Policy Code: DI

Adoption Date: Tuesday, May 24th, 2011

Review Date: Tuesday, May 19th, 2015

FISCAL ACCOUNTING AND REPORTING

The district accounting system will provide an accurate record of financial transactions. The district will use a modified accrual accounting system and records will be set up and maintained on a basis consistent with the accounting system detailed in the budgeting, accounting and auditing handbook published and approved by the Utah State Board of Education.

Funds received and/or disbursed by any agent of the school system will be accounted for carefully and accurately. Procedures will conform with good accounting practices, including appropriate separation of accounts and funds. Accounts will be kept in such a manner that they are easily reviewed and audited.

The Board of Education commits to maintain up to 5% of the General Fund budgeted expenditures (defined in Utah Code 53A-19-103 and Utah Administrative Code R277-425-4 as an undistributed reserve) as a committed fund balance as classified by GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The specific purpose of the commitment is for economic stabilization. Potential state budget cuts, disasters, immediate capital needs, and other significant events are circumstances or conditions that signal the need for stabilization. Additionally, the commitment is necessary to maintain liquidity (i.e., reducing any disparity between when financial resources are available to make payments and the maturity of related liabilities). As defined in state law, the commitment is not to be used “in the negotiation or settlement of contract salaries for school district employees.”

The Board of Education commits the unrestricted fund balance of District activity amounts held in the Student Activity Fund to be used to support District activities at the schools. Examples of District activity funds include: athletics, textbooks, field trips, music programs, book fairs, and school plays.

The Board of Education delegates authority to the District Superintendent and District Business Administrator to assign fund balances at the end of each fiscal year.

When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, and then unrestricted resources. Of the unrestricted resources, committed resources will be used first, followed by assigned resources, and then unassigned resources.