Roane County Schools

Policy 810 - Uniform Records and Accounts

Adopted on October 24, 2019

Effective October 24, 2019

The Board and the Superintendent shall provide for keeping or having kept accurate records of all financial transactions and the making of all needed or required reports in the proper form as required by law (Federal and State), Administrative Rules of the State Board, and additional records and reports as approved by the Board. Sound business principles and procedures are to be observed.

System of Accounting

As specified by the West Virginia Board of Education Office of School Finance, the Board uses the Uniform School Accounting System by which it keeps an accounting of all Board funds. The Board's financial records shall show sources of revenue, amounts received, amounts expended, and the disposition of public property. The Treasurer shall complete an accounting of all capital assets to protect the financial investment of the Board against catastrophic loss. Further, the Treasurer shall establish procedures and regulations necessary to properly account for capital assets and comply with Generally Accepted Accounting Principles (GAAP) and ensure that the County School's capital assets are properly insured.

The Board's system of accounting shall comply with all requirements of the Governmental Accounting Standards Board (GASB), Statements as prescribed by the West Virginia Board of Education's Office of School Finance. In accordance with GASB, the Board will report its fund balances in the following categories:

1. Nonspendable fund balance - amounts that cannot be spent because they are either (a) not in a spendable form (which includes items that are not expected to be converted to cash e.g., inventories or prepaid amounts) or (b) legally or contractually required to be maintained intact (e.g., the corpus of an endowment fund).
2. Restricted fund balance - amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation.
3. Committed fund balance - amounts constrained to specific purposes by the Board; to be reported as committed, amounts cannot be used for any other purpose unless the Board takes action to remove or change the constraint.
4. Assigned fund balance - amounts the Board intends to use for a specific purpose but are neither restricted nor committed; intent can be expressed by the Board or by an official or committee to which the Board delegates the authority.
5. Unassigned fund balance - amounts that are available for any purpose; these amounts are reported only in the general fund.

The Board authorizes its auditors and directs its administrative staff to take all steps necessary to comply with the requirements of GASB 54. All revenue and funds will be designated to one of the above categories.

The Treasurer shall maintain a proper accounting of all Board funds. S/He shall ensure that expenditures are budgeted under and charged against those accounts that most accurately describe the purpose for which such monies are to be or have been spent. Wherever appropriate and practicable, salaries of individual employees, expenditures for single pieces of equipment, and the like shall be prorated under the several accounts that most accurately describe the purposes for which such monies are to be or have been spent.

The Treasurer shall receive all vouchers for payments and disbursements made to and by the Board, and preserve them for the statutorily required period.

The Treasurer shall implement procedures and practices that will determine: 1) Capitalization policies for Board assets (i.e., which assets will be capitalized and depreciated over their estimated useful life versus which assets will be expensed in year of purchase); 2) Methods for calculating annual and accumulated depreciation expense for assets including estimates for asset lives, residual asset values, and depreciation methodology; and 3) Procedures for recording gain or loss on sale of capital assets and proceeds from the sale of capital assets in compliance with GAAP Reporting of estimated cash values or replacement values to Board insurance providers.

The Treasurer shall report to the Board and Superintendent on a monthly basis a report that indicates by fund, the beginning cash balance, the current month's receipts, the current month's disbursements and the current month's ending cash balance. The report shall also show the current budget and unencumbered balance for each fund.

The Treasurer is responsible for filing in a timely manner, on behalf of the Board, an annual report with the West Virginia Department of Education on prescribed forms that state the following:

1. amount of collections and receipts, and accounts due from each source
2. amount of expenditures for each purpose
3. amount of the Board's debt, the purpose for which each item of such debt was created, and the provision made for the payment thereof, and
4. other information as the West Virginia Department of Education prescribes on the form

Simultaneous with filing the annual report with the West Virginia Department of Education, the Treasurer shall publish the annual report in a newspaper published in the Board, or, if there is none, in a newspaper of general circulation in the Board.

The Board's annual financial statements shall also include information such as: 1) beginning and ending balances of capital assets; 2) beginning and ending balances of accumulated depreciation, and 3) total depreciation expense for the fiscal year.

Such reporting shall include description of significant capital asset activity during the fiscal year including: acquisitions through purchase or donation, sales or dispositions including the proceeds and gains or losses on the sale, changes in methods of calculating depreciation expense or accumulated depreciation, such as, estimates of useful life, residual values, depreciation methodology (e.g., straight line or other method).

Before implementing procedures or changing procedures, the Treasurer will review the proposed procedure with the auditor appointed by the Board to conduct the Board's financial audit. The procedures established shall comply with all statutorily required standards and generally accepted accounting procedures.

Fund Accounting

A fund is a separate group of self-balancing accounts in which all cash, revenues, expenditures and residual balances are recorded and segregated for a specific purpose or objective. For an efficient system of operation, only the minimum numbers of funds necessary for sound financial management should be maintained.

School Funds

The Roane Board of Education shall establish the number of funds the schools within the County are authorized to maintain. In establishing the number of funds, the Board will consider the size of the school, the benefits to be derived from maintaining separate funds, and the availability of adequate personnel at the school to perform the accounting tasks required in maintaining separate funds.

The funds that may be maintained at a school are limited to the following:

1. General Fund The fund used to account for the general operations of the school and all other financial resources of the school except those accounted for in another fund. Every school is required to maintain a General Fund.
2. Faculty Senate Fund A fund used to account for the revenues and expenditures of the school's faculty senate.
3. Athletic Fund A fund used to account for the revenues and expenditures of the athletic programs at each school.

Each bank account in which school funds are deposited must be insured or the bank must provide adequate bond to cover the maximum amount that may be deposited at any one time. All bank accounts in which school funds are deposited must contain the name of the County Board, the name of the school, the name of the fund and the County Board's Federal Employer Identification Number (FEIN). Any funds deposited in an account with the county's FEIN number must be accounted for in the school's general ledger and must follow the procedures in State Board policy 1224.1. The school principal and the chief school business official of the County must have signature authority for every such bank account, including C.D. and investment accounts, in which school funds are deposited.

A school may establish as many separate sub-accounts within each fund as is considered necessary to accurately account for the financial activity of the school.

County Funds

The following account codes are to be used by the County:

1. General Current Expense Fund. Accounts for all financial resources of the County except those required to be accounted for in another fund.
2. County. Accounts for the general operations of the county board of education.
3. Excess Levy. Accounts for the proceeds and expenditure of excess levy monies if required in the levy call to be accounted for in a separate fund.
4. Debt Service Fund - Accounts for the accumulation of resources for, and the payment of, general long-term debt, principal and interest.
5. Bond Construction Fund. Accounts for the financial resources used to acquire or construct major capital facilities financed as a result of issuing bonds.
6. 1977 Bond Issue. Accounts for the financial resources used to acquire or construct major capital facilities financed from the bond issue authorized by the voters in 1977.
7. 1994 Bond Issue. Accounts for the financial resources used to acquire or construct major capital facilities financed from the bond issue authorized by the voters in 1994.
8. 2019 Bond Issue. Accounts for the financial resources used to acquire or construct major capital facilities financed from the bond issue authorized by the voters in 2018 and issued in 2019.
9. Permanent Improvement Fund - Accounts for the accumulation of resources and subsequent expenditures for capital improvement activities. The proceeds of the fund must be used only for the support of building and capital improvement projects and cannot be transferred out.
10. Capital Projects Fund - Accounts for financial resources used to acquire or construct specific major capital facilities other than by the sale of bonds or the reservation of monies in a permanent improvement fund. A separate fund may be established for each specific capital project. Note: A capital project whose annual expenditures exceed three percent (3%) of the prior years current expense fund expenditures must be accounted for in a bond construction, permanent improvement or capital projects fund.
11. Special Revenue Fund - Accounts for the financial resources of the County which are restricted either legally or by the grantor.

Audits

The Board requires, after the close of the fiscal year (June 30th), that an audit of all accounts of the Board be made annually by an independent, certified public accountant. The audit examination shall be conducted in accordance with generally-accepted auditing standards and shall include all funds over which the Board has direct or supervisory control.

The Treasurer shall also prepare and publish an audited statement of the financial condition of the Board at the close of each fiscal year, on or before the ninetieth day of the next succeeding fiscal year.

SCHOOL AUDITS

The Board is responsible for ensuring that an annual examination is conducted of the financial records of every school within the County. The examination is to include all funds maintained by the school and should be completed in accordance with applicable federal, state and local guidelines.

A report is to be issued for each school individually in which is presented the financial statements of each fund maintained by the school and all instances of noncompliance and other reportable conditions noted during the examination.

The examination is to be completed and the report issued within nine (9) months after the end of the fiscal year except that county boards that have twenty (20) or more schools and conduct the school examinations with their own personnel may have an additional three (3) months in which to complete the examination of all schools and issue the individual reports.. The examination may be conducted by CSBO, staff of the CSBO under the supervision of the CSBO, by a certified public accountant, or by the State Auditor's Office, Chief Inspector Division.

The financial records may be examined in accordance with agreed upon review procedures developed by the Board. Such procedures, however, must include a review of compliance with the provisions of this manual and policies and regulations of the Board and a review of the school's internal control structure. See Form 6830 F1 for a checklist of items which must be included in a school's annual review.

Copies of the report are to be provided to the Board to the Superintendent and to the school principal. A copy of each school's report is to be kept on file at the Board's offices and made available for public review.

If any reportable conditions are noted in the report for a particular school, the principal is to provide the Board with a corrective action plan. All reportable conditions are to be corrected as soon as practical but not later than six (6) months after receipt of the report.

Working papers supporting the examination are to be prepared and retained for at least three (3) years. The working papers are to be made available to the auditor conducting the subsequent year's examination.

The cost for the examination will be paid by the Board.

All transaction journals, bank statements, receipt books, checkbooks, canceled checks, invoices, purchase orders, and other related records which may be requested are to be available to the auditor for examination upon request.

In addition to an annual examination of each school, periodic reviews may be made of each school by the chief school business official or a member of that individual's staff to review internal control procedures, to ensure that transactions are being posted in a timely fashion and to provide assistance during the course of the year if needed.

COUNTY AUDIT

The Board may elect, by May 1st of the fiscal year to be audited, to have its annual examination performed by a certified public accountant approved by the Chief Inspector to perform the examinations. When this election is made, a copy of the order of the board making the election shall be filed with the Chief Inspector and the State Board of School Finance. The county board is allowed to contract with any certified public accountant on the Chief Inspector's then current list of approved certified public accountants, unless the state board of school finance or the prosecuting attorney of Roane County submits to the Chief Inspector a written request for the examination to be performed by the Chief Inspector or a person appointed by the Chief Inspector, or the Chief Inspector determines that a special or unusual situation exists. The Board shall follow the audit bid procurement procedures established by the Chief Inspector in obtaining the audit.

The Board, when procuring the services of a certified public accountant on the Chief Inspector's list, shall follow the procurement standards prescribed by the Grants Management Common Rule, OMB Circular A-102 "Grants and Cooperative Agreements with State and local Governments" in effect for the fiscal year being examined, or in any replacement circular or regulation of the Office of Management and Budget and in addition shall follow those standards as determined by the Office of Chief Inspector.

Upon completion of the certified public accountant's examination and audit or review report, the certified public accountant shall promptly send two (2) copies of the certified report to the Board who shall file one (1) copy with the Federal audit clearing house. The certified public accountant shall send one (1) copy of the certified report to the State Board of School Finance, and one (1) copy to the Chief Inspector.

If any examination discloses misfeasance, malfeasance or nonfeasance in office on the part of any public officer or employee, the certified public accountant shall submit his/her recommendation to the Chief Inspector regarding the legal action the approved certified public accountant considers appropriate, including, but not limited to, whether criminal prosecution or civil action to effect restitution is appropriate, and three (3) additional copies of the certified audit report.

Authorization to Use Facsimile Signature

The Board authorizes the Treasurer, President, Vice President, and Superintendent to prepare and utilize a facsimile signature, in lieu of their manual signature, and to affix such facsimile signature to any of the following instruments: checks; drafts; warrants; vouchers; or other instruments for the payment of money and necessary or desirable in connection with the withdrawal of Board funds for and on its behalf. The individuals specified above may affix their manual or facsimile signature to the instruments identified so long as they continue to act as such officers/employees. The use of facsimile signatures is expressly approved by the Board. Said checks, drafts, warrants, vouchers, or other instruments for the payment of money may be drawn or relate to the accounts of the Roane County Board of Education with the various financial institutions (depositories/banks) with which the Roane County Board of Education conducts business.

The Board directs that the financial institutions (depositories/banks), with which the Roane County Board of Education does business, are authorized and requested to accept, honor, cash, pay or transfer, without limit as to the amount or without further inquiry, checks bearing the authorized signature(s) as provided by the immediately preceding paragraph whether tendered in payment of an individual obligation or deposited in the account of the Roane County Board of Education. The Treasurer is directed to provide written notice of the adoption of any facsimile signature to the depository from which funds are to be withdrawn, which notice shall include a description of the device to be used, a specimen of such facsimile signature, and a copy of this policy. Prior to use of the facsimile signature, the written approval of such depository must be obtained.

Facsimile signature is defined to include, but is not limited to, the reproduction of any authorized signature by a copper plate or by a photographic, photostatic, or mechanical device. Facsimile signature does not authorize the use of a rubber stamp signature for any of the instruments detailed above.

In order to protect the Board and its employees from loss, damage or expense occasioned by the unauthorized use of a facsimile signature, the Board directs the Treasurer to procure for the Roane County Schools and for the individuals identified above a surety bond in such amount as approved by its legal advisor.

The actual facsimile signature should be maintained under the care, custody and control of the Treasurer's Department. The signatures of the president and secretary shall be safely kept so that no one shall have access thereto except the president and the secretary of the Board and such of their respective employees as maybe authorized to have access thereto. As a further precaution, all checks must be entered into the check register so that all numbers can be accounted for.

Authorization to Make Electronic Fund Transfers

The Board of Education authorizes electronic fund transfers (EFTs) for any purpose including direct deposit, wire transfer, withdrawal, investment, or payment, provided such EFTs are consistent with the provisions of West Virginia's Uniform Electronic Transactions Act, West Virginia Code 39A-1-1, et seq. Upon the recommendation of the Business Manager, the Board shall approve the financial institutions that are authorized to receive monetary transactions through electronic or other medium.

Upon the recommendation of the Business Manager, the Board shall then approve written agreements with financial institutions with whom EFTs will be made.

Such agreements shall set forth internal controls required by State law and State regulations that will provide adequate integrity, security, confidentiality, and auditability of business transactions conducted by electronic commerce, including, but not limited to, the following:

1. the official title of the bank account(s) subject to the agreement and each type of transaction approved, such as deposits, disbursements or transfers, shall be specified;
2. the manual signatures of the Board President, Superintendent, Business Manager, and the employees authorized to initiate EFTs shall be contained therein;
3. a requirement that the County maintain documentation signed by the initiator and authorizer of the EFTs to confirm the authenticity of the EFTs;
4. a requirement that, when funds are properly delivered to the receiving institution, that institution agrees to become responsible for prompt and diligent processing of the funds;
5. a requirement that written or printed documentation from the financial institution acknowledging such transactions, including but not limited to deposit slips, debit and credit memos, trust receipts, transfer acknowledgements, or cancelled warrants, shall be provided so that it may be kept in the official files of the County, which shall be maintained in a manner which facilitates easy review and validation of transactions.

All County staff shall comply with all provisions of this policy when creating, generating, sending, communicating, receiving, storing, processing, using, and relying upon electronic records. Further, all County staff and other persons who use electronic signatures when completing transactions with the Board shall do so in compliance with State law.

Depository Agreements

The Board shall open a bank account, or accounts, as required to adequately and properly transact the business of the County in a depository, or banks, within the County.

The depositories, or banks, shall provide bond to cover the maximum amount to be deposited at any one time. However, the Board may, in lieu of such bond, accept as security for money deposited securities of the United States, or of a State, county, District or municipal corporation, or Federal agency securities. Provided, that if such deposits are placed in certificates of deposit meeting the requirements set forth in WV 18-9-6, the banking institution is not required to provide a bond or security in lieu of bond. One hundred percent of the face or par value of such securities shall not be less than the maximum amount to be deposited at any one time as the amount to be named in the bond in lieu of which such securities are accepted, or the Board may accept such securities as partial security to the extent of their face value for the money so deposited and require bond for the remainder of the full amount hereinabove specified, to be named in the bond, and, in the bond so required, such acceptance of securities as partial security.

All banks within the County shall be given the opportunity every three (3) years to serve as the depository for the Board. The depository shall be determined through a competitive bidding procedures. In determining the depository for Board funds a Board member who has a pecuniary interest in a bank within the County shall not participate in the determination of the depository for such funds.

The Board shall also make interim changes if it is in the Board's best interest to appoint an additional depository or if one (1) or more of the designated depositories are found to be insolvent or operating in an unsound manner.

Investments

The Board authorizes the Treasurer to make investments of available monies from the funds of the County in securities authorized by State law. These shall include:

1. the Municipal Bond Commission;
2. guaranteed certificates of deposit issued by an eligible bank;
3. guaranteed investments such as treasury bills, treasury notes or certificates of deposit issued either by the United States Government or by an eligible banking institution in which Federal and State guarantees are applicable; or
4. with the State Board of Investments Consolidated Fund.

Interest earned in such investments is to be credited to the fund from which the monies were originally available.

The purpose of the investments is to maximize the returns on the County's excess cash balances consistent with safety of those monies and with the desired liquidity of the investments.

When it appears to the Board that funds on deposit in its demand deposit account exceed the current requirements or demands, and it further be determined by the Treasurer for such Board that the available interest rate offered by an acceptable depository in such Treasurer's County be less than the interest rate, net of administrative fees referred to in WV Code 12-6-1 et seq., offered through the State Board of Investments, the Treasurer may, with the approval in writing of the Board make such funds available to the State Board of Investments for investment in accordance with State Code. The Treasurer may enter into an agreement with any State agency from which they receive funds to allow such funds to be transferred to their investment account with the State Board of Investments.

All banking institutions within the County will be given the opportunity to participate in the Board's investment program. Investments shall be awarded through a competitive bidding procedure. All bidders shall be informed of the successful bid and of the interest rate for the transaction. In determining such investments within banking institutions or depositories within the County, a Board member who has a pecuniary interest in any such institution or depository within the County, shall not participate in the determination of the investment.

Borrowing

The Board is not permitted to incur any debt in one (1) fiscal year to be paid out of its funds in a subsequent year, provided, however, that the Board may issue bonds and thereby become indebted in an amount not to exceed five percent (5%), including all other indebtedness, in the aggregate, on the value of the taxable property within the County to be ascertained by the last assessment for State and County taxes, previous to the incurring of such indebtedness, in the manner and for the purposes, provided by the "School Bond Amendment", as ratified.

Such bond issue shall be ratified upon the affirmative vote of a majority of the voters casting ballots on the issue.

Bad Checks

When the Board receives a check that, when deposited, is returned marked "insufficient funds", the school shall allow such checks to be redeposited. If the checks are returned for insufficient funds a second time, however, they should be considered worthless and steps must be taken to recover the funds. In addition, an adjusting entry must be posted to the transaction journal to reduce the amount of funds recorded as having been received. The school will provide an opportunity for the payer to make proper payment or to arrange for a satisfactory payment schedule. If payment is not received within fifteen (15) days, the payment schedule is not adhered to, or the monies do not appear to be collectible, the Board authorizes the principal to take appropriate action against the student and/or the parents and/or the maker of the check, if other than the student or parents. This includes not only recovering the face value of the check but all bank fees, court costs or other charges incurred by the school as a result of the check.

When the funds are recovered, a receipt is to issued for the total amount recovered and the total is to be deposited in the school's depository account.

If any checks are determined to be uncollectable, the school is to file an annual report with the chief school business official showing the names of the individuals from whom the checks were received and the total amount that has not been collected. A file should be maintained for each individual to show the actions taken.

Collection Policy for Outstanding Participant Meal Accounts

The School Nutrition Program Director or designee may file a claim with the magistrate court (through legal counsel as authorized by the Superintendent) or utilize the services of an independent collection agency to secure collection on unpaid debts not paid within thirty (30) days of written notification, unless an alternative payment plan has been reached. The costs for filing claims in magistrate court or for securing the services of a collection agency shall be added to the unpaid debt due the District Board. Accounts submitted to an independent collection agency shall have charging privileges revoked. Parents shall be provided with written notification of this policy on an annual basis.

The Superintendent shall review all outstanding obligations and approve for write-off any debt, which in his/her judgement remains uncollectable at the end of each fiscal year.

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