6022 Minimum Fund Balance
The district recognizes the importance of maintaining a prudent fund balance in the general fund to ensure operational cash flow needs are met, to set aside resources for known obligations and to help protect against unforeseen circumstances. Accordingly, the district adopts this policy in regards to those portions of fund balance that are in spendable form but are not legally restricted as to their use from outside sources.
Annually, the superintendent or designee will present a general fund budget that includes a commitment of at least five percent of the current year’s expenditures toward a minimum fund balance.
Board Policy 6020 System of Funds and Accounts
Board Policy 6040 Expenditures in Excess of Budget
Procedure No. 6022P Minimum Fund Balance
The Board of Directors of Yelm Community Schools recognizes the importance of maintaining a sufficient fund balance in each of its funds to assure sound financial practices, provide program stability, and obtain excellent bond ratings.
The fund balance in the Debt Service Fund, Transportation Vehicle Fund, Capital Projects Fund, and Associated Student Body Fund is primarily a function of the scope of the projects and activities found within the operation of each fund. Stability of revenue and predictability of expenditures in these funds enables the district to establish an appropriate fund balance.
The complexities of funding and other economic uncertainties in the operation of the General Fund require a different approach in setting the fund balance level. Some of the uncertainties affecting the fund balance for the General Fund include:
- Enrollment fluctuations.
- Unanticipated changes in tax and appropriation levels by state and federal agencies.
- Legislative mandates having financial impacts on school systems.
- Passage/failure of voter referendums and levies.
- Financial impacts of labor agreements including arbitration judgments.
- Energy cost increases and weather related damages.
To provide stability of the instructional program and maintain sound financial practices, the district will establish a prudent fund balance level in the General Fund. This will be accomplished through three components of the fund balance:
- Reserved Fund Balance
- Unreserved, Designated for Other Items Fund Balance
- Unreserved, Undesignated Fund Balance
The reserved fund balance will provide sufficient funds for inventory and self-insurance reserves if applicable. The unreserved, designated for other items fund balance allows management to set aside funds for future purposes, which are often designated by contractual agreements. The unreserved, undesignated fund balance should compensate for economic uncertainties and should be targeted at a minimum of five (5) percent of budgeted General Fund. Should the unreserved, undesignated fund balance fall below these targets, a plan to replenish the fund balance will be developed and implemented. If fund balance is targeted for expenditures, it should be used for non-recurring costs.
- Enrollment fluctuations.
FINANCIAL PLANNING AND MANAGEMENT
6000 Program Planning, Budget Preparation, Adoption and Implementation
6001 Tax Deferred Annuity/Compensation
6020 System of Funds and Accounts
6021 Interfund Loans
6022 Minimum Fund Balance
6030 Financial Reports
6040 Expenditures in Excess of Budget
6070 Employee Suggestion Program
6100 Revenues from Local, State and Federal Sources
6101 Federal Cash and Financial Management
6102 District Fund-Raising Activities
6106 Allowable Costs for Federal Programs
6112 Rental or Lease of District Property
6114 Gifts or Donations
6120 Investment of Funds
6121 Personal Checks - Acceptance and Processing
6210 Purchasing: Authorization and Control
6212 Charge Cards
6213 Reimbursement for Travel Expenses
6215 Voucher Certification and Approval
6216 Reimbursement for Goods and Services: Warrants
6220 Bid Requirements
6225 Use of Electronic Signature
6230 Relations with Vendors
6250 Cellular Telephones
6500 Risk Management
6511 Staff Safety
6512 Infection Control Program
6513 Workplace Violence Prevention
6535 Student Insurance
6540 Staff Personal Property Protection
6570 Property and Data Management
6580 Continuity of Operations Plan
6605 Student Safety Walking, Biking and Riding Buses to School
6608 Video Cameras on School Buses
6610 Video surveillance
6620 Special Transportation
6625 Private Vehicle Transportation
6630 Driver Training and Responsibility
6640 School Owned Vehicles
6690 Contracting for Transportation Services
6700 Nutrition and Physical Fitness
6800 Safety, Operations and Maintenance of School Property
6801 Capital Assets/Theft-Sensitive Assets
6810 Energy Management, Education and Conservation
6881 Disposal of Surplus Equipment and/or Materials
6882 Sale of Real Property
6883 Closure of Facilities
6890 State Environmental Policy Act Compliance
6895 Pesticide Notification, Posting and Record Keeping
6900 Facilities Planning
6905 Site Acquisition
6910 Construction Financing
6920 Construction Design
6925 Architect and Engineering Services
6950 Contractor Assurances, Surety Bonds and Insurance
6955 Maintenance of Records
6959 Acceptance of Completed Project
6970 Naming of Schools/Facilities
6971 Works of Art