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SECTION D: FISCAL MANAGEMENT
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DA Fiscal Management Goals
DB Annual Budget and Appropriations Measure
DBD Budget Planning
DD Funding Proposals and Applications
DE Revenues from Tax Sources
DFA Revenues from Investments
DH Bonded Employees and Officers
DID Inventories (Fixed Assets)
DJ Purchasing
DJC Bidding Requirements
DJE Cooperative Purchasing
DJF Purchasing Procedures
DJG Vendor Relations
DJH Credit Cards
DLB Salary Deductions
DLC Expense Reimbursements
DN School Properties Disposal Procedure
File: DA(return to top menu Section D)
FISCAL MANAGEMENT GOALS
The quantity and quality of learning programs are related to the funding provided and the effective, efficient management of those funds. It follows that the District’s purposes can best be achieved through prudent fiscal management.
Due to resource limitations, there is sometimes a temptation to operate so that fiscal concerns overshadow the educational program. Recognizing this, it is essential that the Board take specific action to make certain that education remains central and that fiscal management contributes to the educational program. This concept is incorporated into Board operations and into all aspects of District management and operation.
As trustees of the community’s investment in the facilities, materials and operational funds, the Board has a fiduciary responsibility to ensure that the investment is protected and used wisely. Competent personnel and efficient procedures are essential for sound management of fiscal affairs. The Board expects that the Superintendent and the Treasurer keep it informed through reports, both oral and written, of the fiscal management of the District.
The Treasurer is expected to develop an efficient and effective procedure for fiscal accounting, purchasing and the protection of plant, grounds, materials and equipment through prudent and economical operation, maintenance and insurance.
The Board seeks to achieve the following goals to:
1. engage in thorough advance planning, with staff and community involvement, in order to develop budgets and to guide expenditures to achieve the greatest educational returns for the dollars expended;
2. establish levels of funding which provide high quality education for the District’s students;
3. use the best available techniques for budget development and management;
4. provide timely and appropriate information to all staff with fiscal management responsibilities and
5. establish effective procedures for accounting, reporting, business, purchasing and delivery, payroll, payment of vendors and contractors and all other areas of fiscal management.
[Adoption date: April 17, 2003]
File: DB(return to top menu Section D)
ANNUAL BUDGET AND APPROPRIATIONS MEASURE
The Board considers the preparation of the annual budget to be one of its most important functions because the budget is the financial reflection of the operating plan for the Service Center. The budget is designed to carry out that plan in a thorough and efficient manner and to maintain the facilities and honor the obligations of the ESC.
Annually, the Treasurer prepares and presents to the Board a budget for adoption by July 1. Verification of fund sources and a defense of the projected budget is provided to the Board for review.
The budget should evolve primarily from the needs of the individual programs as expressed by the Superintendent.
Appropriations
As permitted by law, no later than July 1, the Board may pass a temporary appropriation measure to provide for meeting the ordinary expenses of the ESC until such time as the Board approves the annual appropriation resolution for the year, which will be not later than October 1.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 9.34
3311.40
5705.28; 5705.29; 5705.35-5705.412
File: DBD(return to top menu Section D)
BUDGET PLANNING
Prudent fiscal management provides the keystone for an efficient system of quality public education. To maintain a solid foundation for operation of the ESC, the Board will explore all legal and practical sources of income, encourage advance planning, review and guide proposed expenditures to achieve the greatest educational value and require an accurate, current system of accounting and reporting.
Annually, the Board approves the operating budget for the Service Center. The budget is designed to reflect the Board's objectives; therefore, it must be carefully organized and planned to ensure adequate understanding of the financial needs associated with program operation and development.
To meet the objectives of this policy, the Board directs the Superintendent to include in all ongoing studies of the educational program an estimated annual cost of implementing said program; prepare a year-by-year plan for facilities and equipment; maintain a plan of anticipated revenues based on changes in state and federal legislation and report to the Board any serious financial implications arising from the budget plan.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 5705.01; 5705.28-5705.32; 5705.35; 5705.36; 5705.37; 5705.39; 5705.391
CROSS REF.: AE, Service Center Goals and Objectives
File: DD(return to top menu Section D)
FUNDING PROPOSALS AND APPLICATIONS
The Board authorizes the Superintendent to apply for any state or federal grants for which it is eligible. The Superintendent/designee evaluates federally funded programs and state grants, including their possible benefits to the students in the District and apprises the Board of the worth of each and makes recommendations accordingly.
The ESC participates to its limit of eligibility in the use of funds provided by the state for the educational benefit of its students.
[Adoption date: April 17, 2003]
LEGAL REF.: ORC 3313.20
File: DE(return to top menu Section D)
REVENUES FROM TAX SOURCES
In an attempt to provide sufficient financial resources, the Board:
1. accepts available state funds to which the District is entitled by law or through regulations of the State Board of Education and
2. accepts federal funds which are available, provided that there is a specific need for them and that the required matching funds are available.
[Adoption date: April 17, 2003]
LEGAL REFS.: Ohio Const. Art. XII, Section 2
ORC 3301.07
3311.21
3313.02-3313.91
3317.01-3317.11
3323.09
Chapters 5701; 5705; 5727
5747.01
5748.01-5748.06
File: DFA(return to top menu Section D)
REVENUES FROM INVESTMENTS
The Board invests at interest, in accordance with law, interim funds and funds on deposit in all accounts. Investment of Board funds may be made by the Treasurer when operating within the constraints of law and Board policy, provided that no commitment of this Board may be put in default at time due but be paid properly and promptly. Law requires that the Treasurer place money at the highest interest rate bid. Investment of Board funds may be made by the Treasurer upon the approval of the Board.
The Treasurer includes in the monthly report to the Board all cash in all accounts on deposit as well as all investment assets of the Board. The Board also requires that the Treasurer report to the Board monthly the total interest earned to date this fiscal year and the transactions occurring since the last report.
Funds of the Board may be withdrawn from approved public depositories or negotiable instruments owned by the Board sold before maturity at the discretion of the Treasurer acting within the law and with the approval of the Board.
The following regulations coded DFA-R are in conjunction with the Ohio Revised Code.
[Adoption date: April 17, 2003]
LEGAL REFS.: Intergovernmental Cooperation Act of 1968, Pub. L. No. 90-577 (1968)
ORC 135.01-135.21
3313.51
File: DFA-R(return to top menu Section D)
REVENUES FROM INVESTMENTS
This document, in conjunction with the Ohio Revised Code, as amended, governs the investments and the investment activities of the ESC. It is reviewed annually for compliance and to assure the flexibility necessary to effectively manage the portfolio.
The purpose of the investment account is to maximize the returns on the interim excess cash balances consistent with complete safety of the portfolio's principal value and the liquidity desired.
The Treasurer has oversight of all investment activities.
The Treasurer is permitted to invest in any security specifically authorized by State law and the Auditor of State.
A copy of the current Ohio Revised Code listing permitted securities is made available.
Under the guidelines of the Ohio Revised Code, no security is purchased that has a remaining term to final maturity of more than five years from the date of settlement.
Investment in eligible securities may be made in either coupon or discount instruments. Coupon securities would normally not be purchased with a premium or discount exceeding two percent of par value, excluding accrued interest.
Portfolio liquidity is defined as the ability to sell a security on short notice near the par value of the security. To help retain desired liquidity, no issue is purchased that is likely to have few market makers or poor market bids.
Additionally, total portfolio liquidity is assured by keeping an adequate amount of short term (usually 30 days or less) investments in the portfolio to accommodate unexpected cash needs of $200,000.
To maintain the portfolio's current characteristics and/or to enhance its yield, swapping (the simultaneous selling of one security and buying of another) is permitted. When selling at less than book value, this increment must be recovered by the increase in yield of the new security in the current remaining time to maturity.
All of the above requirements are to be maintained in compliance with State law, as amended, and sound investment practices.
At no time will safety of the portfolio's principal investment be impaired or jeopardized. Safety is herein defined as the certainty of receiving full par value plus accrued interest, at the security's legal final maturity.
(Approval date: April 17, 2003)
File: DH (return to top menu Section D)
BONDED EMPLOYEES AND OFFICERS
At the time of appointment or re-appointment of the Treasurer, the Board authorizes the Treasurer to execute a bond in an amount determined and approved by the Board. The bond must be deposited with the Board President and a copy certified by him/her must be filed with the County Auditor. The premium is paid by the Board.
The Superintendent, Board President and employees who handle school funds are included, at Board expense, in a position schedule bond. Position schedule bonds pertain to a specific position, not to an individual.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 3.06
131.18
3313.25; 3313.83
3319.05
5705.412
CROSS REF.: DJ, Purchasing
File: DID (return to top menu Section D)
INVENTORIES
(Fixed Assets)
In order to conform to Ohio financial reporting standards, and to provide property insurance information, the Service Center maintains a Fixed Asset System which is a system of methods, policies and procedures for recording and reporting monetary amounts to account for Board-owned real property and equipment.
Fixed assets are defined as those assets that are deemed to be tangible, such as land, buildings, furniture and fixtures, equipment, vehicles, improvements other than buildings and construction in process. Fixed assets are those which are not expendable supplies, which have a useful life of more than three years and which have an acquisition value in excess of $1,000.* Exceptions for control and insurance purposes extend this definition to include audio/visual equipment, musical instruments and computers. Any nonremovable articles are included in the assigned value of the structure in which they are installed.
Staff members shall participate in the continuous updating of the fixed asset inventories and values of Board-owned equipment as may be deemed necessary. The Treasurer is authorized to contract for the annual fixed asset inventory and establishment of values for all real estate and equipment owned by the Board.
A Service Center inventory tag is assigned to each new asset meeting the criteria established above, in an expedient manner. Tagged items are discarded, destroyed or otherwise disposed of after:
1. approval of the supervisor, principal and/or Superintendent and
2. notification of the Treasurer’s office for records maintenance.
[Adoption date: April 17, 2003]
LEGAL REF.: ORC 117.38
File: DJ (return to top menu Section D)
PURCHASING
It is the policy of the Board that when funds are available, all purchases contemplated within the current budget and not subject to bid be made in a manner that tends toward the insurance of maximum value to the District.
For purchases that fall within budgetary order, approval must be obtained from the Treasurer, who checks as to whether the proposed purchase is subject to bid, whether sufficient funds exist in the budget and whether the material might be available elsewhere in the District.
Where the requisitioner has recommended a supplier, the administrators may make alternate suggestions to the requisitioner if, in his/her judgment, better service, delivery, economy or utility can be achieved by changing the proposed order.
Upon the placement of a purchase order, the Treasurer shall commit the expenditure against a specific budget line item to guard against the creation of liabilities in excess of appropriations.
No purchase of supplies shall be allowed without a properly signed purchase order. Employees shall be held personally responsible for anything purchased without a properly signed purchase order.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 3313.171; 3313.172; 3313.18; 3313.29; 3313.31; 3313.33; 3313.37;
3313.46
3319.04
3327.08
5705.38; 5705.40; 5705.41; 5705.412
Ohio Const. VIII, Section 2e
CROSS REFS.: DJC, Bidding Requirements
DJF, Purchasing Procedures
File: DJC (return to top menu Section D)
BIDDING REQUIREMENTS
Contracts for construction or demolition of buildings or for any improvements or repairs which exceed $25,000 are let only after bids are solicited and received in compliance with law. However, if the Board enters into a shared savings contract for energy conservation measures, competitive bidding is not required. The Board may also enter into an installment payment contract for the purchase and installation of energy conservation measures and competitive bidding does not need to be utilized if two-thirds of the entire Board adopts a resolution stating that competitive bidding does not apply to the project.
If feasible, all purchases over $1,000 but under $25,000 will be based on price quotations submitted by at least three vendors. These quotations are treated confidentially until the deadline for filing is past; thereafter, they are public information.
Bids may be opened publicly by the Treasurer before one or more witnesses at a previously designated time and place. Contracts are awarded to the lowest responsible bidder upon resolution of the Board, unless the Board chooses to reject all bids.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 153.50 thru 153.56
3313.372; 33313.373; 3313.46
3319.04
3327.08
CROSS REFS.: DJ, Purchasing
DJF, Purchasing Procedures
File: DJE (return to top menu Section D)
COOPERATIVE PURCHASING
It is the desire of the Board to provide the ESC with the opportunity to obtain the greatest value to education through District purchases. The Board, therefore, encourages the utilization of a centralized purchasing plan when advantages accrue to local boards of education in cost, quality and convenience.
The Board authorizes the Superintendent to establish and administer a program of centralized purchasing to be available to appropriate local educational systems and to participate in contracts of the State Department of Education and to prepare such resolutions for the Board as may be required by law to so participate.
The county administrator assigned responsibility for the conduct of this program works cooperatively with the participating districts to write specifications, select the best bids, catalog potential bidders and maintain files on prepared products.
[Adoption date: April 17, 2003]
File: DJF (return to top menu Section D)
PURCHASING PROCEDURES
Monies under the jurisdiction of the Board may not be expended except upon a warrant drawn against a specific appropriation and against a specific fund. Therefore, no contract or purchase order for the expenditure of money will be made unless there is attached to it a certificate of the Treasurer certifying that the amount required to meet the contract or purchase order has been appropriated and is in the treasury, or is in the process of collection, and is free from previous encumbrance.
Any contract or purchase order issued without such a certificate attached is void, except as the law allows later issuance within 30 days of the certificate and except that, if the amount involved is less than $1,000, the Treasurer may authorize it to be paid without the ratification or affirmation of the Board. Under certain conditions, the law also allows the Treasurer to issue blanket certification, subject to limitations of time and amount as set by law.
Purchasing procedures are designed to ensure the best possible price for the desired products and services. Procedures for purchasing are developed to require that all purchases are made on properly approved purchase orders and that, for items not put up for bid, price quotations are solicited.
In compliance with the State Use Law, the Board directs the administration to determine if products and services needed by the District may be purchased from the Ohio Industries for the Handicapped. If applicable, the District will purchase products and/or services from the OIH.
Special arrangements may be made for ordering perishable and emergency supplies.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 3313.46
3327.08
5705.41(D)(1); 5705.412; 5705.44
CROSS REFS.: DJ, Purchasing
DJC, Bidding Requirements
File: DJG(return to top menu Section D)
VENDOR RELATIONS
It is the purpose of this policy to implement the intent of the legislature to strictly limit the interest that officers and employees of the Board may have in purchases or contracts of the Board.
No member of this Board shall have any direct or indirect pecuniary interest in any contract of the Board or be employed by the Board except as Treasurer. It is not considered a pecuniary interest where a member who is a shareholder, but not director or officer, of a corporation owning not more than five percent of the stock of such corporation files with the Treasurer an affidavit of his/her status with the corporation.
Members of the Board and its authorized agents shall observe the following guidelines in transactions for the Service Center.
In interviews with salesmen, no one who is a member of the ESC staff shall commit himself/herself, by implementation or otherwise, on preference for any product, the Service Center's source of supply for any product, or give any information regarding performance or price which might, in any way, embarrass the Service Center or its representatives.
All vendors must have clearance through the central office prior to making any contact with personnel in a building.
A Board member may not use his/her office to authorize or influence approval of a contract with a firm for which he/she is an officer, owner or part-owner.
All communications with suppliers shall be through the central office except in special cases where technical details make it advisable to delegate authority to others.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 3313.33; 3313.51; 3313.86
3319.21
3329.10
File: DJH(return to top menu Section D)
CREDIT CARDS
The Governing Board recognizes the efficiency and convenience afforded the day-to-day operation of the District through the use of credit cards under the supervision of the Treasurer/CFO. However, credit cards are not to be used to circumvent the general purchasing procedures required by State law and the policies of this Governing Board. Therefore, the Governing Board authorizes the use of credit cards in the following manner:
1. All bank credit cards issued to and in the name of the District are supervised by the Treasurer/CFO and only used for approved school-related activities.
2. Bank credit cards may be used for District-related transportation reservations and expenses, conference registrations and hotel reservation guarantees for the Board and administrative staff.
3 No personal expenses of any kind, including phone calls, are authorized. If telephone calls appear on the billing statement, reimbursement will be arranged by the Treasurer.
4. With prior approval by the Treasurer/CFO, bank credit cards may be used by District employees for school-related purchases from a vendor who does not accept purchase orders or vouchers.
5. Tips are not allowed to be paid with credit cards and are considered the responsibility of the individual(s) using the credit card. Exceptions are the Superintendent, Treasurer and Board Members.
6. The Treasurer/CFO keep a record of all bank credit card use.
7. Receipts and appropriate form(s) are turned in to the Treasurer/CFO within five business days upon completion of approved use. Failure to turn in receipts and appropriate form(s) to the Treasurer/CFO within five business days may result in the charges being deemed unrelated or unsubstantiated. The user is responsible for any unsubstantiated or unrelated purchases.
[Adoption date: April 17, 2003]
File: DLB (return to top menu Section D)
SALARY DEDUCTIONS
Except for deductions for absence not covered by paid leave or those required by law, salary deductions are allowed only upon authorization by the employee and approval by the Board.
The following deductions are required:
1. Federal, state and local income tax;
2. employee’s share of retirement contribution according to current rate as set by law;
3. unexcused or excused absence not covered by paid leave and
4. Medicare deduction in compliance with Federal law.
The Board authorizes in accordance with the provisions of law cited herein that deductions be made from an employee's paycheck upon proper authorization on the appropriate form for the following purposes:
1. savings in a chartered credit union;
2. contributions to charitable corporations and not-for-profit and community fund organizations and
3. savings in a tax-exempt sheltered annuity upon the term and conditions cited by law.
Other deductions are in accordance with the negotiated agreement and/or Board policy.
When a staff member is absent from duty and there is no leave applicable, the absence is unauthorized. The salary deduction for each day of unauthorized absence is based on the current annual salary divided by the number of workdays in the official school calendar as adopted by the Board. In no case will only the salary of the substitute be deducted or an employee be allowed to employ and pay for the substitute.
Unauthorized absences should not occur. Repeated unauthorized absences can result in an employee being disciplined.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 9.40 thru 9.43; 9.45; 9.80; 9.81; 9.90; 9.91
145.37; 145.71-145.73
148.04
3307.51
3313.262
3315.08
3917.04
1 of 2
File: DLB
CROSS REFS.: GCBD, Certificated Staff Leaves and Absences
GDBD, Classified Staff Leaves and Absences
CONTRACT REF.: Mahoning County Educational Service Center Employees’ Association
2 of 2
File: DLC(return to top menu Section D)
EXPENSE REIMBURSEMENTS
The Board may provide for the payment of the actual and necessary expenses, including traveling expenses, of any employee incurred in the course of performing services for the Service Center, whether within or outside the ESC.
The validity of payments for job-related expenses is determined by the Superintendent and/or Treasurer.
The Board pays the expenses of employees when they attend professional meetings approved in accordance with the policy of this Board and in accordance with the following conditions:
1. Preliminary approval for attendance at the meeting as well as amounts of the reimbursement for registration and expenses should be secured from the Superintendent.
2. Reimbursement is made only upon the presentation of original receipts for all expenses submitted for reimbursement. No reimbursement is made unless original receipts are presented for all costs except mileage.
3. Mileage must be computed as actual miles driven at the rate currently approved by the Board for its employees. Mileage will be paid to only one driver to a given destination on a given date unless specific approval for more than one driver to collect mileage is given in advance by the Superintendent.
4. There is a predetermined limit annually for each staff member to use in attending approved professional meetings.
5. Final reimbursement must be approved by the Superintendent.
Local travel expense is defined as official business trips incurred in the execution of duties during a working day in accordance with the negotiated agreement to:
1. reach a subsequent station or building after first having completed responsibilities at an initial station or building;
2. commute from one professional related appointment to another and
3. journey from a work station to a local business establishment to receive professionally related materials or supplies.
Claims for local travel are based either on travel requirements—implicitly or explicitly related to one’s contract or those specifically assigned to an employee. Expenses may include parking fees if incurred. All claims require the approval of the Superintendent.
1 of 2
File: DLC
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 3313.12; 3313.20
3315.15
CROSS REF.: GCL, Certificated Staff Development Opportunities
CONTRACT REF.: Mahoning County Educational Service Center Employees’ Association
2 of 2
File: DLC-E (return to top menu Section D)
REIMBURSEMENT FOR PROFESSIONAL LEAVE
Reimbursement Form - Download Here
The most recent reimbursement form can also be dowloaded from the MCESC website.
Resources | MCESC Staff Resources | Documents and Links | MCESC Reimbursement Form Professional Leave - Modified Date 9/19/2011
File: DN (return to top menu Section D)
SCHOOL PROPERTIES DISPOSAL PROCEDURE
The Board believes that the efficient administration of the Service Center requires the disposition of property and goods no longer necessary for the maintenance of the educational program or the operation of the Service Center.
The Board directs the periodic review of all Service Center property and authorizes the disposition by sale, donation, trade or discard of any property not required for the ESC.
Property is disposed of by sale or otherwise, in accordance with law. Property, the value of which does not exceed $10,000 (NEOSERRC $5,000), is disposed of by the Treasurer in such a manner as will be in the public interest and benefit the Service Center. Property, the value of which exceeds $10,000 (NEOSERRC $5,000), is sold at public sale to the highest bidder in accordance with law.
Any property designated for donation or unsold after public offer is offered without cost to local school districts which are located in this District.
[Adoption date: April 17, 2003]
LEGAL REFS.: ORC 3313.40; 3313.41
5513.04
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