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Section 3000 – Fiscal Management

TC-3000-1

3000 - FISCAL MANAGEMENT


3050 Budget Planning
3100 Annual Operating Budget
Budget Preparation
3170 Budget Adjustment Authority
3200 State and Federal Funding Proposals and Applications
Revenue from Federal Sources
3240 ISD Reimbursement for Local District Operated Special
Educational Programs
3280 Borrowing, Bonds, and Debt Service
3300 Investment of Funds
3340 Fees, Payments, and Rentals
Rental and Leasing of District Property
Income and Payments from Sales and Service
Non-Sufficient Fund Checks
3400 Depository of Funds
3405 Electronic Transaction of Funds
Internal Accounting
3410 Safeguarding of Monies and Equipment
3420 Monies in School Buildings
3430 Bonded Employees
3490 Inventories—Fixed and Controlled Assets
Fixed Asset Accounting System
3500 Audits
3550 Authorized Signatures
3570 Petty Cash Accounts
3580 Payroll Procedures and Schedules
3590 Tax Sheltered Annuity Programs
3600 Reimbursement of Expenses (Cf. 1168, 5330)
3605 District Procurement Cards
3610 Purchasing Goods and Services
Purchasing From District Employees
Purchases through the District
Emergency Purchases
Credit Cards
Installment or Lease Purchases
3620 Emergency Purchases
3730 Vendor Relations
3750 Payment Procedures
3800 Fund Raising and Student Activity Funds
Soliciting Funds From and By Students
School Groups
3900 Disposal of Surplus Books, Equipment, and Supplies
3950 Surplus Land or Buildings

Policy Manual
Section 3000 – Fiscal Management
3050 Budget Planning 3050

The Board shall collect and assemble the information necessary to

discharge its responsibility for the fiscal management of the District and to plan

for the financial needs of the educational program. The Board will maintain both

short and long-range projections of District financial requirements.

Accordingly, the Board directs the Superintendent to:

A. Project an estimated expenditure and revenue budget for one year in

the future.

B. Maintain a plan of anticipated local, state, and federal revenues.


C. Report to the Board any serious financial implications that emerge from

the District’s ongoing fiscal planning.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3050-R Budget Planning 3050-R

The Board encourages the use of a modified site-based budget

development that includes the following major components:

1. The Superintendent and staff will establish a reasonable and prudent

District total revenue target;

2. Each Assistant Superintendent will use a variety of methods to elicit

opinions from staff, and, when appropriate, parent(s)/guardian(s) and

students;

3. Each Assistant Superintendent will present the recommended budget to


the Superintendent for review;

4. The Board will schedule public hearings for presentation of the budget

plan emphasizing the following:

a. Program changes;

b. Procedures used to elicit recommendations, and

c. Spending priorities.

5. The Board will review the full budget at a public hearing according to law.

Policy Manual
Section 3000 – Fiscal Management
3100 Annual Operating Budget 3100

The District’s budget shall be prepared by the Superintendent in

cooperation with selected District employees and shall reflect the Vision, Mission

and Strategic Plan of the District.

The Superintendent shall follow the adopted budget.

It shall be the goal of the Board to fund the operating budget according to

approved fiscal and budgetary procedures adhered to and required by the State

of Michigan.

Budget Preparation
The annual budget represents a financial expression of the District’s

educational plan. The budget shall be designed to carry out that educational

plan in a thorough and efficient manner; to maintain, properly, District facilities;

and to honor continuing obligations of the District.

A proposed budget requires the critical analysis of every member of the

Board during its preparation. Once adopted, the budget deserves the support of

all members of the Board regardless of their position before its adoption.

In order to allow adequate time for the preparation and review of the

proposed budget, the Board directs the Superintendent to present a budget to

the Board and all available information associated with the budget in compliance

with current law in sufficient time to allow proper review.

When presented to the Board for review and/or adoption, the budget shall

include:

A. The proposed expenditure in each financial category for the ensuing year.

B. The anticipated expenditure in each financial category for the current year.

C. The audited expenditure and approved budget in each financial category

for the previous year.

D. The sources and amounts of anticipated revenues.

Policy Manual
Section 3000 – Fiscal Management
3100 Annual Operating Budget 3100-2

E. The amount of fund equity anticipated at the end of the current year.

F. An appropriations resolution.

Approved: December 5, 2005


LEGAL REF:MCL 141.411; 141.421a-440a; 211.209-210; 380.624-624a;
388.1702

Policy Manual
Section 3000 – Fiscal Management
3170 Budget Adjustment Authority 3170

Only the Superintendent and Assistant Superintendents are authorized to

approve adjustments and/or transfers within line items of the Board adopted

operating budget without Board approval. Such adjustments and/or transfers

shall be reported to the Board at the next scheduled budget revision. Such acts

shall not exceed the latest fund expenditure grand totals approved by the Board.

Authorization for such adjustments and/or transfers shall be included annually in

the general appropriations act.

Approved: December 5, 2005


LEGAL REF: MCL 141.421a-440a

Policy Manual
Section 3000 – Fiscal Management
3200 State and Federal Funding Proposals and Applications 3200

Revenue from Federal Sources

It is an objective of the Board to provide quality educational opportunities

for all individuals of the District. It is the intent of the Board to study all federal

legislation, with this philosophy in mind, selecting those particular parts of the

legislation which will help the Board to provide better educational opportunities

and programs for each student.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3240 ISD Reimbursement for Local District Operated Special 3240
Educational Programs

The Lenawee Intermediate School District Board of Education is the

governmental unit responsible for the planning and development of the systems

of special education programs and services in the Intermediate School District,

as authorized by the Michigan State Legislature in the Revised School Code. As

part of that responsibility, the Board of Education provides administrative and

financial support to local public school Districts for their operation of special

education programs and services.

The financial support provided to local Districts must be distributed in a

legal and equitable manner. The administrative procedures for distribution of

ISD funds shall meet minimum state standards of local contribution and follow an

―added-cost‖ concept. This will assure the non-discriminatory expenditure of

funds and maintain local ownership in the programs. The distribution must be

responsive to changing circumstances, grounded in allowable cost, maintain the

fiscal integrity of the ISD, and include appropriate budget control measures. The

distribution formula and related administrative procedures must encourage the

development of a full continuum of placement options available to students with

disabilities regardless of location of their home in the Intermediate School

District. When the LISD must prorate its reimbursement, local District paid tuition

must assure full added-cost reimbursement to local District operating regional

classrooms, in accordance with required contracts, provision of special education

to non-resident handicapped students.

The LISD will maintain a five percent fund equity (5% of current year’s

projected expenditures) in the LISD Special Education General Fund.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3240-R ISD Reimbursement for Local District Operated Special 3240-R
Educational Programs

PART A. BASIC REIMBURSEMENT

(1) Teacher Assistants

Salary and employment related expenses mandated by state or federal law,

such as retirement contributions and Social Security payments, and

professional development expenses, (up to $75.00 per assistant per year) for

locally employed special education teacher assistants (mandated and non-

mandated) are eligible for ISD reimbursement. Expenses for health, dental or

vision insurance shall not be reimbursed.

(2) Instructional Supplies, Capital Outlay/Equipment, and Professional

Development:

Instructional materials and supplies (including texts, consumable workbooks,

instructional kits, etc.) are instructional supplies purchased specifically for

instruction of students with disabilities and not otherwise provided to all non-

handicapped students/general education classrooms in the building, and

equipment that is valued at less than $1,000.00 Equipment and furniture

used only for instruction with students with disabilities, are valued at

$1,000.00 or more. Professional development experiences, including staff

training and conference attendance expenses, are reimbursable under this

policy. Reimbursement claims for any combination of supplies, equipment,

and professional development expenditures are capped at an average of

$1,225 for each special education professional employed by the District, and

are subject to pro-ration of reimbursement claims as are other eligible costs.

(3) Start-Up Costs:

For a District starting a new special education classroom, including

conversion of a local District room to regional Level II classroom status, not

including transfer/relocation of a current program to a new location within the

Policy Manual
Section 3000 – Fiscal Management
3240-R ISD Reimbursement for Local District Operated Special 3240-R-2
Educational Programs

District, specific expenses incurred for room improvements and instructional

equipment related to occupying a room or making a room more suitable for

the specific program, may be reimbursed, under the following conditions:

(A) The classroom complies with the size, light, ventilation, and heating

requirements and age/grad comparability rules of the Michigan Special

Education Rules according to inspection of the assigned ISD

administrator;

(B) The additional program has been approved for reimbursement via the

Program Development Model; and

(C) Total ISD reimbursement for any one new classroom’s ―starting costs‖

shall not exceed the following limits--$1,500.00 for LD and Resource

Rooms: $5000 for MiCI (Mildly Cognitively Impaired) with a prior

approved plan submitted to the LISD by the LEA; $1500 for EI rooms

plus additional $2,000.00 for remodeling plans including a ―time-out‖

room.

(4) Other:

The LISD shall reimburse the local public school for certain costs relating to

special education due process hearings required under the Michigan Revised

Administrative Rules for Special Education, according to the following

limitations:

(A) The LISD will not reimburse any expenses relating to a hearing covered

by the District’s liability insurance, after concerted action is taken to

clarify coverage with the carrier.

(B) The only costs eligible for LISD reimbursement include hearing officer

fees and expenses, court reporter fees, expert and witness fees, and

fees associated with independent evaluations ordered by the hearing

Policy Manual
Section 3000 – Fiscal Management
3240-R ISD Reimbursement for Local District Operated Special 3240-R-3
Educational Programs

officer or via settlement agreement. Costs eligible for reimbursement do

not include any attorney fees incurred by the District in defending or

prosecuting an action, damages, or awards or settlements of attorney

fee demands from prevailing parent(s)/guardian(s) representatives.

(C) LISD reimbursement shall be limited to fifty percent (50%) of the costs

included as eligible for reimbursement above. Reimbursement for

expenses of special education related lawsuits is not included in these

procedures and is not to be reimbursed by the LISD.

(D) The LISD will assume the cost of an independent educational evaluation

with prior approval of the LISD Special Education Director. Without the

prior approval of the LISD Special Education Director, the local District

will be responsible for the cost of these programs.

Local District indirect costs are ineligible for reimbursement.

Starting in the 1993-94 school year, the Lenawee Intermediate School

District reimbursed local school Districts’ costs for operating special education

costs in the same school year in which the expenses were made. Prior to 1993-

94, reimbursement was calculated using audited figures from the local Districts

that were available 3-4 months after the close of the fiscal year (June 30). With

the 1993-94 school year, reimbursement is calculated on estimated current year

budgets from the local Districts. This raises the possibility of over/under

payments, and adjustments/pro-rations to maintain the LISD’s fund equity

standards (5% of current expenditures). Moving to ―current year‖ reimbursement,

based on estimated budgets, rather than audited figures, increases the likelihood

of inaccurate estimates and surprise adjustments/pro-rations. Changes were

made to the reimbursement procedures to accomplish the following goals:

Policy Manual
Section 3000 – Fiscal Management
3240-R ISD Reimbursement for Local District Operated Special 3240-R-4
Educational Programs

1. Maintain the fiscal integrity of the Intermediate School District;

2. Safeguard equity among competing constituent Districts’ claims for

reimbursement; and

3. Provide a reasonable means of distributing special education millage.

The following requirements are added:

Reimbursement claims based on local special education costs for the

1992-93 school year were permanently skipped over, in accordance with

the agreement of the Lenawee County Superintendent’s Association;1

At the end of the fiscal year, 15% of the total prorated reimbursement

amount, as calculated for the June payment, is withheld pending

completion of local fiscal audits and the LISD audit of approved special

education costs;

Local District reimbursement claims shall be paid five times; four

payments are made during the current fiscal. The payment schedule is as

follows:

December 17%

January 25.5%

March 34%

June 8.5%

The final 15% payment is included with the initial payment in the following

year.

Lenawee Intermediate School District officials will request local District

budgets estimates periodically, as well as supplemental information and

fiscal audit reports, for periodic recalculation; and,

1
Action at the January 13, 1993 meeting of the Lenawee County Superintendent’s Association.

Policy Manual
Section 3000 – Fiscal Management
3240-R ISD Reimbursement for Local District Operated Special 3240-R-5
Educational Programs

By December 31st of the following fiscal year, the escrowed accounts shall

be released in the amount necessary to reconcile final audited claims for

reimbursement. Where the amount in escrow is insufficient to pay all the

adjusted local District claims, it shall be deemed the total amount available

and the absolute limit of the Lenawee Intermediate School District current

year Special Education budget. In the event that local Districts are

overpaid, they shall be billed to repay any overpayment.

PART B. LENAWEE ISD REIMBURSEMENT FOR LOCALLY EMPLOYED

TEACHER ASSISTANTS FOR STUDENTS WITH DISABILITIES

OR SPECIAL EDUCATION CLASSROOM PROGRAMS


I. MANDATED TEACHER ASSISTANTS

The Lenawee ISD will reimburse the costs associated with

mandated classroom teacher assistants employed by the local

public schools in the same manner in which other eligible costs are

reimbursed. A teacher assistant is mandated for elementary level

Mild Cognitive Impairment classrooms when there are 12 or more

students in the room at one time. Some approved administrative

rule waivers also mandate an assistant.

II. NON-MANDATED TEACHER ASSISTANTS: SPECIAL

EDUCATION CLASSROOM AND INDIVIDUAL STUDENT

ASSISTANTS, INCLUSION AND BEHAVIORAL INDIVIDUAL

STUDENT ASSISTANTS

The Lenawee ISD will reimburse the local cost associated with non-

mandated classroom teacher assistants for special education

classrooms, and inclusion or behavioral individual assistants for

students with disabilities, when the local District has completed the

Policy Manual
Section 3000 – Fiscal Management
3240-R ISD Reimbursement for Local District Operated Special 3240-R-6
Educational Programs

Lenawee Intermediate School District’s approval process. The

Lenawee ISD reserves the right to deny reimbursement upon

failure to meet the state or ISD’s criteria or fails to complete the

procedures. Reimbursement may be prorated consistent with this

policy.

III. REIMBURSEMENT REQUEST PROCEDURES FOR MANDATED

AND NONMANDATED TEACHER ASSISTANTS

When a local public school District employs a teacher assistant to

provide service to a student with disabilities, or to serve in a special

education classroom, the costs for that assistant will either be paid

for entirely by the local District, or by a combination of local District,

state and LISD funds.

The LISD Assistant Superintendents delegate authorization for

previously approved teacher assistant positions up to 75% of the

previous year’s total full-time equivalent teacher assistant positions,

to the regional supervisors. New requests for reimbursement, or

substantially changed previously approved positions, shall be

forwarded to the Assistant Superintendent for consideration and

action. Approved forms shall be utilized for documenting the local

Districts’ requests and the Assistant Superintendent’s actions.

PART C. PROVISIONS FOR INCORPORATING APPROVED WAIVERS TO

THE MICHIGAN SPECIAL EDUCATION ADMINISTRATIVE

RULES IN THE INTERMEDIATE SCHOOL DISTRICT’S POLICY

AND ADMINISTRATIVE PROCEDURES PERTAINING TO THE

REIMBURSEMENT OF LOCAL PUBLIC SCHOOL DISTRICT

SPECIAL EDUCATION COSTS

Policy Manual
Section 3000 – Fiscal Management
3240-R ISD Reimbursement for Local District Operated Special 3240-R-7
Educational Programs

All current and new special education programs and services for

which reimbursement from the Intermediate School District is

requested that qualify to be operated under an approved waiver

must be operated under the waiver or there will be no Intermediate

School District reimbursement for local costs.

Policy Manual
Section 3000 – Fiscal Management
3280 Borrowing, Bonds and Debt Service 3280

Borrowing

Upon the initiative of the Board, the Superintendent may prepare the data

and applications regarding the borrowing of State Aid Notes, Tax Anticipation

Notes, and Bond Issues.

Bids shall be solicited for all short-term loans that the Board has

authorized. Funds shall be borrowed from the responsible organization offering

the most favorable terms, as approved by the Board.

Sale of Bonds
The Board, upon a favorable vote of the people, or by its own action, in

compliance with the laws of the State of Michigan, may sell its bonds, if required

to do so. Such bonds shall be duly advertised, prepared, and sold in

conformance with the laws of the State of Michigan.

Debt Service

It shall be the responsibility of the Superintendent to maintain all records

as to the outstanding bonds and debts encumbered against the District. He/She

shall keep this information readily available and report periodically to the Board

on the condition of these accounts.

Approved: December 5, 2005


LEGAL REF: MCL 134.1 et seq. 188.761 et seq.; 380.144; 380.1225; 380.1351-
52

Policy Manual
Section 3000 – Fiscal Management
3300 Investment of Funds 3300

Annually, the Board shall pass a resolution authorizing the Treasurer to

invest surplus funds of the District.

Investment Income

The District is authorized to make investments of available moneys from

the several funds of the District in:

1. Bonds, bills or notes of the United States, or obligations the principal an

interest of which are fully guaranteed by the United States Government.

2. Certificates of deposit issued by an state or national bank organized and


authorized to operate a bank in this state.

3. Commercial paper via pooled fund.

4. Certificates of deposit or share certificates of state or federal credit unions

organized and authorized to operate in this state.

5. Securities issued or guaranteed by agencies or instrumentalities of the

United States Government.

6. United States government or federal District obligation repurchase

agreements.

7. Bankers’ acceptances issued by a bank that is a member of the federal

deposit insurance corporation.

8. Mutual funds composed entirely of investment vehicles that are legal for

direct investment by a School District.

9. Investment pools, as authorized by the surplus funds investment pool act,

composed entirely of instruments that are legal for direct investment by a

School District.

The Treasurer, in determining the best investment, shall combine three

factors: (1) quality of commercial paper, (2) interest rate available, and (3)

accessibility of funds on short notice.

Policy Manual
Section 3000 – Fiscal Management
3300 Investment of Funds 3300-2

Local banks and those with whom the District has established a business

relationship, including banks having accounts of the District, or those from whom

the District has recently secured loans, shall be given preference for the

investment of funds.

Earnings on an investment shall become a part of the fund from which the

investment was made.

Approved: December 5, 2005


LEGAL REF: MCL 380.1223

Policy Manual
Section 3000 – Fiscal Management
3300-R Investment of Funds 3300-R

The Board also authorizes the Superintendent to open cash management

accounts for general fund monies to earn interest while not being used for

operating purposes or invested otherwise. Such accounts shall be used when

the cash flow pattern does not permit the purchases of longer-term investments

or when the rate of return is comparable or greater than is available from other

investments. Authorization to make deposits, transfers, and withdrawals from

these accounts shall be established at the annual organizational meeting of the

Board.
Interest from investments shall accrue to the fund from which the

investment was made as determined by the Board and permitted by current law.

The Superintendent shall assume the responsibility of developing cash

flow patterns for all funds in order to determine the availability of funds for

investment. Periodically, the Superintendent shall report the status of all

investments to the Board.

Policy Manual
Section 3000 – Fiscal Management
3340 Fees, Payments, and Rentals (Cf. 9250) 3340

Proceeds from fees for building or equipment use or rental shall be

credited to funds specified by the Superintendent.

Rental and Leasing of District Property

The Board may authorize the rental or lease of District property.

Income and Payments from Sales and Service

Students may undertake jobs or projects for private individuals or

community groups. The facilities of the District may be used for such activities.

All receipts shall be deposited in the general fund and used as a reimbursement
for materials and/or to purchase additional supplies and cover expenses of a

department or program.

Approved: Adopted October 6, 2003; First Revision December 5, 2005;


Second Revisions adopted January 8, 2007

LEGAL REF: MCL 380.11a; 380.1141

Policy Manual
Section 3000 – Fiscal Management
3340-R Fees, Payments and Rentals (Cf. 9250) 3340-R

Rental and Leasing of District Property

Prior to leasing District property, the Board may make known the

availability of such property to the public. The lessee shall be reputable and the

use of the buildings shall be compatible with community standards.

The terms of the lease agreement shall specify the extent to which the

lessee shall be responsible for the maintenance of the property and payment of

utilities. The lessee may be required to pay any taxes that may be assessed

against said property.


All lease agreements may, at the discretion of the Superintendent, be

prepared or reviewed by legal counsel prior to Board approval.

Income from Sales and Service

All projects undertaken by students and staff will consider the impact, if

any on competition with local businesses to the best extent possible.

The following rules and procedures shall apply to projects undertaken in

the District’s facilities:

1. Priority for Sales and Service Projects:

a. Students enrolled in the LISD’s courses/programs and alignment

with the curriculum

b. LISD and local public school District organizations

c. LISD affiliated organizations

d. Public agencies and non-profit organizations

e. Parent(s)/Guardian(s) of students enrolled in class

f. Area senior citizens

g. Students enrolled in high school

h. Individuals including school District employees

2. Customers shall sign the necessary application and release forms

provided by the school;

Policy Manual
Section 3000 – Fiscal Management
3340-R Fees, Payments and Rentals (Cf. 9250) 3340-R-2

3. Tipping for services is prohibited;

4. All individuals and outside groups shall receive an estimated cost before

the work begins. Adjustments shall be made at the time of final billing;

5. Payment shall be received releasing the product to the client;

6. Invoices for all charges shall be issued and receipts provided; and

7. Employees or students shall not realize any financial benefit because of

their participation in work projects undertaken.

Non-Sufficient Fund Checks


In the event the District should receive a check for any purpose that is

returned due to non-sufficient funds (NSF) the District will assess a charge of

$25.00 to the issuer of the check to cover the administrative and clerical costs of

dealing with the matter. If the issuer fails to "make good" for the amount of the

original check within 10 days of the date of the check being returned for NSF, the

District reserves the right to file criminal charges and to refuse checks in the

future from the issuer.

Policy Manual
Section 3000 – Fiscal Management
3400 Depository of Funds (Cf. 1300) 3400

At the annual organizational meeting, the Board shall, in accordance with

state law, designate, by resolution, the financial institutions2 in which the funds of

the District shall be deposited and the proportion of funds to be deposited in

each. The Treasurer shall deposit or cause to be deposited, funds of the District

in the institutions as authorized by the Board and in the proportions authorized by

the Board.

Approved: December 5, 2005


LEGAL REF: MCL 21.143; 129.12; 129.15

2
MCL 129.15 includes credit unions as an appropriate place of deposit and uses the term ―financial
institution,‖ not just banks or trust companies.
Policy Manual
Section 3000 – Fiscal Management
3405 Electronic Transaction of Funds 3405

The Lenawee Intermediate School District, through resolution of the

Board, shall be a party to an Automated Clearing House3 (ACH) arrangement.4

The Superintendent shall be responsible for the Lenawee Intermediate School

District’s ACH agreements, including payment approval, accounting, reporting,

and generally for overseeing compliance with the ACH policy.5 All ACH invoices

are to be approved prior to payment.

Internal Accounting

The Superintendent shall be responsible for development and


maintenance of appropriate accounting controls to monitor the use of ACH

transactions6 made by the District.

Approved: December 5, 2005


LEGAL REF: MCL 124.301-124.305

3
―Automated clearing house‖ or ―ACH‖ – a national and governmental organization that has authority to
process electronic payments, including, but not limited to, the national automated clearing house
association and the federal reserve system (MCL 124.301(d)).
4
ACH arrangement—the agreement between the originator of the ACH transaction and the receiver of an
ACH transaction (MCL 124.301(a)). Under Act 738 of 2002, MCL 124.301, an ACH arrangement is not
subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101, or to provisions of law or charter
concerning the issuance of debt by a local unit.
5
ACH policy – the procedures and internal controls as determined under this written policy developed and
adopted by the Superintendent (MCL 124.301(b)).
6
ACH transaction – an electronic payment, debit, or credit transfer processed through an automated
clearinghouse (MCL 124.301(c)).

Policy Manual
Section 3000 – Fiscal Management
3405-R Electronic Transaction of Funds 3405-R

For the purposes of accountability of ACH funds, the Superintendent shall

submit to the Board a monthly report detailing the goods or services purchased

during the preceding month. The report must contain:

The goods or services purchased and their cost;

The date of the payment; and

The unit or department serviced by each payment.

This report may be maintained in the electronic general ledger software

system of the District or in a separate report.


Internal Accounting

ACH accounting methods shall follow the established and approved

District accounting procedures.

Policy Manual
Section 3000 – Fiscal Management
3405-R Electronic Transaction of Funds 3405-R-2

Sample Resolution
For the authorization of Electronic Transactions under PA 738 of 2002,

MCL 124.301, the Board hereby recognizes that:

Electronic payment of public funds are required for some federally

mandated transactions involving public funds by electronic payment, debit,

or credit transfer processed through an automated clearing house, and

The Board deems that it is in the best interest of the District to make
certain District financial transactions by electronic payments as described

in PA 748 of 2002.

It is therefore resolved, that the Board authorizes the District to utilize

electronic transactions in compliance with the written procedures and internal

controls developed by the Superintendent.

Moved by:__________________________ Seconded by:_________________

Ayes: ___________________ Nays: _____________ Abstentions: __________

Resolution Adopted: _________________________________

Policy Manual
Section 3000 – Fiscal Management
3410 Safeguarding of Monies and Equipment 3410

The Superintendent shall assure that administrative regulations are

established and carried out so that all monies and equipment within all of the

District’s facilities are safeguarded and accounted for in an efficient manner at all

times.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3420 Monies in School Buildings 3420

Monies received and receipted must be safeguarded and deposited in

LISD bank accounts in a timely manner not to exceed one week from the date of

receipt of funds.

The District will not be responsible for non-District monies in school

buildings.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3430 Bonded Employees 3430

The Board recognizes that prudent trusteeship of the resources of the

District dictate that employees responsible for the safekeeping of District monies

be bonded.

The District shall be indemnified against loss of money by bonding of

employees holding the positions and in the amounts determined by the Board.

All other employees to be bonded shall be covered under a blanket bond.

The Board shall bear the cost of bonding each employee required to be

bonded by this policy.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3430-R Bonded Employees 3430-R

A surety bond for $500,000.00 is required for the Treasurer of the Board.

The Board may purchase a blanket bond for District employees.

Policy Manual
Section 3000 – Fiscal Management
3490 Inventories – Fixed and Controlled Assets 3490

An accounting will be made annually for property, real and personal,

owned by the District in accordance with law, governmental regulations, and

District rules.

Fixed Asset Accounting System

The administration shall maintain a fixed asset accounting system in

accordance with law, governmental regulations, and the District’s needs.

Approved: December 5, 2005


LEGAL REF: Governmental Accounting Standards Board, Statement No. 34.

Policy Manual
Section 3000 – Fiscal Management
3490-R Inventories – Fixed and Controlled Assets 3490-R

For the purpose of accountability of school-owned property, the

Superintendent shall develop an inventory record system. Annually, all fixed

assets records shall be updated showing deletions and additions of District-

owned property, estimated original cost, date of purchase, serial numbers (where

available) and location of each piece of property.

Fixed Asset Accounting System

The administration shall maintain a fixed asset accounting system in

accordance with law, governmental regulations, and District needs. The fixed
asset accounting system shall maintain sufficient information to permit the

following:

A. The preparation of year-end financial statements in accordance

with law, governmental rules and generally accepted accounting

principles;

B. Adequate insurance coverage; and

C. Control and accountability.

The Superintendent shall be responsible for the development and

maintenance of the fixed asset accounting system. He/She shall develop

procedures to ensure compliance with all fixed asset accounting policies, law or

governmental regulation. Each building Principal shall be assigned fixed asset

responsibilities.

―Fixed assets‖ are defined as at least 80% of those tangible assets of the

District with a useful life in excess of one year and an initial cost equal to or

exceeding $5,000. In making this determination, the Superintendent generally

will use the recognized and accepted ―standard useful life table’ as published by

the Association of School Business Officials International Accounting, Auditing,

and Budgeting Committee, Subcommittee on GASB Statement No. 34

Implementation. Additionally, the services of a professional property appraisal

Policy Manual
Section 3000 – Fiscal Management
3490-R Inventories – Fixed and Controlled Assets 3490-R-2

firm may be used to perform the asset inventory, to provide estimated historical

cost information, and to give an objective estimate of the asset’s useful life that

will generally be acceptable to auditors.

In determining what assets are to be accounted for in District inventories,

the Superintendent will consider the following information sources:

Original purchase records.

Bond documents.

Professional appraisal or other services, such as insurance


appraisals.

The total amount of the original debt issuance, where appropriate,

to help determine some asset’s historical cost.

Periodically, the Superintendent will review the estimated remaining life of

specific fixed assets or group of assets and adjust the remaining depreciable life

accordingly.

Some items may be identified by the Superintendent as ―controlled‖ assets

that, although they cost less than $500 and do not meet all fixed asset criteria,

will still be required to be recorded on the Inventory control systems at the

individual building sites.

Each program administrator has the responsibility of taking an inventory of

District-owned property in all buildings/facilities under his/her supervision. The

Superintendent will develop inventory forms and procedures. The program

administrator in that building will maintain one copy of each inventory taken and

one copy shall be filed in the Education Service Center.

Policy Manual
Section 3000 – Fiscal Management
3500 Audits 3500

The accounting records, including internal accounts, of the District shall be

audited annually by an independent certified public accountant in accordance

with prescribed standards and legal requirements.

An Ad Hoc Board Audit Committee is formed each year to meet with the

Superintendent and the auditors prior to the annual audit and to discuss the

results after completion. The Committee makes recommendations regarding

these results, with the Superintendent’s and Treasurer’s advice, to the full Board.

The audit report shall be reviewed and accepted annually by the Board at a
public meeting. The management letter and recommendations of the auditor

shall be brought to the attention of the Board, along with recommendations of the

Superintendent as to the feasibility of implementing the recommendations. The

Superintendent shall be responsible for filing the audit reports with all appropriate

authorities as prescribed by law or regulation.

All District employees shall cooperate fully with the auditors.

Approved: December 5, 2005


LEGAL REF: MCL 388.1618

Policy Manual
Section 3000 – Fiscal Management
3550 Authorized Signatures (Cf. 1300) 3550

At the annual organizational meeting, the Board shall authorize the

signatures of those persons who may sign checks and make transfers upon the

various accounts of the District. Facsimile signatures may be used as authorized

by the Board.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3570 Petty Cash Accounts 3570

Petty Cash

The Board recognizes the convenience afforded the day-by-day operating

of the schools by the establishment of one or more petty cash funds. The Board

shall require controls that will prevent abuse of such funds.

Each custodian of a petty cash fund shall insure that the funds in his/her

care shall be disbursed only for minor expenditures and not readily deferred. No

petty cash fund may be used to circumvent the purchasing procedures required

by law and the policies of the Board.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3580 Payroll Procedures, Schedules and Deductions 3580

All employees shall be paid according to a specific schedule that shall be

determined annually by the Superintendent. All salaries, stipends, and payments

for job-related extra duties shall be paid from the payroll account through the

District’s business office.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3580-R Payroll Procedures and Schedules 3580-R

Generally, no employee shall be paid in advance of services rendered,

except when the routine pay schedule requires an advance payment with the

approval of the Superintendent. Personnel receiving extra pay for extracurricular

activities that are on going throughout the school year may have the salary

prorated in equal amounts in each paycheck. Personnel receiving extra pay for

extra duty/extracurricular activities that are seasonable shall be paid in full at the

completion of the activity or on a pro-rated basis over the remaining pay periods.

Except for salary deductions for absences not covered by paid leave or
payroll deductions required by law or contract, all payroll deductions shall be

subject to the Superintendent’s approval.

Policy Manual
Section 3000 – Fiscal Management
3590 Tax Sheltered Annuity Programs 3590

The Board of Education authorizes the Superintendent to enter into

contracts on behalf of the Board with annuity companies to affect the purchase of

tax-deferred annuities for individual employees.

But new firms must obtain a minimum of ten (10) current LISD employees

as clients in order to be included on the approved TSA vendor list.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3600 Reimbursement of Expenses (Cf. 1168, 5330) 3600

District personnel, or members of the Board, who incur expenses in

carrying out their authorized duties shall be reimbursed by the District to the

extent approved or provided in Board policies or duly negotiated agreements

upon submission of an approved voucher and supporting receipts. Such

expenses may be approved and incurred in line with budgetary allocations for the

specific type of expense.

No reimbursement for any employee travel, conferences, meetings,

seminars, or visits involving an overnight stay will be issued unless such travel
has been approved, in advance, by the Superintendent.

Approved: December 5, 2005


LEGAL REF: MCL 15.321-330; 129.221 et. seq.; 129.241 et. seq.; 380.621a;
380.1217a; 380.1254

Policy Manual
Section 3000 – Fiscal Management
3600-R Reimbursement of Expenses 3600-R

When official travel by personally owned vehicle has been authorized,

mileage payment shall be made at the rate currently governed by negotiated

agreements or established by the Superintendent.

Credit Card (Cf. 3610)

The Superintendent shall, with the exception noted below, be the only

employee issued a District credit card. This credit card shall only be used for the

prudent, legitimate operating expenses of the District. It is the responsibility of

the Superintendent to indicate on the credit card monthly statements the kind of
activity that is being charged. All usage shall be documented, by charge slips

and other means, and submitted to the business office on a routine basis.

For an LISD employee to request use of the LISD District credit card for

purchases that are not feasible through the Purchasing Rules and Regulations,

the following procedures shall apply:

A purchase order with appropriate approval and documentation is

presented to the Superintendent requesting use of District credit card.

Superintendent approves or denies the request.

If approved, the Superintendent, or his/her designee, shall process the

order and/or accompany the requestor when the order is placed and enter the

credit card information as applicable.

The Superintendent, or his/her designee, will be the only person(s) who

are authorized to enter the credit card information (number & expiration date) to

complete any transaction.

The only exception to the Superintendent being the sole holder of a

District credit card shall be the distribution of a limited number of gasoline credit

cards and fuel purchase cards owned by the District and provided to

transportation staff, as needed and approved by the Superintendent.

Policy Manual
Section 3000 – Fiscal Management
3600-R Reimbursement of Expenses 3600-R-2

These cards are to be used only when other reasonable options to purchase fuel

are not available, i.e., long distance and/or over night field trips, transportation

services located within a local District not near the LISD Transportation service

site. All purchases made on the gasoline credit cards and fuel purchase cards

will be documented with receipts that are submitted on a routine basis, with the

identity of the user, to the Superintendent for review before submission to the

school business officials for payment. Superintendent shall be provided a copy of

the monthly billing statements for each gasoline credit card and fuel purchase
card for approval before payment. Unauthorized use of credit cards may result in

disciplinary action.

Spouse Reimbursement

No expense incurred for spouses of employees shall be reimbursed by the

District or with District funds with the exception of spouses conducting official

school business and when both spouses are employees of the District.

Authorization for Travel/Conference and Field Trip Expenses

No reimbursement for any employee travel, conferences, meetings,

seminars, or visits involving an overnight stay will be issues unless such travel

has been pre-approved as an estimate and post-approved actual costs with

itemized receipts, by the Superintendent.7

The employee’s immediate supervisor must give prior approval for all

expenses for student field trips and conference attendance and approval of all

actual expenses prior to reimbursement. The Superintendent only, not any

designee, must prior approve any conference expenses when estimated to be in

excess of $1,500. The appropriate forms must be completed prior to departure.

7
As per Board policy, ―Superintendent‖ routinely includes designee, in this policy designees are explicitly
limited to the Assistant Superintendents, Supervisors, Executive Directors, Directors, Principals, and
Assistant Principals, consistent with approval limits referenced in the Business Office Procedures Manual.
Policy Manual
Section 3000 – Fiscal Management
3600-R Reimbursement of Expenses 3600-R-3

1. A Conference Request Form must be submitted prior to the conference; and a

request form approved by the supervisor shall constitute certification for

authorized travel.

2. Estimated expenses must be within appropriate budget allocations.

3. Staff expenses, as part of an approved student day field trip, must comply

with all of the parameters of the reimbursable conference and routine

expense limits of this Board policy. Expenses with itemized receipts should

be submitted on the employee Conference Request/Expense Voucher form.


Reimbursable Conference Expenses

Only the following expenses may be reimbursed:

1. Lodging (actual room cost);

2. Meals, but no alcoholic beverages;

3. Conference registration and materials fees;

4. Parking and tolls;

5. Common carrier transportation to and from the venue;

6. Use of private vehicle to and from the venue;

7. Postage, telephone and fax charge for business purposes; and

8. Charge for baggage service, reasonable tips.

Limitations on Conference and Routine Expense Reimbursements

Expense reimbursements for approved conference and other routine

expenses shall be limited as follows:

1. Lodging a maximum of $200 per night, not including taxes and fees. Any

exception must be approved in advance by the Superintendent and Board

President.

2. Meals: a maximum of $10 for breakfasts, $15 for lunches, and $25 for

dinners, not including tip.

Policy Manual
Section 3000 – Fiscal Management
3600-R Reimbursement of Expenses 3600-R-4

3. Tips: a maximum of 20% for waitress/waiter service at meals on the

receipt, over the above meal limits, except for service during which a table

is used for a lengthy meeting when a reasonable tip may be paid, $5 for

porter/bellhop service.

4. Telephone calls: business related telephone calls only, at actual costs

with receipt.

The Board of Education may wish to review annually or as appropriate the

limits on conference and routine expense reimbursement and consider


adjustments.

Employee Expense Reimbursement reports should be submitted within 90

calendar days of occurrence of the expense and all reimbursement requests for

the current fiscal year must be submitted no later than June 30th of that year.

Late submissions risk forfeiture.

Service Club Guidelines

From the LISD Vision . . . ―LISD staff are involved in their communities

through humanitarianism and volunteering, demonstrating concern for our

neighbors.‖

The Lenawee Intermediate School District recognizes the importance of

staff participation on their communities in cultivating relationships that strengthen

the partnership between students, families, communities, and schools. The

Lenawee Intermediate School District encourages its employees to take part in

community service organizations.

The LISD may reimburse all personnel 100% of their Service Clubs dues,

not to exceed $200 per employee per year. The Superintendent must approve

membership in order for the employee to be eligible for reimbursement. Service

Clubs must be located in Lenawee County and be recognized as providing

service to the community. Religious and political clubs are excluded. It is the

Policy Manual
Section 3000 – Fiscal Management
3600-R Reimbursement of Expenses 3600-R-5

intent of the LISD to be represented in a wide range of organizations. Therefore,

membership in a particular service club may be encouraged.

Reimbursement will be made to the employee upon presentation of dues

statement(s) and completed Service Club Reimbursement form.

Prohibited Expense Reimbursements (not limited to conferences)

The reimbursement of employee expense is a privilege granted to

employees by the Board of Education. Reimbursement of expenses will be

made only for legitimate school business purposes. No public funds8 will be
spent for purchasing alcoholic beverages, jewelry, gifts, fees for golf, or any item

the purchase or possession of which is illegal. Reimbursement shall not be

made for any items included on the prohibited expense reimbursement list

(below).9

The Board of Education will seek restitution for any inappropriate charges

inadvertently reimbursed. Fraudulent or intentional infractions will subject the

employee to disciplinary action in accordance with policies and procedures of the

district relating to disciplinary action ad termination.

Prohibited expense reimbursements include, but are not limited to, the

following items:

Alcoholic beverages of any kind

Contributions for political campaigns or candidates

Controlled substances

Flowers

Food for routine staff meetings

8
―Public Funds‖ means funds generated from taxes levied under this act, state appropriations of state or
federal funds, or payments made to the intermediate school district for services by a constituent district or
any other person, but does not include voluntary contributions made for a specific purpose by an
intermediate school board member, an intermediate school district employee, another individual, or a
private entity.
9
For clarification, the district may on occasion legally purchase one or more of the items from this list of
prohibited expenses using its routine procurement system (requisition and purchase orders).
Policy Manual
Section 3000 – Fiscal Management
3600-R Reimbursement of Expenses 3600-R-6

Gifts, except for those recognizing years of service and special

recognitions honored by the District.

Long distance telephone calls (non-work related)

Money orders

Movies, newspapers, except for instruction

Plants

Purchases in which a school employee who participates in the purchase

process has a conflict of interest


Purchases over the specified limit, as applicable, for the job classification

Purchases requiring a contract and an authorized signature

Receiving additional cash with purchases

Recurring payments – the acquisition of goods or services where multiple,

repetitive, or installment payments are necessary to complete the

transaction

Splitting purchases to circumvent the limit. A split purchase occurs when

the individual cost of any single item, including shipping, exceeds the limit.

Conference registrations will be considered the total of the individual

registration fee. For example, if a conference is $100 and an employee

needs to register six people, six individual registrations on six different

transactions may be placed on a single purchase order.

Travel Club memberships

Travelers checks

Advances

Request for an advance to pay expenses at a conference shall be made at

the time application is made and shall be approved by the Superintendent.

Estimated cost may be advanced. Immediately upon return, a financial

accounting, including documentation, shall be made to the business office and

Policy Manual
Section 3000 – Fiscal Management
3600-R Reimbursement of Expenses 3600-R-7

any unused funds returned. Advances on expenditures not documented shall be

re-paid to the District. Petty cash funds may not be used for cash advances.

Daily Travel

Local travel as authorized under these regulations is to be recorded on a

regular basis and submitted to the business office at the end of each month for

reimbursement. Documentation must include, date, destination, purpose of

travel, and number of miles for each trip.

Employee Expense Reimbursement reports should be submitted within 90


calendar days of occurrence of the expense and all reimbursement requests for

the current fiscal year must be submitted no later than June 30th of that year.

Late submissions risk forfeiture.

Report to the Board

All travel expenses and conference reimbursements shall be reported to

the Board at their regular Board of Education meetings.

Policy Manual
Section 3000 – Fiscal Management
3605 District Procurement Cards (Cf. 3600) 3605
The Superintendent shall be responsible for the issuance, accounting,
monitoring, retrieval, internal controls and generally overseeing the use of District
procurement cards for employees.
Issuance
District employees may be issued a District procurement card, which shall
be used solely for the purchase of goods and/or services needed for official
business of the District.10
Documentation
When an employee uses a District procurement card, documentation shall
be provided to the Superintendent within 30 calendar days - detailing the goods
or services purchased, the cost of such goods or services, the date of purchase,
and the purpose for which such goods or services were purchased.11
Lost Procurement Cards
All staff authorized to use a procurement card are responsible for the
protection and custody of District procurement card. If a District procurement
card is lost or stolen, the Superintendent shall be notified immediately.
Payment
The Superintendent shall approve all District procurement card invoices
prior to payment.
Misuse and Unauthorized Use
An employee who violates a provision of this policy may have his/her use
of that card revoked and be subject to disciplinary action as determined by the
Superintendent. If the Superintendent violates a provision of this policy, he/she
may have his/her use of that card revoked and may be subject to disciplinary
action as determined by the Board.

10
MCL 380.1254 (3) (―The Board of any school District shall not provide, allow, or obtain credit cards for,
issue credit cards to, or provide to a school Board member a debit card or similar instrument that pledges
payment of funds from a school District account except in compliance with law.‖)
11
MCL 380.1254 (3)
Policy Manual
Section 3000 – Fiscal Management
3605 District Procurement Cards (Cf. 3600) 3605-2

Other Provisions

The chief financial officer shall establish a system of internal accounting

controls to monitor the use of procurement cards.

Approved: December 5, 2005


LEGAL REF: MCL 380.1254; 129.243

Policy Manual
Section 3000 – Fiscal Management
3610 Purchasing Goods and Services 3610

The purchasing objective of the Board of Education shall be to provide

services, materials and supplies which offer District personnel the most effective

and efficient means to perform their tasks. The policy of the Board will be to

acquire these at a minimum possible cost, but taking into consideration the best

interest of the school District. The Superintendent shall serve as the purchasing

agent for the school system.

General Guidelines

1. In awarding purchase or contracts for services, the Superintendent


shall consider the following: (a) price: (b) quality of product; (c)

service, deliver suitability of product; (d) suitability of product; (e)

conformance to specifications; (f) past performance to the school

District; and (g) vendor reliability.

2. The Board directs that all purchases from all funds under its control

and responsibility be made after proper written document is secured to

support such purchases, excluding purchases of a minor or emergency

nature.

3. The District will have a requisition/purchase order system as a means

of budgetary control.

4. Vendor competition in purchasing shall be practiced whenever

possible.

5. Price Quotations: The Superintendent shall make available to the

Board the price quotations obtained from vendors, when applicable, for

supplies, materials, equipment, and services that do not exceed the

Revised School Code base amount. These copies are to be retained

by the Superintendent until the audit for a fiscal year has been formally

accepted by the Board.

Policy Manual
Section 3000 – Fiscal Management
3610 Purchasing Goods and Services 3610-2

6. The vendor submitting the lowest competitive price quotation ordinarily

shall be awarded the contract. However, the Superintendent reserves

the right to accept or reject any price quotations based on the best

interest of the District and delegates this authority to those responsible

for purchases not coming before the Board.

7. Competitive Bids: The Superintendent shall make available to the

Board the competitive bids obtained from vendors for supplies,

materials, and equipment that exceed the Revised School Code base
amount. These copies are to be retained by the Superintendent until

the audit for a fiscal year has been formally accepted by the Board.

8. The lowest responsible bidder submitting a competitive price quotation

or bid ordinarily shall be awarded the contract. However, the Board

reserves the right to accept or reject any bid based on the best interest

of the District and delegates this authority to those responsible for

purchases not coming before the Board.

9. The Board shall purchase locally, provided goods and services of

equal quality are available at competitive prices, as well as full

compliance with any applicable bid specifications, laws, and is the

lowest responsible bidder, and in the best interest of the District.

Local purchases shall be divided among several local vendors when

appropriate. The Superintendent shall make all authorized purchases,

as he/she deems best after carefully weighing all matters.

Non-Negotiatory Purchases

Non-Negotiatory purchases can be made when there is only one supply

source, provided the amount does not exceed bidding requirement limitations.

Policy Manual
Section 3000 – Fiscal Management
3610 Purchasing Goods and Services 3610-3

Informal Quotations

Informal quotations (verbal information of price on equal products or

services), secured in person or by telephone, may be used in obtaining the many

small purchases used by the school District.

Competitive Bids

No purchases shall be made for supplies, materials, and equipment

performed by other than the District’s employees in a single transaction costing

more than the statutory limit, unless competitive bids are obtained and the
purchase is approved by the Board.

The Superintendent is authorized to obtain third party competitive bids for

materials, supplies and equipment through cooperative purchasing programs.

Third party competitive bidding on behalf of the school District shall constitute a

competitive bid for purposes of Section 1274 of the Revised School Code.

Such bids shall be opened at a specific time and place as stated in the bid

advertisement or in the invitation to bid. Bids may be opened by the

Superintendent at the time and place stated, and analyzed and brought to the

Board at a regular or special meeting with recommendations as to which bids

should be accepted.

The Board shall have discretion in determining the responsibility of the

bidders and generally shall award the contract to the lowest bidder, provided

specifications are fully met. The Board may also consider available services and

delivery in determining the successful bidder. The Board may reject any or all

bids.

All bids received after the date and time specified shall be returned to the

bidder unopened. Changes in the amount or condition of the bid will not be

allowed once the bid has been received.

Policy Manual
Section 3000 – Fiscal Management
3610 Purchasing Goods and Services 3610-4

Competitive Bids on Building Construction, Renovation, and Repairs

Prior to commencing construction of a new building, or additions to or

repair or renovation of an existing building costing more than the statutory limit,

the Board shall obtain competitive bids on all material and labor to be required to

complete the proposed construction, addition, repair, or renovations.

Repair work normally done by school District employees is exempted from

this bidding requirement.

The Board shall advertise for bids in accordance with the law.
There shall be a public opening of the bids received. The Board may

reject any or all bids, and shall re-advertise in the event all bids are rejected, in

the manner provided by law and this policy.

Voluntary alternates submitted by bidders shall not be considered in

determining low bids. However, such alternates may be negotiated after the

successful bidder has been determined.

Each bidder shall be required to file security with the Board in the amount

of 5% of the amount of the bid, conditioned to secure the school District from loss

or damage by reason of the withdrawal of the bid or by the failure of the bidder to

enter a contract for performance if the bid is accepted by the Board.

Emergency Purchases

Emergency purchases may be made without using the bidding process.

Such emergencies may arise as a result of an accident or other unforeseen

occurrence which could affect the life, health, welfare or safety of the school

District’s children or employees.

Purchasing Rules and Regulations

The Superintendent shall develop the necessary rules and regulations to

implement this policy, including requisition and approval procedures, verification

Policy Manual
Section 3000 – Fiscal Management
3610 Purchasing Goods and Services 3610-5

of purchases, and verification that goods have been received in an acceptable

condition and services performed in an acceptable manner.

Installment or Lease Purchases

The Lenawee Intermediate School District Board realizes that installment

or lease purchases may commit future Boards to undesirable or untimely

financial obligations. Therefore, all intended installment or lease purchases shall

be brought to the Board as part of the proposed annual budget.

Purchasing From District Employees Prohibited


The Board shall not purchase equipment or supplies from an employee of

the District, nor from a member of a household or an employee, nor from any firm

in which an employee or member of his/her household holds a 10 percent or

greater financial interest.

Purchases through the District Prohibited

Board members and employees shall not make any purchase through the

District for personal use. Purchasing equipment and supplies by the District for

resale to employees is prohibited.

The Superintendent shall prepare an appropriate Business Procedures

and Operations Manual for use by the District in matters pertaining to this policy.

Approved: December 5, 2005


LEGAL REF: MCL 15.321-330; 129.221 et. seq.; 129.241 et. seq.

Policy Manual
Section 3000 – Fiscal Management
3620 Emergency Purchases (Cf. 2750, 3660) 3620

In the event of an emergency such as a power failure, severe cold

weather or other such natural disasters, the Superintendent shall have the

authority to purchase capital equipment needed to keep the schools of the

District open or to reopen the schools. The Board, at a special or regular

meeting as soon as possible after the purchase is made, shall approve any such

purchases.

Such purchases shall not be made to circumvent the purpose of the

competitive bid law.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3730 Vendor Relations 3730

The Board shall not knowingly enter a contract with any supplier of goods

or services to the District under which any Board member or officer, employee or

agent of the District has any pecuniary or beneficial interest, direct or indirect,

unless the person has not solicited the contract or participated in the negotiations

leading up to the contract. This prohibition shall not prevent any person from

receiving royalties upon the sale of any textbook of which he/she is the author

and which has been properly approved for use in the District.

For the purpose of this policy, ―beneficial interest‖ shall be determined in


accordance with current law.

The acceptance of gifts to Board members and school personnel are

governed by the Revised School Code, which includes any gifts or favors from

vendors which might, in any way, influence their recommendations on the

eventual purchase of equipment, supplies, or services.

Purchasing personnel shall not extend any favors to vendors. Each order

shall be placed in accordance with the policies of the Board based on quality,

price, and delivery with past service a factor if all other considerations are equal.

Approved: December 5, 2005


LEGAL REF: MCL 15.321 et seq.

Policy Manual
Section 3000 – Fiscal Management
3730-R Vendor Relations 3730-R

These Vendor Relations Administrative Procedures are intended to

discourage the appearance that vendor gifts might be construed as influencing

Board members’ or school personnel’s recommendation on the eventual

purchase of equipment, supplies, or services. For any unsolicited gifts given to

the Lenawee Intermediate School District, the District shall as deemed

appropriate donate the gift to a local non-profit organization or charity on behalf

of the vendor. A letter will be sent to the vendor acknowledging the gift and its

subsequent donation to a local non-profit organization or charity.

Policy Manual
Section 3000 – Fiscal Management
3750 Payment Procedures 3750

Payments submitted for Board review shall be in the form of a listing that

includes the vendor name, the number, and amount of the check, and the

description of the item.

Upon receipt of a request for payment by a District vendor, and upon

receipt of all goods or satisfactory completion of all services from said vendor,

the Superintendent may authorize payment to said vendor be made within 30

days.

Each bill or obligation of the Board must be fully itemized and verified
before a warrant can be drawn for its payment.

Approved: December 5, 2005


LEGAL REF: MCL 380.1274

Policy Manual
Section 3000 – Fiscal Management
3750-R Payment Procedures 3750-R

When an invoice is received, the Superintendent shall verify that a

voucher is properly submitted, that acceptable goods were received or

satisfactory services rendered, that the expenditure is included in the budget, that

funds are available for its payment, and that the amount of the invoice is correct.

Policy Manual
Section 3000 – Fiscal Management
3800 Fund Raising and Student Activity Funds 3800

Soliciting Funds From and By Students

The Board recognizes the existence of many worthwhile community and

student activities that require the raising of funds either by the sale of

merchandise, tickets, or perhaps direct request for money. Because of the need

to safeguard students in the educational program, the Board limits participation of

students to those activities that have the Superintendent’s approval.

It is the responsibility of the Board to provide the necessary basic texts,

materials, supplies, equipment, uniforms, buildings and outdoor facilities to


conduct the approved programs of the District. Community and school fund

raising organizations may contribute to the enrichment of these basic programs

through the contribution of funds and/or items as long as those contributions

have been determined consistent with the District’s vision and approved by the

Superintendent through the appropriate building or program administrator.

If a fund raising project is conducted to sponsor a specific purchase,

activity or trip, the purchase or trip must be approved by the Assistant

Superintendent prior to initiation of the fund raising effort. This shall apply to

school related groups as well as to school organizations.

School Groups

The administration must approve all fund raising in advance. Cards,

letters, or other identifying literature shall be provided all students prior to sales in

the general community.

Fund raising activities should not commence until approval has been

granted. The purpose is not to limit the activities of these groups, but rather to:

1. Be assured that students are not being ―used‖ or their educational

program interrupted.

2. To assist with coordination of activities so that similar activities are not

in conflict with each other.

Policy Manual
Section 3000 – Fiscal Management
3800 Fund Raising and Student Activity Funds 3800-2

3. To be assured of the appropriateness of the activity and that all fund

raising activities comply with local and/or state regulations.

The Board accepts liability for school sponsored fund raising activities

consistent with this policy.

Approved: December 5, 2005

Policy Manual
Section 3000 – Fiscal Management
3800-R Fund Raising and Student Activity Fund 3800-R

The annual student activity report shall show opening and closing

balances of each fund. The report shall also show total amount of deposits and

an itemized list of expenditures.

The instructor/advisor for the student group conducting the fundraising,

shall, with support from the Business Office, establish a checking account and

system for receiving and disbursing checks. The student organization must

adopt procedures for handling money, with approval of the Business Office.

Each student activity fund shall have an employee in charge of said fund.
That employee of the fund shall be responsible for making a periodic report of the

student activity fund to the Superintendent.

The Board shall assume control of all inactive activity organization funds

and disburse those funds to the activity account selected or expend the funds as

directed by the Board in the best interests of students.

Policy Manual
Section 3000 – Fiscal Management
3900 Disposal of Surplus Books, Equipment and Supplies 3900

Materials and equipment no longer needed by one service area of the

District should be made available for use by another service area generally in

keeping with the educational purposes for which they were originally purchased.

The Board of Education hereby authorizes the Superintendent to declare

unnecessary, used, or obsolete equipment and supplies. The Superintendent

may, within his/her broad discretion, attempt to recover the approximate market

value of such surplus equipment for the District, and is authorized to dispose of

such equipment in some other way if reasonable attempts fail to recover the
approximate market value, or if that value is of an incidental amount when

compared to the estimated cost of disposal.

In determining the proper manner in which to dispose of surplus

equipment or supplies, the following basic methods apply:

A. Trade-in credit for a similar item/replacement.

B. Sell to another school District, educational, non-profit, or commercial

organization (the value to be determined by the Board Treasurer).

C. Sell at public sale.

D. Sell by bid.

E. Donate to a school or non-profit organization.

F. Destroy or discard the item(s).

District property shall not be recommended for disposal if precluded by

federal/state guidelines.

Approved: December 5, 2005


LEGAL REF: MCL 380.601

Policy Manual
Section 3000 – Fiscal Management
3900-R Surplus Books, Equipment and Supplies 3900-R

Periodically, the administrator of each program shall supply the

Superintendent with a list of books, equipment, or other saleable items that may

be considered obsolete.

The Superintendent shall determine the means of disposition, and provide

notification of materials to be sold and the method of sale to the general public

and those parties, which in his/her estimation, would be interested in such items.

A public notice shall be circulated at least 5 days before the sale and the items

for sale described. Monies realized from such sales shall be credited to the
appropriate fund account.

Obsolete books, equipment, or supplies that cannot be sold may, at the

discretion of the Superintendent, be donated to charitable organizations or

discarded in an acceptable manner.

A record shall be maintained by the Superintendent of all properties

disposed of consistent with state and/or federal regulations.

Policy Manual
Section 3000 – Fiscal Management
3950 Surplus Land or Buildings 3950

The sale or disposal of District land or building shall require Board

authorization. The Board shall, with the recommendation of the Superintendent,

determine the method and procedure of disposal.

Approved: December 5, 2005


LEGAL REF: MCL 380.601

Policy Manual
Section 3000 – Fiscal Management
3950-R Surplus Land or Buildings 3950-R

Whenever any land or buildings owned by the District are placed on the

market for sale, public notification (including listing with a real estate agent) shall

be made and all interested parties shall be given an equal opportunity for

purchase.

An appraisal of District owned property may be requested from at least

two independent appraisers. However, the Board may set a price that, in its

judgment, is fair and may reject any or all offers relative to such sale.

Before a sale is completed, the potential use of the property shall be


considered, particularly as it may affect the neighborhood in which it is located.

The sale of the property for public education use shall be given priority.

Money resulting from the sale of property shall be deposited in the general

fund of the District unless otherwise directed by the Board or unless there is a

bond issue outstanding on the facilities, in which case the receipts from the sale

shall be deposited in the debt retirement fund established for that building

project.

Policy Manual