3000-Fiscal Management

Section 3000 - Fiscal Management


TABLE OF CONTENTS

3050    Budget Planning

      3050.1       Budget Preparation

3100    Annual Operating Budget

      3100.1       Priorities

      3100.2       Deadlines and Schedules

      3100.3       Encumbrances

      3100.4       Recommendations

      3100.5       Preliminary Adoption Procedures

      3100.6       Hearings and Reviews 

      3100.7       Local Districts Budget Review

3170    Line Item Transfer Authority

3200    State and Federal Funding Proposals and Applications

3230    Budgeting Other than General Fund Income–Non-Supplanting

3280    Borrowing and Debt Service

      3280.1       Borrowing

      3280.2       Short Term Loans

      3280.3       Sale of Bonds

      3280.4       Debt Service

3290    Summer Property Tax Levy

3300    Investment of Funds

3310    Investment Policy

      3310.1 Purpose

      3310.2 Scope

      3310.3 Investment Objectives

      3310.4 Management of Investments

      3310.5 Standards of Prudence

      3310.6 Ethics and Conflicts of Interest

      3310.7 Authorized Investment Institutions and Dealers

      3310.8 Competitive Selection of Investment Instruments

      3310.9 Authorized Investments and Portfolio Composition

      3310.10 Policy Considerations

3340    Fees, Payments, and Rentals (Cf. 9250)

      3340.1       Rental and Leasing of District Property

      3340.2       Gate Receipts and Admissions

      3340.3       Income and Payments from Sales and Service

3400    Depository of Funds

3410    Safeguarding of Monies and Equipment

3420    Monies in School Buildings

3430    Bonded Employees

Inventories – Fixed and Controlled Assets

      3490.1       Fixed Asset Accounting System

3500    Audits

3520    Anti-Fraud Policy

3550    Authorized Signatures

3570    Petty Cash Accounts

3575    Trust and Agency Fund

3580    Payroll Procedures and Schedules

3600    Reimbursement of Expenses (Cf. 1168, 3605, 5330)

      3600.1       Expense Reports

      3600.2       Out of State Travel (PA 234)

      3600.3       Meal Expenses

3605    District Credit Cards (Cf. 1168, 3600)

      3605.1       Issuance

      3605.2       Documentation

      3605.3       Lost Credit Cards

      3605.4       Return of Credit Cards

      3605.5       Payment

      3605.6       Misuse and Unauthorized Use

      3605.7       Other Provisions

3610    Purchasing Goods and Services

      3610.1       Purchasing From District Employees

      3610.2       Purchases through the District

      3610.3       Emergency Purchases

3620    Administrative Leeway (Cf. 3650, 3660)

3650    Cooperative Purchasing (Cf. 3620, 3660)

3660    Bids and Quotations Requirements (Cf. 3620, 3650)

      3660.1       Purchasing

      3660.2       Bid Specifications

      3660.3       Construction Bids

3690    Local Purchasing

3730    Vendor Relations 

3750    Payment Procedures

3800    Fund Raising and Student Activity Fund (Cf. 8700)

      3800.1       Soliciting Funds From and By Students

      3800.2       Student Groups

      3800.3       Specifics

      3800.4       Adult Groups

3810    Student Charges

      3810.1       Charges

3820    Board Recognitions and Remembrances

      3820.1       Board Recognitions

      3820.2       Board Remembrances

3900    Surplus Books, Equipment, and Supplies

3950    Surplus Land or Buildings

 

 

3050  BUDGET PLANNING

The Superintendent shall be responsible for planning the District's budget.  The Superintendent shall keep the Board informed during the planning process and secure input from the Board through discussions or workshops.

The Board may approve a special committee to work with the Superintendent in determining budget priorities.

3050.1   Budget Preparation

The District's operation and educational plan is reflected in its budgets. Each year, the Board of Education will cause to have prepared and then publicly review and approve the following fund budgets:

a.    General Fund, including Career & Technical Education;

b.    Building and Site Fund;

c.    ROOC, Incorporated Fund; and

d.    Special Education.

Each budget shall be designed to carry out District operations in a thorough and efficient manner, maintain District facilities properly, and honor continuing obligations of the Board.

The Board shall attempt to ensure that adequate funds are reserved for General Fund to maintain a secure financial position whereby the fund equity shall be approximately fifteen percent (15%) of the preceding year's expenditures.

A proposed budget requires the critical analysis of every member of the Board prior to approval; once adopted, the budget deserves the support of all members of the Board, regardless of their position before its adoption.

The Board directs the Superintendent  to present the budgets to the Board along with all available information associated with all available information associated with each budget in sufficient time to allow for proper review and discussion prior to the hearing.

When presented to the Board for review and/or adoption, each budget shall include, when appropriate:

a.   The proposed expenditure in each financial category for the ensuing year;

b.   The anticipated expenditure in each financial category for the current year;

c.   The actual expenditure and the approved budget in each financial category for the previous year;

d.   The sources and amounts of anticipated revenues;

e.   The amount of fund equity anticipated at the end of the current year; and

f.    An appropriations resolution.

Approved: December 11, 2002           LEGAL REF: MCL 380.624, 141.434 et seq.

3100   ANNUAL OPERATING BUDGET        

The District's budget shall be prepared by the Superintendent in cooperation with selected District employees and shall reflect the educational goals of the District.

The Superintendent shall prepare a detailed cost analysis study of all programs that are funded by the District's budget.

The Superintendent shall follow the adopted budget.

It shall be the goal of the Board to fund the operating budget according to approved fiscal and budgetary procedures adhered to and required by the State of Michigan.  The budget shall be the vehicle by which the educational goals and objectives of the District are to be met.

3100.1   Priorities

The Board shall establish priorities for the District on a short-term, intermediate, and long-range basis.

3100.2   Deadlines and Schedules

In order for the District's budget preparation to proceed in an orderly fashion, the Board shall establish deadlines and time schedules.

3100.3   Encumbrances

Encumbrances shall be made when the purchase is made or when an approved purchase order is processed.  All encumbrances shall be charged to a specific fund.

3100.4   Recommendations

Recommendations of the Superintendent and professional staff concerning the educational program of the District and related budget figures shall be presented to the Board prior to submission of the tentative draft budget.

3100.5   Preliminary Adoption Procedures

The Superintendent, to the Board, shall submit a preliminary draft of the District’s budget as the Board may require.

3100.6   Hearings and Reviews

The Board shall conduct budget hearings according to state law.

Approved:       December 11, 2002

LEGAL REF: MCL 141.411; 141.421a-440a; 211.209-210; 380.1213-1214; 380.1216; 380.1218; 388.1702

3100.7     Local Districts Budget Review

By May 1 of each year, the ISD shall submit its proposed budget to the local districts for review. If the ISD board receives any specific objections or changes, it shall consider them before final passage of the budget.

Approved:       December 8, 2004

3170  LINE ITEM TRANSFER AUTHORITY         

The Superintendent is authorized to approve adjustments and/or transfers within line items of the Board adopted operating budget not to exceed $1,000.00 without Board approval.  Such adjustments and/or transfers shall be reported to the Board at the next regular meeting of the Board.  Authorization for such adjustments and/or transfers shall be included annually in the general appropriations act.

Approved: December 11, 2002           LEGAL REF:  MCL 141.421a-440a

3200  STATE AND FEDERAL FUNDING PROPOSALS AND APPLICATIONS

It is the objective of the Board of Education to provide equal educational opportunities for all students within the District. Therefore, it is the intent of the Board to have staff study State and Federal legislation to provide better educational opportunities, better educational environment, and better physical and mental growth for each student.

The Superintendent shall assume the responsibility for keeping the Board informed of any revenue sources which could enhance the educational program or operation of the District, and for which the District may be eligible, and make recommendations to the Board for action.

The Superintendent and the Board shall review new State and Federal education legislation and prepare proposals for programs he/she deems would be of aid to the students of the District. The Superintendent shall approve each such proposal prior to its submission, and the Board shall approve all grants resulting from such proposals.

The Board regards available State and Federal sources of aid to local school Districts and communities as a public trust. It forbids the use of State and Federal monies for partisan political activities and for any use that would not be in accord with State and Federal guidelines on discrimination. The Superintendent shall ensure that each draw of State and Federal monies is as close as administratively feasible to the related program expenditures.

Approved:       December 11, 2002

3230  BUDGETING OTHER THAN GENERAL FUND INCOME-NON-SUPPLANTING

Programs funded by county, state or federal agencies, foundation grants, or other public or private agencies, will be placed in the same budget categories and will be accounted for in the same manner as the general fund budget of the District.

The Board shall adopt, publicize and implement these programs through similar budgetary procedures as are used for the general fund budget.

Federal Funds – Non-Supplanting

Participation in programs funded in  whole or  in part  by federal funds  requires that the

district demonstrate that the District meets the requirement of comparability between schools that receive federal funding and those that do not receive such funding. Therefore, the District shall provide for equivalency of access to District staffing, equipment, and materials by all District schools, based on student per-capita allocations and individual schools’ needs analyses. In addition, all schools and programs shall have equivalent access to District support operations including but not limited to maintenance, transportation, and warehousing operations support.

Budgets for staffing, textbooks, equipment, supplies, and services for District schools will be provided for at all schools without use of special funding provided from any source with non-supplanting requirements.

Expenditures budgets for schools participating in title I and other state or federally funded or supported programs will be provided for on the same per-capita basis as budgtets for schools not participating in the program.

Budgeting Other than General Fund Income – Non-Supplanting

The Superintendent shall promulgate appropriate administrative rules to assure that the intent and purpose of this policy are met.

Approved:       July 9, 2008

3280  BORROWING AND DEBT SERVICE


3280.1   Borrowing

Upon the initiative of the Board of Education and with the approval of the Municipal Finance Commission or State Department of Education, the Superintendent shall prepare the data and applications regarding the borrowing of State Aid Notes, Tax Anticipation Notes, and Bond Issues.

3280.2   Short-Term Loans

Multiple quotations shall be solicited for all short-term loans that the Board has authorized. Funds shall be borrowed from the responsible organization offering the most favorable terms, as approved by the Board.

3280.3   Sale of Bonds

The Board, upon a favorable vote of the people in compliance with the laws of the State of Michigan, may sell its bonds, if required to do so.  Such bonds shall be duly advertised, prepared, and sold in conformance with the laws of the State of Michigan.

3280.4   Debt Service

It shall be the responsibility of the Superintendent to maintain all records as to the outstanding bonds and debts encumbered against the District. He/she shall keep this information readily available and report periodically to the Board on the condition of these accounts.

Approved:       December 11, 2002     Legal Reference:  MCL 380.1352; 380.1356

3290 SUMMER PROPERTY TAX LEVY

The Board, by passing a resolution in order to actuate this policy, shall impose a summer property tax levy.

This tax levy shall commence in the summer of 2002 and continue during each subsequent summer until specifically revoked by the Board.  Each summer property tax levy shall be for one-half of the District's annual school property taxes unless otherwise dictated by law.

Approved:       December 11, 2002     Legal Reference:  MCL 380.1613

3300  INVESTMENT OF FUNDS

Annually, the Board shall pass a resolution authorizing the Treasurer to invest surplus funds of the District.  The Board, by resolution, may appoint the Superintendent to perform these duties on behalf of the Treasurer.

Approved:       December 11, 2002     Legal Reference:  MCL 380.1223

3310  INVESTMENT POLICY


3310.1   PURPOSE

The purpose of this Policy is to set forth the investment objectives and parameters for the management of public funds of the COOR Intermediate School District. This investment policy is designed to safeguard funds on behalf of the District, to assure the availability of operating and capital funds when needed, and provide an investment return competitive with comparable funds and financial market indices.

3310.2   SCOPE

In accordance with The Revised School Code of Michigan, Act 451 380.622, 380.1221 and 380.1223, this investment policy applies to all cash and investments held or controlled by the Board on behalf of the District. This policy does not apply to funds related to the issuance of debt where there are other indentures in effect for such funds. Additionally, any future revenues, which have statutory investment requirements conflicting with this investment Policy and funds held or controlled by Federal or State agencies (e.g., Department of Revenue), are not subject to the provisions of this policy.

3310.3   INVESTMENT OBJECTIVES

The primary objectives, in priority order, of investment activities shall be safety, liquidity and yield.

A. Safety of Principal

The foremost objective of this investment program is the safety of the principal of funds. Investment transactions shall be undertaken in a manner to ensure the preservation of capital in the overall portfolio. The objective will be to minimize credit risk and interest rate risk.

1. Credit Risk (Custodial Credit Risk and Concentration Credit Risk)

The District will minimize Custodial Credit Risk, which is the risk of loss due to the failure of the security issuer or backer, by; limiting investments to the types of securities listed in Section 9 of this Investment Policy; and pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the District will do business in accordance with Section 7 of this Investment Policy.

The District will minimize Concentration of Credit Risk, which is the risk of loss attributed to the magnitude of the District’s investment in a single issuer, by diversifying the investment portfolio so that the impact of potential losses from any one type of security or issuer will be minimized.

2. Interest Rate Risk

The District will minimize Interest Rate Risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by; structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities in the open market; and investing operating funds primarily in shorter-term securities, liquid asset funds, money market mutual funds, or similar investment pools and limiting the average maturity in accordance with the District’s cash requirements.

3.Foreign Currency Risk

The District is not authorized to invest in investments which have this type of risk.

B. Maintenance of Liquidity

The funds shall be managed such that they are available to meet reasonably anticipated cash flow requirements.

C. Yield/Return on Investment

Investment portfolios shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. It is understood that return on investment is of secondary importance when compared to the safety and liquidity objectives described above.

3310.4   MANAGEMENT OF INVESTMENTS

The Superintendent or Designee shall oversee the day-to-day management of District investments. The Investment Officer shall be responsible for the transferring of appropriate funds to affect investment transactions, for the investment of operating funds, operating reserves funds, and bond proceeds, consistent with this policy and actions of the Board. Should the Board elect to select an outside investment advisor, such advisor or firm must be registered under the Investment Advisor’s Act of 1940.

3310.5   STANDARDS OF PRUDENCE

The standard of prudence to be used by the Investment Officer shall be the “Prudent Person” standard and shall be applied in the context of managing the overall investment program. The Prudent Person standard states:

“Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probably safety of their capital as well as the probable income to be derived from the investment”.

3310.6   ETHICS AND CONFLICTS OF INTEREST

The Superintendent or Designee shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair one’s ability to make impartial investment decisions. Also, the Investment Officer shall disclose to the Board any material financial interests in Qualified Institutions that conduct business with the Board or the District, and they shall further disclose any material personal financial/investment positions that could be related to the performance of the District’s investment program.

3310.7   AUTHORIZED INVESTMENT INSTITUTIONS AND DEALERS

Only firms meeting one of the following requirements shall be eligible to serve as Authorized Institutions.

A.The firm must comply with all of the following requirements:

1.Primary and regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule);

2.Capital of no less than $10,000,000;

3.Registered as a dealer under the Securities Exchange Act of 1934.

4.A member of the National Association of Securities Dealers (NASD);

5.Registered to sell securities in Michigan; and

6.The firm and assigned broker have been engaged in the business of effecting transactions in U.S. government and agency obligations for at least five (5) consecutive years; or

B.Public Depositories qualified in accordance with MCL 380.1221, The Revised School Code of Michigan.

All brokers, dealers and other financial institutions deemed to be Authorized Institutions shall be provided with current copies of this investment policy and shall provide in return to the Board, certification of having read, understood and agreement to comply with this investment policy.

3310.8   COMPETITIVE SELECTION OF INVESTMENT INSTRUMENTS

The Superintendent or Designee shall obtain bids from at least two (2) brokers or financial institutions on all purchasers of investment instruments on the secondary market. Overnight sweep investment instruments shall not be subject to this section.

3310.9   AUTHORIZED INVESTMENTS AND PORTFOLIO COMPOSITION

Investments and Depositories are restricted to those complying with MCL 380.622, 380.1221 and 380.1223. These include:

A.United States Government Securities

B.United States Government Agencies

C.Federal Instrumentalities (United States Government-Sponsored Enterprises)

D.Certificates of Deposit

E.Repurchase Agreements

F.Commercial Paper

G.Bankers’ Acceptances

H.Registered Investment Companies (Money Market Mutual Funds)

I.Investment pools, as authorized by the surplus funds investment pool act, 1982 PA 367, MCL 129.111 to 129.118, composed entirely of instruments that are legal for direct investment by an intermediate school district.

3310.10 POLICY CONSIDERATIONS

A.Any investment held at the time of the implementation of this policy that meets the requirements of MCL 380.622, 380.1221 and 380.1223, but does not meet the guidelines of this policy, shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested only as provided by this policy.

B.Amendments

This policy shall be reviewed from time to time. The District Board of Education must adopt any changes to this policy.

Approved:       February 8, 2006

3340  FEES, PAYMENTS AND RENTALS (Cf. 9250)      

Proceeds from fees for building or equipment use or rental shall be credited to a fund specified by the Board.

3340.1   Rental and Leasing of District Property

The Board may authorize the rental or lease of District property not used for instructional purposes.

3340.2   Gate Receipts and Admissions

The Board shall set admission fees to various District activities.  These fees shall be reviewed annually.

3340.3   Income and Payments from Sales and Service

Students may undertake jobs or projects for private individuals or community groups.  The facilities of the District may be used for such activities.  All receipts shall be deposited in the general fund and used as a reimbursement for materials and/or to purchase additional supplies and cover expenses of a department.

Approved:       December 11, 2002     LEGAL REF:  MCL 380.431

3400  DEPOSITORY OF FUNDS  

At the annual organizational meeting, the Board shall, in accordance with state law, designate, by resolution, the financial institutions[1] in which the funds of the District shall be deposited and the proportion of funds to be deposited in each.  The Treasurer shall deposit or cause to be deposited, funds of the District in the institutions as authorized by the Board and in the proportions authorized by the Board.

[1] MCL 129.15 includes credit unions as an appropriate place of deposit and uses the term “financial institutions,” not just banks or trust companies.

Approved:       December 11, 2002     LEGAL REF:  MCL 21.143; 129.12; 129.15; 380.1221-1222

3410  SAFEGUARDING OF MONIES AND EQUIPMENT

The Superintendent shall be responsible to see that administrative regulations are established and carried out so that all monies and equipment within all of the District’s facilities are safeguarded and accounted for in an efficient manner at all times.

Approved:       December 11, 2002

3420  MONIES IN SCHOOL BUILDINGS

The Superintendent shall establish procedures to permit daily deposit of monies collected which will not require monies to be left in school buildings overnight. The District will not be responsible for monies remaining in school buildings overnight.

Approved:       December 11, 2002

3430  BONDED EMPLOYEES

The Board shall purchase a blanket or surety bond for school employees.  The Board shall prescribe the amount of the bond.

Approved:       December 11, 2002

3490  INVENTORIES – FIXED AND CONTROLLED ASSETS        

An accounting will be made annually for property, real and personal, owned by the District in accordance with law, governmental regulations, and District rules.

3490.1   Fixed Asset Accounting System

The administration shall maintain a fixed asset accounting system in accordance with law, governmental regulations, and the District’s needs.

Approved:       December 11, 2002

LEGAL REF:  Governmental Accounting Standards Board, Statement No. 34.

3500  AUDITS    

The Board of Education requires that, after the close of the fiscal year (June 30), an audit of all accounts of the District be made annually by an independent certified accountant. The audit examination shall be conducted in accordance with generally accepted auditing standards and shall include all funds over which the Board has direct or supervisory control.

The Superintendent  shall also file a copy of its annual financial audit report, including management letter, with the Michigan Department of Treasury by no later than Nov. 15 of each year.

The audit report shall be reviewed and approved annually by the Board at a public meeting.  The management letter and recommendations of the auditor shall be brought to the attention of the Board, along with recommendations of the Superintendent, as to the feasibility of implementing the recommendations.  The Superintendent shall be responsible for filing the audit reports with all appropriate authorities as prescribed by law or regulation.

Approved:       December 11, 2002     LEGAL REF:  MCL 388.1418; 388.1618

3520  ANTI-FRAUD POLICY


Introduction

The COOR Intermediate School District is committed to the highest possible standards of openness and accountability. It is determined to maintain a culture of honesty and opposition to fraud.

Fraud is defined as “Deception by persons internal or external to the COOR Intermediate School District, which is carried out to conceal the misappropriation of assets or otherwise for gain”.

We understand that a successful Anti-Fraud Policy depends upon the internal control systems to make sure that responsibilities and duties are regularly reviewed and reinforced.

Expected Behavior

Dishonest and illegal activity will not be tolerated. Our Superintendent and Board of Education will deal firmly and quickly with anyone who is responsible for fraud. The Superintendent may refer matters to the policy if any criminal activity is suspected. We will deal with all information received as fairly and confidentially as possible.

We will ensure that any investigative process is not misused and, therefore, any abuse, such as raising unfounded malicious allegations, will be dealt with as a disciplinary matter.

Preventing Fraud

It is essential that we have clear rules and procedures within which staff can work.

Although the size of the COOR Intermediate School District staff limits the extent of separation of duties, certain steps will be taken. The Superintendent must make sure that suitable levels of internal checks are included in working procedures, particularly financial procedures. It is important that duties are organized so that no one person can carry out a complete transaction without some form of checking process being built into the system such as:

a. Two signatures required on checks
b. Review of the bank reconciliation
c. Compare the reconciliation to the prior period for items outstanding for an extended period
d. Concur the reconciled balance to the general ledger balance
e. Concur the bank statement balance to the reconciliation

Allegations

Allegations will be dealt with in a firm and controlled manner.

The allegation will be investigated internally and within 10 working days of the concern being received, the Superintendent or Designee will write to the complainant:

a. Acknowledging that the concern has been received
b. Giving an estimate of how long it will take to provide a final response

The investigation will be planned giving due consideration to the following:

a.Legal status of the allegations
b. Internal disciplinary procedures
c. Level of evidence required
d. Protection of data and documents required
e. Minimizing the effect on staff and third parties
f. Recovery of any lost funds and minimizing the potential for further loss
g. Review of any improvements required to prevent reoccurrence
h. Laws governing the rights of employees and others

We appreciate that individuals who report the alleged fraud need to be assured that the matter has been properly addressed. Thus, where appropriate and subject to legal constraints, they will receive information about the outcome of any investigation.

Should the allegation impact directly upon a third party, the Superintendent or his/her Designee will directly contact the senior member of that company.

Procedure for Referring Matters to the Police

This procedure does not supersede other internal disciplinary codes. Any offenders will be subject to general disciplinary procedures as well as referral to the police. A minimum of two individuals should be involved when deciding whether to refer an incident to the police.

In deciding whether an incident should be reported, the following factors will be taken into account:

a. The extend of the fraud in financial terms
b. The sufficiency and adequacy of the evidence

Approved:       February 8, 2006

3550  AUTHORIZED SIGNATURES    

At the annual organizational meeting, the Board shall authorize the signatures of those persons who may sign checks upon the various accounts of the District.  Facsimile signatures may be used as authorized by the Board.

Approved:       December 11, 2002

3570  PETTY CASH ACCOUNTS

The Board of Education recognizes the convenience afforded to day‑by‑day operations by the establishment of one (1) or more petty cash funds. The Board shall require the imposition of such controls as will prevent abuse of such funds.

All petty cash funds will be closed out for audit at the end of the school year and unused funds will be returned to the depository.

The Superintendent shall establish rules and procedures for handling these accounts.

Approved:       December 11, 2002

3575 TRUST AND AGENCY FUND

The Board of Education directs the establishment of a trust and agency fund for the financial administration of scholarship and other trusts operated for the benefit of students and duly approved by the Board.

The Superintendent shall be responsible for the administration of the trust and agency fund. The fund will be audited annually and will be administered under appropriate accounting controls. The books of account will record income and expenses separately for each approved area.

Approved:       December 11, 2002

3580  PAYROLL PROCEDURES AND SCHEDULES

All employees shall be paid according to a specific schedule that shall be determined annually by the Board.  All salaries, supplements, and payments for extra duties shall be paid from the payroll account through the District's business office.  No payments shall be made directly to any school personnel for services rendered from any supplementary school fund.

The most substantial payment of public funds for the operation of the School District is that which is made to the employees of the Board of Education for services rendered. To ensure that each person so compensated is validly employed by this District and that the compensation remitted fairly represents the services rendered, this policy is promulgated.

Payroll authorization for all District personnel whether by the year, term, month, week, day, or hour in contract, temporary, or substitute form must be approved by the Board except where authority to appoint certain personnel of the District has been delegated to the Superintendent. All data must be presented on a timely basis for Board consideration.

Each motion of the Board to employ or reemploy a staff member shall include the name of the individual, the position title, the compensation to be paid as prescribed in a negotiated collective bargaining agreement or determined by a wage guideline, and the fringe benefits to which the person is entitled.

Approved:       December 11, 2002     LEGAL REF:  MCL 380.1224

3600  REIMBURSEMENT OF EXPENSES (Cf. 1168, 3605, 5330)     

District personnel, or members of the Board, who incur expenses in carrying out their authorized duties shall be reimbursed by the District to the extent approved or provided in Board policies or duly negotiated agreements upon submission of an approved expense report and supporting receipts.  Such expenses may be approved and incurred in line with budgetary allocations for the specific type of expense.

Approved:       February 8, 2006        LEGAL REF:  MCL 380.1254

3600.1   Expense Reports

To receive reimbursement, a Board member shall obtain pre approval and post approval of the Superintendent or Designee for any overnight travel expenses and submit an expense report with supporting receipts or other evidence to verify each expense incurred.

3600.2   Meal Expenses

The upper limit of District paid expenses for meals may be up to $100 per day on an exception basis subject to the approval of the Superintendent and submission of itemized meal receipts.  Care should be taken to minimize these expenses.

3600.3 Out of State Travel (PA 234)

Out of state travel for Board and ISD employees requires pre-approval and post approval of the Board if that travel is to be reimbursed.

Approved:       May 11, 2005 LEGAL REF: MCL 380.1254

3605  DISTRICT CREDIT CARDS (Cf. 1162, 1168, 3600)        

The Board of Education recognizes the value of an efficient method of payment and record keeping for certain expenses.

The Board, therefore, authorizes the use of District credit cards by the Superintendent and members of the Board.

3605.1   Issuance

A Board member may be issued a District credit card for actual and necessary expenses incurred as a result of attendance at Board-approved workshops, seminars, conferences, or conventions.

District employees may be issued a District credit card that shall be used solely for the purchase of goods and/or services needed for official business of the District. 

3605.2   Documentation

When a Board member or employee uses a District credit card, documentation shall be provided the Superintendent, within 10 calendar days, detailing the goods or services purchased, the cost of such goods or services, the date of purchase, and the purpose for which such goods or services were purchased.

3605.3   Lost Credit Cards

Each Board member or employee issued a credit card is responsible for the protection and custody of the District’s credit card.  If a District credit card is lost or stolen, the Superintendent shall be notified immediately.

3605.4   Return of Credit Cards

A Board member who leaves the Board or a District employee who is no longer employed by the District shall return the credit card upon termination to the Superintendent, but no later than five calendar days after termination.

3605.5   Payment

The Board shall approve all District credit card invoices prior to payment.  Such payments shall be made no later than 60 days after receipt of the initial statement date.

3605.6   Misuse and Unauthorized Use

A Board member who violates a provision of this policy shall have his/her use of that card revoked by the Board.  An employee who violates a provision of this policy shall be subject to disciplinary action as determined by the Superintendent.

If the Superintendent violates a provision of this policy, he/she shall be subject to disciplinary action as determined by the Board.

3605.7   Other Provisions

The Superintendent shall develop administrative guidelines that specify the types of expenses that can be paid by credit card and their proper supervision and use.

Approved:       December 11, 2002     LEGAL REF:  MCL 129.243; 380.1254

3610  PURCHASING GOODS AND SERVICES     

The Superintendent shall be the sole purchasing agent for the District.

3610.1   Purchasing from District Employees

The Board shall not purchase equipment or supplies from an employee of the District, nor from a member of a household of an employee, nor from any firm in which an employee or member of his/her household holds a 10 percent or greater financial interest.

3610.2   Purchases through the District

Board members and employees shall not make any purchases through the District for personal use.  The name of the District or school, or an employee’s position, shall not be used in such manner that discounts or cost preferences are given to such person.  Purchasing equipment and supplies by the District for resale to employees is prohibited.

3610.3   Emergency Purchases

Emergency purchases may be made without using the quotation or bidding process.  Such emergencies may arise because of an accident or other unforeseen occurrence that could affect the life, health, welfare, or safety of the District's students or employees.

It is the policy of the Board of Education that the Superintendent seeks at least three (3) price quotations on purchases of more than $2000 for a single service, except in cases of emergency.

The Board shall bid the professional services of an appropriately licensed and/or certified insurance provider and auditor.  Services shall be bid following the procedure adopted by the Superintendent.

Appropriate job descriptions and duties shall be developed by the Superintendent for each of the professional services authorized by the Board.  Such duties shall be used as a basis for request for bids to be sent by the Superintendent to interested individuals or firms.

Approved:       December 11, 2002     LEGAL REF:  MCL 15.321-330

3620    ADMINISTRATIVE LEEWAY (Cf. 3650, 3660)                                               

In the event of an emergency such as a power failure, severe cold weather or other such natural disasters, the Superintendent shall have the authority to purchase capital equipment needed to keep the schools of the District open or to reopen the schools.  The Board, at a special or regular meeting as soon as possible after the purchase is made, shall approve any such purchases.

Such purchases shall not be made to circumvent the purposes of the competitive bid law.

Approved:       December 11, 2002

3650  COOPERATIVE PURCHASING (Cf. 3620, 3660)  

The Board of Education recognizes the advantages of centralized purchasing in that volume buying tends to maximize value for each dollar spent.

The Board, therefore, encourages the administration to seek advantages in savings that may accrue to this District through cooperative purchasing with the governing body(s) of other governmental units.

The Board authorizes the Superintendent to create or negotiate such joint purchase agreements with governmental contracting units for services, supplies, and equipment as may be required from time to time by the Board. Such agreements shall be in accordance with State law, the policies of this Board, and the dictates of sound purchasing procedures.

Cooperative or joint purchases require an agreement approved by the Board and the participating contracting body(s) which shall specify the categories of equipment and supplies to be purchased, the manner of advertising for bids and of awarding contracts; the method of payment by each participating party; and such other matters as may be deemed necessary to carry out the purposes of the agreement. Such agreements are subject to all legal bidding requirements.

Cooperative purchasing also pertains to what is commonly referred to as “third party bids.”  Third party bidding shall constitute a competitive bid for purposes of policy 3660, Competitive Bids.

Approved:       December 11, 2002     LEGAL REF:  MCL 124.1 et seq.

3660  BIDS AND QUOTATION REQUIREMENTS (Cf. 3620, 3650) 

All purchases requiring competitive bids shall be made in accordance with current statutes, the creation of bid specifications, and adherence to the District's bidding procedure by the District's purchasing agent.

The purchasing agent shall develop and maintain lists of potential bidders for various types of materials, equipment, and supplies.  Such bid lists shall be used in the development of mailing lists for distribution of specification and invitations to bid.

Any supplier may be included in the list upon request.  The purchasing agent shall review all bid lists annually.

A copy of this policy shall be given to all bidders upon creation of bid lists and upon request.

3660.1   Purchasing

It is the policy of the Board of Education that the Superintendent  seek at least three (3) price quotations on purchases of more than $2,000.00 for a single item, except in cases of emergency, or when the materials purchased are of such a nature that price negotiations would not result in a savings to the District.

When the purchase of ‑ and contract for ‑ single items of supplies, materials, or equipment exceeds the amount designated by statute (380.623a), the Superintendent shall obtain competitive bids.

Bids shall be sealed and shall be opened by the Superintendent in the presence of at least one (1) witness. All orders or contracts should be awarded to the lowest responsible bidder; however, consideration can be given to:

a.   The quality of the item(s) to be supplied;

b.   Its conformity with specifications;

c.   Suitability to the requirements of the District;

d.   Delivery terms; and

e.   Past performance of the vendor.

The Board reserves the right to reject any bids.

The Board shall be informed of the terms and conditions of all competitive bids and shall award contracts as a consequence of such bids.

The Superintendent is authorized to purchase all items within budget allocations.

The Superintendent is authorized to make emergency purchases without prior approval of those goods, services, and/or purchases of capital equipment needed to keep the schools in operation.  Such purchases shall be brought to the Board for ratification at the next regular Board meeting.

In order to promote efficiency and economy in the operation of the District, the Board requires that the Superintendent periodically estimate requirements for standard items or classes of items and make quantity purchases on a bid basis to procure the lowest cost consistent with good quality.

Whenever storage facilities or other conditions make it impractical to receive total delivery at any one time, the total quantity to be shipped but with staggered delivery, dates shall be made a part of the bid specifications.

Before the Superintendent places a purchase order, he/she shall check as to whether the proposed purchase is subject to bid, whether sufficient funds exist in the budget, and whether the material might be available elsewhere in the District. All purchase orders shall be numbered consecutively.

In the interests of the economy, fairness, and efficiency in its business dealings, the Board requires that:

a.   Opportunity is provided to as many responsible suppliers as possible to do business with the School District;

b.   A prompt and courteous reception, insofar as conditions permit, be given to all who call on legitimate business matters;

c.   Where the requisitioner has recommended a supplier, the Superintendent may make alternate suggestions to the requisitioner if, in his/her judgment, better service, delivery, economy, or utility can be achieved by changing the proposed order; and

d.   Upon the placement of a purchase order, the Superintendent, shall commit the expenditure against a specific line item to guard against the creation of liabilities in excess of appropriations.

The Superintendent shall determine the amount of purchase and type of purchase that shall be allowed without a properly signed purchase order. Employees may be held personally responsible for anything purchased without a properly signed purchase order or authorization.

The Board may acquire equipment as defined in law by lease, by installment Payments, by entering into lease‑purchase agreements, or by lease with an option to purchase, provided the contract meets the requirements of the school code.

3660.2   Bid Specifications

The District’s purchasing agent shall write all bid specifications in a clear and concise manner.  Such specifications shall include, when necessary:  required performance, surety, bid and statutory bond information; compliance with preferential bid law; financial statements; the Board’s right to reject any or all bids; compliance with all federal, state and local laws, ordinances and regulations; the date, time and place for the opening of bids; and other items as the Board directs.

Approved:       December 11, 2002

LEGAL REF:              MCL 380.1267; 380.1274; 380.1267, 380.1274 et seq.  35 Mich App 441; 193 Md 64 (1971)  222 Mich 442; 192 MW 714 (1923) AG Opinion 05507, 6734

3660.3   Construction Bids (PA 232)

The Superintendent shall obtain competitive bids before beginning construction on a new or existing school building as required by law.

The superintendent shall advertise for the bids required by the Revised School Code under Section 380.1267, Subsection 1, by placing an advertisement for bids at least once in a newspaper of general circulation in the area where the building or addition is to be constructed or where the repair or renovation of an existing building is to take place and by posting an advertisement for bids for at least 2 weeks on the department of management and budget website on a page on the website maintained for this purpose or on a website maintained by a school organization and designated by the department of management and budget for this purpose.

The ISD will need to include the following required information in their advertisement:

The date and time bids must be received;
The date, time and place of a public meeting where the board or designee will open and read aloud the bids received by the due date and time;
State that the intermediate school board will not consider or accept a bid received by the board after the date and time specified for bid submission;
State that the bid shall be accompanied by a sworn and notarized statement disclosing any familial relationship that exists between the owner or any employee of the bidder and any member of the intermediate school board or intermediate superintendent of the intermediate school district. The intermediate school board shall not accept a bid that does not include this sworn and notarized disclosure statement.

Approved:       December 8, 2004

3690  LOCAL PURCHASING      

The Board of Education recognizes its position as a major purchaser in various communities of the District, and while it is the intention of the Board to purchase materials and supplies of quality at the lowest possible cost through widespread competition, if all other considerations are equal, the Board prefers to purchase within the District from established local merchants.

The Board authorizes the Superintendent  to award purchases placed in accordance with law, this policy, and all policies of the Board otherwise applicable to local merchants when their quotation or bid is competitive, maintenance service may be required, and promptness of delivery is a consideration provided that all statutes pertaining to public purchasing are duly observed.

Approved:       December 11, 2002

3730  VENDOR RELATIONS      

The Board of Education shall not enter a contract knowingly with any supplier of goods or services to the District under which any Board member or officer, employee, or agent of this School District has any pecuniary or beneficial interest, direct or indirect, unless the person has not solicited the contract or participated in the negotiations leading up to the contract. This prohibition shall not prevent any person from receiving royalties upon the sale of any textbook of which he/she is the author and which has been properly approved for use in the schools of this District.

For the purpose of this policy, 'beneficial interest" shall be determined in accordance with MCL 15.321 et. seq.

Board members and school personnel shall not accept any gifts or favors from vendors that might be reasonably deemed to influence their recommendations on the eventual purchase of equipment, supplies, or services.

All sales persons, regardless of product, shall clear with the Superintendent’s office or before contacting any teachers, students, or other personnel of the School District. Purchasing personnel shall not show any favoritism to any vendor. Each order shall be placed in accordance with policies of the Board based on quality, price, and delivery with past service a factor if all other considerations are equal.

Approved:       December 11, 2002     LEGAL REF: MCL 15.321 et seq.

3750  PAYMENT PROCEDURES

The Board of Education directs the prompt payment of legitimate claims by suppliers of goods and services to the School District.

Each bill or obligation bf this Board must be itemized fully and verified before a warrant can be drawn for its payment.

When an invoice is received, the administrator in charge of Planning and Finance shall verify that a voucher is submitted properly, that acceptable goods were received or satisfactory services rendered, that the expenditure is included in the Board's budget and funds are available for its payment, and that the amount of the invoice is correct.

All payments, other than those stipulated by Board resolutions and approval, shall be submitted for Board review in the form of a listing that includes:

a.   The vendor name;

b.   The number and amount of the check;

c.   The description of the item; and

d.   Date of receipt.

The Board designates the Superintendent to pay bills in advance of any Board meeting in order to avoid a penalty for late payment or to take advantage of an early payment discount.

Approved:       December 11, 2002

LEGAL REF:  MCL 380.1274; 214 Nw2d 840, 51 Mich App 304(1914)

3800  FUND RAISING AND STUDENT ACTIVITY FUND (Cf. 8700)   

     
3800.1   Soliciting Funds From and By Students

The Board recognizes the existence of many worthwhile community and student activities that require the raising of funds either by the sale of merchandise, tickets, or perhaps direct request for money.  Because of the need to safeguard students in the educational program, the Board limits participation of students to those activities that have the Superintendent’s approval.

It is the responsibility of the Board to provide the necessary basic texts, materials, supplies, equipment, uniforms, buildings and outdoor facilities to conduct the approved educational and co curricular programs of the Agency.  Community and school fund raising organizations may contribute to the enrichment of these basic programs through the contribution of funds and/or items considered non-necessities as long as those contributions have been determined consistent with the above and approved by the Superintendent through the appropriate building or program administrator.

If a fund raising project is conducted to sponsor a specific purchase, activity or trip, the purchase or trip must be approved prior to initiation of the fund raising effort.  This shall apply to school related groups as well as to school organizations.

3800.2   Student Groups

The administration must approve all fund raising events in advance.  Requests must be on an approved application form and submitted to the program director or supervisor at least one month prior to the proposed activity. 

Only school-sponsored groups may sell or solicit in a school building and then only with the school housing the group, during non-instructional time.

School sponsored organizations may not have more than one money-raising event a year that would involve going into the community.  Cards, letters, or other identifying literature shall be provided all students authorized for sales in the general community.

3800.3   Specifics

a.   Fund raising projects carried on for special trips or special projects should not be started until approval of the trip or project is granted.  Trips covered by this policy shall include out-of-state and overnight trips, as well as trips to foreign countries.

b. Any sale of commercial products or the solicitation of funds in a door-to-door campaign and/or through contracts with businesses shall require approval of the appropriate program administrator before any oral commitment, written agreement, or contract is made or any advance publicity or group promotional activity is undertaken.  Once approved however, before sales begin or solicitations are made, contract agreements must be signed by the program administrator.

c.   Fund raising projects shall be compatible with the Agency’s purposes, goals, and general community expectations, but shall not unduly conflict with local business enterprises.

d.   The Agency shall transfer funds remaining in accounts of student organizations that have been inactive for one year to accounts of other co-curricular organizations or to the Agency's general fund upon recommendation of the Superintendent.

3800.4 Adult Groups

School related organizations that are primarily adult, and the funds being raised are to be used primarily for the improvement of the educational program, must submit a written request to the Superintendent.  This request should be submitted one month in advance and identify the nature of the activity and the date of the activities. 

Fund raising activities should not commence until approval has been granted.  The purpose is not to limit the activities of these groups, but rather to:

a.  Assure that students are not being “used” or their educational program interrupted;

b.  Assist with coordination of activities so that similar activities are not in conflict with each other; and

c.  Assure the appropriateness of the activity and that all fund raising activities comply with local and/or state regulations.

Since some courts have ruled that the Board is liable for fund raising activities of such groups, funds raised are to benefit the school or its organizations.

Approved:       December 11, 2002

3810 STUDENT CHARGES

Any activity that involves the expenditure of public funds shall be subject to prior approval of the Board.

3810.1   Charges

When school property, equipment, or supplies are damaged, lost, or taken by students in a regular course, a charge will be assessed. The charge will be reasonable, seeding only to compensate the school for the expense or loss incurred.

Approved:       December 11, 2002

3820 BOARD RECOGNITIONS AND REMEMBERANCES   


3820.1   Board Recognitions     

The purpose of this policy is to permit the Board of Education to honor its staff, former Board members, and other non-employee persons with plaques, pins, token retirement gifts and awards, and other amenities.

Public funds may be used for purchasing the following for the recognition of an employee, volunteer, or pupil, if the value of the purchase does not exceed $100 per recipient:

a. Plaque
b. Medal
c. Trophy
d. Other awards

The $100 monetary threshold amount is adjusted for inflation each year and announced by the Department of Education on or before December 15 of each year.

Approved:  February 8, 2006

3820.2   Board Remembrances

The Board authorizes the Superintendent to provide suitable remembrances on behalf of the Board or the District in situations or circumstances deemed necessary by either the Board President or the Superintendent.

In the case of death or serious illness involving a Board member or staff member, or student, or a member of such person’s immediate family, the Superintendent may provide a suitable remembrance on behalf of the Board or District. Such remembrance shall be in a form suitable to the circumstance and may take the form of, by way of illustration and not limitation; flowers, cards, plaque, etc.

The Board hereby affirms that the expenses incurred as listed above do serve a public purpose. The Board believes that "public purpose" serves for the promotion of education, rapport with the business community, community relations, and the encouragement of non-employees to serve as volunteers as well as furthering other interest.

The funds shall be made available from appropriate departmental budgets.

Approved:       December 11, 2002

3900  SURPLUS BOOKS, EQUIPMENT AND SUPPLIES

The Superintendent is authorized to dispose of surplus, obsolete books, equipment, and supplies.  All transactions shall be reported to the Board and an equal opportunity for any purchases shall be given to everyone.

Approved:       December 11, 2002     LEGAL REF:  MCL 380.601a

3950  SURPLUS LAND OR BUILDINGS       

The sale or disposal of District land or buildings shall require Board authorization.  The Board shall determine the method and procedure of disposal.

Approved:       December 11, 2002     LEGAL REF: MCL 380.601a