R277-113-6. Required LEA Fiscal Policies

  (1)(a) An LEA shall ensure that the LEA's fiscal policies address all applicable Utah Code references or Board Rules.

  (b) The requirements set forth in this Section R277-113-6 are minimum requirements.

  (c) An LEA may include other related items, provide LEA specific policy and guidance, and set polices that are more restrictive and inclusive than the minimum provisions established by Board rule.

  (2) LEA fiscal policies shall include the following:

  (a) a cash handling policy, which shall address cash receipts (cash, checks, credit cards, and other items) collected at the LEA and individual public schools and shall include:

  (i) establishment of internal controls and procedures over the collection, deposit, and reconciliation of cash receipts received; and

  (ii) compliance with Utah Code 51-4-2(2) regarding deposits.

  (b) an expenditure policy, which shall address all expenditures made by the LEA and individual public schools and shall include:

  (i) establishment of internal controls and procedures over the initiation, approval and monitoring of expenditures, including:

  (A) credit, debit, or purchase card transactions;

  (B) employee reimbursements;

  (C) travel; and

  (D) payroll;

  (ii) establishment of internal controls and procedures to record transactions when they occur in the proper program utilizing the following codes as established by the Board approved chart of accounts:

  (A) fund;

  (B) function;

  (C) location;

  (D) program; and

  (E) object or revenue code as applicable;

  (iii) directives regarding the appropriate use of the LEA's tax exempt status number;

  (iv) compliance with Section 63G-6a-1204 regarding length of multi-year contracts;

  (v) compliance with:

  (A) Title 63G, Chapter 6a;

  (B) Board rule regarding construction and improvements; and

  (C) Title IX;

  (vi) requirements for LEA contracts, including:

  (A) inclusion of specific scope of work language;

  (B) inclusion of federal requirements;

  (C) inclusion of language regarding data privacy and use, where appropriate; and

  (D) legal review prior to LEA approval; and

  (vii) procedures and documentation maintained by the LEA if the LEA chooses to enter into exclusive contracts or arrangements consistent with state procurement law and the LEA procurement policy.

  (c) a fundraising policy that:

  (i) establishes procedures for LEA and public school fundraising in general;

  (ii) establishes an approval process for fundraising activities for school sponsored activities;

  (iii) provides for compliance with school fee and fee waiver provisions; and

  (iv) includes:

  (A) specific designation of employees by title or job description who are authorized to approve fundraising, school sponsored activities, and grant fee waivers with appropriate attention to student and family confidentiality;

  (B) establishment of internal controls and procedures over the approval of fundraising and school sponsored activities and compliance with associated cash handling and expenditure policies;

  (C) directives regarding the appropriate use of the LEA's tax exempt status number and issuance of charitable donation receipts;

  (D) procedures governing LEA or public school employee interaction with parents, donors, and nonschool sponsored organizations;

  (E) disclosure requirements for LEA and public school employees approving, managing, or overseeing fundraising activities, who also have a financial or controlling interest or access to bank accounts in the fundraising organization or company;

  (F) Provisions establishing compliance with:

  (I) Utah Constitution, Article X, Section 2, establishing a free public education system;

  (II) R277-407; and

  (III) Title IX;

  (v) An LEA may include procedures governing:

  (A) student participation and incentives offered to students;

  (B) allowable types of fundraising activities; and

  (C) participation in school sponsored activities by volunteer or outside organizations;

  (d) an LEA donation and gift policy that includes:

  (i) an acceptance and approval process for:

  (A) monetary donations;

  (B) donations and gifts with donor restrictions;

  (C) donations of gifts, goods, materials, or equipment; and

  (D) donation of funds or items designated for construction or improvements of facilities;

  (ii) establishment of internal controls and procedures over the acceptance and approval of donations and gifts and compliance with associated cash handling and expenditure policies;

  (iii) directives regarding the appropriate use of the LEA's tax exempt status number, and issuance of charitable donation receipts;

  (iv) procedures regarding the objective valuation of donations or gifts if advertising or other services are offered to the donor in exchange for a donation or gift;

  (v) procedures governing LEA or public school employee conduct with parents, donors, and nonschool sponsored organizations;

  (vi) procedures establishing provisions for direct donations or gifts to the LEA or LEA programs, individual public school or public school programs;

  (vii) provisions restricting donations from being directed at specific LEA employees, individual students, vendors, or brand name goods or services;

  (viii) compliance with:

  (A) Title 63G, Chapter 6a;

  (B) state law and Board rule regarding construction and improvements;

  (C) IRS regulations and tax deductible directives; and

  (D) Title IX;

  (ix) procedures for:

  (A) accepting donations and gifts through an LEA's legally organized foundation, if applicable;

  (B) recognition of donors; or

  (C) granting naming rights; and

  (e) an LEA Financial Reporting policy, which shall include the following:

  (i) a requirement that the LEA shall ensure financial reporting in accordance with GAAP and audits of LEA financial reporting in accordance with GAAS;

  (ii)(A) a requirement that the LEA shall provide financial reporting in a manner consistent with the basis of accounting as required by GAAP, as applicable to the entity; and

  (B) if an LEA follows FASB standards, a requirement that the LEA shall provide reconciliation between the accrual basis of accounting and modified accrual basis of accounting; and

  (iii) a requirement that the LEA shall provide data and information consistent with budgeting, accounting, including the uniform chart of accounts for LEAs, and auditing standards for Utah LEAs provided online annually by the Superintendent.

  (3) The Superintendent shall maintain a School Finance website with applicable Utah statutes, Board rules, and uniform rules for:

  (a) budgeting;

  (b) financial accounting, including a chart of accounts required for an LEA;

  (c) student membership and attendance accounting;

  (d) indirect costs and proration;

  (e) financial audits;

  (f) statistical audits; and

  (g) compliance and performance audits.