Budgeting And Fiscal Accounting Procedures - DI POLICY: DI FIRST READING: 11/5/02 SECOND READING: 11/19/02 MANCHESTER ESSEX REGIONAL SCHOOL DISTRICT POLICY ON BUDGETING AND FISCAL ACCOUNTING PROCEDURES
The Manchester Essex Regional School Committee shall adopt a budget yearly that provides adequate funding for the educational initiatives of the District and provides for proper maintenance of school facilities. The purpose of this policy is to outline the budgeting process and to establish a financial management structure that will administer and record all financial transactions.
Administrative Structure
To administer and manage the finances of the District, the School Committee shall appoint a District Treasurer and District Accountant. These personnel will report to the Superintendent and will carry out duties as outlined in their individual job descriptions. For the purposes of the reporting and auditing functions imposed on these positions by statute, the Treasurer and Accountant shall carry out these functions independent of the Superintendent and shall report directly to the School Committee.
Financial Records
It is the policy of the Committee that full and complete financial records will be maintained that will fully and fairly disclose the financial position and results of the financial operations of the District. The accounting system shall employ generally accepted accounting principles, which ensure accurate, reliable, relevant data and which facilitate ease of auditing. The records must be adequate to guide the making or deferring of purchases, the expanding or curtailment of programs and the controlling of expenses. They must also be adequate to serve as a guide to budget estimates of subsequent years. A separate line item shall be maintained for each appropriation that includes the initial appropriation, appropriation transfers or amended appropriation, expenditures, encumbrances and unexpected or unencumbered balance. The Accountant shall
maintain up to date records so that the Committee can receive accurate monthly reports on the financial transactions of the District.
The Treasurer shall submit quarterly reports to the Committee detailing the status and balances of all discreet funds and bank accounts. As the close of the fiscal year, the Treasurer and Accountant shall close the books for the preceding fiscal year and reconcile ledgers and fund accounts. A copy of these reconciliations shall be submitted to the Committee no later than October 1 of each year.
The Committee shall employ an independent certified public accounting firm to audit the District records and the Committee at a public, posted meeting shall receive the audit report. The audit report will be forwarded to the Director of Accounts at the Department of Revenue and the Boards of Selectmen of the member communities within ten days of the meeting.
Treasurer
The Treasurer shall be appointed by the School Committee and shall be bonded in accordance with MGL 41 Sec. 35 S/he shall take charge of all money belonging to the District and shall pay any bill approved the Committee. S/he shall carry out the responsibilities as outlined in the attached job description approved by the Committee.
District Accountant
The Accountant shall be appointed by the School Committee and shall maintain the financial records of the District including tracking the yearly budget and maintaining general and other ledgers. S/he shall review each bill for appropriateness and sufficient funding. S/he shall prepare all warrants for School Committee approval and submit monthly budget reconciliations of both the official and detailed budgets to the Committee. S/he shall carry out the responsibilities as outlined in the attached job description approved by the Committee and any other tasks that the Superintendent may assign.
Budget Process
Each year, the School Committee shall adopt a building based budget which addresses the needs and initiatives of each building as identified by the School Council, Building Principal and District Administration. The budget shall adequately fund the School Improvement plans as approved by the Committee as well as the District Improvement plans. The Administration shall maintain two budgets each year. For ease of financial management and compliance with all applicable statutes, the School Committee shall adopt a “compressed budge” which combines multiple expense line items into larger, unified line items. This will allow flexibility to the administration in addressing individual needs as they arise, and minimize the necessity of line item transfers during the year. The Committee shall consider each line item in this budget an
individual appropriation. Large expenditures for yearly initiatives may be earmarked and included in this budget by the Committee. The Committee shall hold a public hearing on this proposed budget no later than February 28th of each year. The Administration shall also track and administer a “detailed budget” which assigns and tracks individual expense line items for each program and department. These line items will illustrate the detail of expenditures for management by the administration and to inform the Committee on the individual needs of each program. Each line item in this budget will fall into the larger line items in the officially adopted School Budget and the total of each budget shall be the same. The Administration shall have the authority to transfer funds from line item to line item in the “detailed budget” as long as such transfer would not require a transfer from line item in the officially adopted budget. Line item transfers within the
officially adopted budget require School Committee approval. Requests for transfers should be made in writing on the form approved by the Committee and voted on by the Committee at posted meetings.
Warrant Sub-Committee
In order to facilitate the timely payment of bills and payrolls, the Committee shall appoint a sub-committee of no less than three members to sign the warrants. The sub-committee need not post meetings to simply sign the warrants. No discussion of the merits of any warrant or line item can occur however, unless a meeting is posted and attended by a quorum of the Committee. If a problem with a warrant or line item is identified, the warrant must not be approved, a meeting must be posted and the issue resolved at a posted public meeting. In order to avoid delays in payments, the regular warrants should contain those expenditures that are considered “pro-forma” or in keeping with existing union contracts or regular procurement of supplies. Any bills, which might deserve review by the Committee, should be submitted to the full
Committee for approval prior to placing them on the warrant. All warrants signed by the Sub-Committee shall be available at the next posted Committee meeting of review by all Committee members. |
