The Board recognizes that money and money management comprise the foundational support of the whole school program. To make that support as effective as possible, the Board intends:
1. To require advance planning through the best possible budget procedures.
2. To explore all practical and legal sources of dollar income.
3. To guide the expenditure of funds so as to achieve the greatest educational returns.
4. To require maximum efficiency in accounting and reporting procedures.
5. To provide adequate resources to enable all students to meet or exceed state and district standards.
As trustee of community, state and federal funds allocated for use in local education, the Board has the responsibility to protect the funds and use them wisely.
Adopted: February 1999
Revised: September 17, 2003
With respect to the actual, ongoing financial condition and activities of the agency, the executive director shall not cause or allow fiscal jeopardy or a material deviation from the annual budget or any budget policies adopted by the Board, or any fiscal condition that is inconsistent with achieving the agency’s objectives.
Expending agency funds
The executive director shall take reasonable steps to ensure that only funds that have been received in the fiscal year to date are expended, unless authorized by Board resolution.
Reporting to Board and community
Audits
All agency funds and accounts shall be audited by an auditor outside the agency annually in accordance with state law and Board policy DIE. All agency funds and accounts shall be audited internally on a quarterly basis. Timely and appropriate corrective actions shall be taken in accordance with any internal or external audit findings.
The Board shall receive all audit reports and be informed of all corrective actions taken.
Financial reports
Monthly reports
The executive director or designee shall prepare and submit to the Board a monthly cash receipts and disbursements report.
The executive director or designee shall prepare and submit to the Board a monthly fiscal actions report of all agency funds. The monthly report shall include: the actual amounts spent and received as of the date of the report from each of the funds budgeted by the agency for the fiscal year, expressed as dollar amounts
The format and basis for reporting shall be consistent with the adopted budget and the past year’s generally accepted accounting procedures results.
The Board shall receive all financial reports in a timely manner and be informed of all corrective actions taken.
The Board may request other financial reports as needed.
Oral notification
The executive director shall assure that immediate verbal notification be given to the Board regarding any potential financial problem or any matter that may affect the agency’s financial condition or ability to achieve its mission.
Available to public
All financial and audit reports shall be made available to the public.
Legally-required reports
Reports and filings required by state and federal law and agencies shall be accurately and timely filed.
Record keeping
Complete and accurate financial records shall be kept for all agency funds and accounts.
Operating losses or deficits
The executive director, as well as all fund directors, program directors, department heads and school principals, shall take all reasonable steps to identify funds, programs, departments or schools that may end the fiscal year with an operating loss or deficit. A corrective action plan shall be developed and implemented within 30 days of such identification.
The executive director, as well as all fund directors, program directors, department heads and school principals, shall develop and implement processes whereby variations or deviations in cash flow, revenues or other important financial indicators can be identified and dealt with in a timely manner.
Employee reporting
The executive director shall develop and implement procedures to encourage all agency employees to report suspected financial problems or wrongdoing. No adverse employment decisions shall be taken in response to a good faith report by an employee.
Contingency planning
The executive director or designee shall continually be aware of the financial and political landscape both internally and externally and shall develop contingency plans against possible events.
Adopted: September 17, 2003
LEGAL REFS.: C.R.S. 22-44-105 (1.5)(b) (itemized reconciliation)
C.R.S. 22-45-102 (1)(b) (quarterly financial reports)
CROSS REF.: KD, Public Information and Communications
The annual budget is the financial plan for the operation of the school system. It provides the framework for both expenditures and revenues for the year and future years and translates into financial terms the educational programs and objectives of the agency.
Budget process
Public school budgeting is regulated and controlled by statutes and by requirements of the State Board of Education that prescribe the form of agency budgets in order to ensure uniformity throughout the state.
The budget shall be presented in a summary format that is understandable by any layperson reviewing the agency’s budget. The budget format shall itemize expenditures of the agency by fund and by student. It shall describe the expenditure and show the amount budgeted for the current fiscal year and the amount budgeted for the ensuing fiscal year.
The Board assigns to the executive director overall responsibility for annual budget preparation, budget presentation and budget administration. As part of the executive director’s budget responsibility, the executive director shall cause to be prepared a budget preparation calendar that shall ensure that all deadlines established by law for budget presentation. The executive director shall have authority to delegate portions of his or her budget responsibility to the business manager of the agency.
The budget prepared and presented by the executive director shall be consistent with the budget priorities of the Board as established in policy DBD.
Year-end fund balance
Maintaining a fiscal year-end fund balance is a beneficial and sound financial management practice. The Board of Directors assigns to the executive director or designee the responsibility of accumulating and maintaining a general fund balance.
Adopted: February 1999
Revised: September 17, 2003
LEGAL REFS.: C.R.S. 22-7-205 and 207 (school level accountability committee recommendations)
C.R.S. 22-32-109 (1)(b)
C.R.S. 22-44-101 through 117 (school district budget law, Board shall cause a proposed budget to be prepared and shall adopt a budget for each fiscal year)
C.R.S. 29-1-103 (3) (budget to reflect lease-purchase payment obligations)
CROSS REF.: DB subcodes, (all relate to the budget)
Each year, the executive director shall cause to be prepared a budget preparation calendar which shall ensure that all deadlines established by law for budget presentation, hearings and adoption are met.
Adopted: February 1999
CROSS REF.: DBGA
The Superintendent's Advisory Council shall make recommendations relative to priorities for expenditures of agency funds. A copy of these recommendations shall be sent to the board. The executive director shall consider these recommendations when formulating budget request to be presented to the board of directors.
The board shall consider these priorities when it adopts the annual budget.
Adopted: February 1999
LEGAL REF.: C.R.S. 22-7-105
C.R.S. 22-7-207
Unencumbered moneys shall not be transferred from one fund to another unless authorized in advance by the Board. When a contingency occurs, the Board of Education by resolution may transfer any unencumbered moneys from the contingency reserve account, which is within the general fund, to any other fund or function.
Program budget accounts
Program managers and their designees are responsible for funds budgeted to that program and may transfer discretionary moneys according to procedures established by the program manager. Transfers between programs must have the approval of each program manager’s immediate supervisor. The superintendent and/or business manager shall be notified of such transfers.
Adopted: September 17, 2003
LEGAL REFS.: C.R.S. 22-32-107
C.R.S. 22-44-102 (3)
C.R.S. 22-44-112
C.R.S. 22-44-113
C.R.S. 22-45-103 (1)(a)(II)
C.R.S. 22-54-105
C.R.S. 24-10-115
The Board of Education recognizes the importance of prudent and profitable investment of district monies and its responsibility in overseeing this part of the district’s financial program.
This policy shall apply to the investment of all financial assets and all funds of the district over which the Board exercises financial control. In order to effectively make use of the district's cash resources, all moneys shall be pooled into one investment account and accounted for separately. The investment income derived from this account shall be distributed to the various district funds as directed by the Board of Education in accordance with state law.
All district funds allocated to a specific use but temporarily not needed shall be invested by the treasurer, assistant treasurer or other administrator appointed by the Board in accordance with state law and in a manner designed to accomplish the following objectives:
ensure the safety of funds
ensure that adequate funds are available at all times to meet the financial obligations of the district when due
ensure a market rate of return on the funds available for investment throughout the budget cycle
ensure that all funds are deposited and invested in accordance with state law
The intent of the district is to support financial institutions located within district boundaries. Investments in institutions located outside of the district will be made when competitive rates or lack of collateral available from local financial institutions make this decision in the best interest of the district or when investment timing requires investment alternatives and short-term yields not conveniently available in the district. If the district is contemplating any investment or deposit outside of the state, the Board shall be notified. The Board shall seek legal advice prior to any such investment or deposit.
The Board shall be kept informed of investments and yields through regular monthly reports. These reports shall be formatted in a manner that allows the Board to evaluate the success of its investment practices in light of its stated objectives.
Adopted: February, 1999
Revised: September 17, 2003, September 30, 2004 (Legal Refs. only)
LEGAL REFS.: C.R.S. 11-10.5-101 et seq.
C.R.S. 11-47-101 et seq.
C.R.S. 22-45-103 (bond redemption fund trustee or escrow requirement)
C.R.S. 24-75-601 et seq.
C.R.S. 24-75-701 et seq.
CROSS REFS.: DA, Fiscal Management Goals/Priority Objectives
DG, Banking Services
(And deposit of funds)
All revenue received by the agency shall be deposited in an official bank or banks or savings and loan institutions as designated by the board. Such financial institution must qualify as an eligible public depository in accordance with state law.
When moneys are withdrawn from the custody of the school districts, such withdrawn moneys and all other moneys belonging to the agency including moneys derived from grant sources and school activities shall be deposited by the treasurer of the board or official custodian to the credit of the agency in a depository designated by the board. The
The treasurer or official custodian shall comply with all requirements of state law regarding the deposit of agency funds.
Safety deposit box
The Board may maintain the safety deposit box at a designated depository and shall name executive director and a board member as official custodians of the safety deposit box.
Adopted: February 1999
LEGAL REFS.: C.R.S. 11-10-101 et seq
C.R.S. 11-47-101 et seq
C.R.S. 22-32-104 (4) (c)
C.R.S. 22-32-107 (3), (4), (6)
C.R.S. 22-32-109 (1) (g)
C.R.S. 22-32-110 (1) (x)
C.R.S. 22-40-104
C.R.S. 22-40-105
C.R.S. 22-45-104
All agency employees who are responsible for moneys controlled by the board or who may have more than $50 from such funds in their custody shall be bonded under a group fidelity bond in individual amounts of $50,000.
The secretary and treasurer of the board in any custodians of money authorized and appointed by the board shall, as required by car or statute, be individually bonded. This bond shall be in the amount not less than $5,000.
The cost of bonding shall be borne by the agency.
Adopted: February 1999
LEGAL REFS.: C.R.S. 22-32-104 (4) (g), (c)
C.R.S. 22-32-109 (1) (h)
C.R.S. 22-32-121 (3)
The executive director shall be responsible for receiving and properly accounting for all funds of the agency.
All funds received and/or disbursed by any division of the agency including any and all agency transactions shall be accounted for carefully and accurately; shall conform with generally accepted principles of governmental accounting providing for appropriate separation of accounts, funds and special monies, and shall be done in a manner that is easily reviewed and lends itself to auditing.
Adopted: February 1999
LEGAL REF.: C.R.S. 22-45-102
The agency shall maintain a system for an annual inventory of all real and personal property costing $500 or more or having a life expectancy of five years or more, with the exception of equipment permanently fixed in a building such as heaters or lockers.
The equipment inventory shall serve both the function of control and conservation.
Responsibility for the system shall lie with the Executive Director.
Adopted: February 1999
LEGAL REF.: C.R.S. 29-1-506 (1)
In accordance with state law, all funds and accounts of the agency shall be audited annually, following the close of the fiscal year.
The Board shall issue a request for proposal (RFP) or use some other similar process for selection of an independent auditor licensed to practice in Colorado and knowledgeable in government accounting to conduct the audit. The independent auditor also shall audit the activities accounts of the agency for report to the Board of directors.
The audit report shall contain among other information:
1. Financial statements prepared insofar as possible in conformity with generally accepted governmental accounting principles. (The financial statements are the representation of the agency whether prepared by the agency or by the auditor.)
2. Disclosures in accordance with the Financial Policies and Procedures Handbook. The supplemental schedules of receipts and expenditures for each fund shall be in the format prescribed by the State Board of Education and shall be in agreement with the audited financial statements of the agency.
3. All funds and activities of the school agency.
4. A budget to actual comparison for each fund and activity.
5. The auditor's opinion on the financial statements. If the opinion is anything other than unqualified, the reason must be explained. The opinion shall include general fixed assets.
6. Disclosure of all instances of noncompliance with state law, including the Public School Finance Act of 1994, irrespective of materiality.
7. A supplemental listing of all investments held by the agency at the date of the financial statement.
8. A calculation of the agency’s fiscal year spending in accordance with the state constitution.
The auditor shall meet with the Board to discuss the audit report, make recommendations to the Board concerning its accounting records, procedures and related activities as may appear necessary or desirable and shall perform such other related services as may be requested by the Board.
The audit report shall be completed and submitted by the auditor to the school agency within five months after the close of the fiscal year unless a request for an extension of time is granted by the state auditor. Within 30 days after the Board receives the audit, it shall be submitted to the state auditor and the state commissioner of education.
The Board reserves the right to request an audit at more frequent intervals if desired.
Adopted: February 1999
Revised: September 17, 2003
LEGAL REFS.: C.R.S. 22-32-109 (1)(k)
C.R.S. 24-75-601.3
C.R.S. 29-1-601 et seq.
The Board’s authority for the purchase of materials, equipment, supplies and services is extended to the executive director through the detailed listing of such items compiled as part of the budget making process and approved by the Board through its adoption of the annual operating budget.
Except in emergencies or for reasons of economy, the annual purchase of major pieces of equipment such as school buses shall be scheduled so that annual budgetary appropriations for capital purposes will be of similar size or will show a continuous trend without severe fluctuations.
The executive director shall direct the purchase of such books, supplies, equipment and other materials as is required and permitted within the limits of the budget. The purchase of these items shall require no further Board approval except in those instances where Board policy requires certain purchases to be put to bid. All purchases of supplies and equipment in excess of $5,000 are subject to the board of director’s approval however, this requirement may be waived if the executive director approves an emergency expenditure. This emergency expenditure will be reported to the board at the next regular meeting.
In order to receive the greatest value for each dollar expended, it shall be the policy of the agency to purchase in quantity whenever possible and practical.
Adopted: February 15, 1999
Revised: January 17, 2001
LEGAL REF.: C.R.S. 22-32-109(1)(b)
All contractual services and purchases of supplies, materials and equipment in the amount of $10,000 or more shall be put to bid. This shall not apply, however, to professional services or instructional materials. Other purchases may be made in the open market but shall, when possible, be based on competitive quotations or prices.
All contracts and all open market orders shall be awarded to the lowest responsible qualified supplier, taking into consideration the quality of materials (services) desired and their contribution to program goals.
With regard to materials or services for which bids are required, the executive director or designee shall develop a procedure to pre-qualify bidders. Suppliers shall be invited to have their names placed on mailing lists to information about pre-qualifying. When specifications are prepared, they shall be mailed to all merchants and firms who have pre-qualified. Only pre-qualified bidders may submit bids.
All bids shall be submitted in sealed envelopes, addressed to the Board, and plainly marked with the bid number and the time of the bid opening. Bids shall be opened in public by appropriate agency officials or employees at the time specified, and all bidders shall be invited to be present.
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 bidder to whom an award is made shall be required to submit to the agency proof of liability insurance and when appropriate, proof of workers’ compensation insurance, and may be required to enter into a written contract with the district.
Adopted: February 1999
Revised: September 17, 2003
LEGAL REFS.: C.R.S. 22-32-109 (1)(b)(board required to adopt bidding procedures)
C.R.S. 24-18-201 (public official’s interest in contract)
CROSS REFS.: BCB, School Board Member Conflict of Interest
No favoritism shall be extended to any vendor. All employees in the agency must exercise sound judgment and avoiding conflicts of interest or the appearance of impropriety in dealing with vendors. Gifts or gratuities of other than nominal value which might obligate an agency employee in any manner shall be politely, firmly refused
Any vendor or bidder who offers items in excess or in violation of the spirit of this policy may be disqualified indefinitely.
No person officially connected with or employed by the agency shall be an agent or be in any way pecuniary or beneficially interested in or receive any compensation or reward of any kind from any vendor for the sale of supplies, material, equipment or services to the agency without the express prior written consent of the board of directors.
Adopted: February 1999
LEGAL REF.: C.R.S. 24-18-104
CROSS REFS.: BC
GBEB
GBEBC
All bills and expenditures for any budgeted single item which do not exceed $8,000, except salaries, shall be authorized for payment by the executive director or a designee of the Board of Education.
All bills and expenditures for any budgeted single item which exceeds $8,000, except salaries, and all bills and expenditures for any single item for any amount of money which has not been budgeted shall be paid only after authorization and approval by the Board.
All budgeted salaries and wages of employees of the agency shall be paid in a timely manner by direction of the executive director and without further action by the Board. The payment of all non-budgeted salaries and wages shall require prior approval of the Board.
The above provisions shall not apply to capital reserve fund expenditures.
The executive director shall be authorized to issue written regulations covering the payment of bills. Such regulations shall be reviewed periodically by the Board.
Adopted: February 1999
Revised: September 17, 2003
All employees of the San Luis Valley Board of Cooperative Educational Services shall be paid on the last calendar day of each month. In the event the last calendar day falls on a Saturday or a Sunday, employees shall be paid on the Friday preceding the last calendar day.
Adopted: April 4, 1997
LEGAL REF.: C.R.S. 22-63-401 (1)
Deductions shall be made from the paychecks of all employees for retirement and federal and state income tax in keeping with federal and state requirements and Medicare tax if applicable.
Salary deductions shall be made for absences not covered by leave policies adopted by the Board of Directors. Such deductions shall be calculated on the basis of the employee's work year.
Except for deductions required by court order (i.e. wage garnishments, court-ordered child support, etc.), other deductions shall require Board approval and permission of the employee.
Adopted: February 1999
Revised: September 17, 2003
The same general policy shall apply to all personnel and agency officials in regard to reimbursement of expenses. This policy shall be as follows:
Personnel and officials who incur expenses in carrying out their authorized duties shall be reimbursed by the agency upon submission of a properly filled out and approved voucher and such supporting receipts as required by the administrator responsible for business affairs.
Such expenses shall be approved and incurred in line with budgetary allocations for the specific type of expenses.
Travel and personally owned vehicles will be authorized and reimbursed for agency business from the employee's office base.
When official travel by personally owned vehicle has been authorized, mileage payment shall be made at a rate currently approved by the board. This rate is $.30 per mile.
Adopted: February 15, 1995
Revised: August 18, 1999, September 21, 2005
LEGAL REF.: C.R.S. 24-18-104 (3)(d), (e)
Note: All out of valley travel must be approved by the Executive Director and/or the employee’s Program Director prior to traveling.
Expenses incurred while conducting BOCES business (i.e. attending conferences and training sessions out of the valley) will be reimbursed as follows:
1. Per Diem: will be paid for meals only. Current maximum rates are as follows:
Base Cost Cities High Cost Cities
Breakfast $7.00 $10.00
Lunch $7.00 $10.00
Dinner $17.00 $23.00
* To claim breakfast, the employee must depart from home or the BOCES Office prior to 6:00 AM.
* To claim dinner the meeting must last past 5:00 PM and/or cause arrival back to the valley after 7:00 PM
BOCES will not reimburse or pay for alcoholic beverages.
BOCES will not pay meal cost for meals that included in the conference registration.
Reimbursement will be made for the meal cost not to exceed those listed above upon presentation of receipts when employee does not take the per diem.
2. Lodging: The BOCES shall pay the cost of one standard room per occasion. When multiple employees attend the same function, room sharing is the expectation, where appropriate. Event location and agenda must show a clear need to be at the site the night before the event, prior approval is required for that nights stay.
3. Registration Costs: Actual conference registration costs shall be paid directly by the BOCES, in advance, whenever possible. Actual conference registration cost paid by the employee shall be reimbursed to the employee, upon presentation of receipt, providing the trip was approved by the Program Director and/or the Executive Director in advance.
4. Automobile Mileage Allowance: A mileage allowance will be paid for the use of privately owned automobiles on BOCES business. The mileage rate is currently $.30 per mile. Mileage claimed must be in accordance with the published BOCES mileage chart. Only one mileage will be paid for each 4 employees traveling.
5. Receipts: Receipts are required for all lodging, transportation costs, and for all other items for which reimbursement is requested.
6. Parking and related incidental expenses will be reimbursed only when documented and appropriate receipts are provided.
7. Travel time reimbursement: Reimbursement for travel time will only be allowed for classified employees where the travel will cause the employee to exceed 40 hours per week and must be pre-approved by the Program Director and/or the Executive Director.
Implemented: August, 2006