DAA - Fiscal Management / Manifest Authorization and Review
In an effort to streamline the manifest and documentation review procedures at the SAU #65 administrative offices, this manifest review policy was developed by the School Board, the SAU and the District’s outside auditor. The primary goal of the policy is to achieve an effective and efficient system of Board authorization and approval over expenditures. In accordance with applicable State regulation, the District Treasurer is only authorized to disburse District funds upon the order of the School Board. The “order” of the School Board is established by the following “types or classification” of District expenditures in all cases. As indicated in RSA 32, no amounts are to be submitted to the Treasurer for any payment, however, if an “available appropriation” does not exist.
Collective Bargaining Unit Costs
The costs associated with the collective bargaining units, specifically payroll and benefits (taxes, life insurance, health insurance, and other), are negotiated and approved by both the School Board and the District Voters. Subsequent to such approval, the SAU is authorized to submit to the Treasurer for payment (i.e. as a School Board “order”) all costs included in the collective bargaining agreement(s).
Debt Service Requirements
The payments to bondholders and lenders under debt service requirements represent amounts for long-term capital borrowings that have been authorized and approved by the School Board and by special warrant article District Vote. Each year, (subsequent to initial year) the SAU is authorized to submit to the Treasurer for payment (i.e., as a School Board “order”) all amounts necessary to satisfy the debt service requirements of the District. Such SAU authorization is to be by the Superintendent.
Litigation-Related Costs
The payments to legal counsel of the district, or to any part to any proposed settlement with the District, require School Board review(with regard to the cost of retaining legal counsel) or specific approval (with regard to any proposed, litigation-related settlements). Subsequent to such School Board review or specific approval, SAU authorization by the Superintendent is allowed for payments to carry out the School Boards’ resolutions on such matters.
Major Contracts (Over $10,000)
Arrangements (contracts) with vendors and suppliers of “goods” and “services” to be provided to the District on MAJOR CONTRACTS (those over $10,000) are to be approved by the School Board prior to entering into the contractual arrangement. Subsequent to such approval, the SAU is authorized to submit to the Treasurer for payment (i.e., as a School Board “order”) all amounts necessary to satisfy the obligations of the District for goods and services that have been received and that are in compliance with the terms and conditions of the contract agreement. Such SAU authorization is to be by the Superintendent. The Business Manager will, on a quarterly basis, report on the status of any open and outstanding procurement obligations under major contracts. MAJOR CONTRACT items may include, but are not limited to, the following:
- Annual Benefit Insurance Provider – Health, Life, Disability (all part of CBU agreement)
- Annual Property and Casualty, General Liability and other Board/District Insurance
- Transportation Agreements: Buses (including Drivers and Operating Costs)
- Special Education Agreements: Intergovernmental and Individual Placement Agreements
- Tuition Agreements: Intergovernmental and Individual Placement agreements
- Architectural and Engineering costs and Capital Project-related Construction Contracts
- Fuel and Heating Oil Purchase Orders and Obligations
Minor Contracts (Under $10,000)
Arrangements (Contracts) with vendors and suppliers of “goods” and “services” to be provided to the District on MINOR CONTRACTS (those under $10,000) are to be approved by the SAU Superintendent, upon recommendation of the Business Manager, prior to entering into the contractual arrangement. The Business Manager must document to the Superintendent the procurement procedures undertaken to support the recommendation so as to assure that the goods and services being purchased are of the quality and specification desired at a cost to the District that is reasonable expected to be typical for such goods and services. Subsequent to such Superintendent approval, the SAU is authorized to submit to the Treasurer for payment (i.e. as a School Board “order) all amounts necessary to satisfy the obligations of the District for goods and services that have been received and that are in compliance with the terms and conditions of the contract agreement. Such SAU authorization is to be by the Superintendent. The Business Administrator will, on a quarterly basis, report on the status of any open, outstanding procurement obligations under minor contracts.
Utilities
The SAU is authorized to submit to the Treasurer for payment (i.e. as a School Board “order”) all amounts necessary to satisfy the obligations of the District for costs as billed by utilities (including electric, gas, water, sewer, etc.) and phone providers for utilities or services that have been received and that are in general compliance with the District’s needs. Such SAU authorization is to be by the Superintendent. The Business Manager will, on a quarterly basis, analytically report on each of the utilities and services provided to the District (on a school building basis). Additionally, with specific regard to phone costs, the Business Administrator will establish a management review procedure to guard against significant, unauthorized phone charges.
Federal and State Grants and Projects
The SAU is authorized to submit to the Treasurer for payment (i.e. as a School Board “order”) all amounts necessary to satisfy the obligations of the District for costs incurred (goods or services that have been received and that are in general compliance with the District’s needs) in order to carry out programs funded primarily by federal and state grants. Such SAU authorization is to be by the Superintendent and the SAU retains the administrative responsibility for the District’s compliance with all applicable federal and state laws and regulations relative to such grants. The Business Administrator will, on a quarterly basis, analytically report on the status of each of the grand projects of the District. As indicated in the RSA 32 warning below, no amounts are to be submitted to the Treasurer for any payment, however, if an “available appropriation: does not exist (“overspending” of any budgetary account group is not deemed to be an appropriate School Board “order” to the Treasurer).
Other Expenditures (School Board “Designee”)
The School Board “designee” is authorized to submit to the Treasurer for payment (i.e. as a School Board “order”) all amounts necessary to satisfy all other obligations of the District for goods or services that have been received and that are in general compliance with the District’s needs). Such “designee” was previously established at the School Board yearly organizational meeting.
Post Authorization Review (School Board “Designee”)
The designee also has the responsibility to meet with the SAU’s management, primarily the Superintendent and Business Administrator, on a periodic basis in order to continually assess the effectiveness and efficiency of the “manifest authorization and review” policies and procedures and together with the SAU management, make recommendations to the School Board as needed.
Finally, as an integral aspect of the “internal control structure,” the designees may meet with the District’s outside auditors during preliminary audit planning procedures in order to discuss: (a) the general expenditure control systems in place, (b) any specific transactions or contracts “at issue” that have taken place during the fiscal year, or (c) any other matter deemed necessary.
Legal Reference:
First Reading: April 21, 1994
Second Reading: May 12, 1994
Adopted: October 7, 2004
Last Review: October 7, 2004