Board Policy 302 – Income
|302.01 Handling of Cash and Other Funds Received (Revised 11/26/07)(Revised 8/27/12)(Reviewed 3/12/18)||302.01A|
|302.02 Tuition Fees (Revised 11/26/07) (Revised 1/14/13)||302.02A|
|302.03 Tuition Fees for Non-Resident Pupils (Deleted 5/24/99)|
|302.04 Use of School Property and Equipment (Deleted 11/26/l07)|
|302.05 Educational Materials (Revised 11/26/07) (Revised 5/14/12)||302.05A|
|302.06 Disposition of Obsolete Equipment and Supplies (Revised 11/26/07)(Reviewed 8/27/12)(Revised 3/12/18)||302.06A|
|302.07 Leases and Rentals of Property (Reviewed 4/12/10)(Reviewed 8/24/15)(Reviewed 3/12/18)||302.07A|
|302.08 Gifts, Grants, and Bequests (Revised 11/26/07)(Revised 9/26/12)(Reviewed 3/12/18)||302.08A|
|302.10 Sale of Bonds (Reviewed 11/26/07) (Reviewed 5/14/12)(Reviewed 3/12/18)||302.10A
|302.11 Investments (Deleted 1/24/00 — combined with 302.17)|
|302.12 Depository of Funds (Reviewed 11/26/07) (Revised 1/14/13)(Reviewed 3/12/18)|
|302.13 Anticipatory Warrants (Revised 8/9/10)(Reviewed 8/24/15)(Reviewed 3/12/18)|
|302.14 Loan Agreements: Voter Approved Physical Plant and Equipment Levy (Revised 11/26/07)(Reviewed 3/12/18)|
|302.15 Electronic Fund Transfers (Reviewed 11/26/07) (Reviewed 5/14/12)(Reviewed 3/12/18)||302.15A|
|302.16 Cash Receipts (Deleted 4/10/00)|
|302.17 Investments (Reviewed 11/26/07)(Reviewed 2/11/13)(Revised 3/12/18)||302.17A|
Handling of Cash and Other Funds Received
Local, State, Federal, and Miscellaneous Income
All income received by the District shall be classified under the official accounting system and be deposited into the official District depository as set by the Board and in accordance with the laws of the State of Iowa.
Cash in an amount greater than $25.00 may not be accepted on behalf of the District without providing an approved receipt. All transactions involving cash will be completed with a receipt with appropriate documentation for the building showing cash being received.
Monies in School Buildings
Money is to be deposited according to guidelines established by the administration in the “Cash Policies and Procedures Manual.” Any money left overnight in a school building must be held in a secured location.
It is the responsibility of the Superintendent or superintendent’s designee to develop appropriate administrative regulations dealing with cash receipts.
Cross Reference: Administrative Regulation 302.01A
Legal References: Iowa Code §§ 291.12, 126.1
By action of the Board 9/20/76, 2/14/83; Reviewed 10/14/91; Revised and combined 1/24/00; Revised 11/26/07; Revised 8/27/12
Edited 11/07; Reviewed 3/12/18
Tuition & Fees
The establishment of non-resident tuition is addressed in policy 501.02 Non-Resident students.
The fee for summer school or other programs outside of the curricular day will be established by the Superintendent or designee in compliance with Iowa code.
Cross References: Board Policy 501.02, Administrative Regulation 302.02A
Legal References: Code of Iowa Chapters 282.6, 282.1, 282.24
By action of the Board 9/20/76, Revised 2/14/83, Revised 3/11/91, 9/20/93; Revised 5/24/99; Revised 11/26/07
Edited 11/07; Revised 1/14/13
BUSINESS OPERATIONS DELETED 11/26/07
Use of School Property and Equipment
By action of the Board 9/20/76, 2/14/83; Reviewed 10/14/91; Revised 1/24/00; Deleted 11/26/07
The Superintendent or superintendent’s designee will establish the procedures to administer the sale of educational supplies and materials, not including textbooks, to students.
Cross Reference: Administrative Regulation 302.05A
By action of the Board 9/20/76; Revised 2/14/83; Reviewed 10/14/91; Revised 1/24/00; Revised 11/26/07
Edited 11/07; Revised 5/14/12
Disposition of Obsolete Equipment and Supplies
Before the Board may sell, lease for a period in excess of one year, or dispose of any property greater than $5,000 the Board shall hold a public hearing on the proposal. However, property having a value less than ($5,000) other than real property, may be disposed of by any procedure which is adopted by the Board. Each sale shall be published at least once each week for two consecutive weeks in a newspaper having general circulation in the District.
The administration is authorized to dispose of property that it cannot sell. (“Dispose of” is to be interpreted by the administration to mean, but not necessarily be limited to, the following possibilities: offering goods, furnishings, equipment, or supplies to somebody in need; recycling these materials; or discarding them, which ever is in the best interest of the District and the community.)
The funds derived from the disposition will be deposited into the official District depository as set by the Board and in accordance with the laws of the State of Iowa.
Cross Reference: Administrative Regulation 302.06A
Legal References: Iowa Code §§297.15–20, 297.22
By action of the Board 9/20/76; Revised 2/14/83, 3/11/91, 11/8/93; Revised 8/14/00; Revised 11/26/07; Reviewed 8/27/12
Leases and Rentals of Property
The Board may lease or rent land owned by the District for farming or other purposes. The terms shall be established by the Board, and reasonable efforts will be taken to use multiple-year lease periods when possible.
The Superintendent or superintendent’s designee will review each renter in an effort to ensure that the business of the renter is complimentary to the mission of the District, meets all legal requirements and regulations, and has a firm financial basis.
Cross Reference: Administrative Regulation 302.07A
Legal Reference: Iowa Code Chapter 470
By action of the Board 9/20/76; Revised 2/14/83, Reviewed 3/11/91; Revised 9/29/97; Revised 1/12/04, Reviewed 4/12/10; Reviewed 8/24/15
Gifts, Grants and Bequests
To fulfill its mission of enhancing each student’s abilities by providing a quality education enriched by our diverse community, the Davenport Community School District may accept charitable gifts, grants or bequests from individuals, corporations, foundations, and other entities. The District will comply with all applicable federal, state and local statutes regulating the acceptance of charitable gifts and will confer with legal counsel to protect the interests of the district. The Board of Directors, in consultation with the Superintendent and relevant district personnel, has the sole responsibility for determining whether the acceptance of a gift, grant or bequest is in the best interest of the District.
Definitions of commonly accepted types of gifts:
A. Gift – is an outright payment by cash, check, credit card or electronic funds transfer.
B. Securities constitute a gift and will be credited on receipt at the mean value between high and low on the date the securities irrevocably become the districts.
C. Real estate or personal propertywill be credited at fair market value. For gifts of $5,000 or less, the donor must furnish the gift value. Over $5,000, the gift will be credited upon an independent appraisal contracted and paid for by the donor. Title to a gift of property should be clear and unencumbered.
- The District will undertake careful evaluation and due diligence of the desirability of the property, condition and marketability, prior to acceptance.
- The donor may be asked – at his or her expense – to provide investigative audits to ensure the desirability and condition of the property.
- The district’s practice is to sell real estate but has the discretion to hold the property if deemed desirable.
D. In-Kind gifts – are not cash but are a form of personal property that will be retained by the district in fulfillments of its mission. The use and need of the property should be clearly documented and approved by the superintendent or designee.
1. In-kind gifts shall be valued at their full fair market value. Gifts with fair market values exceeding $5,000 are subject to independent appraisal as required by the IRS.
2. Careful consideration should be given to maintenance, storage and transportation costs of all gifts in-kind.
Bequests – is a gift provided through a Last Will and Testament. If notified in advance of a donor’s bequest intention, the District will attempt to secure reasonable documentation e.g., a copy of the will or a formal letter from the donor.
F. Grants – typically support a sponsored project through an award or agreement binding the district to a scope of work that is specified to a substantial level of detail; financial reports/budgets are required and may be audited; a period of performance is specified or the agreement provides for the disposition of tangible or intangible properties (equipment, copyright, patents, etc.) A sponsored project may be a grant, contract (or subcontract), or a cooperative agreement. (Definitions are adapted from OMB A-21.) In addition, the sponsored project may be for the purposes of program development, curriculum development and/or research.
The District has developed specific grant-seeking guidelines. All grant applications must be coordinated through the District’s Office of Development.
Use of Gifts – The district will deposit proceeds in a trust and agency fund to be used in accordance with the terms of the gift, devise or bequest. Regardless of the method of giving, generally gifts are given for four purposes:
A. Unrestricted: donor makes no restrictions on the use of the funds; these tend to support the general fund unless directed otherwise by the Board.
B. Restricted for district programs by the donor.
C. Capital: restricted by the donor for capital projects.
D. Endowment: restricted by the donor to be in perpetuity with the interest either spent for a specific purpose (such as scholarships) or reinvested in the principal to continue to grow the endowment. Scholarship gifts are managed by the Davenport Schools Foundation.
- Cross Reference: Board Policy 103.3 Gifts to School Personnel; Administrative Regulation 302.08A
- Legal Reference: Iowa Code §§ 565.6, 279.42 Research this
- By action of the Board 9/20/76; Revised 2/14/83, Reviewed 10/14/91; Revised 1/24/00; Revised 8/14/00; Revised 11/26/07; Revised 9/24/12
- Reviewed 3/12/18
Sale of Bonds
The Board shall, under legal petition, conduct an election for authorization to issue bonds. The election, the issuance, the sale, the receipts from sale, and the payment of the bonds shall be made in accordance with the statutes of the State of Iowa.
Cross References: Administrative Regulation 302.10A
Legal References: Iowa Code §§ 75.1-75.10, 76.1-76.18, 298.18-298.24, 298A.2
By action of the Board 9/20/76, 2/14/83; Reviewed 10/14/91; Revised 1/24/00; Revised 11/26/07
Edited 11/07; Reviewed 5/14/12; Reviewed 3/12/18
Depository of Funds
At the annual meeting the Board will designate by resolution, to be entered in the official minutes of the Board, the name and location of the bank or banks selected as the official school district depositories. The Board will also designate the maximum amount that may be kept on depository.
Legal Reference: Iowa Code § 12C.2
By action of the Board 9/20/76, 2/14/83; Reviewed 10/14/91; Reviewed 1/24/00; Reviewed 11/26/07
Edited 11/07; Revised 1/14/13; Reviewed 3/12/18
When there are insufficient funds available to pay legal obligations, the district may issue tax anticipatory warrants for the payment of these obligations. The District Treasurer may provide for the payment of such an obligation by drawing an anticipatory warrant payable to a bank or other business entity authorized by law to loan money in an amount legally available and believed to be sufficient to cover the anticipated deficiency.
The Treasurer may offer the warrants for public sale by publishing proper notice. Sealed bids may be received at any time up to the time all bids are opened. The treasurer shall sell the warrants to the bidder offering the lowest interest rate, provided that the treasurer may reject all bids and re-advertise the sale of the warrants.
- Legal References: IRS CODE: 148(a) &amp; (b); 265(b)(3)(B); 501(C)3. IOWA CODE: 12C; 74.1(2); 74.9; 298.15; 298.16; 298.20
- By action of the Board 3/4/85, Revised 8/12/85, Revised 10/14/91; Revised 6/10/96; Revised 9/29/97; Revised 11/24/03; Revised 8/9/10
- Edited 11/03; 8/10; Reviewed 8/24/15; Reviewed 3/12/18
Loan Agreements: Voter Approved Physical Plant and Equipment Levy
The Board shall notify the public, by placing the loan agreement on the Board agenda, of its intentions to borrow on the anticipated revenue of the Physical Plant and Equipment Levy (PPEL) prior to entering into loan agreements with banks, investment bankers, trust companies, insurance companies, or an insurance group. Any loan agreement shall be in a form approved by the Board. The proceeds of said loan shall be placed in a separate account. This loan must mature within the period of time authorized by the voters, bearing interest at a rate which does not exceed the limits provided under Chapters 74 and 74 A.
Legal References: IRS Rules and Regulations; Iowa Code Chs. 74, 74A, §§ 297.35-297.36
By action of the Board 3/4/85; Reviewed 10/14/91; Reviewed 1/24/00; Revised 11/26/07
Edited 11/07; Reviewed 5/14/12; Reviewed 3/12/18
Electronic Fund Transfers
The Board authorizes the use of electronic fund transfers for such purposes as reviewed and approved by the Chief Financial Officer.
The Chief Financial Officer is responsible for the establishment and maintenance of adequate controls, and such controls will be reviewed and audited during the annual fiscal audit. Controls will be established in accordance with Administrative Regulations.
Cross Reference: Administrative Regulation 302.15A
By action of the Board 4/13/87; Reviewed 10/14/91, Revised 2/7/94, Revised 4/14/97; Revised 8/12/02; Reviewed 11/26/07
Edited 11/07; Reviewed 5/14/12; Reviewed 3/12/18
District funds in excess of current needs shall be invested in compliance with this policy. The goals of the District’s investment portfolio in order of priority are:
To provide safety of the principle in the investment portfolio
To maintain the necessary liquidity to match expected liabilities
To obtain a reasonable rate of return
In making investments, the District shall exercise the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent and reasonable person acting in a like capacity and familiar with such matters would use to meet the goals of the investment program. When investing assets for a period longer than 270 days, competitive investment proposals for comparable credit and term investments shall be requested from a minimum of three investment providers.
District funds are monies of the District, including operating funds. “Operating Funds” of the District are funds that are reasonably expected to be used during a current budget year or within 15 months of receipt. When investing operating funds, the investments must mature within 397 days or less. When investing funds other than operating funds, the investments must mature according to the need for the funds.
The Board authorizes the Treasurer or a designee, in conjunction with the Superintendent and the Chief Financial Officer, to invest funds in excess of current needs in the following investments:
Interest bearing savings, money market, and checking accounts at the District’s authorized depositories
Iowa Schools Joint Investment Trust Program (ISJIT)
- The Education Liquidity Fund (TELF)
To the extent allowed under IA Code 12B.10 Section 4C,obligations of the United States Government, its agencies, and instrumentalities, commercial paper or other short-term corporate debt
Certificates of Deposit and other evidences of deposit at federally insured Iowa depository institutions
Interest earned on all District monies will be allocated on a monthly basis. The allocations will be based on the bank balance of each fund at the end of the month. The Self-Insurance Fund and the Agency Fund do not receive any interest allocation.
Assets shall not be invested in reverse repurchase agreements or futures and options contracts. It shall be the responsibility of the Treasurer or a designee, in conjunction with the Superintendent, to oversee the investment portfolio in compliance with this policy and the law. Where possible, assets shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer, or a specific class of securities.
If outside consultation is desired, it shall be the responsibility of the Treasurer or a designee, in conjunction with the Superintendent, to bring a contract with an outside person to invest District funds, to advise on investments, to direct investments, to act in a fiduciary capacity, or to perform other services to the Board for review and approval. The Treasurer or a designee, in conjunction with the Superintendent, shall also provide the Board with information about verification of the outside person’s fiduciary bond. Contracts with outside persons shall include a clause requiring the outside person to notify the District, within 30 days, of any material weakness in internal structure or regulatory orders or sanctions against the outside person regarding the services being provided to the District and to provide the documents necessary for the performance of the investment portion of the District audit. The compensation of the outside persons shall not be based on the performance of the investment portfolio.
The Treasurer or a designee, in conjunction with the Superintendent, or superintendent’s designee, shall be responsible for reporting to and reviewing for the Board on a quarterly basis the investment portfolio’s performance, transaction activity, and current investments, including the percent of the investment portfolio by type of investment and by issuer and maturities. The report shall also include trend lines by quarter over the last year and year-to-year trend lines regarding the performance of the investment portfolio. It shall also be the responsibility of the Treasurer or a designee, in conjunction with the Superintendent, or superintendent’s designee, to obtain the information necessary to ensure that the investments and outside persons doing business with the District meet the requirements outlined in this policy.
The Treasurer or a designee and all officers and employees of the District involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
It shall be the responsibility of the Superintendent, or superintendent’s designee, to cause to be delivered a copy of this policy and any amendments to the District’s Board, depositories, auditor, and every fiduciary or third party assisting with or facilitating the investment of District funds.
It shall also be the responsibility of the Superintendent or superintendent’s designee, in conjunction with the Treasurer and the Chief Financial Officer, to develop a system of investment practices and internal controls designed to prevent losses. The investment procedures shall explain the officers’ and employees’ responsibility for elements of the investment process.
This Investment Policy shall be reviewed every five years or more frequently as appropriate.
Legal References: Iowa Code Ch. 12C, §§ 11.6, 12.62, 12B.10-12B. 10B, 22.14, 279.29, 502. 701, Iowa Code 2001 §§ 633.301 to 633.4309 (Uniform Prudent Investor’s Act) IA Code 12B.10 Section 4C
By action of the Board 9/14/92; Revised 2/8/93; 2/7/94; Revised 1/24/00; Revised 4/23/01; Revised 7/08/02; Reviewed 11/26/07 with more consideration in 2007-2008; Reviewed 2/11/13