Policy 3.D - FINANCIAL CONDITION & ACTIVITIES

Date Adopted: January 27, 2009

Revised: September 26, 2017

Monitoring Date:

Internal - January/October
External - December

With respect to financial condition and activities, the Superintendent will not cause or allow the development of fiscal jeopardy, or a material deviation of actual expenditures from the Board’s Goals priorities.

The Superintendent will not:

1. Expend more funds than have been received in the fiscal quarter to date unless the liquidity and long-term reserve requirements below are met.
   a) The Superintendent will not borrow from reserves (defined as accumulated excess revenues) in an amount greater than can be replenished by certain, otherwise unencumbered revenues within 90 days.
   b) The Superintendent will not borrow funds (with exception of credit cards used for normal business purposes, and paid in full each month).
   c) The Superintendent will not allow cash to fall below a safety reserve of 6% of the General Fund.
2. Use Board-designated long-term reserves/endowment funds.
3. Conduct interfund shifting.
4. Fail to settle payroll obligations and payables in a timely manner.
5. Allow tax payments or other government ordered payments or filings to be overdue or inaccurately filed.
6. Execute a check or purchase commitment of greater than $25,000 unless such purchase was explicitly itemized in budget monitoring data previously disclosed to the Board or subsequently disclosed at the next regular meeting of the Board. Splitting orders to avoid this limit is not acceptable.
7. Acquire, encumber, lease or dispose of real property other than those described in 3E.
8. Accept revenues from sources not, in fact and appearance, consistent with the mission and values of the organization.
9. Fail to aggressively pursue material receivables after a reasonable grace period.
10. Operate without adequate internal controls over receipts and disbursements to avoid unauthorized payments or material dissipation of assets.