A budget for the District shall be prepared annually for the Board's review. The budget will include the following:

· the amount of revenues to be raised by taxation;

· the amount of revenues from sources other than taxation;

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

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

It is the responsibility of the superintendent and the Board secretary and/or treasurer to prepare the budget for review by the Board prior to the April 15 deadline each year.

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 District community will 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 15.

The time and place for the public hearing on the proposed budget is published in a newspaper designated for official publication in the District. It is the responsibility of the Board secretary and/or treasurer to publish the proposed budget and public hearing information at least 10 but no more than 20 days prior to the public hearing.

Prior to certification of the budget, the Board will review the projected revenues and expenditures for the District and make adjustments where necessary to carry out the education program within the revenues projected.

The Board will adopt and certify a budget for the operation of the District to the county auditor by April 15. It is the responsibility of the Board secretary and/or treasurer 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 in the event of unforeseen circumstances. The amendment procedures will follow the procedures for public review and adoption of the original budget by the board outlined in these policies.

It is the responsibility of the superintendent and the Board secretary and/or treasurer to bring any budget amendments necessary to the attention of the Board as soon as possible in order to allow sufficient time to file the amendment with the county auditor.

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The budget of the District is the authority for the expenditures of the District for the fiscal year for which the budget was adopted and certified. It is the responsibility of the superintendent to manage the operations of the District within the budget.

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When the necessity for a fund has ceased to exist, the balance may be transferred to another fund or account by Board resolution. District monies received without a designated purpose may be transferred in this manner. District monies received for a specific purpose or upon public vote may only be transferred by Board resolution when the purpose for which the monies were received has been completed. Voter approval is required to transfer monies to the general fund from the capital projects fund and the debt service fund.

It is the responsibility of the Board secretary and/or treasurer and/or the superintendent to make recommendations to the Board regarding transfers and to provide the documentation justifying the transfer.

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District funds in excess of current needs are invested in compliance with this policy. The goals of the District's investment portfolio in order of priority are:

· To provide safety of the principal funds;

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

· To obtain a reasonable rate of return.

In making investments, the District will 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.

District funds are monies of the District, including operating funds. "Operating funds" of the District are funds which are reasonably expected to be used during a current budget year or within fifteen (15) 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 must mature according to the need for the funds.

The Board authorizes the Board treasurer to invest funds in excess of current needs in the following investments.

· Interest bearing savings, money market, and checking accounts at the District's    authorized depositories;

· Certificates of deposit at the District’s authorized depositories;

· Qualified investment pool;

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

· Certificates of deposit and other evidences of deposit at federally insured Iowa depository institutions.

It is the responsibility of the Board treasurer to oversee the investment portfolio in compliance with this policy and the law.

If the Board requests it, it shall be the responsibility of the Board treasurer to bring a contract with an outside person to invest District funds, to advise on investments, to direct investments, to act in a fiduciary capacity or to perform other investment services to the Board for review and approval. The Board 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 District within thirty (30) days of any material weakness in internal structure or regulatory orders or sanctions against the outside person regarding the services being provided to the District and to provide the documents necessary for the performance of the investment portion of the District audit. The compensation of the outside persons shall not be based upon the performance of the investment portfolio.

It is the responsibility of the Board treasurer to report to and review 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 maturities with the Board at its regular meetings. 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 District meet the requirements outlined in this policy.

It is the responsibility of the superintendent to deliver a copy of this policy to the District's depositories, auditor and/or other outside persons doing investment business with the school district.

It will also be the responsibility of the Superintendent, in conjunction with the Board treasurer, to develop a system of investment practices and internal controls over the investment practices. The investment practices are designed to prevent losses, to document the officers' and employees' responsibility for elements of the investment process and address the capability of the management.

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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”).

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

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 shall take formal board action prior to committing a fund balance. The Board shall approve by a majority vote the commitment of a fund balance, and shall approve by a two-thirds vote the removal of the commitment of a fund balance. The Board delegates to the superintendent the authority to assign a fund balance in the District’s general fund to be used for a specific purpose.

Spending Fund Balances

Pursuant to GASB 54, 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.

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