3000 Revised

TC-3000-1

3000—FISCAL MANAGEMENT

3100 Annual Operating Budget

Hearings and Reviews

Implementation

3170 Budget Transfer Authority

3180 Fund Equity

3200 State and Federal Funding Proposals and Applications

3280 Borrowing

Short Term Loans

Sale of Bonds

Debt Service

3300 Investment of Funds

3400 Depository of Funds

3430 Bonded Employees

3460 Accounting and Reporting

System of Accounts

Financial Reports

Annual Financial Report

3490 Inventories – Fixed and Controlled Assets

Fixed Asset Accounting System

3500 Audits

3600 Reimbursement of Expenses

Spouse Reimbursement

3605 District Procurement Cards (Cf. 3600)

Issuance

Documentation

Lost Procurement Cards

Returning Procurement Cards

Payment

Misuse and Unauthorized Use

Other Provisions

3610 Purchasing Goods and Services

Purchasing From District Employees

Purchases Through the District

Emergency Purchases

Purchase of School Equipment By Fund Raising Groups

3660 Bids and Quotations Requirements (Cf. 3610)

Competitive Bids

Bid Specifications

3690 Local Purchasing

3730 Vendor Relations (Cf. 5260)

3750 Payment Procedures

3800 Fund Raising Activities

TC-3000-2

3820 Management of Student Funds

3900 Surplus Books, Equipment and Supplies

3950 Surplus Land or Buildings

3960 Authorization to Settle Claims

3100 Annual Operating Budget[1] 3100

The Superintendent shall be responsible for planning and presenting to the Board the District’s budget.[2] This budget shall represent the culmination of an ongoing process of planning for the fiscal support needed for the District’s educational program.

It shall be the goal of the District to fund the operating budget according to approved fiscal and budgetary procedures adhered to and required by the State of Michigan.[3] The budget shall be the vehicle by which the educational goals and objectives of the District are to be met.

Hearings and Reviews

The District shall conduct budget hearings according to state law.[4]

3100 Annual Operating Budget 3100-2

Implementation

The Superintendent is responsible is responsible for implementing the District’s budget and shall provide the Board with a monthly financial report which includes all deficit fund balances. The total amount budgeted as the expenditure in each fund is the maximum amount which may be expended for that category, except when a transfer of funds is authorized by the Board.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.1213-1214; 380.1216; 380.1218; 141.411; 141.421A-440A; 211.209-210; 388.1702

3100-R Annual Operating Budget 3100-R

Preliminary Adoption Procedures

The preliminary budget shall include expenditure and revenue data for the most recently completed fiscal year and the amount of surplus or deficit that has accumulated from prior fiscal years.[5] The budget shall contain estimates needed for deficiency, contingency or emergency purposes. The debt fund budgets shall include the amounts needed to pay the principal and interest from each fund for that fiscal year.

Details of expenditures and revenues for capital improvement projects from the general fund shall be projected for a period of three years. An informational summary of projected expenditures and revenues for the building and site funds of the District shall be included in the budget document with a projection of such expenditures and revenues for three full years beyond the fiscal year covered by the budget.

Recommendations

All recommendations of the Superintendent and staff shall be presented to the Board no later than June 30.

Hearings and Reviews

All budget reports, explanatory letters and copies of the draft budget shall be available to interested patrons after being made available to the Board.[6] The date, time and location of the annual budget hearing shall be set by the Board.

Adoption

The Board shall approve the budget according to current law.

3170 Budget Transfer Authority 3170

The Superintendent is authorized to approve adjustments and/or transfers within line items of the Board adopted operating budget. Such adjustments and/or transfers shall be reported to the Board at the next budget amendment meeting of the Board. Budget amendments will be scheduled on a quarterly basis. Authorization for such adjustments and/or transfers shall be included annually in the General Appropriations Act.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 141.421a-440a

3180 Fund Equity 3180

The fund equity of the General Fund shall be maintained at 8 percent of expenditures at all budget adoptions and all subsequent budget amendments. The Superintendent is responsible for implementing the District’s budget and shall recommend a budget that adheres to the above-established measure.

Approved: September 5, 2001

Reviewed:

3200 State and Federal Funding Proposals and Applications 3200

The District shall seek and consider as many sources of revenue as possible to supplement the funds received from local taxes, federal and state aid.

The Superintendent shall assume the responsibility for keeping the Board informed of any revenue sources that would enhance the educational program or operation of the District, and for which the District may be eligible, and make recommendations to the Board for action.

Approved: July 11, 2001

Reviewed:

3280 Borrowing 3280

Short-Term Loans[7]

Bids shall be solicited for all short-term loans, which the Board has authorized, and funds shall be borrowed from the responsible organization offering the most favorable bid. Exceptions will be made for short-term cash flow loans issued by the School Bond Authority. All loans shall conform to the requirements of the State of Michigan.

Sale of Bonds

The Board, upon a favorable vote of the people in compliance with the laws of the State of Michigan, may sell its bonds, if required to do so. Such bonds shall be duly advertised and prepared and sold in conformance with the laws of the State of Michigan.

Debt Service

It shall be the responsibility of the Superintendent to maintain all records as to the outstanding bonds and debts encumbered against the District. He/she shall keep this information readily available and report periodically to the Board on the condition of these accounts.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.1356

3300 Investment of Funds 3300

Upon proper resolution, the Board shall authorize the administrator in charge of business and finance to invest the available general, debt retirement, building and site, school service, and trust and agency fund monies of the District.[8]

The investments shall be made in accordance with Board action and provisions of law. The Board shall receive periodic updates as to the status of these investments.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.1223

3300-R Investment of Funds 3300-R

The Superintendent is responsible for maximizing the interest earnings of the District. Such authorized investments[9] shall be restricted to:

1. Bonds, bills or notes of the United States, or obligations the principal and interest of which are fully guaranteed by the United States government;[10]

2. Certificates of deposit issued by any state or national bank organized and authorized to operate a bank in this state;[11]

3. Commercial paper rated prime at the time of purchase and maturing not more than 270 days from date of purchase;[12]

4. Certificates of deposit or share certificates of state or federal credit unions organized and authorized to operate in this state.[13]

5. Securities issued or guaranteed by agencies or instrumentalities of the United States government.[14]

6. United States government or federal agency obligation repurchase agreements.[15]

7. Bankers’ acceptances issued by a bank that is a member of the federal deposit insurance corporation.[16]

8. Mutual funds composed entirely of investment vehicles that are legal for direct investment by a school district.[17]

9. Investment pools, as authorized by the surplus funds investment pool act, composed entirely of instruments that are legal for direct investment by a school district.[18]

3300-R Investment of Funds 3300-R-2

The Superintendent, in determining the best investment, shall combine three factors: (1) quality of commercial paper, (2) interest rate available, and (3) accessibility of funds on short notice. Only prime one or two commercial paper shall be considered.

Consideration will also be given to the spread of interest rates between commercial paper and certificates of deposit (savings deposit receipts) issued by banks, savings and loans or credit unions. When appropriate, banks having accounts of the District, or those from whom the District has recently secured loans, shall be given preference for the investment of funds.

The Superintendent is authorized to open passbook savings accounts for general fund monies to earn interest while not being used for operating purposes or invested otherwise.[19] Such accounts shall be used when the cash flow pattern does not permit the purchases of longer-term investments or when the rate of return is comparable or greater than is available from other investments. The Superintendent and Chief Financial Officer are authorized to make deposits and withdrawals from this account.

Interest from investments shall accrue to the fund from which the investment was made as permitted by current law.

The Superintendent shall assume the responsibility of developing cash flow patterns for all funds in order to determine the availability of funds for investment. The Superintendent shall report quarterly to the Board on the status of all investments.

3400 Depository of Funds 3400

At the annual organizational meeting, the Board shall designate the bank(s) or trust companies in which the funds of the District shall be deposited. The Treasurer shall deposit or cause to be deposited, funds of the District in bank(s) as authorized by the Board.[20]

Approved: July 1, 2001

Reviewed:

LEGAL REF: MCL 380.1221-1222; 129.12

3430 Bonded Employees 3430

The District shall purchase a blanket or surety bond for school employees responsible for handling District funds. The Board shall prescribe the amount of the bond.

Approved: July 11, 2001

Reviewed:

3460 Accounting and Reporting 3460

System of Accounts

All accounting maintained by the District shall be in accordance with standard accounting procedures and the system of school accounting recommended by the State of Michigan. A complete record of all expenditures shall be maintained in these accounts so that a periodic examination can identify receipts or expenditures.

Financial Reports

The Board Treasurer shall review expenditures and receipts. It shall be the responsibility of the chief financial officer to provide a monthly financial statement, which encompasses the expenditures and receipts of all accounts within the District.

Annual Financial Report

The annual financial report of the District shall be prepared by independent certified public accountants and given to the Board prior to December 1. Sections of

the annual report shall be published in a newspaper of general circulation before December 15 and according to the rules adopted by the State Board of Education.

Approved: July 11, 2001

Reviewed:

3490 Inventories – Fixed and Controlled Assets 3490

An accounting will be made annually for property, real and personal, owned by the District in accordance with law, governmental regulations, and District rules.

Fixed Asset Accounting System

The administration shall maintain a fixed asset accounting system in accordance with law, governmental regulations, and the District’s needs.

Approved: June 19, 2002

Reviewed:

LEGAL REF: Governmental Accounting Standards Board, Statement No. 34.

3500 Audits 3500

The accounting records, including internal accounts, of the District shall be audited annually by an independent certified public accountant in accordance with prescribed standards and legal requirements.[21]

The audit report shall be reviewed and approved annually by the Board no later than November 30 after the end of the previous fiscal year at a public meeting. The management letter and recommendations of the auditor shall be brought to the attention of the Board, along with recommendations of the Superintendent as to the feasibility of implementing the recommendations. The Superintendent shall be responsible for filing the audit reports with all appropriate authorities as prescribed by law or regulation.

The auditing firms selected to conduct the annual audit shall be recommended by the Superintendent and approved by the Board. The auditing firm may be selected on a bid basis.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 388.1418

3600 Reimbursement of Expenses 3600

District personnel who incur expenses in carrying out their authorized duties shall be reimbursed by the District to the extent approved or provided in duly negotiated agreements upon submission of an approved voucher and supporting receipts.[22] Such expenses may be approved and incurred in line with budgetary allocations for the specific type of expense.[23]

Spouse Reimbursement

Expenses incurred for spouses of employees and/or members of the Board shall not be reimbursed. [24]

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.1254; AG Opinion #5272

3600-R Reimbursement of Expenses 3600-R

When official travel by personally owned vehicle has been authorized, mileage payment shall be made at the rate currently approved by the Board.

Authorization for Travel

The employee’s immediate supervisor and Superintendent must approve all travel. The appropriate forms must be completed prior to departure.

1. A Conference Request Form must be submitted no later than five school days prior to the meeting; and

2. Estimated expenses must be within appropriate budget allocations.

An Approval of Request Form signed by the Superintendent shall constitute certification for authorized travel. Certain employees shall be authorized by the Superintendent to travel locally in the performance of their duties and submit expense vouchers for reimbursement.

Reimbursable Expenses

1. Lodging (actual room cost);

2. Meals;

3. Conference registration fees;

4. Parking and tolls;

5. Common carrier transportation within limitations above;

6. Use of private vehicle within limitations above;

7. Postage, telephone and fax charge for business purposes; and

8. Charge for baggage service, tips

3600-R Reimbursement of Expenses 3600-R-2

Daily Travel

Local travel as authorized under these regulations is to be recorded on a daily basis and submitted to the business office at the end of each month if travel costs are over $100 per month or quarterly if travel costs are under $100 per month, for reimbursement. If such travel is less than 100 miles per semester, reimbursement may be requested at the end of the semester. Voucher must include date, destination, purpose of travel, and number of miles for each trip.

All requests for reimbursement for travel during a fiscal year shall be submitted to the business office by June 30 of that year.

3605 District Procurement Cards (Cf. 3600) 3605

The Superintendent shall be responsible for the issuance, accounting, monitoring, retrieval, internal controls and generally overseeing the use of District procurement cards for Board members and employees.

Issuance

A Board member may be issued a District procurement card for actual and necessary expenses incurred as a result of attendance at Board-approved workshops, seminars, conferences, or conventions.

District employees may be issued a District procurement card, which shall be used solely for the purchase of goods and/or services needed for official business of the District.[25]

Documentation

When a Board member or employee uses a District procurement card, documentation shall be provided the Superintendent (within 30 calendar days - detailing the goods or services purchased, the cost of such goods or services, the date of purchase, and the purpose for which such goods or services were purchased.[26]

Lost Procurement Cards

All Board members and staff authorized to use a procurement card are responsible for the protection and custody of District procurement card. If a District procurement card is lost or stolen, the Superintendent shall be notified immediately.

Return of Procurement Cards

A Board member who leaves the Board or a District employee who is no longer employed by the District shall return the procurement card upon termination to the Superintendent.

3605 District Procurement Cards 3605-2

Payment

The Superintendent shall approve all District procurement card invoices prior to payment. Such payments shall be made no later than 60 days after receipt of the initial statement date.

Misuse and Unauthorized Use

A Board member who violates a provision of this policy may have his/her use of that card revoked by the Board. An employee who violates a provision of this policy may have his/her use of that card revoked and be subject to disciplinary action as determined by the Superintendent.

If the Superintendent violates a provision of this policy, he/she may have his/her use of that card revoked and may be subject to disciplinary action as determined by the Board.

Other Provisions

The total combined authorized credit limit of all procurement cards issued by the District shall not exceed 5 percent of the total budget of the District for the current fiscal year.

The chief financial officer shall establish a system of internal accounting controls to monitor the use of procurement cards.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.1254; 129.243

3610 Purchasing Goods and Services 3610

The District authority for the purchase of materials, equipment, supplies and services is extended to the administration through the detailed listing of such items compiled as part of the annual budget adopted by the Board.

The purchase of items and services listed in the approved annual budget requires no further Board approval except when, by law or District policy, the purchase of materials and services must be put to bid.

The District endorses the concept of centralized purchasing and authorizes the purchasing department to purchase or supervise the purchasing of all supplies, equipment and materials for the school system in accordance with applicable law and good purchasing practices.

Special arrangements may be made for ordering perishable and emergency supplies, but all purchasing transactions will be authorized on properly signed purchase orders administered through the business office.

Purchasing From District Employees

The District shall not purchase equipment or supplies from an employee of the District, nor from a member of a household of an employee, nor from any firm in which an employee or member of his/her household holds a 10 percent or greater financial interest.

Purchases Through the District

Board members and employees shall not make any purchase through the District for personal use. The name of the District or school, or an employee’s position, shall not be used in such manner that discounts or cost preferences are given to such person. Purchasing equipment and supplies by the District for resale to employees is prohibited.

Emergency Purchases

Emergency purchases may be made without using the quotation or bidding process. Only when such emergencies may arise as a result of an accident or other

3610 Purchasing Goods and Services 3610-2

unforeseen occurrence which could affect the life, health, welfare or safety of the District’s students or employees.

Purchase of School Equipment by Fund Raising Groups

All fund-raising projects by non-District affiliated organizations for purchasing equipment for a school’s use will be approved by the respective central office department and the Board will be notified in the next regularly scheduled Board meeting. In addition, the equipment can be purchased through the business office with central office approval.

Purchases made and property presented to the District shall become the property of the District and subject to the same control and regulations that governs the use of other District properties.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 15.321-330

3660 Bids and Quotation Requirements (Cf. 3610) 3660

All purchases requiring competitive bids shall be made in accordance with current statutes, the creation of bid specifications, and adherence to the District’s bidding procedure by the District’s purchasing agent.[27]

The purchasing agent shall develop and maintain lists of potential bidders for various types of materials, equipment, and supplies. Such bid lists shall be used in the development of mailing lists for distribution of specification and invitations to bid.

All bids and supporting documentation shall be retained in the Purchasing Department for a period of one year after bids have been opened.

Competitive Bids

No purchases shall be made of supplies, materials, or equipment in a single transaction costing more than allowed under current law unless competitive bids for those goods and services are obtained and the Board approves the purchase.[28]

Bid Specifications

The District’s purchasing agent shall write all bid specifications in a clear and concise manner. Such specifications shall include, when necessary: required performance, surety, bid and statutory bond information; compliance with preferential bid law; financial statements; the Board’s right to reject any or all bids; compliance with all federal, state and local laws, ordinances and regulations; the date, time and place for the opening of bids; and other items as the Board directs.[29]

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.1267; 380.1274

3660-R Bids and Quotation Requirements 3660-R

Non-Negotiatory Purchases

Non-negotiatory purchases may be made when there is only one supply source, provided the amount does not exceed bidding requirement limitations.

Informal Quotations

Verbal quotations of price on equal products or services secured in person or by telephone, may be used in purchases for routine supplies used by the District.

The Superintendent shall make available to the Board, upon request, the price quotations or competitive bids obtained from vendors for goods or services.

Formal Bid Quotations

The Superintendent is authorized to purchase any item, or group of items in a single transaction, costing no more than allowed under current law, upon the receipt of at least three written bid quotations provided said purchase is within the approved budget. The Superintendent shall use discretion in deciding whether such purchases are made on the basis of requested quotations or through advertising for bids.

Competitive Bids on Building Construction, Renovation and Repairs

Prior to commencing construction of a new building, or additions to or repair or renovation of an existing building costing more than allowed under current law, the District shall obtain competitive bids on all material and labor to be required to complete the proposed construction, addition, repair or renovation.[30] Repair work normally done by District employees is exempted from this bidding requirement.

The District shall advertise for bids once a week for two successive weeks in a newspaper of general circulation in the area where the building or addition is to be constructed, or where the repair or renovation of the building is to take place.[31] Bids shall be opened, read aloud and examined by the purchasing agent at a public bid meeting held in the District.[32]

3660-R Bids and Quotation Requirements 3660-R-2

Procedure

All bids must be submitted to the Superintendent in sealed envelopes with the name of the bidder and the date of the bid opening plainly marked in the lower left-hand corner of the envelope. All bids shall be opened publicly on the stated day and time. All bidders and other interested persons are invited to be present when the bids are opened.

For bids not involving building construction, renovation, or repairs, the purchasing agent may open the bids and one other District employee shall witness such opening. The bids shall then be arranged in order from low to high before they are presented to the Board for action.

Responsible Bidder

All bids shall be awarded to the lowest responsible bidder. The Board remains the sole judge of whether or not a bidder is “responsible.” Criteria that may be used to judge “responsible,” by way of illustration and not limitation, are: financial standing, reputation, experience, resources, facilities, judgment and efficiency.

The District may investigate the business reputation of any bidder by using information at hand to form an intelligent judgment, such as the District’s architect, previous clients of the bidder, their own investigation, or an outside investigation agency.

Bid Specifications

The District shall avoid negotiation of bid specifications after bids have been accepted and shall correct and request new bids if specifications are inadequately written.

If an error is discovered in the bid specifications all bids shall be returned unopened and the project shall be re-bid using corrected and/or amended specifications.

Any bid submitted to the District may be withdrawn prior to the scheduled time for opening of bids.

The District shall not consider any bid received after the publicized date and time.

3660-R Bids and Quotation Requirements 3660-R-3

Rejection of Bids

The District reserves the right to reject any and all bids and to ask for new bids. Such reservation shall be so specified in the publication or notification of bid letting.

The District reserves the right to waive any informality in, or reject any part of, a bid.

3690 Local Purchasing 3690

The District shall purchase school equipment and supplies from local vendors whenever possible, providing that price, quality, and service of the local vendor compare favorably with those from non-local vendors. Bids shall be solicited from non-local vendors in order to establish a fair market price for equipment and supplies.

Local vendors shall be given preference if their bid or quoted price is within five percent of the low bid or quoted price, not to exceed a maximum of $100.00, provided that all other matters are equal. Local purchases shall be divided among several local vendors when appropriate. The Superintendent shall make all authorized purchases, as he/she deems best after carefully weighing all matters.

Approved: July 11, 2001

Reviewed:

3730 Vendor Relations 3730

The District shall seek business and bids from all eligible vendors, regardless of race, creed, color, sex, national origin, age or disability.

Reasonable opportunity will be provided to all responsible vendors to do business with the District and lists of potential bidders for various types of materials, equipment and supplies will be developed and maintained. Such bidders lists will be used in the development of a mailing list for distribution of specifications and invitations to bid. Any vendor may be included in the list upon request.

Board members, employees of the District, or members of their immediate families should accept no compensation or rewards from past, present, or potential suppliers.

The Superintendent may give approval in advance for inspection trips or other informational trips to be taken by staff members at a vendor’s expense.

Samples for evaluation, supplied free of charge by a vendor or potential vendor may be accepted provided:

1. The Superintendent is notified of their acceptance and is furnished a copy of the evaluation report.

2. No pressure, either direct or indirect, is brought on any vendor to provide such samples (unless they are required of all potential vendors as a specific provision of a local or state bid request).

3. All vendors are given equal opportunity to provide samples for evaluation.

Sales representatives are not permitted to call on teachers or other school staff members without authorization from the building administration. Sales representatives of educational products may be given permission to see members of the school staff at times that will not interfere with the instructional program.

Approved: July 11, 2001

Reviewed:

3750 Payment Procedures 3750

The business office will establish guidelines and procedures for the receiving of goods and services at all levels, including provision of relevant receipts and other printed forms.

The business office shall pay for all goods and services delivered to or rendered for the District, with the approval of the Board. The business office may establish procedures whereby other administrators and staff, under specified conditions, may sign vouchers, etc., for specified types of goods and services.

Approved: July 11, 2001

Reviewed:

3800 Fund-Raising Activities 3800

Public fund-raising activities (fee-for-service or fee-for-admission activities) by student groups shall be reviewed by the building principal and should be carefully controlled and limited so that financial considerations will not override legitimate educational goals.

In specific circumstances, the District may permit the participation of students on a fee-for-service or a fee-for-admission basis in a school musical, dramatic, or other organized, recognized group in a public program or series of programs off of District property and outside of regular school hours. The total income derived from the public program or activity must be used directly by and for the student group concerned for necessary or reasonable purposes.

Approved: July 11, 2001

Reviewed:

3820 Management of Student Funds 3820

The accounting system for managing student funds shall be designed to yield the largest possible educational return to students without sacrificing the safety of funds or exposing students to undue responsibility or routine.

The District administration is charged with the responsibility for making rules, regulations and procedures for the conduct, operation and maintenance of student accounts, and for the safeguarding, accounting and auditing of all monies received and derived therefrom.

If, before graduation, a class wishes to spend part or all of its fund balance, the final decision to do so must have the approval of the majority of the respective class currently registered for and attending school.

In the event a class graduates and leaves unexpended and uncommitted funds, the class has one year to reallocate the funds. If after one year the funds remain, the District shall reallocate the funds. Such reallocated funds will be used for the benefit of the student body. Whenever possible, projects undertaken with such funds shall be used for physical improvements with appropriate dedication to the classes responsible for raising the funds.

All student activity funds shall be audited annually at the same time as the general fund budget.

Approved: July 11, 2001

Reviewed:

3900 Surplus Books, Equipment and Supplies 3900

The responsibility for selling or otherwise disposing of used or obsolete equipment and supplies not needed by the District is delegated to the Superintendent. At the discretion of the Superintendent, items may be sold outright or on public bid or at a public auction. All revenue realized from the sale of supplies and equipment shall be noted in the Treasurer’s receipts and deposited in the general fund account.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.11a

3950 Surplus Land or Buildings 3950

The sale or disposal of District land or buildings shall require Board authorization. The Board shall determine the method and procedure of disposal.

An independent appraisal of District-owned property shall be requested from an independent appraiser. However, the Board may set a price that, in its judgment, is fair and may reject any or all offers relative to such sale.

Money resulting from the sale of property shall be deposited in the general fund of the District unless otherwise directed by the Board or unless there is a bond issue outstanding on District facilities, in which case the receipts from the sale shall be deposited in the District debt retirement fund.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.11a

3960 Authorization to Settle Claims 3960

The Board attorney shall have the authority to settle pending or threatened civil claims, without prior Board approval, up to an amount equal to the statutory limit in effect at that time for purchasing supplies, materials and equipment (MCL 380.1274). All settlement demands or offers in excess of such statutory limit will be presented to the Board for prior consideration and approval. A report regarding civil claims settled by the Board attorney shall be provided to the Board on a monthly basis.

Approved: July 11, 2001

Reviewed:

LEGAL REF: MCL 380.1274

[1] MCL 380.1133 (“The fiscal year of a local school district or an intermediate school district commences on July 1.”)

[2] MCL 141.434 (1) (“Unless otherwise provided by law, charter, resolution, or ordinance, the chief administrative officer shall have final responsibility for budget preparation, presentation of the budget to the legislative body, and the control of expenditures under the budget and the general appropriations act.”) MCL 141.422b (3)(c) (“Chief administrative officer” means any of the following: The superintendent of a local school district, or if the school district does not have a superintendent, the person having general administrative control of the school district.”) MCL 141.422d (1) (c) (d) (‘“Legislative body’ means any of the following: (c) The board of education of a local school district. (d) The board of education of an intermediate school district.”)

[3] MCL 380.1213 (“The secretary of the board of a school district shall file a certified copy of a resolution of the board certifying the taxes to be levied on the taxable property within the district as approved by the school electors of the district or the board with each city and township clerk in which the school district is situated according to the following: (a) Not later than September 30 of each year. (b) Within 10 days after the annual meeting is held in September. (c) Not later than 5 days after the election if taxes are authorized at an election held pursuant to section 36 (2) or (3) of the general property tax act, Act No. 206 of the Public Acts of 1893, as amended, being section 211.36 of the Michigan Compiled Laws.”) MCL 380.1214 (1) (“If the school electors of a school district vote the authorization of a tax rate in addition to that allocated to the district under the property tax limitations act, being sections 211.201 to 211.217a of the Michigan Compiled Laws, then the board, by resolution, may authorize the additional millage so voted to be levied and collected, in the year voted, with the county taxes. The levy, collection, and enforcement procedure for the additional tax shall be pursuant to the laws in effect for the levy, collection, and enforcement procedure of county taxes against property lying within the boundaries of the school district.”)

[4] MCL 141.411 (“As used in this act “local unit” means a county, township, city, village, authority or school district empowered by the constitution or by law to prepare budgets of estimated expenditures and revenues.”) MCL 141.412 (“Every local unit shall provide for a public hearing to be held on its proposed budget, notice of such hearing to be given by publication in a newspaper of general circulation within such unit at least six days prior to such hearing. Such notice shall include the time and place of such hearing and shall state the place where a copy of such budget is available for public inspection.”)

[5] MCL 211.209 (“Each local unit as defined in this act shall prepare each year a budget containing an itemized statement of its proposed expenditures and estimated revenues, covering all its departments and activities.”)

[7] MCL 380.1225 (1) (“Subject to restrictions of this section, the board of a local or intermediate school district may borrow money and issue its notes for the borrowed money to secure funds for school operations or to pay previous loans obtained for school operations under this or any other statute. The school board or intermediate school board shall pledge money to be received by it from state school aid for the payment of notes issued under this section.”) This statute has seven other parts that further explain the limitations and procedures for issuing tax anticipation notes.

[9] MCL 380. 1223 (1) (“If authorized by resolution of the board of a school district, the treasurer may invest debt retirement funds, building and site funds, building and site sinking funds, or general funds of the district.”)

[19] MCL 380.1221 (1) (“The treasurer of a board of a school district or board of directors of a public school academy shall deposit the funds of the school district or public school academy in a financial institution or in a joint investment authorized by section 1223.”)

[20] MCL 380.1221; MCL 129.12 (“The county board of commissioners or board of county auditors, in those counties in which there is a board of county auditors, the township board of a township, the district board, or board of education of a school district, or the legislative body of a city or village shall provide by resolution for the deposit of public money, including tax money, coming into the possession of the county treasurer, township treasurer, school district treasurer, city treasurer or tax collector, or village treasurer, respectively, in 1or more banks, savings and loan associations, or credit unions having their principal office in this state, to be designated in the resolution, and in the proportion and manner as may be provided in the resolution.”)

[22] MCL 380.1254 (“Except as provided in subsection (3) and section 1217a, the board of a school district or intermediate school district may pay the actual and necessary expenses incurred by its members and employees in the discharge of official duties or in the performance of functions authorized by the board. The expenditure shall be a public record and shall be made available to a person upon request.”)

[24] Mich. Op. Atty. Gen. No. 5272 The expenses of a spouse who accompanies a board member are not reimbursable.

[25] MCL 380.1254 (3) (“The board of any school district shall not provide, allow, or obtain credit cards for, issue credit cards to, or provide to a school board member a debit card or similar instrument that pledges payment of funds from a school district account except in compliance with law.”)

[28] MCL 380.1274 (1) (“The board of a school district or board of directors of a public school academy shall adopt written policies governing the procurement of supplies, materials, and equipment. A school district or public school academy shall not purchase an item or a group of items in a single transaction costing $12,500.00 or more unless competitive bids are obtained for those items and the purchase of those items is approved by the school board or board of directors.”)