BOARD POLICIES: 3.0 FISCAL AND BUSINESS OPERATIONS

  • 3.1 Budget

    The executive director will be responsible for development of MoASBO’s annual budget based on a July 1 to June 30, fiscal year. The Board of directors has final approval of the MoASBO Budget.

     

    The executive director will present a proposed budget to the board no later than its June meeting each year for the fiscal year which begins the following July 1. The board will approve the budget no later than its June meeting, unless the President elects to do otherwise.

     

    After the budget is established, it is the responsibility of the executive director to keep the board informed of any significant deviations that occur from the approved budget. This will be accomplished by including a summary of revenues and expenditures in the materials for every board meeting.  Any board member who has a question or concern about a budget issue may contact the president or executive director directly or may raise the issue at a Board meeting.

     

    The Executive director must seek approval from the board of directors for budget modifications during the year if any purchase, expenditure, or shortage of revenues changes significantly from the approved budget. However, any proposed un- budgeted expenditure exceeding $1000 must be discussed with the president. The president may, at his/her discretion, approve the expenditure or submit the matter to the full board for consideration.

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    3.2 Accounting and Reporting

    The Association treasurer will report at each regular meeting of the board on the financial affairs of the Association.

     

    A financial review will be conducted on an annual basis to review the financial statements and to issue the financial review report.

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    3.2 Disbursement of Funds

    All moneys received by MoASBO shall be disbursed only for the purposes for which they are collected or received. No check will be drawn or order for payment issued unless there is sufficient money in the proper fund for payment.

     

    The Association will only pay for goods or services that are authorized by the executive director.

     

    The finance manager or designee will prepare and present to the executive director and treasurer a list of bills for approval authorizing payment from MoASBO funds. Such lists will be supported by appropriate documentation (such as invoices, approved purchase orders and reimbursement forms) or shall be in accordance with salaries and salary schedules approved by the board.

     

    Checks will be signed by the executive director pursuant to approval by executive director and Treasurer.  ACH transactions will be processed by the finance manager. The board authorizes the signature of the executive director on invoices and/or checks. Signatures on any other documents other than those designated herein are not authorized to bind and/or obligate MoASBO unless expressly approved by the board.

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    3.3 Employee Payroll

    MoASBO has established employee payroll, bi-weekly dated every other Friday (utilizing general bank procedure regarding posting as needed due to weekends/holidays). 

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    3.4 Financial Accountability

    A detailed check listing will be provided to the board treasurer, along with the financial statements by the 15th of each month following month end. A detailed check listing and quarterly financial statements will be provided to the entire Board by the 15th of month following each quarter end. The check listing shall show the depository or investment account upon which the check is drawn. It shall also specify the amount paid; to whom, from what funds and for what purpose payment is made; the date of the payment; and the number of the check/transaction.

     

    The executive director, treasurer and finance manager will have authorized online access to VIEW all MoASBO bank accounts and pcard statements on demand. 

    • Procedures and processes to address reasonable segregation of duties and internal controls within available individual responsibilities have been established:
      • Processes for payment of bills, written payment process and credit/P-cardOnce per pay period
        1. Finance manager sends list to the executive director and treasurer for review and requests payment approval for items in the list. Amounts should be within the current budget, except where otherwise noted.
        2. The executive director and treasurer respond with written approval or questions. This provides a paper trail and documentation.
        3. If a check is required, the executive director signs the check. If the payment can be made with credit card, the finance manager makes the payment.
        4. All payments to MoASBO staff and board of directors are made electronically.
    • Reporting process
      • Once a month
        The finance manager sends a full financial statement for the month with detailed General Ledger to the treasurer and executive director.
      • Once a quarter
        The finance manager sends full financial statement for the quarter with detailed General Ledger and check listing to the entire board. A financial report is presented at board meetings.

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    3.5 Purchasing Cards

    The purpose of this procedure is to provide a process for the use of purchasing cards. The use of purchasing cards has been proven to be a cost-effective method of obtaining supply and service items for the organization. Approved travel and training costs may also be handled best through the purchasing card process.

    The purchasing card will be used only when:

    1. The items and/or services to be purchased are for the official use of the MoASBO.
    2. The types of items and/or services to be purchased are those established by the executive director and approved by the board.
      The purchasing card can be used for:

    Individual purchases of less than $1,000.

    1. Individual purchases exceeding $1,000 ONLY IF authorized in writing by the executive director in advance. A copy of the written approval will be attached to the purchasing card reconciliation for audit purposes.
    2. Contractual items.
    3. Travel expenses.

    Requirements for issuance of a purchasing card:

    1. Employee (cardholder) must sign documentation verifying agreement to conditions of use.
    2. The treasurer and executive director will determine the purchasing authority of MoASBO employees and sign the enrollment form indicating approval.
    3. The executive director will review the enrollment form and process it for issuance of a procurement card to the employee.
    4. The executive director is to be notified immediately when a card is lost or stolen.

    Requirements for use of a purchasing card:

    1. The cardholder will retain copies of vendor receipts/invoices and/or records of orders. Original vendor’s receipts and/or records of orders will be sent with monthly VISA information to the purchasing card coordinator.
    2. The cardholder will ensure that sufficient funds are available to pay for every purchase.

    Suspension of Purchasing Cards

    Purchasing cards will be suspended under the following situations:

    1. Proper documentation (receipts/invoices) is not turned in to support the purchasing card statement at the statement end date or within the next statement cycle (approximately one month).
    2. Tax refunds are not credited back within the next statement cycle (approximately one month).
      Suspended cards will be reinstated when such issues are resolved.

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    3.6 Depository of Funds

    The executive director will recommend for Board approval a bank- or banks- to serve as the depository of Association funds. Deposits will be managed to ensure all deposits are within FDIC limits.

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    3.7 Reserve Fund

    Given the need for stability in funding MoASBO’s office operations and services to its members, it is important that MoASBO have a reserve fund – defined as undesignated net assets – sufficient to sustain the organization in the event of a reduction in its revenue sources.

     

    Based on industry standards for associations, MoASBO’s reserves should fall in the range of six months of annual expenditures based on the prospective budget.

     

    If the reserves do not fall within the above specified range, the executive director will discuss the matter with the Board during the annual budget development process.

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    3.8 Investment of Funds

    The Executive director is responsible for managing and investing the liquid assets of the association. Authorized investments are as follows:

    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;
    2. Certificates of deposit issued by any state or national bank organized and authorized to operate a bank within the United States of America and insured by the FDIC;
    3. Commercial paper rated prime at the time of purchase and maturing not more than 270 days from date of purchase;
    4. Certificates of deposit or share certificates of state or federal credit unions organized and authorized to operate within the United States of America;
    5. Securities issued or guaranteed by agencies or instrumentalities of the United States Government;
    6. United States Government or federal agency obligation repurchase agreements.
    7. Bankers’ acceptances issued by a bank that is a member of the FDIC;
    8. Investment pools, as authorized by the Surplus Funds Investment Pool act, composed entirely of instruments that are legal for direct investment by the association as indicated in items 1-7 above.

    The Executive director, in determining the best investment, shall combine four factors: (1) safety of the investment instrument (2) quality of the investment instrument, (3) interest rate available, and (4) accessibility of funds on short notice. Only prime one or two commercial paper shall be considered.

     

    The Executive director is authorized to invest and sell any and all liquid asset accounts/instruments to manage cash flow and pay legal commitments of the association.

     

    Interest from investments shall accrue to the fund from which the investment was made, except as noted upon receipt, i.e. president scholarship interest deposited in general account to fund scholarship.

     

    The Executive director shall assume the responsibility of developing cash flow patterns for all funds in order to determine the availability of funds for investment. The Executive director shall report at each board meeting to the Board on the status of all investments.

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    3.9 Travel and Expense Reimbursement

    Board members shall be reimbursed by MoASBO for the following expenses associated with the performance of their responsibilities:

    • Mileage to and from board meetings, at a rate set by the IRS
    • Annual spring conference registration
    • Other actual and reasonable expenses as approved by the executive director and president.

    MoASBO committee members shall be reimbursed by MoASBO for mileage to and from certain committee meetings a rate set by the IRS:

    • Annual committee planning meeting
    • Board meetings where they are presenting reports

    The executive director shall be reimbursed for the following meeting or conference expenses associated with the performance of his/her responsibilities:

    • National and regional meetings of the Affiliate Executive director’s Group (AEDG). Actual and reasonable expenses, budget permitting. This shall include the cost of travel, meals, lodging, and registration associated with this meeting. Registration for the Executive director’s spouse/guest will also be reimbursed for the AEDG national meeting.
    • ASBOI Annual Meeting. Actual and reasonable expenses for the Executive director and spouse/guest to the ASBO Annual Meeting, budget permitting. This shall include the cost of travel, meals, lodging, and registration associated with this meeting.
    • Eagle Institute. Actual and reasonable expenses, budget permitting. This shall include the cost of travel, meals, lodging, and registration associated with this meeting.
    • ASBOI Executive Leadership Forum. Actual and reasonable expenses, budget permitting. This shall include the cost of travel, meals, lodging, and registration associated with this meeting
    • AASA and ASBOI Legislative Conference. Actual and reasonable expenses, budget permitting. This shall include the cost of travel, meals, lodging, and registration associated with this meeting.
    • ASAE conference and workshops. Actual and reasonable expenses, budget permitting. This shall include the cost of travel, meals, lodging, and registration associated with this meeting.
    • Other state conferences or meetings that include, but are not limited to: DESE, MSBA, MASA, MOSPRA, MUSIC, MARE, SAC and one other state ASBO conference.
    • The executive director and MoASBO staff shall be reimbursed by MoASBO for the following expenses associated with the performance of their responsibilities:
      • Mileage to and from board, committee, and regional group meetings, at a rate set by the IRS.
      • Other actual and reasonable meeting and conference or professional development expenses, as approved by the board in the annual budget.

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    3.10 Scholarships and Awards

    • Business Official and Support Staff Members of the Year
      MoASBO will recognize two outstanding members, as determined by the process established by the Recognition Committee, at the annual Spring Conference:
      • Business Official of the Year – shall receive a $1000 Bryan Blankenship Scholarship Award for the purposes of registering and attending the ASBOI Annual Meeting and Expo or Eagle Institute within 18 months of receiving the award. Funds for the scholarship shall come from the Blankenship fund and/or the operating fund and Blankenship fund.
      • Additionally, a student from his or her school district shall receive a $1000 scholarship, funded by a business partner, for the purposes of tuition or books/technology. Application for the student scholarship shall follow the process established by the recognition committee.
      • Support Staff Member of the Year – shall receive complimentary Spring Conference registration and lodging for the next year’s conference.

    Time line for BOY and SSMOY
    Dec. 1 – Nomination forms posted
    Jan. 15 – Deadline for nomination forms to be submitted
    April – Recipients presented to Board

    - director contacts all nominees and informs them of committee’s selections
    - Board president contacts recipients
    - Exec. director contacts superintendents in recipients’ districts

    Spring Conference – Recipients formally announced

    • President’s Scholarship
      MoASBO will maintain a scholarship fund for the purpose of issuing a scholarship (s) to a senior high school student (s) graduating from the President’s district of employment.  The recipient will be determined per the process established by the Recognition Committee.

      The president will name the individual(s) during a general session at the Spring Conference.

      The scholarship is funded from the golf tournament profits and funds from the President Scholarship fund interest. The President Scholarship corpus will be held in perpetuity for the sole use of providing scholarships to a Missouri student(s). If MoASBO should disband, the monies contained within this scholarship fund will be treated as all other funds within the MoASBO treasury.

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    3.11 Insurance Coverage

    At a minimum, the organization will maintain policies for the following types of insurance coverage:

    • General Liability Insurance
      The Executive director will negotiate and recommend general liability insurance to the Board of directors for approval. This insurance should be sufficient to protect the Association’s assets from general exposure.
    • Directors and Officers Liability (D&O) Insurance
      The Executive director will negotiate and recommend D&O insurance to the Board of Directors for approval. The coverage should protect the Board of directors, committee chairs, and the Executive director from liability and legal defense costs associated with the actions and decisions of the Board of directors.
    • Fiduciary Bond
      Employees handling money will be covered by a fiduciary bond or employee dishonesty bond.
    • Convention Cancellation Insurance
      As applicable, the executive director will negotiate and recommend convention cancellation insurance to the board of directors for approval. This coverage should protect the Association in case of cancellation of a convention, conference, trade show, or other vital meeting.

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    3.12 Contract Approval

    The executive director has the authority to sign contracts for goods and services needed to maintain efficient and effective operations that are consistent with budgetary appropriations.

     

    The executive director will present to the Board a report with the Annual Financial Review on all self-executed contracts with a duration of more than 12 months.

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    3.13 Lease Space

    The executive director is authorized to lease space as required for the effective and efficient operation of the Association, consistent with budgetary appropriations.

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    3.14 Record Retention

    This Document Retention and Destruction Policy of the Missouri Association of School Business Officials identifies the record retention responsibilities of staff, volunteers, and members of the Board of directors for maintaining and documenting the storage and destruction of the Association’s documents and records.

    • Retain permanently:
      • Governance records – Charter and amendments, Bylaws, other organizational documents, governing board and board committee reports including minutes, agendas, staff reports, correspondence.
      • Policies, fiscal financial reports, gift and contribution records, adopted budget, year end ledgers, payroll year-to-date annual summary,
    • Retain for ten years:
      • Tax records – Filed state and federal tax returns/reports and supporting records, tax exemption determination letter and related correspondence, files related to tax audits.
      • Intellectual property records – Copyright and trademark registrations and samples of protected works.
      • Financial records – Audited financial statements, attorney contingent liability letters.
      • Employee/employment records – Employee names, addresses, social security numbers, dates of birth, INS Form I-9, resume/application materials, job descriptions, dates of hire and termination/separation, evaluations, compensation information, promotions, transfers, disciplinary matters, engagement and discharge correspondence, (retain for all current employees and for ten years after departure of each individual).
    • Retain for five years:
      • Lease, insurance, and contract/license records – Software license agreements, vendor, hotel, and service agreements, independent contractor agreements, employment agreements, consultant agreements, documentation of basis for independent contractor status, and all other agreements (retain during the term of the agreement and for five years after the termination, expiration, non-renewal of each agreement).
      • Accounts payable records, banking and investment records, employee time sheets, work assignments and schedules, wage and tax statements.
    • Retain for one year, following audit:
      All other electronic records, documents and files – Correspondence files, publications.

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