Policies

FISCAL MANAGEMENT

This section contains policies, on school finances and the management of funds. Policies on the financing of school construction and renovation, however, are filed in General School District Administration.

FISCAL MANAGEMENT GOALS/PRIORITY OBJECTIVES

The School Board recognizes the importance of excellent fiscal management in managing public resources to achieve the goals of the educational plan of the district. The board will be vigilant in fulfilling its responsibilities to see that these funds are used wisely to achieve the purpose for which they are allocated.

The district fiscal management plan seeks to achieve the following goals:

1. Engage in thorough advance planning to develop budgets and guide expenditures to achieve the greatest educational returns and the greatest contributions to the educational program.
2. Establish levels of funding which will provide high quality education for the students of the district.
3. Use the best available techniques and processes for budget development and management.
4. Provide timely and appropriate information to the School Board and all staff with fiscal management responsibilities.
5. Establish and implement efficient procedures for accounting, audit, risk management, investing, purchasing delivery, payroll, payment of vendors and contractors, and all other areas of fiscal management.

see The Manchester School District and School Administrative Unit #37 v. The City of Manchester, Docket No. 98-E-0458, Rockingham County Superior Court (Decision dated May 24, 1999); see City Charter Section 6.06; see Ed. 303.01(b) and (h); see NH RSA 194:2 and 194:3.
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Adoption BOSC: 04/10/00

ANNUAL BUDGET

One of the primary responsibilities of the Board is to secure adequate funds to carry out an effective program of instruction.

The adopted annual school budget is the financial outline of the District's educational program; it is the legal basis for the establishment of tax rates. The annual school budget process is an important function of School District operations and should serve as a means to improve communications within the school

organization and with the residents of the City of Manchester.

The Superintendent will be responsible for preparing, and presenting to the Board of School Committee for adoption, the annual school budget. The Board expects the Superintendent to work closely with the principals and other administrators to assess the needs of the schools.

The principals shall be responsible for gathering information on the financial requirements of their school and will confer with appropriate staff in order to develop budget requests.

The Board shall submit its budget proposal in accord with the budget schedule established by the Mayor under the City Charter. The Budget shall be subject to the approval of the Board of Mayor and Aldermen. The Board of Mayor and Aldermen shall accept the budget as submitted or reject it and return it to the Board along with the explanation for rejection and the maximum dollar amount which the Board of Mayor and Aldermen will approve. In the event the budget proposal is rejected, the Board shall then submit a revised budget which shall not exceed the maximum dollar amount established by the Board of Mayor and Aldermen. The Board shall conduct two public hearings with regard to the budget. The first shall be held prior to the submission of the Board's budget proposal to the Board of Mayor and Aldermen; the second shall be held within thirty days from the time of adoption of the Board's budget by the Board of Mayor and Aldermen.

See City of Manchester School District and School Administrative Unit #37 v. The City of Manchester, Docket No. 98-E-0458, Rockingham County Superior Court (Decision dated May 24, 1999); see City Charter Section 6.03, 6.04 and 6.06; see also Ed. 302.01(a); see NH RSA 194-C:4 (II)(p).

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Adoption BOSC: 04/10/00

FISCAL YEAR

The fiscal year begins on the first day of July and ends on the thirtieth day (30^th) of the following June.

Statutory Reference:

City Charter Reference
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Adoption BOSC: 04/10/00

BUDGET PLANNING, PREPARATION AND SCHEDULES

The Superintendent may establish procedures for the involvement of staff in the development of the budget proposal.

The School Board will adopt guidelines and a schedule each year for the timely submission of the budget to the Board of Mayor and Aldermen.

See NH RSA 194C:4 (2)(p); see Ed. 302.01(e)
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Adoption BOSC: 04/10/00

BUDGET IMPLEMENTATION

The Superintendent will establish procedures for budget implementation, control, and reporting.

Statutory References:

RSA 32:5; 32:10; 32:3.

See City Charter Section 6.06; see NH RSA 194-C:4(2); see Ed. 302.02(d)(e).
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BOSC Adoption: 04/10/00

BUDGET TRANSFERS

It is the intent of the Board to limit spending to the amount specified in each line item. However, transfers of funds between line items will be permitted if deemed appropriate by the Board of School Committee. The Board shall have exclusive authority to transfer funds among line items in the School Budget, except that excess funds may not be transferred from the Unemployment Compensation line item.

See City of Manchester School District and School Administrative Unit #37 v. The City of Manchester, Docket No. 98-E-0458, Rockingham County Superior Court (Decision dated May 24, 1999), 16; see also City Charter Section 6.04 (c).

Statutory Reference:

RSA 32:10
RSA 282-A:71, III
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Adoption BOSC: 04/10/00

FUNDING PROPOSALS, GRANTS AND SPECIAL PROJECTS

The Superintendent will inform the Board of all possible sources of state, federal, and other funds and donations of cash services and equipment for the support of the schools and/or for the enhancement of educational opportunities. The Superintendent is to apprise the Board of its eligibility for general or program funds and to make recommendations for Board action.

See NH RSA 194 C:4(i)(j) and (p)

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Adoption BOSC: 04/10/00

FUNDS FROM LOCAL TAX SOURCES

It is the responsibility of the School Board to present sufficiently the needs and goals of the schools to the public and to the Board of Mayor and Aldermen so that local support of education can indeed provide programs in an appropriate manner.

The major share of all financial support for local school districts is raised by taxing property within the District. Most of the financial support of public education, therefore, is subject to bottom-line approval by t vote by the Board of Mayor and Aldermen.

In addition, the School Board will:

1. Accept all available state funds to which the district is entitled by law or through regulations of the State Board of Education, providing there is a specific need for them and that matching funds required are available.
2. Accept all federal funds which are available providing there is a specific need for them and that matching funds required are available.
3. Accept all gifts and other funds that will further the policies and purposes of the District provided such gifts are not prohibited by law or contrary to the policies of the Board of School Committee.

See: House Bill 117

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Adoption BOSC: 04/10/00

REVENUES FROM INVESTMENTS

The School Board authorizes the School District Treasurer working in conjunction with the Superintendent and his/her designee and pursuant to RSA 197:23-a to invest the funds of the District subject to the following objectives and standards or care.

OBJECTIVES

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

1. Safety of principal is the foremost objective in this policy. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital by mitigating credit and interest rate risk. This will be accomplished by limiting the type of the investments and institutions to those stipulated by statute and fully covered by FDIC insurance or collateral approved pursuant to RSA 366:57.
2. Liquidity of the investment portfolio shall remain sufficient to meet all operating requirements that may be reasonably anticipated.
3. Yield. The investment portfolio 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. Return on investment is of secondary importance compared to the safety and liquidity objectives described above.

STANDARDS OF CARE

1. Prudence. The standard of prudence to be used by the District Treasurer and Superintendent or his/her designee involved in the investment process shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. They are directed to use the GFOA* recommended Practices and Policy Statements Related to Cash Management as a guide to the prudent investment of public funds.
2. Ethics and conflicts of interest. The School District Treasurer and Superintendent or his/her designee involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program or that could impair their ability to make impartial decisions. Employees and Investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officials shall subordinate their personal investment transactions to those of the School District particularly with regard to the timing of purchases and sales.
3. Internal Controls. The District Treasurer and Superintendent or his/her designee shall establish a system of internal controls which shall be documented in writing. The internal controls shall be reviewed by the School Board and an independent auditor.

This investment policy shall be reviewed annually by the school Board.

Statutory Reference:

RSA 197:23-a
RSA 383:22
Appendix: DFA-R 
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Adoption BOSC: 04/10/00

CUSTODIAN OF FUNDS

The District Treasurer shall be the custodian of all school funds. The City of Manchester shall pay over to the District Treasurer all appropriated school funds, including but not limited to, tax revenue, grant funds, grants, aid and other revenue within a reasonable period of time after such funds are received.

The District is entitled to interest income generated on funds that are appropriated to it in accordance with its budget.

The District shall establish and maintain its own bank accounts for the deposit of school funds. The value of funds in any single account will not exceed the amount set forth in DFA. Depository banks will be selected only after careful review of fiscal practices and ability to meet the safety and service criteria of the District.

See City of Manchester School District and School Administrative Unit #37 v. The City of Manchester, Docket No. 98-E-0458, Rockingham County Superior Court (Decision dated May 24, 1999)

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Adopted BOSC: 04/10/00

AUTHORIZED SIGNATURES

Checks drawn on the general fund or any special fund (with the exception of the activity fund) will require the signature of the School District Treasurer or the Assistant Treasurer who is authorized to sign only after approval of manifests by the Board. Checks drawn on an activity fund will require the signatures of the principal and the class advisor.

Statutory Reference:

RSA 197:23-a

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Adoption BOSC: 04/10/00

BONDED EMPLOYEES AND OFFICERS

The Board requires that the Treasurer and Assistant Treasurer be bonded. The District will arrange a Public Officials Bond to cover the Treasurer and each assistant, if any, in an amount of not less than $1,000,000. It is the practice that any employee who administers student activity money shall be bonded.

Any employee who administers funds for the District will be bonded appropriately. The District will arrange a Blanket Position Bond, including a Faithful Performance endorsement, in the amount of $1,000,000 on all employees who administer funds for the District.

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Adoption BOSC: 04/10/00

FISCAL ACCOUNTING AND REPORTING

The Board is under a duty to administer, expend and account for its budget. The role of the Superintendent is to provide the administrative services to the Board, including but not limited to, payroll, cash flow, bills, records and files, accounts, reporting requirements, funds management, audits and coordination with the treasurer and advisory boards on policies necessary for compliance with all state and federal laws regarding purchasing.

The District's accounting system will be in conformance with the New Hampshire Financial Accounting Handbook II (revised) published by the State Department of Education and generally accepted accounting principles. An adequate system of encumbrance accounting will be maintained.

The Finance Committee and the Board shall receive financial reports and statements showing the financial condition of the School District. These statements/reports shall be prepared on a scheduled basis during the school year, and shall contain projected costs for the full year including actual encumbered expenses.

See NH RSA 194-C:4; see City Charter Section 6.06; see Ed.302.01(e).
Appendix: DI-R

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Adoption BOSC: 04/10/00

INVENTORIES

To serve the functions of conservation and control, a running inventory of fixed assets with appraised values will be maintained by the Superintendent's office on buildings and contents including:

1. buildings and grounds equipment
2. furniture
3. administrative equipment
4. educational equipment
5. vehicles

The Superintendent will designate the person responsible for maintaining an inventory of equipment, materials and supplies in his/her shop, laboratory, or classroom.

These inventories will be brought up-to-date as needed, but no less than once per fiscal year

See NH RSA 914-C:4(2); see also Ed. 302.01 (e).
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Adoption BOSC: 04/10/00

AUDITS/FINANCIAL MONITORING

The books and accounts of the District shall be audited annually. The audit to be performed will meet the basic requirements of governmental audit standards.

The School Board shall select the auditors after hearing the recommendation from the Superintendent or business administrator. Such audit will be made in accordance with RSA 197:25.

The auditor's contract shall be put out for bid every three years.

The School Board may periodically request an audit as the Board deems appropriate.

Statutory Reference:

RSA 197:25
RSA 671:5. 

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Adoption BOSC: 04/10/00

PURCHASING

The acquisition of supplies, equipment, and services will be centralized in the business office, which functions under the supervision of the Superintendent, and through whose office all purchasing transactions are conducted.

The Board assigns the Superintendent or his designee the responsibility for the quality and quantity of purchases made. The prime guidelines governing this responsibility are that all purchases fall within the framework of budgetary limitations and that they be consistent with the approved educational goals and programs of the District.

All phases of purchasing will be in accordance with Board Policy.

See NH RSA 194-C:4 (II)(a); Ed. 303.01(b).

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Adoption BOSC: 04/10/00

PURCHASING PROCEDURES

Procedures for purchasing will be developed by the Superintendent or his/her designee.

Purchasing procedures will be designed to avoid assumption of risk and to ensure the best possible price for the desired products and services.

These procedures will require that all purchases are made on properly approved purchase orders and that for items not put to bid, price quotations will be solicited.

Special arrangements may be made for ordering perishable and emergency supplies.

See NH RSA 194-C:4(a) (Superintendent Services)

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First Reading Coordination: 03/01/00
Second Reading and Adoption BOSC: 04/10/00

PETTY CASH ACCOUNTS

Petty cash funds may be established for schools, the SAU office, and special programs in such instances as they will expedite the purchase of minor items and/or provide immediate payment for minor services.

Expenditures against these funds must be itemized and documented with receipts and will be charged to the applicable budget code. After a budget item is exhausted, no expenditures against the item may be made from petty cash.

See Ed. 304.01 (d)

Appendix: DJC-R

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Adoption BOSC: 04/10/00

COOPERATIVE PURCHASING

The Board, at its option, may join in cooperative purchasing, including piggybacking, to take advantage of lower prices for bulk purchasing and to reduce the administrative costs involved in bidding. The Superintendent is directed to assess whether such an arrangement is feasible and appropriate.

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Adoption BOSC: 04/10/00

BIDDING PROCEDURES

All contracts for, and purchases of supplies, materials, and equipment in the amount of $25,000 or more, and contractual services in the amount of $20,000 or more, shall be based, when feasible, on at least three competitive bids. All purchases for less than the stated amounts may be made in the open market but shall, when possible, be based on at least three competitive quotations or prices. All purchases made in the open market shall be completed after careful pricing.

When bidding procedures are used, bids shall be advertised appropriately. Suppliers shall be invited to have their names placed on mailing lists to receive invitations to bid. When specifications are prepared, they will be mailed to all merchants and firms who have indicated an interest in bidding.

All bids must be submitted in sealed envelopes, addressed to the Superintendent, and plainly marked with the name of the bid and the time of the bid opening. Bids shall be opened at the time specified and all bidders and other persons shall be invited to be present. The Superintendent or his/her designee shall record the results of the bids and the time of opening.

At the discretion of the Superintendent, professional services such as accounting, consulting and legal services may be procured on an invited interview basis and need not be subject to these bidding requirements. However, the Superintendent will adhere to the Vendor Relations policy established by the Board.

The Board reserves the right to reject any or all bids and to accept that bid which appears to be in the best interest of the District. The Board reserves the right to waive any formalities in, or reject any or all bids or any part of any bid. Any bid may be withdrawn prior to the scheduled time for the opening of bids. Any bid received after the time and date specified shall not be considered. The Board need not accept the lowest qualified bidder.

The bidder to whom the award is made shall be required to enter into a written contract with the District.

See NH RSA 914-C:4(II)(a)(r).

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Adoption BOSC: 4/10/00

LOCAL/COMPETITIVE PURCHASING

It is the intent of the Board to purchase locally available goods of equal quality when such goods are available and at competitive prices.

The Board need not purchase any item locally that can be secured at a savings to the District from outside sources, nor shall the Board be bound to purchase locally unless adequate service and delivery can be given by the local supplier.

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Adoption BOSC: 04/10/00

VENDOR RELATIONS

In all purchasing activities, of the Board shall:

1. Consider first the interests of the school system and the betterment of its educational program.
2. Endeavor to obtain the greatest value for every tax dollar expended.
3. Give all responsible bidders equal consideration and assurance of unbiased judgment in determining whether their products meet specifications and the educational needs of the school system.
4. Discourage the offer of, and decline, gifts which in any way might influence any purchase.
5. Accord a prompt and courteous reception, insofar as conditions permit, to all who call on legitimate business missions.

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Adoption BOSC: 04/10/00

PAYROLL PROCEDURES/SCHEDULES

All salaries and supplements paid regular staff members, substitute or part-time personnel, and student workers will be paid through the business office.

Proper payroll procedures are dependent on staff attendance accounting and on the signing-in and signing-out of part-time and hourly workers. The necessary procedures for this will be established by the Superintendent and carried out by the administrative personnel.

Compensation records kept by the business office will reflect an accurate history of the compensation and related benefits paid to each employee.

Pay Day Schedule

The School District pays salaries on a regular schedule throughout the school year. There shall be no salary advances.

Salary Deductions

Salary deductions are allowed. They are subject to the limitation of the accounting equipment. Authorized payroll deductions include:

1. Credit Union
2. Tax-Sheltered Annuities
3. Union Dues
4. Insurance Premium Contributions

All salary deductions, other than those regulated by federal, state and local laws, will be deducted only upon written approval of the employee.

See NH RSA 194-C:4(II)(a).

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CASH IN SCHOOL BUILDINGS

Monies collected by school employees and by student treasurers shall be handled with prudent business procedures. All monies collected shall be receipted, accounted for, and deposited periodically, but not less than weekly.

In no case shall monies be left overnight in schools, except in safes provided for safekeeping of valuables, and even then not to exceed more than $150. All vending machines shall be emptied of cash periodically, but not less than weekly. All schools shall provide for making bank deposits after regular banking hours in order to avoid leaving money in school overnight.

See Section Students

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Adoption BOSC: 04/10/00

SCHOOL PROPERTIES DISPOSITION

No equipment or supplies shall be disposed of until permission has been received from the School Board. The Board shall determine whether the material involved has salable value, and if such shall be the case, it shall authorize the sale of the material. If the material does not have salable value, the proper disposal of the books, equipment, and/or supplies shall be determined by the Board.

SCHOOL PROPERTIES DISPOSAL PROCEDURE

The Board authorizes disposition of obsolete items according to the following priority actions:

1. By selling to the highest bidder or whatever other business arrangement is in the best interest of the School District.
2. When practicable, the Board shall donate such items to charitable organizations and schools.
3. By public auction.
4. By removal to the city transfer station.

Fixed asset inventories will be amended to reflect changes in values through disposal.

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Adoption BOSC: 04/10/00