Minutes 12-07-2015 - Laserfiche WebLink

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Local Current Expense Fund Balance Policy 3.1. Fund Balance for Cash Flow Purposes — Each school district will make a good faith effort to maintain a level of unassigned fund balance that will ensure sufficient funds are available to address its cash flow needs. The following levels are to be maintained for cash flow purposes only: 3.1.1. Chapel Hill Carrboro City Schools - The targeted level of unassigned fund balance for cash flow purposes will be at a minimum of 5.5 percent of budgeted expenditures. 3.1.2. Orange County Schools —The targeted level of unassigned fund balance for cash flow purposes will be at a minimum of 3 percent of budgeted expenditures. 3.2. Accumulated Fund Balance Above Cash Flow Purposes - In the event that either school district accumulates more than the percentage amounts allowed for cash flow purposes, the respective Boards of Education will develop a plan in place for spending the accumulated fund balance surplus for non-recurring purposes. The Board of Education will share that plan with the Board of County Commissioners. 3.3. Fund Balance Appropriation Occurring Outside the Normal Annual Budgeting Process —Appropriation of fund balance is a budgetary action that rests with elected bodies of each school system. It is highly desired that fund balance appropriations be limited to non- recurring expenses. Both school districts have historically appropriated fund balance as a part of their normal budgeting process, and this practice will remain until additional revenue is available to eliminate the use of fund balance. The board of education should note and explain significant deviations in the normal budgetary appropriation as a part of the budget narrative accompanying the recommended and adopted budgets. If the board of education finds it necessary to appropriate fund balance, outside the normal annual budgeting process, the board of education shall highlight the appropriation in their next fiscal year's budget request. The county commissioners are not obligated to increase local current expense in order to fund recurring items for which the board of education appropriates fund balance outside of the normal budgeting process. Paige Worsham said if the school districts choose to appropriate fund balance to recurring or non-recurring expenses, the BOCC is not obligated to match that amount in the next budget cycle. Capital Outlay Fund Includes: ➢ Revenues made available for capital outlay purposes by the State Board of Education and the board of county commissioners, ➢ supplemental school district taxes, ➢ the proceeds of the sale of capital assets, ➢ the proceeds of claims against fire and casualty insurance policies, ➢ and other sources. "No contract for the purchase of a site shall be executed nor any funds expended therefore without the approval of the Board of County Commissioners as to the amount to be spent for the site." • Dispute resolution process in G.S. 1150-431 used to settle disagreement