Policy No. 6020
The district shall maintain a system of funds with the county
treasurer in accordance with state law and the accounting manual approved by
the state superintendent of public instruction. The funds are:
A.
General
Fund
The General Fund (GF) is financed
primarily from local taxes, state support funds, federal grants, and local
receipts. These revenues are used specifically for financing the ordinary and
legally authorized operations of the district for all grades. The GF
includes money which has been segregated for the purpose of carrying on
specific activities such as the basic education program, the program for the
handicapped and so on. The GF is managed in accordance with special
regulations, restrictions and limitations and constitutes an independent
fiscal and accounting entity.
B.
Capital
Projects Fund
The
Capital Projects Fund (CPF) contains the proceeds from the sale of voted
bonds (unlimited tax general obligation bonds) and non-voted bonds (limited
general obligation bonds), state of Washington financing assistance (state
matching money), transfers from the district's basic education allotment, the
proceeds of special levies earmarked for building purposes, earnings from
capital projects fund investments, rental or lease proceeds and proceeds from
the sale of property. Permissible expenditures from the proceeds derived from
the sale of voted bonds, including the investment earnings thereon, is
governed expressly by state law and, may include the acquisition of land or
existing buildings, improvements to buildings and/or grounds, design and
construction and/or remodeling of buildings, or initial equipment; provided
that, the bond election resolution and ballot proposition approved by the
voters authorizing the bonds includes these items. The Washington
Constitution prohibits the use of voted bond proceeds to replace equipment.
However, this prohibition does not apply to other money in the CPF. Proceeds
from other sources are also governed by state law and may be used for major
renovation and replacement including but not limited to roofing, heating and
ventilating systems, floor covering and electrical systems; renovation of
play fields and other district real property; energy audits, capital
improvements and major items of equipment, furniture and implementing
technology systems, facilities and projects, including acquiring hardware,
licensing software and on-line applications that are an integral part of the
district’s technology systems. Any
money from the sale of voted bonds and investment earnings thereon remaining
after the authorized capital improvements have been completed may be used to:
(a) acquire, construct, install, equip
and make other capital improvements to the district’s facilities; or (b)
retire and/or defease a portion of voted bonds, all as the school board may determine
by resolution after holding a public hearing pursuant to RCW 28A.530.020. Investment
earnings derived from other sources in the CPF should be retained in the CPF
and used for statutorily authorized purposes. The district may transfer investment
earnings in the CPF, which have not been derived from voted bond proceeds, to
a different fund; provided that, such investment earnings may only be
expended for instructional supplies, equipment or capital outlay purposes. The
superintendent should consult the board and appropriate district staff prior
to altering the use of voted bond proceeds and transferring investment
earnings out of the CPF.
C. Debt Service Fund
The Debt Service Fund (DSF) is for the payment of
principal of and interest on outstanding voted and non-voted bonds. The fund
is not a warrant fund. Disbursements are made by the county treasurer by
means of treasurer's checks. Provision shall be made annually for the making of a
levy sufficient to meet the annual payments of principal and semiannual
payments of interest. The district may transfer surplus investment earnings
from the DSF to any other school district fund; provided that, such
investment earnings are spent only for instructional supplies,
equipment or capital outlay purposes. The district may transfer such investment
earnings to other school district funds unless the resolution authorizing the
voted bonds requires investment earnings to remain in the DSF to secure
payment of voted bonds, thereby reducing future tax collections and the
corresponding tax levy rate. The superintendent should consult with the board
and appropriate staff prior to transferring interest earnings out of the DSF.
Non-voted bonds are required to be
repaid from the school district’s DSF, rather than the fund that actually received
the non-voted bond proceeds. As a result, to pay principal of and interest on
the non-voted bond, an operating transfer must be used from the CPF (or other
fund) to the DSF. The school district should create a separate account within
the DSF to repay the non-voted bond. The district should internally segregate
the money pledged to repay the non-voted bond from any excess property taxes
deposited in the DSF for the repayment of voted bonds. Prior to the issuance
of a non-voted bond the superintendent or a designee shall review the
repayment process with the board and the county treasurer. The proceeds from the sale of real property
may be placed in the DSF or CPF, except for the amount required to be
expended for the costs associated with the sale of such property.
D.
Associated
Student Body Program Fund
The board is responsible for the protection and control of student body
financial resources just as it is for other public funds placed in its
custody. The financial resources of the Associated Student Body Program Fund
(ASB Fund) are for the benefit of students. Student involvement in the
decision-making processes related to the use of this money is an integral
part of the associated student body, except that the board may delegate the
authority to a staff member to act as the associated student body for any
school which contains no grade higher than grade six. Money in the ASB Fund
is public money and may not be used to support or oppose any political
candidate or ballot measure. Money raised by students through recognized student
body organizations shall be deposited in and disbursed from the fund which is
maintained by the county treasurer. The ASB Fund is subject to management and
accounting procedures which are similar to those required for all other
district moneys. ASB constitutions shall provide for participation by ASB
representatives in the decisions to budget for and disburse ASB Fund money.
Private non-associated student body fund money raised for scholarships,
student exchanges and charitable purposes shall be held in trust by the
district.
E. Transportation Vehicle Fund:
The transportation vehicle fund (TVF)
includes the proceeds from the sale of transportation vehicles; lease,
rental, non-voted bonds, or occasional use of surplus buses; depreciation
reimbursement for district-owned buses; proceeds of TVF levies; optional
transfers from the GF; and investment funds coming from the TVF. The TVF may
be used to purchase and/or rebuild buses on a contract or cash basis. Money
may be transferred from the TVF to the DSF exclusively for the payment of
principal of and interest on non-voted debt incurred by the TVF. Such a
transfer does not constitute a transfer of money from the TVF within the
meaning of RCW 28A.160.130.
The district shall maintain a system of bank accounts as
follows:
F.
A district depository and/or transmittal bank
account;
G.
An associated student body imprest bank
account for each school having an associated student body organization
approved by the board; and
H. Petty
cash accounts in such numbers as are necessary to meet the petty cash needs
of the schools and divisions of the district. The board may authorize the
establishment of such accounts. Each petty cash account shall be approved by
the board. A custodian shall be appointed for these accounts who shall be
independent of invoice processing, check signing, general accounting and cash
receipts functions. If this separation of functions is not feasible, another
employee who is independent of those functions shall be responsible for
reviewing the management of each account.
Legal References:
Wash.Const., Article VII, § 2 Voted bond proceeds and capital levy
proceeds — Uses
RCW
28A.320.320 Investment
of funds of district
RCW
28A.320.330 School
funds enumerated — Deposits — Uses
RCW
28A.325.010 Fees
for optional noncredit extra curricular events—Disposition
RCW
28A.325.020 Associated
student bodies — Powers and responsibilities affecting
RCW
28A.325.030 Associated
student body program fund – Fund-raising activities – Nonassociated student
body program fund moneys
RCW
28A.335.060 Surplus
school property – Rental, lease or use of – disposition of moneys received
from
RCW
28A.505.140 Rules
and regulations for budgetary procedures — Review when superintendent [SPI]
determines budget irregularity — Revised budget, state board's financial plan
until adoption
RCW
28A.530.010 Purposes
for use of voted bond proceeds
RCW
28A.530.020 Bond issuance — Election — Resolution to
specify purposes
RCW
28A.530.080 Additional authority to contract
indebtedness
RCW
42.17.130 Forbids
use of public office or agency facilities in campaigns
RCW
43.09.200 Division
of municipal corporations — Uniform system of accounting
RCW
43.09.210 Division
of municipal corporations — Separate accounts for each fund or activity
RCW
84.52.053 Levies by school districts authorized —
When — Procedure
RCW
84.52.056 Excess levies for capital purposes
authorized
WAC
392-123 Finance
— School District Budgeting
WAC
392-138 Finance
— ASB Moneys
State
Auditor Bulletin #301, III(E), Petty Cash
Adopted: June 23, 2008
Blaine School
District
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