DRAFT
FiscalPolicies& Procedures
TheGoverningBoardforFortCollinsMontessoriSchoolhasdevelopedthefollowing policiesto ensurethattheschool’s funds areusedtomosteffectively supportthe school’s missionandtoensurethatthe funds arebudgeted,accounted for, expended, andmaintainedinanappropriatefashion. Thepolicieshavebeenformallyreviewed andadopted bythe Governing Board.
A. FinancialCodeOf Ethics
AllGoverningBoardmembers andemployees ofFort CollinsMontessoriSchoolshall:
•Actwith honestyandintegrity,includinghandling actualor apparentconflictsof interestbetweenpersonal and professional relationshipsinanethical manner, and proactivelypromoteethicalbehavior in allfinancialdealings andother activitieswithinFort Collins MontessoriSchool.
•SignaConflictofInterestDisclosure Statementby Aug 30 of each school year.
•Comply with applicablefederalor statelaws andlocal ordinances,andwith otherapplicablerules. Filecomplete, accurate,timely, andunderstandablereports and disclosure statementsas requiredbyapplicablelaws,rules, or policies;
•Actingoodfaith,responsibly, andwith duecare,competenceanddiligence, without misrepresentingmaterialfacts or allowing one’s independenceofjudgmenttobe subordinated;
•Shareknowledgeandmaintainskills importantandrelevanttojobrequirements;
•Respecttheconfidentialityofinformationacquiredinthecourse ofwork andmade
confidentialbylaw.
B. Controls,Budget,and Fiscal
FortCollinsMontessori Schoolwill maintainineffectthe followingprinciplesinits ongoingfiscal management practices to ensure that,
(1)expendituresare authorizedby andinaccordwithamountsspecifiedinthe board adoptedbudget,
(2)theschool’s funds aremanagedandheldinamannerthatprovidesahighdegree ofprotectionoftheschool’s assets,and
(3) alltransactionsarerecordedanddocumentedinanappropriatemanner.
B1. Segregation ofDuties
FortCollinsMontessori Schoolwilldevelopandmaintainsimplecheckrequestand purchaseorderformstodocumenttheauthorizationofallnon-payrollexpenditures. AllproposedexpendituresmustbeapprovedbytheHeadofSchoolwhowillreview the proposed expenditure to determine whether it is consistent with the Board adoptedbudgetandsignthecheckrequestform. Allcheckrequestandpurchase ordersover$250must becosigned by theHeadofSchool andcountersigned by one Board member,preferably theTreasurer[JS1],toensureseparationofexpenditure authorizationandcheck signingfunctions.
B2. BankingArrangements
FortCollinsMontessoriSchoolwill maintainitsaccountseither at a federally-insured commercial bank or credit union. Fundswillbe depositedin non-speculative accounts includingfederally-insuredsavingsorcheckingaccountsor investedinnon- speculativefederally backedinstruments. TheGoverningBoard mustappointand approveallindividualsauthorizedtosign checksorwarrantsinaccordwiththese policies and allchecksover $1,000mustbesigned bytwo authorizedsignatories.
TheFortCollinsMontessoriSchoolbookkeeperoraccountant willreconcilethe School’sledgerswithitsbank accountsona monthly basisand prepare(1)abalance sheet,(2) acomparisonofbudgetedtoactualrevenues andexpenditurestodate,and (3)acashflow statement. TheHeadofSchoolandFinanceCommitteeoftheBoard willregularlyreviewthesestatements. Theschoolwilldepositallfundsreceivedas soonas practicaluponreceipt. Apetty cashfund,nottoexceed$200, may be establishedwithanappropriateledgertobereconciledtwicemonthlybytheschool sitesecretary,whoshallnotbeauthorizedtoexpendpettycash.
B3. Purchasing Procedures
All purchases over $1,000 mustincludedocumentationofa good faitheffortto secure thelowest possiblecostfor comparablegoods or services. TheHeadofSchoolshall not approvepurchaseordersorcheck requests lackingsuchdocumentation. Documentationshallbeattachedtoallcheckandpurchaseorderrequestsshowing
that at least three vendors were contacted and such documentation shall be maintainedforthreeyears. Allpurchasesinexcessof$10,000mustbebidbya boardapproved process.
B4. Record Keeping
Transactionledgers, canceled/duplicatechecks, attendanceandentitlementrecords, payrollrecordsandany othernecessary fiscaldocumentswillbe maintained by individualsdesignatedby thegoverningboardinasecurelocationforatleastthree years,oraslongasrequiredbyapplicablelaw,whicheverislonger. Appropriate back-upcopiesofelectronic and paper documentation,includingfinancial and accountingdata,will beregularlyprepared andstoredinasecureoffsitelocation.
B5. PropertyInventory
TheHeadofSchoolshallestablish and maintain aninventory ofallnon-consumable goodsand equipmentworth over$500. Thisinventory shallincludetheoriginal purchasepriceanddate,a briefdescription,serial numbers, andotherinformation appropriatefordocumentingtheschool’sassets. This property willbeinventoriedon anannual basis andlistsof anymissingpropertyshallbe presentedtotheBoard.
B6. PayrollServices
FortCollinsMontessoriSchoolshallcontractwithareputable,bonded,andinsured payrollcontractortopreparepayrollchecks,tax andretirementwithholdings,tax statements,andtoperformotherpayrollsupportfunctions. TheHeadofSchoolwill establishandoverseeasystemtoprepare timeandattendancereportsandsubmitpayrollcheckrequests. TheHeadofSchoolandBoardTreasurerwillreviewpayroll statementsmonthlytoensurethat(1) thesalariesareconsistentwithstaffcontracts and personnel policiesand(2)thepropertax,retirement, disability,and other withholdings havebeendeductedand forwardedtotheappropriate authority. All staff expensereimbursementswill be onchecks separatefrom payrollchecks.
Uponhiringofstaff,apersonnel filewillbeestablishedwithallappropriatepayroll relateddocumentationincludinga federalI-9form, tax withholdingforms,retirement date,anduseofsick leaveif applicable.
B7. AttendanceAccounting
TheHeadofSchoolwill establish and maintainan appropriate attendanceaccounting systemapprovedtorecordthenumberofdaysstudentsareactuallyinattendance withFortCollinsMontessori Schoolandengagedintheactivitiesassignedtothemby theirteacher. Theattendanceaccountingpracticeswillbeinconformancewiththe requiredattendanceaccounting procedures oftheColoradoDepartment ofEducation.
TheGoverningBoardwillannuallyappointanauditcommitteebyOctober 1. Any persons with expenditure authorization or recordingresponsibilities withinFort Collins MontessoriSchoolmaynotserveonthecommittee. Thecommitteeshallannually contract fortheservicesofanindependentcertifiedpublicaccountanttoperforman annualfiscalaudit. Theauditshallinclude,butnotbelimitedto(1)anauditofthe accuracy ofschool’s financialstatements(2) anauditoftheschool’sattendance accounting andrevenueclaimspractices,and(3)anaudit oftheschool’sinternal controlspractices. Iftheschoolreceivesfundsfromfederalsources,asappropriate, the audit shallbepreparedin accordancewith anyrelevantOffice ofManagementand Budgetauditcirculars. TheAuditshallbecompletedwithin100daysofthecloseof thefiscal year anditsresults shallbereviewed andforwarded totheBoard.
B8. Negotiating Funding Entitlements
TheHeadofSchoolshall prepareaset ofnegotiatingstrategiesforBoardapproval priortoengaginginnegotiationsoverfundingentitlementswiththechartergranting agency andthestate. TheHeadofSchoolwilltakeleadresponsibilityfornegotiating allrevenuearrangementswiththechartergrantingagency andappropriateMDEstaff. Thesearrangements will bedocumentedin appropriateanddetailedMemorandaof Understandingforapproval bythe Board.
B9. Required Budget and OtherFiscalReports
The Head of School, working in conjunction with a bookkeeper/accountant, will produceandsubmittothecharter grantingagency any andallrequired fiscalreports thatmayberequiredbystateorfederallaw,ormandatedbythetermsoftheFort Collins MontessoriSchoolcharter document.
B10.Propertyand LiabilityInsurance
TheHeadofSchoolshallensurethattheschoolretainsappropriateproperty and liabilityinsurancecoverage. Property insuranceshallbeobtained andaddress businessinterruption andcasualty needs,including flood,fire,earthquake,andother hazardswithreplacementcostcoveragefor allassetslistedintheschool’sProperty Inventory andconsumables. PremisesandBoard errorsand omissionsliability insuranceshallalso be obtained andkeptinforceat alltimes ona“claimsmade” form withaself-insuredretentionofnomorethat$50,000peroccurrenceandlimitofno lessthan$5 millionper occurrence. The school’sHead ofSchoolandotherstaffwho managefunds shall beplaced underafidelity bond.
B11. Fund RaisingActivities/GrantSolicitation
Allfundraisingactivitiesmusthavethe prior approvalofthe GoverningBoard. Participationinallfundraisingactivitiesisstrictlyvoluntary. Noparentorstudent shallbecoercedorrequiredtoparticipateinanyfundraisingactivity. Allfundraising
activities must support the school, education of the students or the community through:
a) supervised activities or projectsbystudents;and
b) limitedsupervisedparticipationofstudentsinactivitiesfornonprofitcharitable organizations.
Inaddition,theGoverningBoardsupports fundraising activitieswhichreinforcethe curriculum,for example bycallingonstudentorganizational or accountingskills.
Participationinfundraisingactivitiesthrough doortodoorcanvassingby elementary studentisprohibited.
Whena fundraising activity hasended,afollow-upreport mustbesenttothe governingboardregardingearnedprofit. Thedistrict’sauditorswillannuallyreview all revenue/expenses ofallfundraising activitieseachfiscal year.
Solicitationofgifts orgrants from privateor otherpublicsources,including businesses musthavethepriorapprovalofthegoverningboard. Itistheresponsibilityofthe HeadofSchooltorecordandacknowledgereceiptofall giftsandgrants fromprivate sources. Acompleteandaccuraterecordofevery donorshallbe maintained. Donor anonymitywillbeprotectedwheneverdesiredbythedonor. Arecordmustbekept of:the donor name andaddress; theamountofthegift;date the giftwasreceived; accountintowhichthegiftwasdeposited;any specificdesignations;acopy of correspondenceacknowledgingreceiptofthegift. ItistheresponsibilityoftheHead ofSchooltosendan acknowledgment of all donations received.
Note from May 2015 board PD: Every classroom teacher must have a certain pre-identified amount of money to spend on supplies ($100? Per year). There must also be a process by which they get reimbursed for spending.
C. Budget Developmentand Oversight Calendar andResponsibilities
FortCollinsMontessoriSchoolwilldevelopandmonitoritsbudgetinaccordwiththe annual budgetdevelopmentandmonitoringcalendar as specified below.
January-February
•TheFinanceCommitteeoftheBoardworkswiththeHeadofSchooltoreviewthe proposedstatebudgetfortheupcomingfiscalyear,andidentifythelikelyrangeof
•revenuesfor theschool’s upcomingfiscal year (July1-June 30). (Responsibleperson: BoardTreasurer andtheHeadofSchool)
•The Head of School reviews/prepares a set of proposed budget development principlesforboardreviewandapproval. (Responsibleperson: BoardTreasurer, Head ofSchooland the other GoverningBoard members.)
•Develop rough planning budget for upcoming fiscal year, including projected enrollmentandanyproposed staffingchanges. (Responsibleperson: Headof Schoolinconjunctionwith the GoverningBoard FinanceCommittee).
•Developfive-yearbudgetprojectioninaccordwiththeschoolsestablishedstrategic andgrowthplans. (Responsibleperson: HeadofSchoolinconjunctionwiththe Board FinanceCommittee.)
•Ongoingmonitoringandrevisionofcurrentyearbudget. (Responsibleperson: BoardTreasurer, FinanceCommitteeHead ofSchool.)
March-April
•TheHeadofSchool, workinginconjunctionwithstaff,Board members,andTreasurer, preparesaformalbudget plan forupcoming fiscalyear. Theplanisreviewedbythe FinanceCommittee oftheBoard.
•Ongoingmonitoringandrevisionofcurrentyearbudget.(Responsibleperson:
BoardTreasurer, FinanceCommittee,andHead ofSchool).
•TheAuditCommitteeoftheBoardsolicitsbidsfortheannualauditandselectsan
auditor.(Responsible person:Audit CommitteeoftheBoardactingalone.)
May-June
•HeadofSchoolreviewsrevenue projectionssubsequenttothestatesannual possible revision figures; finetunestheupcomingfiscalyear budgetto accommodateany changes. Thisbudgetwillincludemonthlycash flow projections. TheFinance Committeereviewsandfinalizedtheproposedbudgetfortheupcomingfiscalyear and forwardstothe Board. (Responsibleperson: Board Treasurer,Finance CommitteeHead ofSchool.)
•TheBoardreviewsandformallyadoptsabudgetforupcomingfiscalyearbeforeJune
15.Acopyofthefinalbudgetisprovidedto TheCharterSchoolCommission. (Responsibleperson:Governing Board)
• TheHeadofSchoolreviews current academic year actual versusbudgetedrevenues and expendituresafter thefifth monthoftheschoolyearandreportstotheFinance Committee. Any needed changes to the annual budget are approved by the
GoverningBoard. (Responsibleperson: BoardTreasurer,FinanceCommittee,and
Head ofSchool)
•Ongoingmonitoringandrevisionofthecurrentyearbudget.(Responsibleperson:
BoardTreasurer, FinanceCommittee,andHead ofSchool)
July-August
•Booksforpriorfiscalyearareclosed,alltransactionsareposted,andrecords assembledforaudit. (Responsibleperson: HeadofSchool,Accountant,andBoard Treasurer)
•Budget isreviewedsubsequenttothe adoptionofthestateBudgetAct andnecessary adjustmentsaremade. Acopyoftherevisedfinalbudgetisprovidedtothecharter grantingagency. (Responsible person: Head ofSchool,Accountant,and Board Treasurer)
• Independentauditorperformsauditofthejust-closedfiscalyearandpreparesaudit report forsubmissiontotheAuditCommittee. (Responsible person: Auditor, Staffas requestedbytheauditor, Audit Committee.)
September-December
• Attheendofthefirstfullweekofschool,theHeadofSchoolreviewsFortCollins MontessoriSchool’sactual attendance figuresandnotifiestheGoverningBoardif actualattendanceisbelowbudgetprojections. Ifneeded,theSchool’sbudgetis againrevisedtomatchlikely revenues. (Responsibleperson: HeadofSchool, FinanceCommittee,Governing Board)
• Acopy oftheauditisreviewedby theAuditcommittee ofthe Board. HeadofSchool andFinanceCommitteeaddressanyadverse findings. Auditreportandany follow-up plansaresubmittedtochartergrantingagency. (Responsibleperson: Headof School,Audit Committee,GoverningBoard)
• TheHeadofSchoolreviews currentyear actual versus budgetedrevenues and expendituresafterthesecondmonthoftheschoolyearandreportstotheFinance Committee. Any neededchangestotheannualbudgetare approvedby the GoverningBoard. (Responsibleperson: BoardTreasurer,FinanceCommittee,and Head ofSchool)
•Ongoingmonitoringandrevisionofthecurrentyearbudget.(Responsibleperson:
BoardTreasurer, FinanceCommittee,andHead ofSchool)
[JS1]I am pretty sure we are not doing this.
From May 2015 board PD: anything over $5000 must have board approval, or at least a board member signature.