Acton School Department believes that the quantity and quality of learning programs are directly dependent on the funding provided and the effective, efficient management of those funds. Therefore, achievement of the Department’s purposes can best be made through excellent fiscal management. To achieve this, a system of policies, accounting practices, and procedures is necessary for the School to account for the receipt and disbursement of funds in an accurate, efficient and transparent manner as well as providing for the safeguarding of the School’s assets.

Inherent in the governing process of Acton School Department is that employees who are entrusted with public funds are expected to safeguard those funds and assets and to expend funds in a manner that is efficient, economical, and effective to achieve the purpose for which they were provided to the School. Employees who handle such funds must provide a full accounting of their activities to both the public and to other levels of government.

On June 30, 1999, the Governmental Accounting Standards Board (GASB) approved GASB Statement No. 34, Basic Financial Statements – and management’s Discussion and Analysis – for State and Local Governments. This financial reporting model represents the biggest single change in the history of governmental and financial reporting. This statement changed the way Schools record, report, and present financial information.

Statement 34 addresses two separate components of financial accountability:

1. Fiscal accountability requires that school districts demonstrate compliance with public decisions concerning the raising and spending of public funds in the short term, which is usually a single budgetary cycle, or one year.

2. Operational accountability requires that a School demonstrate the extent to which it has met and can continue to meet its operating objectives in an efficient and effective manner.

The School is responsible for compliance with both Federal and State Regulations that govern aspects of operations, recordkeeping, and financial reporting. The Maine State Department of Education provides a Financial Accounting Handbook for Schools which is available on the Department’s website. In addition, Schools are required to comply with the requirements set forth in EDGAR, OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments, as well as OMB Circular A-133 (Single Audit/Compliance Supplement).

It is the position of Acton School Committee that this School will be in compliance at all times with the requirements outlined in the above authoritative publications and if any procedures listed in this manual are in conflict with the procedures required by the above publications then the procedures required by the above publications will be followed.

This manual has been prepared by Central Office. The policies and procedures in this manual have been developed in accordance with School Committee Policy and other State and Federal regulations. All Acton School Department personnel should adhere to these procedures.

This manual shall remain permanently in the school and should be easily accessible to personnel. Changes and/or additions may be distributed periodically and should immediately replace amended sections or be added to appropriate sections as instructed.

POLICY: DA - FISCAL MANAGEMENT GOALS/PRIORITY OBJECTIVES

The School Committee recognizes that money and money management comprise the foundational support of the whole school program. To make that support as effective as possible the Committee intends:

A. To encourage advance planning through the best possible budget procedures;

B. To explore all practical and legal sources of revenues;

C. To guide the expenditure of funds so as to achieve the greatest educational

returns;

D. To require maximum efficiency in accounting and reporting procedures;

E. To maintain a level of per pupil expenditure needed to provide high quality

education; and

F. To maintain a clear and transparent school budget process.

As trustee of local, state and federal funds allocated for use in education, the School

Committee has the responsibility to protect the funds and to use them wisely.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 111 Municipal Schools, Subchapter 1 School Committee, §2307 School Budgets

Title 20-A: Education Part 7: School Finance, Chapter 601 General Provisions, §15006 School Money, Finance Committees

Adopted: February 12, 2002

Reviewed: December 19, 2017, March 10, 2022

INTERNAL CONTROL SYSTEM

The School’s internal control system comprises the policies and procedures established to provide reasonable assurance that specific School objectives will be achieved. Accounting responsibilities, procedures, and policies should be implemented and designed to prevent:

Misstatement of account balances because errors go undetected (both intentional and unintentional); and
Misappropriation of cash and other resources of the School.

These objectives are pursued through a sound internal control structure which is carefully established and meticulously followed by accounting personnel. Such an internal control structure can also tend to promote operational efficiency.

From a financial statement perspective, the School’s internal control structure is comprised of the control environment, the accounting system, control procedures, and internal control systems. These elements of the internal control structure are as follows:

Control Environment

The control environment encompasses the collective effort of various factors on establishing, enhancing, or mitigating the effectiveness of specific policies or procedures. The control environment includes such factors as management’s philosophy and operating style.

The School’s organizational structure.
The functioning of the School Committee.
Methods of assigning authority and responsibility.
Management’s control methods for monitoring and following up on performance.
Personnel policies and procedures.
Various external influences that effect the School’s operations and practices.

The control environment reflects the overall attitude, awareness, and action of the School Committee, Administration, and others concerning the importance of control and its emphasis in the School.

Accounting System

The accounting system encompasses the methods and records established to identify, assemble, analyze, classify, record, and report the School’s transactions and to maintain accountability for related assets and liabilities. An effective accounting system gives appropriate consideration to establishing methods and records that will:

Identify and record all valid transactions.
Describe on a timely basis the transactions in sufficient detail to permit proper classification of transactions for financial reporting.
Measure the value of transactions in a manner that permits recording their proper monetary value in the financial statements.
Determine the time period in which transactions occurred to permit recording of transactions in the proper accounting period.
Present properly the transactions and related disclosures in the financial statements.

Control Procedures

Control procedures encompass those policies and procedures, in addition to the control environment and the accounting system that administration has established to provide reasonable assurance that specific School objectives will be achieved. Control procedures pertain to:

Proper authorization of transactions and activities.
Segregation of duties to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal error or irregularities in the normal course of his or her duties. A sound segregation of duties entails assigning different people the responsibilities of authorizing transactions, recording and reconciling transactions, and maintaining custody of assets.
Design and use adequate documents and records to help ensure proper recording of transactions and events, such as monitoring the use of pre-numbered documents.

Internal Control Systems

Provide adequate safeguards over access to and use of assets and records, such as secured facilities and authorization for access to computer programs and data files.

Independent checks on performance and proper valuation of recorded amounts, such as clerical checks, reconciliations, comparisons of assets with recorded accountability, computer-programmed controls, administrative review of reports that summarize the detail of account balances, and user review of computer-generated reports.

POLICY: DIA - ACCOUNTING SYSTEM

The accounting system shall include an encumbering system and shall provide all information needed to construct a balance sheet and to make a revenue and expenditure statement in accordance with the accounting manual authorized by the Maine Education Data Management System’s Financial System.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 111 Municipal Schools, Subchapter 1 School Committee, §2307 School Budgets

Title 20-A: Education Part 7: School Finance, Chapter 601 General Provisions, §15006 School Money, Finance Committees

Title 20-A: Education Part 7: School Finance, Chapter 606 Essential Programs and Services, §15690 Local Appropriations

Adopted: PRIOR TO 1988

Revised: December 19, 2017 December 8, 2022

https://www.maine.gov/doe/sites/maine.gov.doe/files/2022-09/2022%20Maine%20School%20Financial%20Accounting%20Handbook_15Sept2022.pdf

GOVERNMENTAL ACCOUNTING FUND ACCOUNTING SYSTEM

The need to account for separate operations differently and the fact that many School revenue sources carry legal restrictions regarding how they can be spent, have together resulted in the development of fund accounting for Schools. Fund accounting emphasizes separate detailed accounting and reporting for each of the several subparts of a School, called funds, rather than accounting and reporting for the School as a whole. Significant importance is placed upon the need for the accounting system to assure that spending restrictions are met.

The Governmental Accounting Standards Board has defined the term “fund” as follows;

A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Funds are generally classified into three categories. The first category of funds is governmental funds. Governmental funds are often called “source and disposition,” “expendable,” or “government-type” funds. These are the funds through which most School functions are typically financed. The acquisition, use, and balances of the School’s expendable financial resources and the related current liabilities (except those accounted for in the proprietary funds) are accounted for through this fund category (general, special revenue, capital projects, and debt service funds).

The governmental funds are in essence, accounting segregations of financial resources. Expendable assets are assigned to the various governmental funds according to the purpose for which they may or must be used; current liabilities are assigned to the fund from which they are to be paid; and the difference between governmental fund assets and liabilities, the fund equity, is referred to as “fund balance.”

GASB Statement No. 34 creates, in addition to the five “traditional” governmental funds, a sixth governmental fund type, to be known as a “Permanent Fund.” The role of the permanent fund is “to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support reporting government’s programs-that is, for the benefit of the governmental unit.”

The second major fund category is proprietary funds. These funds are sometimes referred to as income determination”, “nonexpendable”, or “commercial–type” funds. They are used to account for the School’s ongoing organizations and activities (such as food service because food service generates income) that are similar to those often found in the private sector (enterprise and internal service funds). Because the lunch fund is not self-supporting, it is treated as a Special Revenue (Governmental Fund). The School does not have any proprietary funds.

The third major category of funds is the fiduciary funds. These are funds used to account for assets held by the School in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds and include Agency Funds.

Generally accepted accounting principles has established a fourth category, the self-balancing accounts, to demonstrate accountability for and control of the School’s general capital assets and general long-term liabilities. The School’s general capital assets are comprised of all capital assets except those accounted for in proprietary or trust funds. They are not financial resources available for expenditure. The immature principal of the School’s general long-term liabilities (long-term liabilities not accounted for in proprietary funds or trust funds) do not require an appropriation or expenditure (use of financial resources) during the current accounting period. Consequently, neither is accounted for in the governmental funds, but in the self-balancing accounts. These accounts are not funds since they do not reflect available financial resources and related liabilities. They are purely accounting records of the capital assets and general long-term liabilities, respectively, and certain associated information.

Types of Funds

The School’s accounting records should be maintained in a manner which permits the preparation of separate reports on the different types of funds. Schools should maintain the minimum number of funds consistent with legal and operating requirements, since too many funds can result in inflexibility, undue complexity, and inefficient financial management. The following major fund types and two self-balancing accounts should be used by the School, when applicable.

Governmental Funds:

The General Fund – This fund is the general operating fund of the School and accounts for all revenues and expenditures of the School except those required to be accounted for in another fund.
Special Revenue Fund – Accounts for financial resources provided by federal, state and local projects and grants.
Debt Service Fund - Accounts for the accumulation of resources for, and payment of, all long-term debt principal, interest and related costs.
Capital Project Fund – Accounts for financial resources to be used for site acquisitions, construction, equipment, and renovation of all major capital facilities except for those financed in the Enterprise Fund.

Proprietary Funds:

Enterprise Fund – Accounts for operations that are financed and operated in a manner similar to private business enterprises or where the School has decided that periodic determination of revenues earned, expenses incurred, and/or net income is necessary for management accountability.

Fiduciary Funds:

The GASB Statement No. 34 makes significant changes in the fiduciary funds – trust and agency funds. GASB considered that the inclusion of the fiduciary funds resources that are not available to support a government’s programs within a set of government-wide financial statements might be misunderstood by the financial statement users. Accordingly, fiduciary funds (and fiduciary-type component units) will be excluded from the government-wide financial statements required by GASB 34. GASB 34 will allow fiduciary funds to be used only to report assets that cannot be used to support the School’s own programs. As a result of this change, many activities currently reported in fiduciary funds, particularly in expendable trust funds, now will be reported in some other fund type. In many cases, the new location of reporting such activities will be one of the governmental funds.

Fiduciary Fund Types are used to account for expendable assets held by the School in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds and include Agency Funds.

Agency Funds account for the receipt and disbursement of monies to and from student activity organizations. These funds have no equity (assets are equal to liabilities) and do not include revenues and expenditures for general operation of the School.

Under the current reporting model fiduciary funds not all present the same basic financial statements. Under the new government financial reporting model, all fiduciary funds will report the same two basic financial statements: Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets. This change is the natural result of the elimination of the expendable and nonexpendable trust fund categories.

Self-Balancing Accounts:

General Capital Assets – These assets are not specifically related to activities reported in the Proprietary Funds but generally result from expenditures in the governmental funds. They should not be reported as assets in governmental funds but should be reported in the governmental activities column in the government-wide financial statements.

General Long-Term Liabilities – This group accounts for the un-matured principal of bonds, warrants, notes, or other forms of noncurrent long-term general obligation indebtedness. General long-term debt is not limited to liabilities arising from debt issuances, but may also include noncurrent liabilities on lease-purchase agreements and other commitments that are not current liabilities properly recorded in governmental funds. General long-term liabilities should not be reported as liabilities in the governmental funds, but should be reported in the governmental activities column in the government-wide statement of net assets.

POLICY: DIA - Fund Balance Policy (Developed for GASB 54)

Purpose

The School Committee recognizes that the maintenance of a fund balance is essential to the preservation of the financial integrity of the School Department and is fiscally advantageous for both the School Department and the taxpayer. This policy establishes goals and provides guidance concerning the desired level of fund balance maintained by the School Department to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances.

Definitions

Fund balance is a measurement of available financial resources and is the difference between total assets and total liabilities in each fund.

Government Accounting Standards Board Statement 54 identifies fund balance classifications based on the level of constraints that control the purposes for which specified amounts can be spent. Beginning with the most restrictive constraints, fund balance amounts will be reported in the following categories:

Non-spendable fund balance – amounts that are not in a spendable form (e.g., inventory) or are legally or contractually required to be maintained intact (e.g., permanent fund principal).

This type of fund balance is the most restrictive. Examples of this type of fund are trusts, fiduciary funds, scholarships, etc. This fund is created by a third party entity that leaves a specific amount of money to be invested. The revenues generated from the investment are allocated for specific expenditures that are determined by that entity.

Restricted fund balance – amounts that can be spent only for the specific purposes stipulated by external parties either constitutionally or through enabling legislation (e.g., grants or donations).

This type of fund balance is restricted to the purpose of the funds. Examples of these types of funds are grants given by the State of Maine or the Department of Education. The school applies for the grant, expends the funds as applied and provides the required documentation. Any balance should be expended in the fiscal year it was granted. Unused funds can be carried forward into the next current year; however, balances may affect the amount granted in the following fiscal year.

Committed fund balance – amounts that can be used only for the specific purposes determined by a formal action of the School Committee. Commitments may be changed or lifted only by referring to the formal action that imposed the constraint originally (e.g., the committee’s reserve funds designated for specific purposes).

This type of fund balance is a balance that can only be used for a specific purpose authorized by the Town. Examples of this type of fund are the Fuel fund, the Capital Repairs fund and the other reserve accounts. The School Committee submits an article to the Town that will set up the committed fund based on a potential need of the School. These balances stay in place and are carried forward into future fiscal years unless acted upon by the School Committee; they do not return to the unassigned fund balance if unused.

Assigned fund balance – amounts intended to be used by the school for specific purposes. Intent can be expressed by the School Department or by a designee to whom the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. (e.g., Operating articles submitted during the budget process voted on by the Town.)

This type of fund balance is the funds used to cover day to day operations of the school. The School Committee submits articles to the Town to show the intent of the School Committee to meet the day to day operations for the upcoming fiscal year. Each article is voted on by the Town and expended by the School Committee by Warrant submitted to the Town for approval. Any year-end balances on these articles are returned to the unassigned fund balance.

Unassigned fund balance – includes all amounts not contained in other classifications and is the residual classification of the general fund only. Unassigned amounts are available for any legal purpose. (e.g., Assets and liabilities, etc.)

This type of fund balance includes the balance of all assets less all liabilities for the school. The balance includes assets such as cash, inventory, accounts receivable, and amounts due from the Town of Acton and amounts due from grants. The unassigned fund balance also includes all liabilities such as accounts payable, payroll taxes payable, accrued wages, benefits payable, etc. The balance amounts from the assigned fund balances are returned at the end of the fiscal year to the unassigned fund balance. Funds can only be expended or transferred from this fund balance by Town vote.

Policy

The responsibility for designating funds to specific classifications shall be as follows:

Committed Fund Balance – The School Committee is the school’s highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the School Committee.

Assigned Fund Balance – The School Committee has authorized the Superintendent/Principal and the Finance & Personnel Director as officials authorized to assign fund balance to a specific purpose as approved by this fund balance policy.

Unassigned Fund Balance Calculations

Based on guidelines provided by the School’s auditor, the target balance for unassigned fund balance consists of the following levels:

Minimum Level: Funds equal to thirty (30) days of funds based on the current year’s approved expense budget.

Maximum Level: Funds equal to ninety (90) days of funds based on the current year’s approved expense budget.

The calculation of each level shall take place annually, and be reported to the School Committee. The target is determined by dividing the total of the approved School budget by the number of school days in that calendar year, and multiplied by the number of days in each level.

Restoration Plan to Maintain Minimum Level

The following actions shall be taken based upon the amount of the unassigned fund balance relative to the established levels:

1. Balance Is Below the Minimum Level: When the unassigned fund balance is below the minimum level, steps shall be taken to recommend to the voters to increase fund balance level, bringing it closer, or to, the minimum level. Funds should not be used to offset budgetary impact on the mil rate or for other non-emergency uses.

2. Balance Is in Excess of the Maximum Level: Amounts in excess of the maximum level shall be recommended to be used to offset the budgetary impact on the mil rate, or for other valid purposes which benefit students and/or taxpayers. However, said actions should not result in a depletion of the unassigned fund balance below the target level.

Order of Expenditure of Funds

When multiple categories of fund balance are available for expenditure (e.g., a project is being funded partly by a grant, funds set aside by the School Committee, and Unassigned fund balance), the School will start with the most restricted category and spend those funds first before moving down to the next category with available funds.

Department of Education Allowable Balance

The School will maintain a level of unassigned fund balance that is in compliance with Department of Education statute 20-A MRSA, Section 15689-B, Chapter 606-B: subsection 6 which states:

Balance of allocations. Notwithstanding any other law, general operating fund balances at the end of a school administrative unit's fiscal year must be carried forward to meet the unit's needs in the next year or over a period not to exceed 3 years. Unallocated balances in excess of 5% of the previous fiscal year's school budget must be used to reduce the state and local share of the total allocation for the purpose of computing state subsidy. School boards may carry forward unallocated balances in excess of 5% of the previous year's school budget and disburse these funds in the next year or over a period not to exceed 3 years. For fiscal years 2021-22, 2022-23, 2023-24 and 2024-25 only, unallocated balances in excess of 9% of the previous fiscal year’s school budget and disburse these funds in the next year or over a period not to exceed 3 years.

Emergency Actions Permitted

Notwithstanding any provision of this Policy, the School Committee may vote at any time to use unassigned fund balance funds to respond to emergency funding needs with Town approval.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 111 Municipal Schools, Subchapter 1 School Committee, §2307 School Budgets

Title 20-A: Education Part 7: School Finance, Chapter 601 General Provisions, §15006 School Money, Finance Committees

Title 20-A: Education Part 7: School Finance, Chapter 606-B Essential Programs and Services, §15690 Local Appropriations

Adopted: November 12, 2014

Review: November 14, 2017, December 8, 2022

ACCOUNT CODING SYSTEM

Account Number Structure and Detail

The State Department of Education publishes a Financial Accounting Handbook and Funding Manual (see the Maine Department of Education website for links) which serves as the basis for the account code structure used by the School.

Account codes consist of 20 digits. The account is made of five different components – fund, program, function, object, and cost center. See below:

0000 0000 0000 0000 000

1 2 3 4 5

Fund Number Program Function Object Cost Center

Fund Number – The first four digits are assigned to funds utilized by the School. It tells the user what the source of the funds is. They are: 1000 General Fund, 1500-2000 Special Revenue (normally all federal and state programs include Adult Education), and 9000 Fiduciary Funds.

Program and Function – The program and function are used to identify activities for which services or material objects are acquired. The activities of a School are classified into eleven areas: regular instruction, special education, career and technical education, other instruction, student and staff support, school administration, system administration, transportation, maintenance, debt service, and other.

Object – The object defines the service or commodity obtained as the result of a specific expenditure. There are nine object classifications. They are: 1000’s Salaries, 2000’s Employee Benefits, 3000’s Purchased Professional & Technical Services, 4000’s Purchased Property Services, 5000’s Other Purchased Services, 6000’s Supplies/Materials, 7000’s Property, 8000’s Debt Service and Miscellaneous, 9000’s Other Items (transfers, gain/loss on investments, etc.).

Cost Center – The cost center identifies the location expending the money. The following is a list of the School’s location codes:

010 Elementary (PK-8)

900 Administration /Central Services

950 Special Education Elementary

990 Secondary School

Coding for Revenues

Examples of revenue codes:

1000-0000-0000-1110-000

1000 Represents the General Fund

1110 Denotes Revenue Code 1110 (the revenue code for local tax assessments)

Program, function, nor cost center are used for revenue codes.

For details of revenue codes, please see the Financial Accounting Handbook.

POLICY: DBL - EXPENDITURE CATEGORIES

All expenditures will be budgeted under the categories that most accurately describe the purpose for which the money will be spent. All expenditures will be controlled by the School Committee as per the NEO/Maine Education Financial System/Maine Education Data Management System’s Financial System.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 111 Municipal Schools, Subchapter 1 School Committee, §2307 School Budgets

Title 20-A: Education Part 7: School Finance, Chapter 601 General Provisions, §15006 School Money, Finance Committees

Title 20-A: Education Part 7: School Finance, Chapter 606-B Essential Programs and Services, §15690 Local Appropriations

Adopted: PRIOR TO 1988

Revised: NOVEMBER 12, 1991

Revised: December 19, 2017, March 10, 2022

https://www.maine.gov/doe/sites/maine.gov.doe/files/2022-09/2022%20Maine%20School%20Financial%20Accounting%20Handbook_15Sept2022.pdf

BUDGETING

Acton School Department believes that the quantity and quality of learning programs are directly dependent on the funding provided and the effective, efficient management of those funds. Therefore, achievement of the Department’s purposes can best be made through excellent fiscal management. To achieve this, a system of policies, accounting practices, and procedures is necessary for the School to account for the receipt and disbursement of funds in an accurate, efficient, and transparent manner as well as providing for the safeguarding of the School’s assets.

School administrators should be familiar with the legal provisions with regard to the budget process. Assistance or legal advice may be obtained from the Maine Department of Education or the School’s legal counsel.

Responsibilities – Administration’s Role

Administration’s role in the budgetary process involves three major areas:

Preparing budget proposals for consideration by the School Committee;
Explaining and clarifying current fiscal conditions, fiscal prospects, and budgetary proposals to the School Committee;
Implementing the budget enacted by the Town of Acton and monitoring performance to ensure that programmatic and fiscal objectives are met.

Administrators must be involved in the details of the budget development and implementation. They must also seek to summarize these details and present information in a way that complements the School Committee’s policymaking function.

POLICY: DI - FISCAL ACCOUNTING AND REPORTING

The Superintendent/Principal shall be ultimately responsible for properly accounting for all funds of the school unit.

The accounting used shall be in accordance with requirements of the Maine Department of Education and with government accounting practices, providing for the appropriate separation of accounts, funds and special moneys.

The School Committee shall receive monthly financial statements from the Superintendent/Principal showing the financial condition of the school system.

It shall be the duty of the Finance Director for the preparation of monthly and annual reports to the Superintendent/Principal and the School Committee; to advise administrators periodically of expenditures related to budget appropriations; and to prepare financial reports required by the Maine Department of Education or other agencies with jurisdiction.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 101 General Provisions Subchapter 2 Superintendent §1055 Superintendent powers and duties.

Adopted: February 12, 2002

Reviewed: January 9, 2018, December 8, 2022

Annual Budget

The annual budget is the financial plan for the operation of the school system and provides the framework for both revenues and expenditures for the year. They translate into financial terms for the educational programs and priorities for the system. The General Fund budget is adopted and approved by the School Committee and the Town of Acton citizens.

Planning the budget document is a continuous process. Planning involves long-term thought, study, and deliberations by the Superintendent/Principal, school committee, administrative staff, and faculty.

POLICY: DB - ANNUAL BUDGET

The School Committee recognizes that financial resources and the proper management of same are fundamental to the support of school programs and operations. With this in mind, the Committee will develop and present an annual operating budget as directed by applicable laws.

The annual budget will be for a 12-month period covering the fiscal year July 1 through June 30.

The School Committee shall designate the Superintendent/Principal as its budget officer, but he/ she may delegate portions of such responsibility as appropriate. The four general areas of responsibility of the budget are: prep and presentation of the Superintendent/Principal’s budget, budget review by the School Committee, budget presentation to the public, and budget administration.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103-A Regional School Units subchapter 4 §1301 Financing

Title 20-A: Education Part 2: School Organization, Chapter 111: Municipal Schools Subchapter 1: School Committees §2307 School Budgets

Adopted: February 12, 2002

Reviewed: January 9, 2018, March 10, 2022

POLICY: DBD - BUDGET PLANNING

In accordance with the statutes of the State of Maine and in the interest of sound fiscal planning, a budget shall be prepared and presented for consideration.

The policy of the School Committee shall be to follow the planned projections as nearly as possible. Budget planning shall be a continuous process.

The budget shall reflect in detail the educational program or programs previously approved. Any changes or alterations in programs shall have been approved by vote of the School Committee.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103-A Regional School Units Subchapter 4 §1306 Budget Format

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103-A Regional School Units Subchapter 4 §1482 Budget Preparation

Revised: NOVEMBER 12, 1991

Revised: January 9, 2018 Reviewed: March 10, 2022

POLICY: DBD-R - BUDGET PLANNING

It shall be the responsibility of the Superintendent/Principal to prepare the proposed budget for the following fiscal year according to the procedures established by the School Committee.

Following in-house deliberations and presentations to town officials, the School Committee will approve a final budget for voter consideration.

The budget, as approved by the town, will cover the period July l through June 30 of the following year.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103-A Regional School Units Subchapter 4§1306 Budget Format

Adopted: PRIOR TO 1988

Revised: NOVEMBER 12, 1991

Revised: January 9, 2018, March 10, 2022

BUDGET CALENDAR

The annual operating budget should be enacted prior to the beginning of each fiscal year.

Since the budget is an operating financial plan for the School, it is important that school officials know the terms of the budget early in the fiscal year, and preferably before the fiscal year begins. This knowledge will permit them to adjust for any changes the budget may require in services and procedures well in advance of the time they must be implemented. It also permits the central office to make the necessary entries in the financial records to begin controlling expenditures when the fiscal year begins.

To ensure that the goal of enacting the budget prior to the beginning of the fiscal year is met, a budget calendar should be prepared that establishes all key dates. An example of a budget calendar is as follows:

Budget Preparation Time Line for FY20XX-20XX

November

The Superintendent/Principal meets with administrators and department heads. Review the overall needs for the school. Estimate the student count within grades. Determine overall programs for each section, Pre-K to Grade 2, Grades 3-5 and Grades 6-8. Determine Special Education needs. Confirm dates with Town of Acton for the budget meeting dates and the Special Town Meeting for the School Budget.

December

Review individual budgets with teachers and summarize budgets by sections. Stipend committee should meet and review stipends and determine if any changes are needed. Review any new initiatives and programs and determine any budget impact. Warrant and Finance committee should meet and determine their process working with the School Committee.

Superintendent reviews budgets with Administrative Team

January

The Superintendent/Principal presents the Budget Overview at the monthly School Committee meeting, the Warrant and Finance Committee and the Selectmen. Board Budget work sessions start in January, February and March.

Budget Sessions:

JAN XXTH: 5:00PM Informational Meeting on the Budget Process.

Jan XX – 5:00PM First Budget meeting - Guidance, Health, Staff Training, Library, Technology Instruction (Article 6)

Feb xx - 5:00PM Nutrition (Article 12), Maintenance (Article 10), Capital Improvements, Other Instruction (Article 5), Transportation (Article 9)

Feb xx– 5:00PM School Committee meeting & 6:00PM Budget meeting: System Administration (Article 7), School Administration (Article 8), Regular and Secondary Education (Article 2) and Special Education (Article 3) and review

March xx – 5:00PM Budget Finalized

March xx – 5:00PM School Committee meeting & Budget meeting: School Committee deliberations with Warrant and Finance Committee

March xx– Budget due at Town Hall for Selectmen’s meeting and signed warrant

April xx Special Town Meeting or Ballot vote on School Budget

POLICY: DBG - BUDGET HEARINGS AND REVIEWS

Budget hearings shall be held for the purpose of allowing the Selectmen and the Warrant and Finance Committee of the Town an opportunity to ask questions and discuss the proposed expenditures of the district.

The procedure will be:

A. A series of budget workshops during which the School Committee will deliberate and approve the School Budget.

B. The School Committee's approved School Budget is submitted to the Warrant and Finance for review. The budget with recommendations from the School Committee and the Warrant and Finance is then presented to the Selectmen for their approval.

C. The approved School Committee Budget is presented to the Town to approve the School Budget at the Special Town meeting.

Legal Reference: Title 20-A Education Part 2: School Organization, Chapter 103-A Regional School Units, Subchapter 4: Financing §1482 Budget Preparation

Adopted: February 12, 2002

Reviewed: March 14, 2018, March 10, 2022

BUDGET BOOK

A budget book is prepared for the Special Town Meeting. This book includes financial information for Acton town voters to make an informed decision. The Budget book for the upcoming fiscal year will have the following items:

Letter from the School Committee Chair
Letter from the Superintendent
FY20XX-XX Budget Summary Comparisons
Articles with Narratives

ARTICLE 2 – REGULAR AND SECONDARY INSTRUCTION
ARTICLE 3 - SPECIAL EDUCATION
ARTICLE 5 – OTHER INSTRUCTION
ARTICLE 6 – STUDENT SUPPORT STAFF
ARTICLE 7 – SYSTEM ADMINSTRATION
ARTICLE 8 – SCHOOL ADMINISTRATION
ARTICLE 9 – TRANSPORTATION
ARTICLE 10 – OPERATIONS AND MAINTENANCE
ARTICLE 12 – NUTRITION

Reserve Fund Balances
Grant Fund Balances
Enrollment Projection
Essential Programming Services calculations
Warrant calculations for Articles 13 & 14

The School Committee is required to determine the allocation of the school budget among cost centers using the cost center summary format. This process determines the budgeted expenditure amount in each cost center and follows the required format for the educational state subsidy program known as the Essential Programs and Services.

A sample budget book is in Appendix B.

POLICY: DBF - DISSEMINATION OF BUDGET RECOMMENDATIONS

Each year a booklet delineating the proposed budget for the next school year will be prepared by the Superintendent/Principal and distributed to the Selectmen, Warrant & Finance Committee members, and to the Town. This booklet will summarize the proposed expenditures and clearly explain any significant differences between the proposed budget and the budget adopted the previous year. It will be written in language the taxpayers can easily understand and will be distributed timely.

Legal Reference: Title 20-A Education Part 2: School Organization, Chapter 103-A Regional School Units, Subchapter 4: Financing §1482 Budget Preparation

Adopted: February 12, 2002

Reviewed: March 14, 2018, March 10, 2022

POLICY: DBF-R - DISSEMINATION OF BUDGET RECOMMENDATIONS

The Superintendent/Principal and Finance Director are responsible for preparing the booklet for each year’s proposed budget. They will take particular care to see that technical fiscal language is not used in the booklet and that any complicated sections are clearly summarized in terms the townspeople can understand.

The Superintendent/Principal will ensure that the booklet is distributed at least two (2) weeks in advance of the annual budget meeting.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103-A Regional School Units Subchapter 4 Financing §1482 Budget preparation

Adopted: PRIOR TO 1988

Revised: NOVEMBER l2, 1991

Revised: March 14, 2018, March 10, 2022

BUDGET WARRANT

The budget book lays out the foundation for the warrant and provides detailed information for all financial figures in the motions presented on the Town’s School Budget Warrant. The warrant is a document issued by the Board of Selectmen to call a town meeting. The warrant lists the items to be voted on by the registered voters who are present.

. The warrant articles presented to the legislative body of the Town for the approval of the School budget must correspond to the categories of the cost center summary budget which include regular instruction, special education, career and technical education, other instruction, student and staff support, system administration, school administration, transportation, facilities maintenance, debt service, and all other expenditures, including school lunch. In addition to expenditure and revenue cost center summary totals, the regional school unit board shall provide to voters a reasonably detailed breakdown for each major subcategory within each budget category.

The Maine State Statutes that refers to this process is Title 20-A: Education Part 2: School Organization, Chapter 111: Municipal Schools Subchapter 1: School Committees §1485 Cost Center Summary Budget Format. A sample of the budget warrant is Appendix A.

POLICY: DBH - BUDGET ADOPTION PROCESS

Adoption of the annual budget is to be accomplished prior to June 30 for the fiscal year beginning July 1.

The budget shall include, in addition to operating expenses and expected income for

the ensuing year, the sums required for meeting bonds falling due, interest on the

bonds and on other obligations, rentals and other fixed charges. These proposals

shall be thoroughly explained and any others shall be given an opportunity to be

heard. Only those amounts pertaining to operating expenses, reserve or contingency funds, or capital outlay expenditures shall be subject to change by the voters.

Legal References: Title 20-A: Education Part 2: School Organization, Chapter 111 Municipal Schools, Subchapter 1 School Committee, §2307 School Budgets

Title 20-A: Education Part 2: School Organization Chapter 103-A: Regional School Units Subchapter 4: Financing, §Cost center summary budget format

Title 20-A: Education Part 7: School Finance, Chapter 601 General Provisions, §15006 School Money, Finance Committees

Title 20-A: Education Part 7: School Finance, Chapter 606 Essential Programs and Services, §15690 Local Appropriations

Adopted: February 12, 2002

Reviewed: March 14, 2018, March 10, 2022

RESERVE FUNDS / BUDGET TRANSFERS

Reserve Funds

The School’s reserve funds are funds that aid in the school budget process. By having reserve accounts, the School Committee can budget for what they need. This prevents over budgeting for just in case scenarios.

The Town of Acton has authorized the School Department to have these reserve funds. Each fund had an article to establish the fund, transfer funds in to it and allowed the School Committee to expend funds from it; as long as the request meets the purpose designated in each fund. The School Committee is the trustee of the reserve funds as stated in Maine State Statute Title 20-A: Education Part 2: School Organization Chapter 103-A: Regional School Units Subchapter 4: Financing. §1491 Reserve Funds.

Budget Transfers/Adjustments

The Administrative Directors may transfer funds under their control from one area to another. Transfers may not be made from salary or fringe accounts. Normally, transfers may be made only from supplies, travel, equipment and other object accounts. The Administrator Directors who want to transfer funds through this procedure must email or notify the Finance & Personnel Director specifying which accounts are being increased and which accounts are being decreased with a reason for the transfer.

Budget Monitoring

The Finance Director will prepare monthly financial statements that will indicate the revised budget, total expenditures to date, and the balance remaining to be spent. These statements will be reviewed periodically by the Superintendent/Principal, Finance & Personnel Director, and Administrative Directors responsible for monitoring and managing budgets for programs under their supervision.

GRANT PROCEDURES

The Central Office is generally responsible for the administration of the fiscal aspects of grants such as grant accounting and review of budget proposals. All other aspects of grant administration are coordinated through the Superintendent/Principal and Special Education Director. Federal grant manuals and regulations pertaining to federal grants are available online. The School is required to comply with all Office of Management and Budget (OMB) circulars applicable to local governments (OMB Circulars A-87, A-110, A-133). School personnel are encouraged to apply for any and all grants which support the School’s goals, objectives, and vision. The Superintendent/Principal/designee must approve all grant applications prior to submission of the application for approval.

As soon as a grant has been awarded to the School, the Superintendent/Principal/designee or Special Education Director shall forward to the Central Office the final budget along with the original application and all supporting rules, regulations, procedures, accountability requirements and assurances relating to the grant.

After receiving the above documents, the central office will establish account codes to go with the budget items outlined in the budget. A chart of accounts for the grant will be issued to the principal or special education director.

After you receive the chart of accounts, you may process grant expenditures.

All monies received in the School for special grants must be expended in accordance with established School accounting procedures.

The Consolidated Application for Grants through the Maine Department of Education allows Schools to submit one comprehensive application for several federal programs. Each year, the School must submit this application to the Maine Department of Education in order to receive federal funds. The Superintendent/Principal is required to sign off on the plan. This signifies that all federal and state assurances have been accepted. The Maine Department of Education website has guidance on the consolidated application and various programs.

The Superintendent/Principal/designee, Special Education Director, and Finance & Personnel Director are responsible for developing the budgets to be submitted through the Consolidated Application process. The Superintendent/Principal has final review and approval before submission to the Maine Department of Education (DOE). Once submitted, it is reviewed and approved or rejected and sent back to the School for modifications. The process continues until the application is accepted by the Maine DOE.

Once the award is approved in the Consolidated Application, funds may begin to be obligated under the grant. Funds cannot be spent or drawn down until both the current year application and prior year performance reports have been approved by the Maine DOE. Since no funds can be obligated prior to the approval of the award, it is crucial that the budget be developed and submitted before the beginning of the school year. Since all grant funds are drawn down on a reimbursement basis, the timeliness of the application submission and approval process affects the cash flow of the School.

Throughout the grant period, budget amendments may need to be processed. All major amendments need to be inputted into the Consolidated Application for approval as well as submitted to the Central Office for input into the accounting software module. The budget in the accounting software should mirror the budget as it appears in the Consolidated Application. It is the grant manager’s responsibility to ensure the accuracy and timeliness of all budget amendments. In most cases, federal grants are highly restricted and cannot be moved between function and object levels without Maine Department of Education approval. This makes it very important to plan future federal budgets as accurately as possible, so that minimum amendments are necessary.

Only activities that are allowable under the restricted purpose of the grant shall be charged to the grant. The Special Education Director, Superintendent/Principal, and Finance & Personnel Director are all responsible for reviewing purchase orders and federal grant requisitions to ensure only allowable costs and activities are being charged to each grant. Please refer to the accounts payables and procurement section of this manual for detailed description of the purchasing process.

Federal grant money will be drawn down through the Maine DOE Federal Grant Reimbursement System at https://www.4pcamaine.org/grant_reimbursement. Amounts billed will be on a reimbursement basis only to avoid any issues on noncompliance with federal cash management requirements. It will be the Finance & Personnel Director’s responsibility to bill for reimbursement on a monthly basis. When reimbursement for training is requested, the Finance & Personnel Director will ensure that determine that the training sessions have been attended prior to requesting any federal reimbursement. The Finance & Personnel Director will print detail from the accounting system to support amounts billed and will file each drawn down request (with attached detail) by grant.

In addition to ensuring costs charged to federal grants are allowable costs/activities under the grant, the School also has to ensure that no contracts are awarded or payments are made to vendors/contractors who are suspended or debarred from receiving federal funds. The Finance & Personnel Director will review all requisitions made to federal grants weekly to ensure that vendors/contractors are not on the list of suspended/debarred parties. The Finance & Personnel Director will log into www.sam.gov and search the “Data Access, Exclusions” csv file to determine whether or not vendors/contractors are on the list. Documentation of review of the csv file will be maintained in the Central Office. If a vendor is on the “Exclusions” list, the transaction will not be processed. If the vendor is not on the “Exclusions” list, the transaction will continue to be processed under the purchasing guidelines.

It is important to note that all federal, state, and local grant monies should be spent or obligated before the ending date of the grant (period of availability). The period of availability is typically denoted on the grant award letter. The Finance & Personnel Director is responsible for ensuring that funds are not obligated after the period of availability has expired. A legal obligation to the School occurs on the date an item is received or a service is rendered, not when a requisition or purchase order is processed. Therefore, there will be no purchase orders approved by the Central Office if the goods or services requested on the purchase order cannot be received or rendered prior to the expiration of the grant period.

Recipients of federal grants must conform to the regulations stated in the Federal OMB Circulars. These Circulars state that we must have documentation to support any compensation charges made to a grant. We will use Aptafund and AptaTime to help us meet the time and attendance reporting requirements under this circular for hourly employees. Hourly employees will be assigned job codes according to their job responsibility and funding stream, and will be required to clock in an out according and change job codes during the day whenever responsibilities shift from one funding stream to another. They will also be required to sign semi-annual wage certification statements attesting to how much of their time was spent working under each federal grant. Professional staff will be charged to one funding stream or another. If their salary is split between two funding sources, it will be a federal grant and the general fund, but their job responsibility be the same regardless of where the salary is paid. As long as the School adheres to this policy, salaried professionals will only be required to sign semi-annual wage certifications and will not need to be required to maintain monthly effort reports. Should the School not have proper documentation to conform to federal regulations regarding salaries, costs could be disallowed, and the School could have to return funds to the federal government. It is imperative the semi-annual wage certifications are completed and returned to the Central Office. It is also imperative that hourly personnel be diligent in keeping their hours logged on a time card using the time clock.

If a new employee is hired for a grant, the employee must report to the Central Office to complete paperwork. All employees, regardless if paid under a grant or not, will be paid through the School’s regular payroll. For information about the School’s payroll procedures, please refer to the payroll section of this document.

Most federal grants require a final performance report at the end of the grant period. The performance report requests financial and programmatic information. The grantor wants to know if the objectives/goals for the grant were met, and if not, why not. The Finance & Personnel Director will be responsible for compiling and completing the financial information requested on the performance report. The program managers will be responsible for compiling and completing the programmatic type question on the performance report. Most of the performance reports are due prior to the start of the next school year. The Finance & Personnel Director and the program manager will work together to ensure timely filing of all state and federal performance reports. If performance reports are not completed timely, the applications for the next year are put on hold until the performance reports are completed and approved. This means no drawdowns can occur. This can hinder the School’s cash flow. Therefore, it is imperative that the program managers and Finance & Personnel Director do everything they can to see these reports are filed in an accurate and timely manner.

PURCHASING

The purchasing system as outlined in this section is to provide a systematic and businesslike method of obtaining and supplying materials and equipment for the School.

Small purchases not exceeding twenty-five thousand dollars $25,000 may be accomplished without competitive quotation if the prices are considered to be reasonable.

Small purchases from twenty-five thousand and 1/100 dollars ($25,000.01) to one hundred thousand dollars ($100,000.00) may be accomplished if verbal or written quotes from a minimum of three qualified sources of supply are made and it is documented that the procurement is to the advantage of the School, price and other factors considered, including administrative costs of the purchase. Such documentation shall be attached to the purchase requisition.

Purchases from one hundred thousand and 1/100 dollars ($100,000.01) and up may be accomplished if written bids, proposals or quotes from at least three sources are obtained and it is documented that the procurement is to the advantage of the School, price and other factors considered, including the administrative costs of the purchase. Such documentation shall be attached to the purchase requisition. When prices are solicited by telephone the vendors shall be requested to furnish written evidence of such quotation.

Requisition/Purchase Order Procedure

Requisitions are required to initiate any goods or services secured by the School with the exception of recurring monthly bills (such as utilities) and supplies purchased by the central office. The purpose of the requisition is to provide a means of tracking the order, verification/approval of the order, and as a means of securing, or encumbering, the dollar amount of the order from your specific line item budgets so that you know the amounts available for spending. The school bookkeeper has access to the accounting system and is able to generate a requisition. Requisitions will go through the proper approval process after being entered by the school bookkeeper. They will first be reviewed and approved by the Principal/Special Education Director, Facilities Director, or IT Director, and finally the Finance & Personnel Director. Reviewers need to pay particular attention to account coding and the available budget balance per account. Once a requisition has made it through the approval process, the requisition will be generated into a purchase order and will be emailed to the originator so that the order may be placed. If a requisition exceeds budget, there should be an explanation as to why this purchase is necessary and how the deficit will be covered. A Director can request a reclassification of budgeted amounts from one line to another to cover the deficit.

Requisitions/purchase orders may be issued with items listed on an attachment. Please indicate this on the requisition/purchase order with, Per Attached List.

Guidelines for issuing a purchase order:

All purchases must meet the requirements of the funding source. If it is a federal grant expenditure, it must be an approved, allowable cost for that program.
The Principal is responsible for all expenditures of school funds. The Special Education Director is responsible for all expenditures of special education funds.
Expenditures from cash are strictly prohibited.
The School bookkeeper must follow through with all approved expenditures.
All orders, once received, must be approved by the receiving party prior to payment from either the School or from the school pupil activity funds.
Goods/services must be received prior to payment.
Purchases cannot be made in anticipation of future funds.
Purchase orders should be forwarded to the central office with indication that they are “OK to pay” after goods/services have been approved by the receiving party.

POLICY:DJ - BIDDING/PURCHASING REQUIREMENTS

The School Committee expects all purchases made by the school unit to be consistent with applicable laws and sound business practices. The Superintendent/Principal shall be responsible for developing and implementing administrative procedures for bidding and purchasing consistent with this policy.

This policy is intended solely as an internal guide to purchasing by the school unit. It does not afford any vendor any property or contractual rights against the school unit. No vendor shall have any enforceable rights against the school unit based upon this policy or alleged violations of this policy. No vendor shall have any rights against the school unit until such time as a written contract between the vendor and the Acton School Department is executed by the vendor and an authorized representative of the school unit.

Bidding Required by Law

Maine law requires the School Committee to competitively bid property and casualty insurance; school bus and transportation contracts in excess of $50,000; school building construction, alterations and repairs over $100,000; and bond anticipation notes for state-subsidized school construction projects.

Competitive Bidding of Other Purchases

Where bidding is not required by law, it shall be the policy of the school unit to competitively bid purchases of equipment, supplies, materials or services over $25,000 provided that it is practical and cost-effective to specify the material or services with sufficient particularity to allow meaningful comparison of bids.

If competitive bidding is not utilized, the Superintendent/Principal may seek Requests for Proposals (RFP) for purchases over $10,000. An RFP identifies the need the school unit intends to meet, but permits the vendor to propose the manner in which the work is to be performed and the materials to be used.

The Superintendent/Principal may forego the competitive bid or RFP process only when

he / she determines that quality, expertise, time factors, or other important considerations outweigh the possible benefits of bidding or requesting proposals. ln each such case, the School Committee shall be informed of the Superintendent/Principal's decision and the reasons for it in advance of entering into a contract.

C. Procedures for Bidding and Requesting Proposals

The method of notification that the school unit uses to solicit bids and proposals shall be reasonably designed to attract qualified vendors. Depending upon the circumstances, such notification may include public advertising and / or mailing of notices to potential vendors.

Bid Procedures

A. The notification shall specify the deadline for submitting bids and the time and place of bid opening. Bid alternates shall be permitted at the discretion of the Superintendent/Principal. The notice shall reserve the right of the school unit to reject any or all bids, and to waive technical or immaterial non-conformities in bids if in the best interest of the school unit, and to exercise judgment in evaluating bids.

B. Written bids. Bids shall be in writing, in a sealed envelope or wrapper plainly marked “Bid, not to be opened until (insert appropriate date),” and mailed or filed with the Superintendent/Principal of the school unit.

C. Time of opening. A School Committee member or employee of the school unit may not open a bid until the appointed date and time.

D. Public opening. At the time and place stated in the public notice, and open to the public, all bids shall be opened by the Superintendent/Principal or, in the Superintendent/Principals absence or disability, by any School Committee member designated for the purpose by the Chair of the School Committee.

E. Reading. If any citizens who are not School Committee members or employees of the school unit or if any representatives of the press are present, bids shall, at that time, either be made available for examination by them or shall be read aloud in a manner to be heard

plainly by those in attendance.

F In general, the School Committee will award contracts to the lowest bidder which the Superintendent/Principal and School Committee deem can satisfactorily fulfill the contract.

RFP Procedures

A. Proposals should be submitted in sealed, plain envelopes clearly marked "Proposal, not to be opened until (state time and date). The RFP shall state the time and date that proposals shall be opened, and no proposals shall be opened before that time. Public opening is not required.

B. Proposals are to be evaluated based on criteria appropriate for the project in question, and the contract will be awarded to the vendor whom the Superintendent/Principal and School Committee deem best able to meet the requirements of the school unit.

Legal Reference: Title 20-A: Education Part 2: School Organization, Chapter 103-A Regional School Units, Subchapter 4 Financing, §1492 Bid procedure

Title 20-A: Education Part 2: School Organization, Chapter 103-A Regional School Units, Subchapter 4 Financing, §1493 Void Contracts

Adopted: February 12, 2002

Review: March 14, 2018, December 8, 2022

POLICY: DJH - PURCHASING AND CONTRACTING

PROCUREMENT STAFF CODE OF CONDUCT

Conflict of Interest

All employees of the Acton School Department shall perform their duties in a manner free from conflict of interest to assure the proper performance of school business as well as to earn and keep public confidence. No employee of the Acton School Department with a real or an apparent conflict of interest in a proposed transaction shall participate in the selection, award or administration of a contract pursuant to the transaction.

Conflict of interest is defined as when an interested party has a financial interest in the firm selected for the award. Interested party is defined as 1) the employee; 2) a member of the employee’s immediate family; 3) his/her partner; or 4) an organization that employs, or is about to employ a person described above.

Conflict of Interest Disclosure

All employees with real or apparent conflicts of interest as defined above must disclose the conflict of interest to the superintendent of schools who will investigate the circumstances of the transaction. The Superintendent/Principal will exercise due diligence in investigating the circumstances of the transaction and if necessary, will make reasonable efforts to find alternatives to the proposed transaction or arrangement that would not give rise to a conflict of interest. If the Superintendent/Principal of school determines that the proposed transaction is in the best interest of the Acton School Department and is fair and reasonable, it may proceed with the transaction. In the event that the Superintendent/Principal may have a conflict of interest, an adjunct committee of the School Committee will investigate and make a determination regarding the transaction.

Violations

Employees of the Acton School Department who violate this code of conduct may be subject to discipline, up to and including termination of employment, and if appropriate, referral to law enforcement.

Legal Reference: EDGAR Part 74 Title 34 -Administration of Grants and

Agreements

EDGAR Part 80 Subpart C, Section 80.20, 80.36

DOE Administrative Letter 6 – 9/18/2006 – NCLB Fiscal Compliance

Adopted: June 9, 2009

Reviewed: April 10, 2018, December 8, 2022

POLICY: DJH-R - PURCHASING AND CONTRACTING

STATEMENT OF PROCUREMENT STAFF CODE OF CONDUCT

Conflict of Interest

Conflict of Interest Disclosure

All employees with real or apparent conflicts of interest as defined above must disclose the conflict of interest to the Superintendent/Principal who will investigate the circumstances of the transaction. The Superintendent/Principal will exercise due diligence in investigating the circumstances of the transaction and if necessary, will make reasonable efforts to find alternatives to the proposed transaction or arrangement that would not give rise to a conflict of interest. If the Superintendent/Principal determines that the proposed transaction is in the best interest of the Acton School Department and is fair and reasonable, it may proceed with the transaction. In the event that the Superintendent/Principal may have a conflict of interest, an adjunct committee of the School Committee will investigate and make a determination regarding the transaction.

Violations

Employees of the Acton School Department who violate this code of conduct may be subject to discipline, up to and including termination of employment, and if appropriate, referral to law enforcement.

I have received and read the above conflict of interest disclosure statements and agree to abide by its specific guidelines. I understand that a copy of this signed statement will be kept on file in my personnel file.

________________________________ _____________________

Signature Date

Adopted: May 8, 2018 Reviewed: December 8, 2022

SALES AND USE TAX REQUIREMENTS

The School is exempt from paying sales tax. Most Maine businesses are aware that Schools are tax exempt. The School has a permanent sales tax exemption certificate. Copies of this certificate can be found in the central office. A copy of this certificate should be furnished to all new vendors. School personnel making purchases should make sure vendors are aware that the School is tax exempt.

If an employee is making a purchase on the School’s behalf and seeking reimbursements whether for hotels, supplies, etc. The employee should make every effort to provide the vendor with a copy of the permanent exemption to avoid paying for sales tax. If the purchase was unexpected or unanticipated and the employee did not have time to obtain a copy of the sales tax exemption certificate, the School will reimburse the employee for the sales tax charge provided the School agrees that paying the tax was unavoidable.

ACCOUNTS PAYABLE

Cash Management

All disbursements of School funds must be made in accordance with School procedures. We are accountable to the taxpayers who provide these funds and we are also audited each year to ensure we follow established practices for making disbursements. Federal disbursements should be done on the “reimbursement” basis whenever possible to avoid any noncompliance with federal cash management procedures.

1099 Vendor (Employee vs. Contract Service)

Occasionally, payments are made to individuals that have contracted to perform certain services. These payments are taxable and an IRS Form W-9 should be completed by individuals performing contracted services. People being paid in this capacity should be coded to a 3000 object code. Employees being paid for services must be paid from a salary account and will be paid through payroll.

Invoices

Invoices will be mailed directly to the Central Office. They will be opened and reviewed by the Central Office for processing. The invoice will not process until the Director responsible for the order has verified that the order has been received and is complete. The Director will indicate the invoice is OK to pay and the date the goods/services were received. Central Office will match the invoice with the purchase order and process the invoice. If there is a significant variation between the invoice and the purchase order, the employee will be contacted for an explanation.

Payments should only be made from an invoice, NOT statements, order forms, or packing slips.

Travel Reimbursement

All employees who wish to be reimbursed for travel must fill out a travel form and have proper documentation before reimbursement will be made. Travel reimbursements must have the date(s) of travel, the number of miles traveled and the reason for the trip. The travel reimbursement rate and is currently set at the IRS rate. All receipts for hotel, airline tickets, tolls, parking, registration, etc., must be attached to the travel reimbursement form. Reimbursements will apply to employees only and not travel companions. All reimbursement forms should have the proper account codes and principal/supervisor approval before submitting for payment.

Deadlines and Check Schedule

Checks are written on Thursday and ready for distribution on or before Friday on a bi-weekly basis. Occasionally, holidays or other circumstances may warrant an extended cut off or check run date.

Duties of Central Office for Accounts Payable Clerk

Receive and process invoices. This includes:

Verification of invoice date.
Verification that compliance with purchasing policy information is attached.
Verification that a purchase order was issued or proper approval was made for the purchase.
Verification of account number validity on purchase order or requisition form.
Verification that vendor is set up and a W-9 form exists.
Enters invoices into accounts payable system. The Finance & Personnel Director reviews the accounts payable batch and approves all invoices prior to printing checks.
Mails and distributes accounts payables checks.

Blank accounts payable checks are kept in a secure location.
A warrant is printed and for approval bi-weekly for the Superintendent and the School Committee.
A sequence log is maintained for all checks written from accounts payable.
Every check stub is filed alphabetically with the invoice and purchase order in the files in accounts payable office.
The accounts payable bank account is reconciled monthly by the Finance & Personnel Director. The completed reconciliation is approved by the Superintendent. The bank statements are opened by Central Office.

PAYROLL

All applications for employment are maintained in the Central Office. The Principal/Department Heads will select candidates to interview from the database obtained from the Central Office. After the interviewing process is complete and an employee has been officially hired (passed background checks, hired by the Board, etc.), the Finance & Personnel Director will enter the employee into the personnel module in the financial accounting database (Financial Edge). New employees will sign up for health insurance benefits, tax withholdings, and retirement with the Central Office.

The Central Office will maintain an employee file containing copies of information relative to changes in payroll information.

Employees requesting changes to payroll deductions will be made by the Finance & Personnel Director upon receipt of a copy of the source document indicating the necessary changes. The source document will then be filed in the employee’s personnel file. Some examples of such changes are:

Changes in withholding exemptions (W-4)
Changes in 403(b) withholdings
Health and Dental Insurance plan changes

The Central Office is responsible for salary administration within the School. Employees will be issued contracts at the beginning of the fiscal year for annual employees and at the start of the school year for school year employees. Contracts will specify salary/hourly wages. A signed copy of each employee’s contract will be filed in his/her personnel file. Contracts will be prepared by the Finance & Personnel Director and will compare the position based payroll for all contracted employees.

General Payroll Information

Employees shall be paid wages and/or salary in accordance with salary schedules or contracts as indicated in the Collective Bargaining Agreements between the Acton Education Association and the Acton School Committee.

Payment of Salaries

The pay period runs bi-weekly from Sunday to Saturday. Employees are paid on the following Thursday. As a general rule, when pay day falls on a holiday, the School will pay employees on the following business day. The Accounting and Personnel Director will submit an EFT payroll file to the Superintendent who sends the file electronically to the bank via a bank key.

Direct Deposit

Direct deposit is mandatory. Employees must complete a direct deposit initiation form as part of the new hire paperwork. Direct deposits can be made into any checking or savings account with any financial institution within the United States. Employees must supply a routing and account number. If the financial institution is new to the accounting system, a pre-note will be sent to verify the routing and account information in advance.

Distribution of Direct Deposit Notices

Direct deposit notices will be available through Aptafund and the Employee Self Service system.

Time Clock

Hourly employees will be required to use the Aptatime Timeclock system. Each employee will be assigned a job code based on his or her regular job function. As job responsibilities change from one job such as an education technician to another such as tutor, employees will be required to change job codes so that wages may be correctly applied to the various cost centers/grants. Substitutes will also be required to use the time clock and to identify the person they are substituting for. Time cards will be edited and approved by supervisors/Superintendent. Missed punches will be approved individually by supervisors.

Leave

Employees who receive paid time off such as sick, personal, and vacation leave will need to request time off using the Aptafund leave request system. The supervisor must review and approve the time off. If the supervisor approves the request, the request will then travel to the Substitute Caller (so that substitutes may be aligned) and the Central Office. The Central Office will record the time off in the absence batch and post the batch when the payroll is processed. Leave balances will appear on direct deposit notices and will be updated bi-weekly.

POLICY: DLB - TAX SHELTERED ANNUITIES

So that employees may obtain the benefit of tax sheltered annuities, the School Committee

hereby authorizes the adoption of a Tax Sheltered Annuity Plan. The Superintendent/Principal is authorized to sign a written Tax Sheltered Annuity Plan (the” Plan”) on behalf of the School Committee. The Plan shall provide that:

A. Any employee may participate in the Tax Sheltered Annuity Plan, subject to the limitations of the Plan and the Internal Revenue Code.

B. Any agent or agency wishing to sell tax sheltered annuities to employees must file with the Superintendent/Principal evidence of its license to sell such annuities in the State of Maine.

C. Only those providers of annuities who agree to comply with the terms of the Plan shall be permitted to participate as an annuity provider under the Tax Sheltered Annuity Plan. In accordance with the Plan, the School Committee retains the right to limit the number of annuity providers authorized to sell annuities to employees.

D. At no time will solicitation by providers of tax sheltered annuities be permitted in school buildings or on school property during regular school hours.

Adopted: February 12, 2002

Reviewed: March 14, 2018, December 8, 2022

GENERAL LEDGER RESPONSIBILITIES

Bank Reconciliations

The Finance & Personnel Director is responsible for reconciling General Fund, Payroll, Food Service, and Investment account bank statements. Once the statements are reconciled, the Finance & Personnel Director forward the reconciliations and statements to the Superintendent/Principal. The Superintendent/Principal reviews and initials the reconciliations monthly. The Finance & Personnel Director reviews the Student Activity bank statements and approved and initialized by the Superintendent/Principal.

Cash Receipts

Most of the School’s income is received via electronic funds transfer from the State of Maine, municipalities and grantors. The School does receive some cash from the hot lunch program, and laptop repairs. The Student Activity Funds receive cash from yearbook sales and various fundraisers.

The School’s mail is sorted in the Front Office by the Secretary. All checks are forwarded to the Finance & Personnel Director. The Finance & Personnel Director opens and reviews the checks and records the receivable and makes the deposit. Deposits are made at least weekly and sometimes semi-weekly. All deposits are recorded in the accounting software, Financial Edge. The Finance & Personnel Director reviews the entries and posts them to the General Ledger. The Finance & Personnel Director reviews monthly financial information and monthly budget to actual information.

Electronic Funds Transfers from the State are deposited directly into the General Checking Account. The State sends notification to the Finance & Personnel Director of a deposit. The notification includes the source, amount, and date of payment. These are compared to the ED279 subsidy calculation and federal reimbursements system billings to ensure accuracy of payment. The Finance & Personnel Director will forward State Agency Clients to the Special Education department who verifies the accuracy of those payments.

The lunch program utilizes a POS system. Lunch counts are compared to the POS system. The register is cashed out every day by either the Food Service Director or the food service personnel running the register and compared to the POS reports. Cash is deposited by the Central Office. The Food Service account is reconciled monthly by the Finance & Personnel Director.

Journal Entries

The Finance & Personnel Director is the only employee authorized to make general journal entries in the accounting software. All journal entries are printed and filed in the Central Office. The Superintendent/Principal reviews and initializes all journal entries. There are a few recurring monthly journal entries, such as recording transfers to cover payroll, recording due to/from when reconciling the hot lunch fund, recording bank interest, and reclassifying revenue/expenditures from the regular budget to a grant or vice versa.

Revenue and expenditure transactions are sometimes incorrectly recorded into the School’s accounting system. An error can occur when a wrong account number is used for a purchase, reimbursement, or receipt. An error can also occur from data entry or incorrect account information received from the schools, etc. When this happens, a correcting journal entry to ensure that revenue and expenditures are correctly recorded and reported in the proper account, fund, department, project/program, and fiscal year in which it was budgeted.

Financial Statements

The Finance & Personnel Director will reconcile all balance sheet accounts and prepare monthly financial statements for the School Committee including budget versus actual detail.

POLICY: DM - CASH IN SCHOOL BUILDINGS

Unless prior approval has been given by the Superintendent/Finance Director, no money shall be kept overnight in schools except in a locked depository that the Finance Director has made available for such a purpose. It shall be the usual practice to leave no cash from fundraising, etc., overnight in the school.

In the event that money is stolen from desks or cabinets or elsewhere in the school buildings, the School Committee cannot be held liable for the loss.

Adopted: February 12, 2002

Revised: December 21, 2015

Reviewed: March 14, 2018

POLICY: DIA-R - ACCOUNTING SYSTEM

Financial Reports - The Finance Director shall prepare a monthly report for distribution to the School Committee.

Cafeteria Accounts - Cafeteria accounts shall be maintained separately from general funds, and cafeteria monies shall be deposited in a commercial bank. Appropriate records shall be maintained for reports to the State Department of Education and to the School Committee.

Free and Reduced Cost Meals - The School Committee shall establish the cost of school meals.

Transportation Accounts - Transportation accounts of town-owned school vehicles shall be maintained to record mileage and services as required by the School Committee and by the

State Department of Education.

Adopted: PRIOR TO 1988

Revised: NOVEMBER 12, 1991

Reviewed: April 10, 2018, December 8, 2022

ACCOUNTING FOR CAPITAL ASSETS

Accurate fixed asset records are vital in providing values for insurance coverage and proper reporting in financial statements. Also, accurate records help to ensure that assets are properly safeguarded. Fixed asset records are facilitated by timely and accurately reporting acquisitions, disposals and transfers of fixed assets. The purpose of these procedures is to provide a strategy to ensure that the School maintains accurate, complete, and up-to-date records of fixed assets.

Definition of Fixed Assets for purposes of the School accounting system, a fixed asset is defined as land, site improvements, buildings, building improvements, furniture, fixtures, equipment, vehicles and other items acquired by the School that are actively used in operations, has significant value, and provides benefit for a period exceeding one year. Fixed assets are reported and, with certain exceptions, depreciated in the financial statements. The assets that is included as part of the School’s capital asset listing will fall into one of these five categories:

Land

All land purchased by the school district will be capitalized.

Buildings

All building elements, such as, but not limited to, the costs of site preparation and foundations, framing, walls, flooring, windows, doors, stairways, skylights, roofs, interior fixtures and finishes, fire escapes, screens, architect/engineer fees, consulting and legal fees, etc.

Improvements Other Than Buildings

Includes such items as retaining walls, fences, signs, yard lighting, incinerators located outside the building, flagpoles, athletic fields which are not considered a separate facility, playground equipment, etc.

Equipment

Includes such items as office furniture, fixtures and machines; music equipment; athletic equipment; office and classroom furniture; floor equipment and furnishings; laboratory equipment; shop equipment; ovens; ranges; kitchen equipment; refrigerators; dishwashers; tractors; riding lawn mowers and vehicles licensed for operations on the highways. The key determination to this classification is that the item has not been installed as a permanent portion of a building or facility.

Construction in Progress

This is a temporary classification that is used to report the costs of construction work for projects that have not yet been completed. The Central Office will provide this amount for reporting purposes.

Items Excluded from Capital Assets Listing

Equipment leased under an operating lease such as copy machines. Items leased under a capital lease will be included in the capital assets listing.

Funding Source Inclusions

Items that are included in the capital assets listing will have many different funding sources. The majority of items on the listing will go through the normal purchasing process and be paid for through the School’s accounts payable department. However, assets purchased through grants will also be recorded and monitored as required by grant documents and federal regulations.

Capitalization Policy

The School will capitalize all acquisitions of land, buildings and additions, improvements other than buildings, and equipment at the following capitalization limits:

ASSET CLASS CAPITALIZATION LIMITS

Buildings improvements (must

add square footage to asset and extend

useful life) $5,000 and above

Intangible Assets $5,000 and above

Equipment $5,000 and above

Building improvements that do not meet the above criteria are recorded as

repairs/maintenance expenses.

Equipment purchased with federal money will be capitalized if purchase price exceeds $250 or is asset purchased is considered “highly walkable” regardless of the purchase price. All fixed assets purchased with federal money will be logged, tagged, and inventoried by the IT Director.

Useful lives are as follows:

ASSET CATEGORY USEFUL LIFE RANGE

Buildings improvements 10-50 years

Furniture and equipment 3-12 years

Construction in Progress Not applicable

All equipment purchased with federal or state grant funds must follow guidelines set forth by the grant document.

Depreciation

All fixed assets with an acquired value of $5,000 or above, with the exception of land and construction in progress, will be depreciated. Depreciation is the process of allocating the cost of tangible property over a period, rather than deducting the cost as an expense in the year of acquisition. Depreciation is reported net of accumulated depreciation in the Statement of Net Assets. Depreciation is calculated on a straight-line basis (i.e. cost/estimated useful life=depreciation expense). Under the straight-line method, the basis of the asset is written off evenly over the useful life of that asset. The total amount depreciated can never exceed the asset’s historical cost less salvage value.

Accounting for Capital Assets

GASB Statement 34 requires Schools to issue School-wide financial statements using the economic resources measurement focus and accrual basis of accounting. In regard to capital assets, this requirement means that certain amounts reported in the fund financial statements will need to be restated for the School-wide statements. This restatement is necessary to adjust expenditures related to capital assets from the current financial resources measurement focus used in fund statements to the economic resources measurement focus used in the School-wide statements. In essence, the cost associated with the acquisition of capital assets will be replaced by the cost to use up the asset. The cost of usage, called depreciation, is reported in the current fiscal period in the School-wide statements. This is contrasted with the cost of acquisition that is reported in the fund statements.

Statement 34 requires certain disclosures related to capital assets. Specifically, details by major classes should:

Present governmental activities separately from business-type activities.
Report capital assets that are depreciated separately from those that are not.
Report historical cost separately from accumulated depreciation. For each class the following information, if applicable, should be reported:

Beginning and end-of-year balances
Acquisitions
Sales or other dispositions
Current depreciation expense
Additionally, the amount of depreciation expense for each of the functions reported in the statement of activities must be disclosed.

A capital asset is reported and depreciated in School-wide statements. In the School-wide statements, assets that are not capitalized are expensed in the year of acquisition.

Responsibilities

The Superintendent/Principal that exercises supervision over a department in the School is responsible for the oversight of capital assets inventoried to that location.

The Superintendent/Principal is expected to direct personnel in the use and care of equipment as well as ensure that School policies and procedures regarding capital assets are followed.

Employees should be informed that they are not to take School equipment home for personal use.

Any personal equipment used or stored on School property is not insured by the School and will not be replaced if it is broken or stolen.

The Superintendent/Principal will be provided a complete listing of inventoried equipment at their location to keep as a reference. Any equipment received at a location that does not go through the normal purchasing procedures (donations or purchases through pupil activity funds) must be reported to the Central Office within ten business days of receipt of the equipment.

Physical Inventory

The Central Office and the IT Department will perform an inventory count of all locations in the School once every year at the end of the fiscal year. The Central Office may also conduct unscheduled inventory counts as a means of evaluating internal control or as determined as necessary by the Superintendent.

Inventory results will be reconciled with the capital asset listing and any differences will be researched. All adjustments that are necessary will be made. The Accounting and Personnel Director will report the results of the physical inventories to the Superintendent.

POLICY: DID – INVENTORIES

Inventory of property and equipment shall be taken on an annual basis. The inventory system shall serve the functions of control and conservation.

Responsibility for this shall be with the Superintendent/Principal / Finance Director to whom the appropriate inventory supervisors shall be accountable for the maintenance of proper inventories in their schools.

Adopted: February 12, 2002

Reviewed: April 10, 2018, December 8, 2022

POLICY: DN - DISPOSITION OF SCHOOL PROPERTIES

The Superintendent/Principal is authorized to determine, through procedures he/she develops, when personal property (supplies, materials, equipment), as distinguished from real property, is obsolete or no longer of use to the school department and to declare it surplus.

The School Committee is to be informed of any property declared surplus by the Superintendent/Principal prior to its disposal. Procedures for disposal of all surplus personal property shall be in accordance with the following:

Other municipal departments are to be informed in writing of property declared surplus and are to have the first option to purchase. The charges for municipal purchases shall be determined by the Superintendent/Principal after consultation with the School Committee.

Surplus property, including books, to be offered for sale shall be disposed of by sealed bid, public auction, or public sale. Public notice of any sale of surplus property shall be given at least one week in advance of an auction, sale or opening of sealed bids.

Library books, textbooks and instructional materials are to be disposed of by a means most likely to offer a promise of continuing educational benefit, first to citizens of the school unit, then to others.

Any surplus property which is offered for public sale and is not sold may be disposed of in a manner deemed advisable by the Superintendent/Principal, including donation to non-profit agencies.

Any property determined to be worthless, or for any reason is considered to be inappropriate for sale, shall be disposed of in a manner the Superintendent deems appropriate after informing the School Committee, with recycling as a priority where feasible.

Any school department identification that has been applied to the surplus property shall be removed or, if not possible to remove, be further identified to indicate the intended disposition and surplus nature (i.e., “SOLD BY”, “SURPLUS”).

All revenues which result from the sale of surplus property shall be credited as miscellaneous income except in any instance where law requires that it be credited to a specific account.

Legal Reference: 20-A: Education Part 1: General Provisions, Chapter 1 General Provisions § 7 Property Disposal

Adopted: February 12, 2002

Revised: March 9, 2010

Reviewed: March 14, 2018, December 8, 2022

STUDENT ACTIVITY FUNDS

General

It is the intention that Student Activity Funds be operated on a self-supporting basis.

Student activities will not be conducted for the sole purpose of producing income. The accounts should not hold a deficit balance for greater than 30 days, and there should not be any deficit balances at the fiscal year end.

Responsibility

The responsibility for safeguarding, accounting, and managing the student activity funds rests on the Superintendent/Principal. Specific duties that must be performed in providing management of the funds may be delegated as determined by the Superintendent/Principal, but the final accountability rests with the Superintendent/Principal.

Duties of the Superintendent/Principal

The following management practices are considered to be essential:

Be familiar with, and enforce the provisions of this manual, and School fiscal management policies.

Be sure that the secretary and/or Finance Director are properly instructed as to the duties expected, trained in the proper methods and procedures, and given adequate supervision and guidance.

Insure that accurate and timely reporting methods are implemented and maintained.

Review and analyze the status and operation of the funds at least monthly. The review should include but not be limited to the following:

Questioning of deficit account balances.
Noting the cash balances, considering reserved funds and any outstanding balances.
Assessing the reasonableness of receipts and disbursements by account and in total, to include comparison with prior periods.

Review check requests to determine validity and necessity of the request.

Discuss with all staff, including teachers:

That check(s) will not be written without proper documentation.
That all money (100% collected) must be receipted and turned in daily. Any disbursements to be made from the collection must be made by check, by the Finance Director - not the person collecting the money.
That prior approval from the Superintendent/Principal is needed before committing school activity funds.
The importance of turning in daily any funds collected the proper control of funds and the use of receipts.

Review checks presented for signature to insure that expenditures are properly authorized and that proper documentation was provided.

Maintain that adequate facilities and physical controls are available and are used for protection of cash and other assets.

Insure that deposits are made to the bank safely and in a timely manner.

Advise staff members that if they make commitments in the name of the school, without prior approval of the Superintendent/Principal, the staff member will be held responsible for the payment of any charges, which may arise.

Stamped signatures are not allowed and should not be used in lieu of actual signature by the Superintendent/Principal.

Finance Director is not allowable check signor.

Report any questionable transactions to the Superintendent/Principal/Finance & Personnel Director within two days of occurrence.

Duties of Finance Director

Under supervision of the Superintendent/Principal, the Finance Director will receive, receipt, account for, and disburse all funds, flowing through the student activity fund accounts, unless otherwise directed by the Superintendent/Principal. The Finance Director will deposit funds, in a locked bag, into the bank, and return the deposit receipt to the bookkeeper. The bookkeeper’s duty to disburse funds will not be construed as authority to sign checks-that duty must be performed by the Principal Superintendent/Principal with an actual signature (no stamped signatures allowed).

The Finance Director will comply with all provisions of this manual and perform duties as follows:

Deposit all funds at least once per week.
Maintain all required records on a current and accurate basis.
Submit all required reports promptly and accurately.
Keep the Superintendent/Principal informed of all real or potential problems, i.e. teachers not turning in checks/cash on a daily basis, teachers turning in their net collections (collections less any disbursements).
Inform the Superintendent/Principal immediately when a fund has, or has a potential for, a negative balance.
Report any questionable transactions to the Superintendent/Principal within 2 days of occurrence.

Control of Cash

Types of Controls

The amount of cash and checks flowing through the school activity fund dictates the necessity for stringent safeguards in the control of receipts and disbursements. Throughout this manual there are provisions designed to assure proper control of the funds. Some examples of these controls are:

Provide that all expenditures are made by check.
Provide that all revenue collected is receipted. Provide that funds be deposited at least weekly.
Provide that the funds be receipted on pre-numbered receipt forms.
Monthly bank statements will be reconciled by the bookkeeper and approved by the Principal
Provide the use of a secured container, preferably a locked safe or vault, for all funds on hand. Money should never be left unattended or accessible to unauthorized personnel.
No student activity fund check will be issued to a School employee for services rendered.

Types of Accounts

Because it is intended that student activities be self-supporting, only the amount of revenue necessary to establish and maintain the activity is acceptable. Each account must hold a positive or zero balance at the end of the fiscal year. Each account with a negative balance should be reported to the Superintendent/Principal.

General Operating Procedures

Revenue/Expenditure Controls

To effectively manage the pupil activity fund, the principal must have knowledge of all future obligations prior to billings or disbursements. The absence of such a system could involve over-obligation of available school activity funds.

Reimbursement of Personal Funds

Reimbursement of personal funds must be supported by receipted billings, cash register tapes, etc. Canceled checks are not an acceptable form of documentation in support of reimbursement. The Superintendent/Principal must first approve expenditure of personal funds, subject to reimbursement.

Gifts and Bequest

Gifts will not be accepted or solicited without the approval of the principal. Any gifts accepted will become property of the School, and will be for the beneficial use of the school or student body. Gifts of cash accepted for a specific purpose should be separately accounted for in the fund concerned or a separate account established. If a separate bank or investment account needs to be established, the principal must work directly with the Finance & Personnel Director and Superintendent/Principal to ensure that the account is correctly set up and the asset account and revenue properly recorded in the financial statements. Unspecified gifts may be receipted into the school operating account.

Gifts to School Staff Members

Gifts to school staff members from a student activity account, except from faculty funds primarily comprised of donations or dues from faculty members, will be limited to those of token nature. The Superintendent/Principal must first grant approval of such gifts.

Personal Loans/Accommodations

The student activity funds will not be used to grant accommodations, loans, advance of pay or any other direct benefit to an individual. Nor will the funds be used to cash checks of any kind.

Grant Activities

Any grant activity awarded to an individual school should be reported to the Finance & Personnel Director. Any grant award that is in excess of $500 must be maintained through the Central Office, with the exception of scholarship funds. Account numbers and budgets will be set up for grants in excess of $500 as to comply with the School grant procedures.

Reimbursements for grants that are awarded as “reimbursement only” must be requested in a timely manner to ensure that funds are received prior to June 30 of each year.

Accounting Procedures

General

It is the principal’s responsibility to see that all money collected and disbursed by the school is handled in an auditable manner. The following should be the standard guidelines utilized to establish and maintain adequate records.

Writing Receipts

Writing a receipt serves to protect those who handle money as well as to provide the security of funds. It serves as documentation to prove the handling of funds. Receipting also provides for a more thorough annual audit of school funds. All persons, including teachers and staff members, are responsible and totally liable for all funds that they receipt.

Teachers collecting more than $5 per student must write a receipt for each student. Teachers collecting $5 or less per student may receipt the sum of the funds collected on one receipt, providing that there is a list of the students and the amount paid to support this receipt.

Only pre-numbered, duplicate receipt books will be used.

The bookkeeper, or another member of the school office, should keep a list of all receipt books by number and to whom each has been issued. Receipt books are to be issued to specific individuals, not to a class or group. If a teacher is replaced, then a new receipt book should be issued to the replacement. Students are not permitted to use receipt books.

Receipts will be issued, by the teacher or other school personnel, for all funds received by the school.

All monies collected by teachers must be turned into the office daily. The receipt book must be presented to the appropriate personnel for verification when turning in funds. Funds should be counted by the bookkeeper in the presence of the individual turning in the funds. This avoids any discrepancies arising over the amount submitted.

Every precaution must be taken to assure that receipts are not lost or stolen. In the event this does occur, the bookkeeper must submit a letter to the Principal stating the nature of the incident.

No part of the receipt should be filled in prior to the time that the money is collected from the individual.

Receipts must be written in ink.

The activity (ies) for which the money is collected is (are) to be recorded on each receipt.
When any error is made on a receipt, it should be voided and a new receipt issued. When a receipt is voided, the original must remain in the book and the word "void" written across both the original and the duplicate. If the original has been removed, it must be securely replaced in the receipt book over its corresponding duplicate.

The duplicate pages in the receipt book must not be altered or destroyed in any way.

All spaces on the receipt must be filled in and the amount indicated in both letters and numerals in the appropriate space.

When teacher's collections for the day have been made, he/she will perform the following steps:

Count all of the money collected.
Add the amounts of all receipts written.
Assure that the total amount of money collected matches the total of the receipts written; if they do not, determine why.
Take the money and the receipt book to the Finance & Personnel Director designated to receive collections for the school.
The Finance & Personnel Director will then count the money in the presence of the teacher, verify the form totals, and sign the form that has been filled out.
The teacher will then obtain a receipt from the Finance & Personnel Director that matches the total amount of money submitted on the form. This must be done in the presence of the teacher since he/she is responsible for the money until a signed receipt is received back from the office designee.

Receipts should be entered into the School’s accounting system on a daily basis.

Depositing Monies

All checks received and receipted should be marked for deposit only and deposited.
Cash should be received for any NSF or bad checks. Money for an NSF check should be re-deposited on a separate deposit slip marked "RE-DEPOSIT".
Deposits should be made at least daily or when $100 or more is accumulated in the office.
Prepare deposit slips for cash/checks received. Verify amount of deposits to total of related receipts. Indicate the receipt numbers on the deposit slip.

Disbursements/Procurement

All purchases of goods or services made from the pupil activity fund accounts are to be supported by the prior submission of a "Check Request for Payment" form by the fund sponsor to the bookkeeper. Purchases made or committed without the prior submission of the approval form are subject to the approval of the billing invoice for payment by the Superintendent/Principal, who may decline responsibility for the payment on the part of the pupil activity fund and have the vendor concerned seek settlement from other sources.

Checks must never be written to "cash".
All requests should be prepared and signed by the appropriate fund sponsor, and submitted to the bookkeeper.
The bookkeeper will verify the availability of funds and submit to the principal for his/her approval.
The individual receiving the goods is required to indicate in writing the date of receipt and his/her name on the invoice or other appropriate document.
Reimbursement for expenditures of personal funds must be supported by receipted billings, cash register tapes, invoices, etc.
All disbursements are to be made by check and signed by the Principal/Finance & Personnel Director. No cash transactions should occur.
Under no circumstances should the school write checks to supplement payroll by paying employees for stipends, additional duties, overtime, etc. All payments for work performed must be processed through payroll
Funds must not be retained on hand for the purpose of supporting a check cashing accommodation.
Blank checks should not be pre-signed.

All invoices, once paid, should be filed with a copy of the check. Principal approval should be clearly stated on the invoice.
Checks should be written in a sequential number order. Any checks written out of sequence must be documented and explanation remitted to the Director of Finance on a monthly basis.

Voiding of Checks

Several sets of circumstances which may surround the voiding of checks are discussed below:

Voided before entry in the journal: The check should clearly be marked as "Void". Retain the check in the files with a footnote stating reason for voiding.
Voided after entry in the journal but prior to issue: Enter the transaction on the books as a void, mark check as "Void", and reverse the entry on the books.
Voided after entry in the journal and after issue: Such a situation occurs when you have knowledge that a check has been lost or destroyed and a new check is to be issued as a replacement, or that a check was issued in error. The following procedures are necessary:

Call the bank to make sure the check has not already cleared the bank.
If it has not cleared, then a stop payment must be issued.
An adjusting entry into the books should be made as in #2 above, to reverse the entry previously made by issuance of the check.

Interest/Bank Fees and Charges

Interest earned should be entered into the School’s accounting system (CSI) as a receipt on a monthly basis.
Fees, charges for checks, returned checks, etc., should be entered into the School’s accounting system (CSI) as a journal entry on a monthly basis.

Correction of Posting Errors

Posting errors should be corrected before posting if possible. If the error is discovered after the monthly posting, correction will be by adjusting entry and the erroneous entry will remain intact.

Bank Reconciliations

Finance Director will perform bank reconciliations on a monthly basis.
There should only be one checking account established for the school activity fund for each school.
All banking accounts, including any investments, should be fully collateralized by the financial institution.
Bank statement reconciliations should be turned into the Superintendent/Principal with the reconciliation to the accounting system, (CSI) on a monthly basis.

POLICY: DFF – STUDENT ACTIVITY FUNDS

Revenues collected from athletic competitions, admissions to school entertainment events, profits from school stores, club and class dues, and student organization fundraising activities shall be deposited and accounted for in a student activities fund maintained at the school. Within this fund, separate accounts will be maintained for accounting purposes. These revenues will be considered school unit funds under the direct control of the Finance Director, who may develop and implement procedures relative to these funds, and delegate specific responsibility for deposits, expenditures, and record keeping to the appropriate staff. Procedures for management of student activities funds shall be consistent with sound business and accounting practices.

Student activity funds are to be used only for student activities that augment Acton School’s programs; they are not intended to replace school funding for school programs and activities. Funds raised by approved student clubs or organizations or from classes shall be expended to benefit the specific club or organization or class. All expenditures from student activities funds must be approved in advance by advisor for that specific activity.

Student activity funds are part of the total fiscal operation of Acton School Department and shall be audited as part of the School’s annual audit.

Cross Reference: DI-Fiscal Accounting and Reporting

Adopted: May 8, 2018

Reviewed: March 10,2022

Audit Preparation

Preparation for the annual fiscal year end audit should include provision for work space for the auditors.

The following records must be readily available to the auditors:

Ledgers and journals
Deposit slips
Bank statements
Monthly financial statements
Bank reconciliations
Reconciliation to School accounting system
Paid bills files
Receipt books
Records of savings accounts or investments
Athletic records, including ticket records

POLICY: DIE - AUDITS/FINANCIAL MONITORING

The school system's financial accounts shall be audited annually by an outside auditor approved by the School Committee, based on the July 1 to June 30 fiscal year. The Superintendent/Principal / Finance Director shall be responsible for working with auditors in their conduct of annual or other audits as required. The results of the audit shall be published in the Annual Town Report.

Legal Reference: 20-A: Education Part 3: Elementary and Secondary Education Chapter 221: School Records, Audits and reports Subchapter 2: Audits § 6051 School Administrative Units

Adopted: February I2, 2002

Reviewed: March 14, 2018, December 8, 2022

RECORD RETENTION

The School must maintain school records in accordance with the record retention requirements of the Secretary of State, Maine State Archives, Chapter 10: Rules for Disposition of Local Government Records, Schedule L: School Records.

Link to entire Chapter 10: Rules for Disposition of Local Government Records - to find the School Records section of Chapter 10, see Schedule L.

Is the retention period for federal records the same as for non-federal records?

No. Retention and access requirements for federal records are in accordance with 34 CFR, Part 80.42.

CONFLICT OF INTEREST AND CODE OF ETHICS

Employment in the Acton School Department is a privilege entrusted by the public. Employees of the School “must adhere to the highest levels of ethical conduct to preserve the integrity of the governmental process and avoid conflicts of interest.” * All Acton School Department employees are responsible for reading and complying with the information addressed in the Acton School Department Conflict of Interest adopted on January 9, 2018. It is also imperative that immediate family members inform an Acton School Department employee of any intent of their employer to do business with the Acton School Department so that the Acton School Department employee may attend to any potential conflict of interest issue.

Reviewed by the School Committee 10/15/2014

Reviewed: January 9, 2018

APPENDIX A

Sample Town Warrant

TOWN OF ACTON, MAINE

SPECIAL TOWN MEETING WARRANT

ROBERT ANDERSON

A CONSTABLE IN THE TOWN OF ACTON

YORK, SS

GREETINGS:

In the name of the State of Maine you are hereby in Town affairs to assemble at the Acton Town Hall on Tuesday, April XX, 20XX at 8:00am in the morning, to act on the following articles. requested to notify and warn the inhabitants of said Town of Acton, qualified to vote

ARTICLE 1

To choose a Moderator for said meeting.

After the election of Moderator, the polls will be open from 8:00am - 8:00pm to vote on the following referendum questions:

ARTICLE 2

Shall Town appropriate the sum of $X,XXX,XXX and raise the sum of $X,XXX,XXX for the 20XX-20XX School Budget?

The Town of Acton school budget submitted in Article 2 totals $X,XXX,XXX. It includes locally raised funds in the amount of $X,XXX,XXX to be assessed to Town taxpayers in accordance with state law. The locally raised amount exceeds the State’s Essential Programs and Services funding model by $X,XXX,XXX.

This budget includes these cost centers and amounts:

Cost Center	Amount Appropriated
Regular Instruction	$X,XXX,XXX
Special Education	$X,XXX,XXX
Career and Technical Education	$ 0
Other Instruction	$XX,XXX
Student and Staff Support	$XXX,XXX
System Administration	$XXX,XXX
School Administration	$XXX,XXX
Transportation and Buses	$XXX,XXX
Facilities Maintenance	$XXX,XXX
Debt Service and Other Commitments	$ 0
All Other Expenditures	$XXX,XXX
Summary of Total Authorized School Budget Expenditures:	$,XXX,XXX

School Committee Recommends a “Yes” Vote

Warrant and Finance Recommends a “Yes/No” Vote

ARTICLE 3

Shall the School Committee be authorized to expend such other sums as may be received from federal or state grants or programs or other sources during the fiscal year for school purposes provided that such grants, programs, or other sources do not require the expenditure of other funds not previously appropriated.

School Committee Recommends a “Yes” Vote

Warrant and Finance Recommends a “Yes/No” Vote

ARTICLE 4

To see if the Town of Acton will appropriate the receipt of certain Federal and State Grants and carry any previous balances for all Grant Revenue Accounts.

School Committee Recommends a “Yes” Vote

Warrant and Finance Recommends a “Yes/No” Vote

ARTICLE 5

To see if the Town of Acton will appropriate the sum of $XXX,XXX from the Town’s unexpended funds to the School’s Designated Reserves Capital Account and to expend funds from that Reserve Account. This account is used for emergency capital repairs.

School Committee Recommends a “Yes” Vote

Warrant and Finance Recommends a “Yes/No” Vote

Signed the ___________ day of March 20XX.

__________________________________________

David Winchell, Jr, Chairman

_____________________________________________

Tom McGurty

_________________________________________

Kimberly Stacey Horn

APPENDIX B

Sample Budget Book

DI-R1 Acton School Accounting Procedures Manual

INTRODUCTION

POLICY: DA - FISCAL MANAGEMENT GOALS/PRIORITY OBJECTIVES

INTERNAL CONTROL SYSTEM

POLICY: DIA - ACCOUNTING SYSTEM

GOVERNMENTAL ACCOUNTING FUND ACCOUNTING SYSTEM

POLICY: DIA - Fund Balance Policy (Developed for GASB 54)

ACCOUNT CODING SYSTEM

POLICY: DBL - EXPENDITURE CATEGORIES

BUDGETING

POLICY: DI - FISCAL ACCOUNTING AND REPORTING

POLICY: DB - ANNUAL BUDGET

POLICY: DBD - BUDGET PLANNING

POLICY: DBD-R - BUDGET PLANNING

BUDGET CALENDAR

POLICY: DBG - BUDGET HEARINGS AND REVIEWS

BUDGET BOOK

POLICY: DBF - DISSEMINATION OF BUDGET RECOMMENDATIONS

POLICY: DBF-R - DISSEMINATION OF BUDGET RECOMMENDATIONS

BUDGET WARRANT

POLICY: DBH - BUDGET ADOPTION PROCESS

RESERVE FUNDS / BUDGET TRANSFERS

GRANT PROCEDURES

PURCHASING

POLICY:DJ - BIDDING/PURCHASING REQUIREMENTS

POLICY: DJH - PURCHASING AND CONTRACTING

PROCUREMENT STAFF CODE OF CONDUCT

POLICY: DJH-R - PURCHASING AND CONTRACTING

STATEMENT OF PROCUREMENT STAFF CODE OF CONDUCT

SALES AND USE TAX REQUIREMENTS

PAYROLL

POLICY: DLB - TAX SHELTERED ANNUITIES

GENERAL LEDGER RESPONSIBILITIES

POLICY: DM - CASH IN SCHOOL BUILDINGS

POLICY: DIA-R - ACCOUNTING SYSTEM

ACCOUNTING FOR CAPITAL ASSETS

POLICY: DID – INVENTORIES

POLICY: DN - DISPOSITION OF SCHOOL PROPERTIES

STUDENT ACTIVITY FUNDS

POLICY: DFF – STUDENT ACTIVITY FUNDS

POLICY: DIE - AUDITS/FINANCIAL MONITORING

RECORD RETENTION

CONFLICT OF INTEREST AND CODE OF ETHICS

APPENDIX A

APPENDIX B

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