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6022 Budget Planning and Minimum Fund Balance

BUDGET PLANNING AND MINIMUM FUND BALANCE

A district’s annual budget is tangible evidence of the board’s commitment toward fulfilling the goals and objectives of the instructional program.  The budget expresses in specific terms the services to be provided, consistent with immediate and long range goals and resources available and establishes priorities within board program areas such as basic education, other separately funded programs and support services.

Expenditures should be budgeted in such a way that contingencies and unforeseen costs are provided for.  Revenue should be budgeted based on firm appropriations and commitments.  It is anticipated that in normal circumstances this will result in an unexpended fund balance which may be utilized as revenues for the ensuing budget year.

In addition, attempts should be made to provide sufficient cash reserve to assure a positive cash flow and to take care of unanticipated legislative changes and/or emergencies.  A minimum restricted fund balance of five percent (5%) of the proposed revenues not including the contingency provisions of budget categories should be maintained.  When fund balance is budgeted for expenditures, it should be used for non-recurring costs.

Exception to the minimum fund balance can be granted by the board of Directors of the Stanwood-Camano School District for unforeseen critical events or declared financial emergencies.

The Board of Directors directs the superintendent to create and implement procedures to accomplish minimum fund balance requirements.

Prior to presentation of the proposed budget for adoption, the superintendent shall prepare for the board’s study and consideration appropriate documentation supporting his/her recommendations, which shall be designed to meet the needs of students within the limits of anticipated revenues consistent with reasonable management practices.

Program planning and budget development shall provide for staff participation and the sharing of information with patrons prior to action by the board.

Cross References:

  • Policy 6020 System of Funds and Accounts
  • Policy 6040 Expenditures in Excess of Budget

Legal References:

  • RCW 28A.320.070  School district as self-insurer – Authority
  • RCW 28A.505 School Districts’ Budgets
  • RCW 28A.505.130 Budget – Requirements for balancing estimated expenditures

 

Adoption Date:  08.20.02

Stanwood-Camano School District

Revised:  02.01.05; 03.22.16