Series 7000 - Finance and Fiscal Management topics

7000 -USE OF FUNDS

The Durham Public Schools Board of Education, in recognition of its accountability to the people of Durham, hereby instructs all employees to use district funds and other assets in the most cost-effective manner possible, consistent with the primary mission of the Durham Public Schools.

7010 -SCHOOL FINANCE OFFICER

There shall be a school finance officer appointed or designated by the Superintendent and approved by the Board, in accordance with the provisions of state law.

7020 -DUTIES OF SCHOOL FINANCE OFFICER

The school finance officer shall be responsible to the Superintendent for:

7030 -FIDELITY BONDS

The Superintendent shall ensure that all officers, employees and agents of the school system who are required to be bonded are bonded.

7100 -ANNUAL BUDGET

 The Superintendent shall prepare an annual budget and submit it with his budget message to the Board not later than May 1. The budget shall comply in all respects with the limitations imposed by law.

7120 -BUDGET TRANSFERS AND AMENDMENTS

The Board shall have the right to make budget transfers or amendments to the budget resolution for the reasons prescribed by state law and in accordance with the adopted budget resolution and state law.

7130 -INTERIM BUDGET

In case the adoption of the budget resolution is delayed until after July 1, the Board shall make interim appropriations for the purpose of paying salaries and the usual expenses of the school system for the interval between the beginning of the fiscal year and the adoption of the budget resolution.

7200 -ACCOUNTING SYSTEM

 The administration shall establish and maintain a financial accounting and reporting system designed to show the school system's assets, liabilities, equities, revenues, and expenditures.

7210 -FINANCIAL REPORTS AND STATEMENTS

The administration shall prepare a comprehensive annual financial report that encompasses all the funds and account groups of the school system. The comprehensive annual financial report shall contain the general purpose financial statements as well as combining statements by fund type and individual fund statements. It shall also include a letter of transmittal from the administration and additional statistical information and financial schedules.

7220 -INDIVIDUAL SCHOOL ACCOUNTS

The Board authorizes the maintenance of appropriate individual school accounts. The principal of each school shall appoint a treasurer for the school. The principal shall be responsible for proper administration of financial activities of the school in accordance with law and appropriate accounting practices and procedures. Only the principal may give final approval to purchase materials, equipment, and services which the school is authorized to purchase from the individual school funds. No obligations shall be made by a principal if the total exceeds the amount of funds in the appropriate account of the individual school. Obligations incurred by the principal in excess of funds on hand will be considered to be the personal obligation of the principal and the principal may be held personally liable for payment of the obligation.

7300 -RECEIVING AND INSPECTING

Personnel responsible for purchasing shall establish and maintain a receiving procedure for all supplies, materials, and equipment as appropriate.

7310 -MAINTENANCE OF INVENTORY AND FIXED ASSETS

Administrative personnel shall be responsible for taking a physical count of all equipment items and stock supplies at least once each year. This inventory shall be entered on the stock record accounts for appropriate accounting.

7400 - SYSTEM CONTRACT ADMINISTRATION

Except as otherwise provided by Board policy, all system-level contracts made on behalf of the Board of Education involving expenditures exceeding ninety thousand dollars ($90,000) must receive prior approval from the Board. Unless otherwise prohibited by statute, state regulation, or other Board policy, the Superintendent or his/her designee is authorized to enter into purchase, service, construction and repair contracts involving amounts up to ninety thousand dollars ($90,000), as long as the purchase is within the remaining funds in the allocated budget for the current fiscal year. The Superintendent is authorized to enter into contracts for the purchase of textbooks, fuel, gasoline and oil in any amount, as long as the purchase is within the remaining funds in the allocated budget for the current fiscal year.

7405 -RESOLUTION OF CLAIMS

As part of and in accordance with its risk management program, the Board delegates the following authority to resolve legal claims arising from school system activities when settlement is in the best interest of the school system based on an assessment of the merits of the claim, the availability of potential defenses, the anticipated costs of litigation, and other relevant factors.

7410 -RISK MANAGEMENT PROGRAM

The Superintendent is authorized to administer a risk management program, including a combined program of self-insurance and commercial insurance, consistent with board policy, insurance industry standards and governmental/legal standards, to ensure adequate coverage for the district within existing budgeted resources.

7500 -DEPOSITORIES

The Board shall designate as official depositories of the school system one or more banks, savings and loan associations, or trust companies in North Carolina.

7510 -DAILY DEPOSITS

Except as otherwise provided by law, all monies collected or received by an officer, employee, or agent of the school system or an individual school shall be deposited in accordance with this policy.

7610 -BOARD AUTHORITY TO OVERRIDE FINANCE OFFICER

The Board may approve a bill, invoice, or other claim against the school system that has been disapproved by the school finance officer.

7615 -PREAUDIT CERTIFICATION

No obligation may be incurred by the school system unless the budget resolution includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year.

7620 -PAYMENTS OF BILLS, INVOICES, OR OTHER CLAIMS

The school system shall not pay a bill, invoice, salary, or other claim except by a check or draft on an official depository, by a bank wire transfer from an official depository, or by a warrant on the State Treasurer.

7625 -CERTIFICATION FOR DISBURSEMENT

The certificate for a disbursement shall take substantially the following form:

7630 -EMPLOYEE TRAVEL REIMBURSEMENT

Durham Public Schools employees shall be reimbursed for transportation, subsistence, or registration expenses incurred while traveling on official business.

7635 -RECOVERY OF SALARY OR BENEFITS ADVANCED TO EMPLOYEES

To be consistent with the State Board's policy for state-paid employees, the Durham Public Schools Board of Education will recover from locally-paid employees any money paid in advance.

7645 -PAYROLL DEDUCTIONS

The Board of Education will comply with all required salary deductions as set forth by state, federal, and local guidelines.

7650 -FUNDING REQUESTS FROM ORGANIZED CHARITIES

The United Way, the United Negro College Fund, and the Durham Public Schools Education Network will be the only organized charitable organizations permitted to raise funds from employees within the Durham Public Schools system.

7670 -FACSIMILE SIGNATURES

The Board may provide by appropriate resolution for the use of facsimile signature machines, signature stamps, or similar devices in signing checks and drafts and in signing the preaudit certificate on contracts or purchase orders.

7700 -GENERAL LIABILITY INSURANCE

The Board shall provide general liability insurance coverage for the Board, its members, collectively and individually, and for school system employees.

7800 - ANNUAL AUDIT

The school system shall have its accounts and the accounts of the individual schools audited as soon as possible after the close of each fiscal year by a certified public accountant or by an accountant certified by the Local Government Commission as qualified to audit local government accounts.