chapter 12B.  The investment of bond funds or sinking funds shall comply not only with this policy, but also the applicable bond resolution.

In making investments, the school district shall exercise the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use to meet the goals of the investment program.

School district funds are monies of the school district including operating funds, bond proceeds, and other funds. Operating funds are funds which are reasonably expected to be used during the current budget year or within fifteen months of receipt. When investing operating funds, the investments must mature within three hundred and ninety-seven (397) days or less. When investing funds other than operating funds, the investments mature according to the need for the funds.

The board authorizes the treasurer to invest funds in excess of current needs in the following investments:

1. Obligations of the United States government, its agencies and instrumentalities; and

2. Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions approved pursuant to Iowa Code Chapter 12C and authorized as a depository of the district by resolution;

3. Prime bankers’ acceptances that mature within two hundred seventy (270) days and that are eligible for purchase by a federal reserve bank, provided that at the time of purchase no more than ten percent (10%) of the investment portfolio shall be in investments authorized by this subparagraph and that at the time of purchase no more than five percent (5%) of the investment portfolio shall be invested in the securities of a single issuer;

4. Commercial paper or other short-term corporate debt that matures within two hundred seventy (270) days and that is rated within the two highest classifications, as established by at least one of the standard rating services approved by the superintendent of banking by rule adopted pursuant to Iowa Code chapter 17A, provided that at the time of purchase no more than five percent (5%) of all amounts invested in commercial paper and other short-term corporate debt shall be invested in paper and debt rated in the second highest classification, and provided further that at the time of purchase no more than ten percent (10%) of the investment portfolio shall be in investments authorized by this subparagraph and that at the time of purchase no more than five percent (5%) of the investment portfolio shall be invested in the securities of a single issuer;

5. Repurchase agreements whose underlying collateral consists of the investments set out in (1) if the political subdivision takes delivery of the collateral either directly or through an authorized custodian. Repurchase agreements do not include reverse repurchase agreements;

6. An open-end management investment company registered with the federal Securities and Exchange Commission under the federal Investment Company Act of 1940, 15 U.S.C. §80a-1, and operated in accordance with 17 C.F.R. §270.2a-7.

7. A joint investment trust organized pursuant to Iowa Code chapter 28E, provided that the joint investment trust shall be one of the following: (i) Rated within the two highest classifications by at least one of the standard rating services approved by the superintendent of banking by rule adopted pursuant to Iowa Code chapter 17A and operated in accordance with either 17 C.F.R. §270.2a-7, or with the requirements of the governmental accounting standards board for external investment pools. (ii) Registered with the federal securities and exchange commission under the federal Investment Company Act of 1940, and operated in accordance with 17 C.F.R. §270.2a-7.  The manager or investment advisor of the joint investment trust shall be registered with the federal Securities and Exchange Commission under the Investment Advisor Act of 1940;

8. Warrants or improvement certificates of a levee or drainage district.

It shall be the responsibility of the treasurer to bring a contract with an outside person to invest school district funds, to advise on investments, to direct investments, to act in a fiduciary capacity or to perform other services to the board for review and approval. The treasurer shall also provide the board with information about and verification of the outside person's fiduciary bond. Contracts with outside persons shall include a clause requiring the outside person to notify the school district within thirty days of any material weakness in internal structure or regulatory orders or sanctions against the outside person regarding the services being provided to the school district and to provide the documents necessary for the performance of the investment portion of the school district audit. The compensation of the outside persons shall not be based on the performance of the investment portfolio.

The treasurer shall be responsible for reporting to and reviewing with the board at its regular meetings the investment portfolio's performance, transaction activity, and current investments including the percent of the investment portfolio by type of investment and by issuer and maturity. The report shall also include trend lines by month over the last year and year-to-year trend lines regarding the performance of the investment portfolio. It shall also be the responsibility of the treasurer to obtain the information necessary to ensure that the investments and the outside persons doing business with the school district meet the requirements outlined in this policy.

It shall be the responsibility of the superintendent to deliver a copy of this policy and any future amendments to the school district's depositories, auditor, and outside persons doing investment business with the school district.

It shall also be the responsibility of the superintendent, in conjunction with the treasurer, to develop a system of investment practices and internal controls over the investment practices. The investment practices shall be designed to prevent losses, to document the officers' and employees' responsibility for elements of the investment process, and address the capability of any outside party assisting with the management of the district funds.

Approved:          10/21/2019                   Reviewed:                     Revised:   

The board believes gifts, grants, and bequests to the school district may be accepted when they will further the interests of the school district. The board shall have sole authority to determine whether a gift, grant or bequest furthers the interests of the school district.

Gifts, grants, and bequests shall be approved by the board. Once a gift, grant or bequest has been approved by the board, a board member or the superintendent may accept the gift, grant or bequest on behalf of the school district.

Gifts, grants, and bequests once accepted on behalf of the school district shall become the property of the school district. Gifts, grants, and bequests shall be administered in accordance with terms, if any, agreed to by the board.

Approved:          10/21/2019                   Reviewed:                     Revised:   

Revenue raised by students or from student activities shall be deposited and accounted for in the student activities fund. This revenue is the property of and shall be under the financial control of the board. Students may use this revenue for purposes approved by the superintendent and business manager.

Whether such revenue is collected from student contributions, club dues or special activities or result from admissions to special events or from other fund-raising activities, all funds will be under the jurisdiction of the board and under the specific control of the activities director. They will be deposited in a designated depository and will be disbursed and accounted for in accordance with instructions issued by the Iowa Department of Education and State Auditor’s Office.

It shall be the responsibility of the school business official to keep student activity accounts up-to-date and complete.

Any unencumbered class or activity account balances will automatically revert to the activity fund when a class graduates or an activity is discontinued.

Approved:          10/21/2019                   Reviewed:                     Revised:   

The Board of Education believes online fundraising campaigns, including crowdfunding campaigns, may further the interests of the district. Online fundraising campaigns have become an increasingly popular mechanism for individual educators to raise money. “Crowdfunding” can be defined as, the use of small amounts of capital from a large number of individuals to finance a project, business venture, or to fundraise for a specific cause or charity. Some examples of organizations dedicated to crowdfunding for education are below:

• DonorsChoose.org, an organization with a mission to empower “public school teachers from across the country to request much-needed materials and experiences for their students." 
• AdoptAClassroom.org, an organization with a mission to give “teachers a hand by providing needed classroom materials so that students can succeed.”

Any person or entity acting on behalf of the district and wishing to conduct an online fundraising campaign for the benefit of the district shall begin the process by seeking prior approval from the board or their designee. Any fundraising efforts conducted using the district's name, symbols, or imagery will be conducted in accordance with all policies, regulations and rules for fundraising within the district. Money or items raised by an online fundraising campaign will be the property of the district only upon acceptance by the board, and will be used only in accordance with the terms for which they were given, as agreed to by the board. 

Approval of requests shall depend on factors including, but not limited to: 

• Compatibility with the district’s educational program, mission, vision, core values, and beliefs;
• Congruence with the district and school goals that positively impact student performance; 
• The district’s instructional priorities; 
• The manner in which donations are collected and distributed by the crowdfunding platform;  
• Equity in funding; and
• Other factors deemed relevant or appropriate by the district. 

If approved, the requestor shall be responsible for preparing all materials and information related to the online fundraising campaign and keeping district administration apprised of the status of the campaign. 

The requestor is responsible for compliance with all state and federal laws and other relevant district policies and procedures. All items and money generated are subject to the same controls and regulations as other district property and shall be deposited or inventoried accordingly. No money raised or items purchased shall be distributed to individual employees. No funds collected shall be deposited to a staff members personal account. 

Approved:          02/27/2023                   Reviewed:                     Revised:   

The board supports economic development in Iowa, particularly in the school district community. As permitted by law, purchasing preference will be given to Iowa goods and services from locally-owned businesses located within the school district or Iowa based companies if the cost and other considerations are relatively equal and meet the required specifications. However, when spending federal Child Nutrition Funds, geographical preference is allowed only for unprocessed agricultural food items as a part of response evaluation. Other statutory purchasing preferences will be applied as provided by law, including goals and reporting with regard to procurement from certified targeted small businesses, minority-owned businesses, and female-owned businesses. 

Goods and Services 

The board shall enter into goods and services contract(s) as the board deems to be in the best interest of the school district. It shall be the responsibility of the superintendent to approve purchases, except those requiring board approval as described below or as provided by in law. The superintendent may coordinate and combine purchases with other governmental bodies to take advantage of volume price breaks. Joint purchases with other political subdivisions will be considered in the purchase of equipment, accessories, or attachments with an estimated cost of $50,000 or more. 

Purchases for goods and services shall conform to the following: 

• The superintendent shall have the authority to authorize purchases without prior board approval and without competitive request for proposals, quotations, or bids for goods and services up to $10,000. 
• For goods and services costing at least $10,000 and up to $139,000, the superintendent shall receive proposals, quotations, or bids for the goods and services to be purchased prior to board approval. The quotation process may be informal, and include written or unwritten quotations.
• For goods and services exceeding, $139,000, the competitive request for proposal (RFP) or competitive bid process shall be used and received prior to board approval. RFPs and bids are formal, written submissions via sealed process. 

In the event that only one quotation or bid is submitted, the board may proceed if the quotation or bid meets the contract award specifications. 
 
The contract award may be based on several cost considerations including, but not limited to the following:

• The cost of the goods and services being purchased; 
• Availability of service and/or repair; 
• The targeted small business procurement goal and other statutory purchasing preferences; and 
• Other factors deemed relevant by the board. 

The board may elect to exempt certain professional services contracts from the thresholds and procedures outlined above.

The thresholds and procedures related to purchases of goods and services do not apply to public improvement projects. 

Public Improvements

The board shall enter into public improvement contract(s) as the board deems to be in the best interest of the school district. ‘Public improvement’ means “a building or construction work which is constructed under the control of a governmental entity and for which either of the following applies: (1) has been paid for in whole or in part with funds of the governmental entity; (2) a commitment has been made prior to construction by the governmental entity to pay for the building or construction work in whole or in part with funds of the governmental entity. This includes a building or improvement constructed or operated jointly with any public or private agency.” 

The district shall follow all requirements, timelines, and processes detailed in Iowa law related to public improvement projects. The thresholds regarding when competitive bidding or competitive quotations is required will be followed. Competitive bidding is required for public improvement contracts exceeding the minimum threshold stated in law. Competitive quotations are required for public improvement projects that exceed the minimum threshold amount stated in law, but do not exceed the minimum set for competitive bidding. The board shall approve competitive bids and competitive quotes. If the total cost of the public improvement does not warrant either competitive bidding or competitive quotations, the district may nevertheless proceed with either of these processes, if it so chooses. 

The award of all contracts for the public improvement shall be awarded to the lowest responsive, responsible bidder. In the event of an emergency requiring repairs to a school district facility that exceed bidding and quotation thresholds, please refer to policy 802.03 – Emergency Repairs. 

The district shall comply with all federal and state laws and regulations required for procurement, including the selection and evaluation of contractors.  The superintendent or designee is responsible for developing an administrative process to implement this policy, including, but not limited to, procedures related to suspension and debarment for transactions subject to those requirements.

Approved:   2/27/23                    Reviewed:                      Revised: 10/03/23

The board authorizes the issuance of warrants for payment of claims against the school district for goods and services. The board will allow the warrants after the goods and services have been received and accepted in compliance with board policy and the claims audited by the board.

Claims for items pursuant to the terms of a written contract approved by the board, such as payment of freight, athletic officials, postage, printing, water, lights, telephone, rents, and payment of salaries may be paid by the board secretary prior to formal audit and approval by the board. In addition, the secretary, upon approval of the board president, may issue warrants for approved registrations, claims offering a discount for early payment, approved travel expenses, approved goods and services delivered C.O.D., and other verified bills filed with the secretary when the board is not in session prior to payment of these claims and prior to audit and approval by the board. The board secretary shall examine the claims and verify bills.

The secretary shall determine to the secretary's satisfaction that the claims presented to the board are in order and are legitimate expenses of the school district. It shall be the responsibility of the secretary to bring claims to the board for approval.  Hereafter, paid claims shall be entered on record in the regular minutes of the secretary.

All warrants must be processed through the district’s secure financial accounting software system that utilizes electronic signatures.

Approved:          10/21/2019                   Reviewed:                     Revised:   

The board recognizes that school district funds are public funds, and as such, should be used to further a public purpose and the overall educational mission of the school community.  The district is committed to managing and spending public funds in a transparent and responsible manner.  Prior to making a purchase with public funds, an individual should be comfortable defending the purchase/reimbursement to the taxpayers in the district.  If the individual is uncomfortable doing so, the purchase may not fulfill a public purpose and additional guidance should be sought before the purchase is made.    

Individuals who have concerns about the public purpose of a purchase or reimbursement should utilize the district’s Internal Controls policy and regulation as a resource for questioning a purchase.  Concerns should be reported to the superintendent and/or the board president.  

The superintendent shall develop a process for approving expenditures of public funds.  The board will review expenditures and applicable reports as necessary to ensure proper oversight of the use of public funds.  To the extent possible, expenditures shall be pre-approved by the district prior to expending the funds.  Purchases of food and refreshment for district staff, even within district, should comply with the district’s Employee Travel Compensation policy, and all other applicable policies.  All purchases/reimbursements shall comply with applicable laws, board policies and district accounting requirements.

Additional guidance regarding appropriate expenditures of school funds is provided in the regulation accompanying this policy.

Approved:  4/10/23                   Reviewed:                     Revised:   

The payroll period for the school district is monthly.  Employees are paid on the 20th day of each month.  If this day is a holiday, recess, or weekend, the payroll is paid on the last working day prior to the holiday, recess or weekend.

It is the responsibility of the board secretary to issue payroll to employees in compliance with this policy.

Approved:  4/10/23                   Reviewed:                     Revised:   

The district provides leaves of absences to allow employees to be absent from work to attend to important matters outside of the workplace. As public employers, school districts are expected to record and monitor the work that employees perform and to conform to principles of public accountability in their compensation practices.

Consistent with principles of public accountability, it is the policy of the district that, when an employee is absent from work for less than one work day and the employee does not use accrued leave for such absence, the employee’s pay will be reduced or the employee will be placed on leave without pay if:

• the employee has not sought permission to use paid leave for this partial-day absence,
• the employee has sought permission to use paid leave for this partial-day absence and permission has been denied,
• the employee’s accrued paid leave has been exhausted, or,
• the employee chooses to use leave without pay.

In each case in which an employee is absent from work for part of a work day, a deduction from compensation will be made or the employee will be placed on leave without pay for a period of time which is equal to the employee’s absence from the employee’s regularly scheduled hours of work on that day.

Approved: 11/28/2022.                   Reviewed: 11/28/2022                  Revised: 11/28/2022

The board secretary shall report to the board each month the receipts, disbursements, and balances of the various funds. This report shall be in written form and sent to the board with the agenda for the board meeting.

Each month the schedule of bills allowed by the Board of Directors shall be published in a newspaper designated as a newspaper for official publication by the board secretary. Annually, the total salaries paid to employees regularly employed by the school district shall also be published in a newspaper designated as a newspaper for official publication.

The board shall cause to have published the proceedings of each regular or special meeting after the adjournment of such meetings. The secretary shall furnish a copy of the proceedings within two (2) weeks following the adjournment of the meeting.

At the annual meeting, the treasurer will give the annual report stating the amount held over, received, paid out, and on hand in the general and all other funds.  This report is in written form and sent to the board with the agenda for the board meeting.  The treasurer will also furnish the board with a statement from each depository showing the balance then on deposit.

It is the responsibility of the treasurer to submit this report to the board annually.

Approved:  4/10/23                   Reviewed:                     Revised:   
 

Each month the schedule of bills allowed by the board is published in a newspaper designated as a newspaper for official publication.  Annually, the total salaries paid to employees regularly employed by the school district will also be published in a newspaper designated as a newspaper for official publication.

It is the responsibility of the board secretary to publish these reports in a timely manner.

Approved:  4/10/23                   Reviewed:                     Revised:   

To review the funds and accounts of the school district, the board shall employ an auditor to perform an annual audit of the financial affairs of the school district in compliance with Iowa Code Chapter 11.  The results of the annual audit shall be included in the official record of the board. Such annual audit shall be filed with the Auditor of State and the Iowa Department of Education and the federal government, if required, within nine months of the conclusion of the fiscal year.  

Approved:          10/21/2019                   Reviewed:                     Revised:   

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

Internal control is the responsibility of all employees of the school district.  The superintendent, business manager, and board secretary shall be responsible for developing internal controls designed to prevent and detect fraud, financial impropriety, or fiscal irregularities within the school district subject to review and approval by the Board.  Administrators shall be alert for an indication of fraud, financial impropriety, or irregularity within the administrator’s area of responsibility.

Any employee who suspects fraud, impropriety, or irregularity shall report their suspicions immediately to his/her immediate supervisor, and/or the superintendent.  The superintendent shall have primary responsibility for any necessary investigations and shall coordinate investigative efforts with the Board’s legal counsel, auditing firm, and other internal or external departments and agencies, including law enforcement officials, as the superintendent may deem appropriate.

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

In the event the concern or complaint involves the superintendent, the concern shall be brought to the attention of the board vice-president, who shall be empowered to contact the Board’s legal counsel, insurance agent, 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 elect to employ the school district’s auditing firm or State Auditor to conduct a complete or partial forensic/internal control/SAS99 audit annually or otherwise as often as deemed necessary.  The superintendent is authorized to order a complete forensic audit if, in the superintendent’s judgment, such an audit would be useful and beneficial to the school district.  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, termination of employment.

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

• Forgery or unauthorized alteration of any document or account belonging to the district.

• Forgery or unauthorized alteration of a check, bank draft, or any other financial document.

• Misappropriation of funds, securities, supplies, or other assets.

• Impropriety in the handling of money or reporting of financial transactions.

• Profiteering because of “insider” information of district information or activities.

• Disclosing confidential and/or proprietary information to outside parties.

• Accepting or seeking anything of material value, other than items used in the normal course of advertising, from contractors, vendors, or persons providing services to the district.

• Destroying, removing, or inappropriately using district records, furniture, fixtures, or equipment.

• Failing to provide financial records to authorized state or local entities.

• Failure to cooperate fully with any financial auditors, investigators, or law enforcement.

• Any other dishonest or fraudulent act involving district monies or resources.

The superintendent shall investigate reports of fraudulent activity in a manner that protects the confidentiality of the parties and the facts.  All employees involved in the investigation shall be advised to keep information abut the investigation confidential.

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

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

• Forgery or unauthorized alteration of any document or account belonging to the district.

• Forgery or unauthorized alteration of a check, bank draft, or any other financial document.

• Misappropriation of funds, securities, supplies, or other assets.

• Impropriety in the handling of money or reporting of financial transactions.

• Profiteering because of “insider” information of district information or activities.

• Disclosing confidential and/or proprietary information to outside parties.

• Accepting or seeking anything of material value, other than items used in the normal course of advertising, from contractors, vendors, or persons providing services to the district.

• Destroying, removing, or inappropriately using district records, furniture, fixtures, or equipment.

• Failing to provide financial records to authorized state or local entities.

• Failure to cooperate fully with any financial auditors, investigators or law enforcement.

• Any other dishonest or fraudulent act involving district monies or resources.

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

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

The board recognizes that it is charged with raising tax revenues and related expenditures to maintain the educational program for the school district.  Public funds are held in trust by the board to be spent appropriately on the educational program.  To further ensure funds are spent appropriately, the board establishes an audit committee to assist the board on internal financial matters and with the annual audit.  

The audit committee is comprised of: 
All members of the school board.

The audit committee chair is the President of the school board.

The major responsibilities of the audit committee are to:

• Recommend an auditor to the board every three years.
• Oversee the selection of the independent auditor and the resolution of audit findings including compliance with the mandatory request for proposal process. 
• Act as a liaison between the board and the auditor during the audit process.
• Annually report to the board about the annual audit.
• Recommend internal changes that may need to be made to ensure appropriate internal controls are being implemented.

The audit committee will meet as directed by its chair.  The audit committee is subject to the open meetings law.

Approved:  4/10/23                   Reviewed:                     Revised:   

School district records shall be housed in the central administration office of the school district. It shall be the responsibility of the superintendent to oversee the maintenance and accuracy of the records. The following records shall be kept in accordance with Generally Accepted Accounting Principles (GAAP) and other applicable laws, and preserved according to the schedule below:

Employees' records shall be maintained in the central administration office of the school district by the superintendent, the building administrator, the employee's immediate supervisor, and the board secretary.

An inventory of the furniture, equipment, and other non-consumable items other than real property of the school district shall be conducted annually under the supervision of the superintendent. This report shall be filed with the board secretary.  A perpetual inventory shall be maintained on consumable property of the school district.

The permanent and cumulative records of students currently enrolled in the school district shall be maintained in the administration office of the attendance center where the student attends.

Permanent records must be preserved in a manner safe from destruction by fire or other natural disaster. The building administrator shall be responsible for keeping records current. Records of students who have graduated or are no longer enrolled in the school district shall be preserved by the District Office. These records will be maintained by the high school principal.

The superintendent or designee may electronically store and/or back-up or use any other reliable mass storage method to preserve school district records and may destroy paper copies of the records if they are more than three years old.

Approved:          10/21/2019                   Reviewed:                     Revised:   06/26/2023

The board will maintain a comprehensive insurance program to provide adequate coverage against major types of risk, loss, or damage, as well as legal liability. The board will purchase insurance at replacement values, when possible, after reviewing the costs and availability of such insurance. The comprehensive insurance program shall be reviewed at least once every three years. The board shall periodically use a request for proposal procedure in selecting their insurance provider.  Insurance will only be purchased through legally licensed Iowa insurance agents.

The school district may assume the risk of property damage, legal liability, and dishonesty in cases in which the exposure is so small or dispersed that a loss does not significantly affect the operation of the education program or financial condition of the school district. Insurance of buildings, structures or property in the open will not generally be purchased to cover loss exposures below $ 1000.00 unless such insurance is required by statute or contract.

The board may retain a private organization for fixed assets management services.

Administration of the insurance program, making recommendations for additional insurance coverage, placing the insurance coverage and loss prevention activities shall be the responsibility of the superintendent. The fixed assets manager shall be responsible for maintaining the fixed assets management system, processing claims, and maintaining loss records.

Approved:          10/21/2019                   Reviewed:                     Revised:   

The school district will operate a school lunch and breakfast program in each attendance center. The school food program services will include hot lunches through participation in the National School Lunch Program and supplementary foods for students during the school day. Students may bring their lunches from home and purchase milk or juice and other incidental items.

School food service facilities are provided to serve students and employees when school is in session and during school-related activities. They may also be used under the supervision of the superintendent for food service to employee groups, parent-teacher meetings, civic organizations meetings for the purpose of better understanding the schools, and senior citizens in accordance with board policy.

The school food service program is operated on a non-profit basis. The revenues of the school food service program will be used only for paying the costs of the school food service program. Supplies of the school food service program shall only be used for the school food service program.

The board will set, and periodically review, the prices for school lunches, breakfasts, and special milk programs. It shall be the responsibility of the superintendent and business manager to make a recommendation regarding the prices of school lunches, breakfasts, and milk. Employees, students and others will be required to pay for meals consumed.

It shall be the responsibility of Food Service Director to administer the program and to coordinate with the superintendent and business manager for the proper functioning of the school food services program.

710.1E1 - School Nutrition Program Notices of Nondiscrimination

710.1E2 - Child Nutrition Programs Civil Rights Complaint Form

710.1R1 - School Nutrition Program Civil Rights Coplaint Procedure

Approved:          10/21/2019                   Reviewed:                     Revised:   02/27/2023

Students enrolled and attending school in the school district, who are unable to afford the special milk program, the cost or a portion of the cost of a school lunch, breakfast, and supplemental foods, will be provided school food program services at no cost or at a reduced cost.

It shall be the responsibility of the food service director to determine if a student qualifies for free or reduced cost school food services. Students, whom the food service director believes are in need of proper nourishment will not be denied school food program services simply because the necessary paperwork has not been completed.

*It shall be the responsibility of the Superintendent to establish regulations regarding the collection of unpaid meal debt and service of meals for students who are not eligible for free or reduced price lunch for whom sufficient funds are not available in their account for payment for payment.

Approved:          10/21/2019                   Reviewed:                     Revised:   

Food served or purchased by students during the school day and food served or purchased for other than special circumstances is approved by the superintendent.  Vending machines in the school building are the responsibility of the building principal and Activities Director.  Purchases from the vending machines, will reflect the guidelines in the Wellness policy 536.

It is the responsibility of the superintendent to develop administrative regulations for the use of vending machines and other sales of food to students.

Approved:  4/10/23                   Reviewed:                     Revised:   

In accordance with state and federal law, the Knoxville Community School District adopts the following policy to ensure school district employees, families, and students have a shared understanding of expectations regarding meal charges. The policy seeks to allow students to receive the nutrition they need to stay focused during the school day, prevent the overt identification of students with insufficient funds to pay for school meals, and maintain the financial integrity of the nonprofit school nutrition program. 

Payment of Meals

Students have use of a meal account.  Families may add money to student accounts electronically through the student information system or by bringing funds to the school office.

Students who qualify for free meals shall never be denied a reimbursable meal, even if they have accrued a negative balance from previous purchases.  Schools are encouraged to provide a reimbursable meal to students with outstanding meal charge debt.  If an alternate meal is provided, the meal must be the same meal presented in the same manner to any student requesting an alternate meal.  

Employees may use the district student information system to add funds to their lunch account. Employees may not go into the negative on their account. 

Negative Account Balances
The school district will make reasonable efforts to notify families when meal account balances are low. Additionally, the school district will make reasonable efforts to collect unpaid meal charges classified as delinquent debt. The school district will coordinate communications with the student’s parent or guardian to resolve the matter of unpaid charges. Parents or guardians will be notified of an outstanding negative balance of $20 or more via a daily notification from the student information system. Negative balances of more than $40, not paid prior to the end of the school year, will be turned over to the superintendent or superintendent’s designee for collection. Options may include: collection agencies, small claims court, or any other legal method permitted by law. 

Unpaid Student Meals Account
The district will establish an unpaid student meals account in a school nutrition fund.  Funds from private sources and funds from the district flexibility account may be deposited into the unpaid school meals account in accordance with law.  Funds deposited into this account shall be used only to pay individual student meal debt. 

Communication of the Policy 
The policy and supporting information regarding meal charges shall be provided in writing to:

• All households at or before the start of each school year; 
• Students and families who transfer into the district, at time of transfer; and
• All staff responsible for enforcing any aspect of the policy.  

Records of how and when the policy and supporting information was communicated to households and staff will be retained. 

It is the responsibility of the superintendent to develop an administrative regulation for implementing this policy. 

Approved:  4/10/23                   Reviewed:                     Revised:   

Elementary and middle school students living more than two miles from their designated school attendance center and high school students living more than three miles from their designated attendance center shall receive transportation to and from their attendance center at the expense of the school district.

Transportation of students who require special education services shall generally be provided as for other students, when appropriate.  Specialized transportation of a student to and from a special education instructional service is a function of that service and, therefore, an appropriate expenditure of special education instructional funds generated through the weighted funds or IDEA federal funds designated for special education purposes.

Transportation of a student to and from a special education support service is a function of that service, and shall be specified in the individualized education program (IEP) or the individualized family service plan (IFSP). When the IEP team determines that unique transportation arrangements are required and the arrangements are specified in the IEP or IFSP, the school district will provide one or more of the following transportation arrangements for instructional services and the AEA for support services:

Transportation from the student's residence to the location of the special education program and back to the student's residence or child care placement for students below the age of six.

Special assistance or adaptations in getting the student to and from and on and off the vehicle, enroute to and from the special education location.

Reimbursement of the actual costs of transportation when by mutual agreement the parents provide transportation for the student to and from the special education location.

The school district is not required to provide reimbursement to parents who elect to provide transportation in lieu of agency-provided transportation.

A student may be required, at the board's discretion, to meet a school vehicle without reimbursement up to three-fourths of a mile. The board may require the parent to transport their children up to two miles to connect with school bus vehicles at the expense of the school district when conditions deem it advisable.  It shall be within the discretion of the board to determine such conditions. Parents of students who live where transportation by bus is impracticable or unavailable may be required to furnish transportation to and from the designated attendance center at the expense of the school district. Parents who transport their children at the expense of the school district, shall be reimbursed at the current federal rate per mile as set by the IRS.

Transportation arrangements made with a neighboring school district shall follow the terms of the agreement.  Students who choose to attend a school in a school district other than their resident school district, shall provide transportation to and from the school at their own expense unless they are eligible for reimbursement by the school district of resident.  The district retains the authority to determine the means of transportation, either via district bus to attending district or to a bus stop in the attending district, allowing the attending district to come into the district of residence to pick up the student, or reimbursement to the parent of allowable transportation expenses.

Approved:          10/21/2019                   Reviewed:                     Revised:   

Students utilizing school transportation will conduct themselves in an orderly manner fitting to their age level and maturity with mutual respect and consideration for the rights of the school vehicle driver and the other passengers. Students who fail to behave in an orderly manner will be subject to disciplinary measures.

The driver will have the authority to maintain order on the school vehicle.  It is the responsibility of the driver to report misconduct to the building administrator.

The board supports the use of recording devices on school buses used for transportation to and from school as well as for field trips, curricular or extracurricular events.  The recording devices will be used to monitor student behavior and may be used as evidence in a student disciplinary proceeding.  The recordings are student records subject to school district confidentiality, board policy and administrative regulations.

After 3 warnings for bad conduct, the building principal will have the authority to suspend transportation privileges of the student or impose other appropriate discipline.

It is the responsibility of the superintendent, in conjunction with the building principal, to develop administrative regulations regarding student conduct and discipline when utilizing school district transportation.

Approved:  4/10/23                   Reviewed:                     Revised:   

The board, in its discretion, may provide school district transportation for extracurricular activities including, but not limited to, transporting student participants and other students to and from extracurricular events.

Students participating in extracurricular events, other than those held at the school district facilities, may be transported to the extracurricular event by school district transportation vehicles or by another means approved by the superintendent. Students attending extracurricular events, other than those held at the school district facilities, may be transported to the extracurricular event by school district transportation vehicles.

Students, who are provided transportation in school district transportation vehicles for extracurricular events, shall ride both to and from the event in the school vehicle unless arrangements have been made with the activities director prior to the event. A student's parent may personally appear and request to transport the student home from a school sponsored event in which the student traveled to the event on a school district transportation vehicle.

It shall be the responsibility of the superintendent to make a recommendation to the board annually as to whether the school district shall provide the transportation authorized in this policy. In making the recommendation to the board, the superintendent shall consider the financial condition of the school district, the number of students who would qualify for such transportation, and other factors the board or superintendent deem relevant.

Approved:          10/21/2019                   Reviewed:                     Revised:   

The school district may use school vehicles for transportation to and from summer extracurricular activities.  The superintendent will make a recommendation to the board annually regarding their use.

Transportation to and from the student's attendance center for summer school instructional programs is within the discretion of the board.  It is the responsibility of the superintendent to make a recommendation regarding transportation of students in summer school instructional programs at the expense of the school district.  In making the recommendation to the board, the superintendent will consider the financial condition of the school district, the number of students involved in summer school programs, and other factors deemed relevant by the board or the superintendent.

Approved:  4/10/23                   Reviewed:                     Revised:   

The board has sole discretion to determine the method to be utilized for transporting non- resident and non-public school students. Non-resident students paying tuition may be, and resident students attending a non-public school accredited by the State Department of Education will be transported on an established public school vehicle route as long as such transportation does not interfere with resident public students' transportation. Non-resident and non-public school students shall obtain the permission of the superintendent prior to being transported by the school district.

Parents of resident students who provide transportation for their children attending a non- public school accredited by the Iowa Department of Education will be reimbursed at the established state rate. This reimbursement shall be paid only if the school district receives the funds from the state. If less than the amount of funds necessary to fully reimburse parents of the non-public school students is received by the school district, the funds shall be prorated accordingly.

The charge to the non-resident students shall be determined based on the students' pro rata share of the actual costs for transportation. The parents of these students shall be billed for the student's share of the actual costs of transportation. The billing shall be according to the schedule developed by the superintendent. It shall be the responsibility of the superintendent to determine the amount to be charged and report it to the board secretary for billing.

Continued transportation of non-resident and non-public school students on a public school vehicle route will be subject to resident public school students' transportation needs. The superintendent shall make a recommendation annually to the board regarding the method to be used. In making a recommendation to the board, the superintendent shall consider the number of students to be transported, the capacity of the school vehicles, the financial condition of the school district, and other factors deemed relevant by the board or the superintendent.

Non-resident and non-public school students shall be subject to the same conduct regulations as resident public students as prescribed by board policy, and other policies, rules or regulations developed by the school district regarding transportation of students by the school district.

Approved:          10/21/2019                   Reviewed:                     Revised:   

School district vehicles may be made available to local non-profit entities which promote cultural. educational, civic, community, or recreational activities for transporting to and from non-school- sponsored activities within the state as long as the transportation does not interfere with or disrupt the education program of the school district and does not interfere with or delay the transportation of students. The local non-profit entity must pay the cost of using the school district vehicle as per the current fee schedule. Prior to making the school district transportation vehicle available to the local non-profit entity, the school bus signs shall be covered and the flashing warning lamps and the stop arm made inoperable.

Any use of school district vehicles by non-school groups shall be subject to the following guidelines:

1. Requests must be made a minimum of one week in advance. If the request interferes or conflicts with school district use of the vehicle, the request will be denied. The final decision of whether a request will be granted is within the discretion of the administration.

2. Requests must be made by recognized youth organizations and/or groups or organizations sponsoring projects in the interest of the local community, state or national benefit or welfare.

3. The rental period will be negotiated directly with the administration.

4. Adult chaperones may be required to accompany the bus driver and riders.

5. All requests will be charged bus and driver fees.

6. Alcoholic beverages and nicotine products are prohibited on school district vehicles.

7. Whenever damage caused by vandalism or carelessness results, the group shall reimburse the school district for cost of repairs and may be denied further use of school district vehicles.

Approved:          10/21/2019                   Reviewed:                     Revised:   

The school district shall conduct school bus safe riding practices instruction and emergency safety drills once a year for students who utilize school district transportation. Each school bus vehicle shall have, in addition to the regular emergency safety drill, a plan for helping those students who require special assistance to safety during an emergency. This shall include, but not be limited to, students with disabilities. School district vehicle drivers are required to attend each safety drill. Employees shall be responsible for instructing the proper techniques to be followed during an emergency, as well as safe riding practices.

All school personnel and designees must wear seat belts while operating private vehicles for school functions and while operating school vehicles equipped with seat belts. All school personnel must use the tire protective cage when inflating or deflating a tire used on school buses and tractors.

Approved:       10/21/2019                   Reviewed:                     Revised:   

Buses owned and operated by the school district will not operate when weather conditions due to fog, rain, snow, ice or other natural elements make such operation unsafe. Because weather conditions may vary throughout the district and may change quickly, the best judgment will be used that is possible with the information available.

The final judgment as to when conditions are unsafe to operate will be made by the superintendent or the superintendent’s designee.

Commercial radio, television, web site and/or automated phone or notification service will be used to notify employees and students when school is cancelled or temporarily delayed.

When, in the judgment of the bus driver, weather conditions are so poor as to present a hazard when loading or unloading students, the driver will contact the superintendent or the superintendent’s designee for instructions. If contact is not possible, the driver will proceed to the next stop which does not present a hazard and make contact personally, with the assistance of a student rider, monitor or other person.

Approved:          10/21/2019                   Reviewed:                     Revised:   

The board recognizes that it has a role in reducing environmental pollutants and in assisting students and others be free from pollutants that may impact their respiratory health.  Unnecessary vehicle idling emits pollutants and wastes fuel.  The board directs the superintendent, in conjunction with the Director of Transportation, to work on administrative regulations to implement this policy and reduce school vehicle idling time.

Approved:  4/10/23                   Reviewed:                     Revised:   

The Knoxville Community School District recognizes the increasingly vital role technology plays in society.  It is the goal of the district to embrace technology as a resource to further educate our students, and better prepare students for the future.  It is the intent of the district to support secure data systems in the district, including security for all personally identifiable information (PII) that is stored digitally on district-maintained devices, computers and networks.  Technology also has incredible potential to support increased efficiency, communication and growth through collaboration among administration, students, staff, employees and volunteers.  

However, with this growth opportunity comes increased potential for valuable sensitive data to become public.  The district takes seriously its responsibility to protect private data. The purpose of this policy is to ensure the secure use and handling of all district data, computer systems, devices and technology equipment by district students, employees, and data users.  

The district supports the use of third-party vendors to perform necessary education functions for the district. Utilizing third party vendors to outsource functions the district would traditionally perform provides a cost-effective means to deliver high quality educational opportunities to all students.  However, it is paramount that third party vendors with access to sensitive data and PII of district students, employees and data users be held to the highest standards of data privacy and security. 

The selection of third-party vendors shall be in accordance with appropriate law and policy.  Third-party vendors with access to PII shall meet all qualifications to be designated as a School Official under the Family Educational Rights and Privacy Act (FERPA). The board shall ensure that any approved contract with a third-party vendor will require that the vendor comply with all applicable state and federal laws, rules, or regulations, regarding the privacy of PII.  

It is the responsibility of the superintendent or designee to develop procedures for the district to enhance the security of data and the learning environment.  The procedures shall address, but not be limited to, the following topics:  

Access Control –Access control governs who may access what information within the district and the way users may access the information. Increased access to secure networks and data will inevitably increase the risk of security compromise to those networks and data.  It is the responsibility of the superintendent or designee to develop procedures for determining which individuals will have access to district networks, devices and data; and to what extent such access will be granted.  System and network access will be granted based upon a need-to-have requirement, with the least amount of access to data and programs by the user as possible.  

Security Management –Security management addresses protections and security measures used to protect digital data.  These include measures related to audits and remediation, as well as security plans for responding to, reporting and remediating security incidents.  It is the responsibility of the superintendent or designee to develop procedures to govern the secure creation, storage and transmission of any sensitive data and personally identifiable information (PII).  The superintendent or designee shall implement network perimeter controls to regulate data moving between trusted internal resources to external entities. 

Technology and Data Use Training –Technology and data use training addresses acceptable use best practices to safeguard data for students, employees and staff. It is the responsibility of the superintendent or designee to develop procedures for creating and administering a training program on proper data and technology use.  The training shall address the proper use and security of all district owned or controlled technology, devices, media and data.  Training should be administered to all district data users.  The training program should be updated and presented to the school board for approval on an annual basis.  

In furtherance of this policy, the superintendent or designee shall be responsible for overseeing district-wide data and technology security, to include development of standards and procedures and adherence to the administrative procedures defined in this document.

Approved:  4/10/23                   Reviewed:                     Revised:   

Computers, electronic devices and other technology are powerful and valuable education and research tools and, as such, are an important part of the instructional program. In addition, the school district depends upon technology as an integral part of administering and managing the schools’ resources, including the compilation of data and recordkeeping for personnel, students, finances, supplies and materials. This policy outlines the board’s expectations in regard to these different aspects of the school district’s technology resources. Students, staff and volunteers must conduct themselves in a manner that does not disrupt the educational process and failure to do so may result in discipline, up to and including student discipline under all relevant district policies and discharge for employees. 

General Provisions

The superintendent is responsible for designating a Technology Director who will oversee the use of school district technology resources. The Technology Director will prepare in-service programs for the training and development of school district staff and relevant volunteers in technology skills, appropriate use of district technology and for the incorporation of technology use in subject areas.

The superintendent, working with appropriate staff, shall establish regulations governing the use and security of the school district’s technology resources. The school district will make every reasonable effort to maintain the security of the district networks and devices. All users of the school district’s technology resources, including students, staff and volunteers, shall comply with this policy and regulation, as well as others impacting the use of school equipment and facilities. Failure to comply may result in disciplinary action, up to and including discharge or expulsion, as well as suspension and/or revocation of technology access privileges.

Usage of the school district’s technology resources is a privilege, not a right, and that use entails responsibility. District-owned technology and district-maintained Internet-based collaboration software social media and e-mail accounts are the property of the school district. Therefore, users of the school district’s network must not expect, nor does the school district guarantee, privacy for use of the school district’s network websites visited. The school district reserves the right to access and view any material stored on school district equipment, within district-owned software or any material used in conjunction with the school district’s network.

The superintendent, working with the appropriate staff, shall establish procedures governing management of technology records in order to exercise appropriate control over technology records, including financial, personnel and student information. The procedures will address at a minimum:  

• passwords,

• system administration,

• separation of duties,

• remote access, 

• data back-up (including archiving of email),

• record retention, and

• disaster recovery plans.

Social Networking or Other External Web Sites

For purposes of this policy, any website, other than the school district website or school-school district sanctioned websites, are considered external websites. Employees and volunteers shall not post confidential or proprietary information, including photographic images, about the school district, its employees, students, agents or others on any external website without prior written consent of the superintendent or designee. Employees and volunteers shall adhere to all applicable privacy and confidentiality policies adopted by the school district when on external websites. Employees, students and volunteers shall not use the school district logos, images, iconography, etc. on external websites unless authorized in advance by school administration. Employees shall not use school district time or property on external sites that are not in direct relation to the employee’s job duties. Employees, students and volunteers need to realize that the internet is not a closed system and anything posted on an external site may be viewed by others. Employees, students and volunteers who don’t want school administrators to know their personal information, should refrain from sharing it on the internet. Employees and volunteers should not connect with students via external websites without consent of the building level administrator.

Employees and volunteers who wish to connect with students through an Internet-based software application that is not District-approved must first obtain the prior written consent of the building administrator.  At all times, no less than two licensed employees must have access to all accounts and interactions on the software application. Employees and volunteers who would like to start a social media site for school district-sanctioned activities should obtain prior written consent from the superintendent. 

It is the responsibility of the superintendent to develop administrative regulations implementing this policy.

Approved:                     Reviewed: 02/26/2024                     Revised:   

General

The following rules and regulations govern the use of the school district's network systems, employee access to the internet, and management of digital records:

• Employees will be issued a school district email account. Employees are required to set up 2-factor authentication for security purposes.

• Each individual in whose name an access account is issued is responsible at all times for its proper use.

• Employees are expected to review their email regularly and shall reply promptly to inquiries with information that the employee can reasonably be expected to provide.

• Communications with parents and/or students must be made on a school district computer or platform, unless in the case of an emergency. 

• Employees may access the internet for education-related and/or work-related activities.

• Employees shall refrain from using technology resources for personal use, including access to social networking sites.

• Use of the school district technology and school email address is a public record. Employees cannot have an expectation of privacy in the use of the school district’s  network and technology

• Use of technology resources in ways that violate the acceptable use and conduct regulation, outlined below, will be subject to discipline, up to and including discharge.

• Use of the school district’s network is a privilege, not a right. Inappropriate use may result in the suspension or revocation of that privilege.

• Off-site access to the school district network will be determined by the superintendent in conjunction with appropriate personnel. 

• All network users are expected to abide by the generally accepted rules of network etiquette. This includes being polite and using only appropriate language. Abusive language, vulgarities and swear words are all inappropriate.

• Network users identifying a security problem on the school district's network must notify appropriate staff. Any network user identified as a security risk or having a history of violations of school district technology use guidelines may be denied access to the school district's network.

• Employees are representatives of the district at all times and must model appropriate character, both on and off the worksite.  This applies to material posted with personal devices and on personal websites and/or social media accounts.  Posted messages or pictures which diminish the professionalism or discredit the capacity to maintain respect of students and parents may result in disciplinary action up to and including termination if the content posted is found to be disruptive to the educational environment and adversely impacts the employee’s ability to effectively serve as a role model or perform his/her job duties for the district. The type of material that would affect an employee’s ability to serve as an appropriate role model includes, but is not limited to, text or depictions involving hate speech, nudity, obscenity, vulgarity or sexually explicit content.  Employee communications with students should be limited as appropriate.  If there is any uncertainty, employees should consult their building administrator.

Prohibited Activity and Uses

The following is a list of prohibited activity for all employees concerning use of the school district's network.  Any violation of these prohibitions may result in discipline, up to and including discharge, or other appropriate penalty, including suspension or revocation of a user's access to the network.

• Using the network for commercial activity, including advertising, or personal gain.

• Infringing on any copyrights or other intellectual property rights, including copying, installing, receiving, transmitting or making available any copyrighted software on the school district network. See Policy 605.07, Use of Information Resources for more information.

• Using the network to receive, transmit or make available to others obscene, offensive, or sexually explicit material

• Using the network to receive, transmit or make available to others messages that are racist, sexist, and abusive or harassing to others.

• Use of another’s account or password.

• Attempting to read, delete, copy or modify the electronic mail (e-mail) of other system users.

• Forging or attempting to forge e-mail messages.

• Engaging in vandalism. Vandalism is defined as any malicious attempt to harm or destroy school district equipment or materials, data of another user of the school district’s network or of any of the entities or other networks that are connected to the Internet. This includes, but is not limited to, creating and/or placing a virus on the network.

• Using the network to send anonymous messages or files.

• Revealing the personal address, telephone number or other personal information of oneself or another person.

• Intentionally disrupting network traffic or crashing the network and connected systems.

• Installing personal software or using personal technology on the school district’s technology and/or network without the permission of the Technology Director.

• Using the network in a fashion inconsistent with directions from teachers and other staff and generally accepted network etiquette.

Other Technology Issues

Employees should contact students and their parents through the school district's technology or phone system unless in the case of an emergency or with prior consent of the principal. Employees should not release their cell phone number, personal email address, etc. to students or their parents.

Approved:                         Reviewed: 02/26/2024                      Revised:

The school district will establish and maintain a capital assets management system for reporting capitalized assets owned or under the jurisdiction of the school district in its financial reports in accordance with generally accepted accounting principles (GAAP) as required or modified by law; to improve the school district's oversight of capital assets by assigning and recording them to specific facilities and programs and to provide for proof of loss of capital assets for insurance purposes. 

Capital assets, including tangible and intangible assets, are reported in the government-wide financial statements (i.e. governmental activities and business type activities) and the proprietary fund financial statements.  Capital assets reported include school district buildings and sites, construction in progress, improvements other than buildings and sites, land and machinery and equipment. Capital assets reported in the financial reports will include individual capital assets with an historical cost equal to or greater than $2,000. The Federal regulations governing school lunch programs require capital assets attributable to the school lunch program with a historical cost of equal to or greater than $500 be capitalized.  Additionally, capital assets are depreciated over the useful life of each capital asset.  

All intangible assets with a purchase price equal to or greater than $50,000 with useful life of two or more years, are included in the intangible asset inventory for capitalization purposes. Such assets are recorded at actual historical cost and amortized over the designated useful lifetime applying a straight-line method of depreciation. If there are no legal, contractual, regulatory, technological or other factors that limit the useful life of the asset, then the intangible asset needs to be considered to have an indefinite useful life and no amortization should be recorded.

Phase III districts, as determined under GASB 34, will not retroactively report intangible assets. If actual historical cost cannot be determined for intangible assets due to lack of sufficient records, estimated historical cost will be used.

This policy applies to all intangible assets.  If an intangible asset that meets the threshold criteria is fully amortized, the asset must be reported at the historical cost and the applicable accumulated amortization must also be reported. It is not appropriate to “net” the capital asset and amortization to avoid reporting.  For internally generated intangible assets, outlays incurred by the government's personnel, or by a third-party contractor on behalf of the government, and for development of internally generated intangible assets should be capitalized.

The capital assets management system must be updated monthly to account for the addition/acquisition, disposal, relocation/transfer of capital assets. It is the responsibility of the superintendent to count and reconcile the capital assets with capital assets management system on June 30 each year.

It is the responsibility of the superintendent to develop administrative regulations implementing this policy. It will also be the responsibility of the superintendent to educate employees about this policy and its supporting administrative regulations.   

NOTE:  It is suggested the board consider a capitalization threshold consistent with the GASB 34 Committee Recommendations which recommended "districts and AEAs implement capitalization levels that would capture at least 80% of the value of assets.  However, the threshold should not be greater than $5,000."   In addition, Boards may wish to establish guidelines at lower thresholds for keeping track of capital assets for internal control and insurance purposes.

In determining the capital asset capitalization threshold, the size of the school district, the property insurance deductible and the time and effort necessary to account for and track capital assets with a lesser value should be considered.  It is strongly recommended the board consult with the school auditor prior to setting the capitalization threshold.  

An intangible asset should be recognized in the statement of net assets only if it is identifiable which means the asset is either separable or, arose from contractual or other legal rights, regardless of whether those rights are transferable or separable.  The intangible asset must also possess all of the following characteristics/criteria:

• lack of physical substance;  
• be of a nonfinancial nature (not in monetary form like cash or investment securities); and,
• the initial useful life extending beyond a single reporting period.

Examples of intangible assets include easements, land use rights, patents, trademarks and copyrights.  In addition, intangible assets include computer software purchased, licensed or internally generated, including websites, as well as outlays associated with an internally generated modification of computer software. 

Intangible assets can be purchased or licensed, acquired through nonexchange transactions or internally generated.  Intangible assets exclude assets acquired or created primarily for purposes of directly obtaining income, assets from capital lease transactions reported by lessees, and goodwill created through the combination of a government and another entity.

A school district could, and many do, use bar code identification tags to control capital assets, such as VCRs, technology equipment, etc., even though these capital assets have a cost below the capitalization threshold.  In tracking these capital assets only the information necessary to control the location and use of them needs to be maintained.  Some school districts video-tape each classroom/office annually to save time and effort tracking capital assets below the capitalization threshold.  The video tape is also helpful for insurance claims.  Whether a school district chooses to track capital assets with a cost below the capitalization threshold or not, capital assets with a cost below the capitalization threshold should not be included in the capital assets listing for reporting purposes.  

This policy provides for valuing capital assets at historical cost as required by GAAP.  This policy bases the capitalization threshold on the historical/acquisition cost of the individual asset.  The school district can choose to use the historical cost of all the items included in a purchase order as the basis for determining whether to capitalize the capital asset.  The cost of improvements may be added to the historical cost of a capital asset.  Deciding whether to add the costs of an improvement to a capital asset's historical cost is a judgment call which should be made after consulting with the school auditor.