FRANKLIN REGIONAL SCHOOL DISTRICT - SERIES 3000 …...FRANKLIN REGIONAL SCHOOL DISTRICT - SERIES 3000 3000-2 3100 BUDGET 3101 Budget Policies and Procedures Policy Purpose The budget

FRANKLIN REGIONAL SCHOOL DISTRICT - SERIES 3000

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3000 FISCAL AUTHORITY 3001 Fiscal Authority and Responsibility Fiscal policies of the Franklin Regional Board of School Directors shall be in conformance with the provisions of the "School Laws of Pennsylvania." In order to establish, enlarge, renovate, equip, furnish, operate, and maintain any school or department herein provided, or to pay any school indebtedness that may at any time hereafter be created by any school district, or to tenable it to carry out any provisions of this act, the Board of School Directors in this school district is hereby vested with all the necessary authority and power annually to levy and collect, in the manner herein provided, the necessary taxes required, in addition to the annual state appropriation, to comply with and carry out any or all of the provisions of this act. Applicable Laws and Regulations Pennsylvania School Code Sections 507, 671 Adopted: 02/17/03 Policy History Amended: Effective: 02/17/03 Reason for last amendment: 3002 Power to Enter into Contracts The school district shall have the power and authority with the Pennsylvania Department of Education, to enter into contracts with the State Public School Building Authority, any municipality, authority, or profit or non-profit corporation or partnership, association or person to lease as lessee from such a school building or any improvement thereto, and the furnishings, and equipment thereof, constructed by the same, for a term not exceeding forty (40) years, at such rentals as may be determined. The President and/or Secretary of the Board shall sign contracts. The Board of School Directors shall authorize the Superintendent of Schools and the Director of Financial Services to sign contracts dealing with the effective and efficient day-to-day operations of the District's business. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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3100 BUDGET 3101 Budget Policies and Procedures Policy Purpose The budget serves as a policy document, a financial plan, an operations guide and as a communication device. In the district’s fiscal management, the Board seeks to achieve the greatest educational returns through the implementation of the following policies and procedures that address: a. Operating budget b. Capital improvements c. Technology budget d. Debt policies e. Revenue estimating procedures f. Budgetary reserve policies g. Financial reporting Policy Procedure Operating Budget: Elements of a budget:

A description of the total education program to be provided by the District An estimate of the expenditures needed to carry out the desired program An estimate of the revenues which will be available to pay for the expenditures

The operating budgets will be prepared within the context of the overall financial objectives of the District to provide for high quality programs and services that meet the educational needs of students within the ability of the taxpayers of the community to provide the financial resources. The operating budget of the District will be formulated such that current revenues and current expenditures are balanced on an annual basis. The District will continue to maintain an interactive, on-line, budgetary accounting Information system that is employed as a management control device to administer the spending plan. The budget will be administered within applicable local state and federal laws. The delegation of budget development shall be based on a philosophy that supports a collaborative budget building process. Budget oversight and management is an administrative responsibility. Capital Improvement Budget: The District will maintain a five-year capital improvement plan that is established under the provisions of Section 2932 of the Municipal Code and School Code Section 511 that is accounted for as a Capital Reserve Fund and is updated annually. In addition to a capital maintenance plan, the District shall also plan any new or replacement construction based upon the state guidelines for school building use.


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Technology Budget: The District will maintain a five-year technology plan that is accounted for as a Capital Reserve Fund and is updated annually. Debt Policy: In no case will the District use long-term debt to fund yearly operational expenses. Revenue Estimating Procedures: The Director of Financial Services will estimate annual revenues by a conservative, objective and analytical process. The District will not include revenue estimates in the budget that cannot be verified with documentation of its source and amount. Revenue estimates shall be based on objective data such as historical trend analysis and validated State estimates of sources and amounts of subsidy. Fund Balance Purpose: The Board recognizes that the maintenance of a fund balance is essential to the preservation of the financial integrity of the School District and is fiscally advantageous for both the District and the taxpayer. This policy establishes goals and provides guidance concerning the desired level of year-end fund balance to be maintained by the District. Fund Balance Definition: Fund balance is a measurement of available financial resources. Fund balance is the difference between total assets and total liabilities in each fund. GASB Statement 54 classifies fund balances based on the relative strength of the constraints that control the purposes for which specific amounts can be spent. Beginning with the most binding constraints, fund balance amounts shall be reported in the following classifications: Non-spendable Fund Balance: Amounts that cannot be spent because they are in a non-spendable form (e.g. inventory) or legally or contractually required to remain intact (e.g. principal of a permanent fund). Restricted Fund Balance: Amounts limited by external parties, or legislation (e.g. debt covenants and grants). Committed Fund Balance: Amounts limited by Board policy (e.g., future anticipated costs). Assigned Fund Balance: Amounts that are intended for a specific purpose. Generally, balances in special revenue funds or capital project funds will be designated as assigned. Unassigned Fund Balance: Amounts available for consumption or not restricted in any manner. Fund Balance Guidelines: The School District will maintain a minimum committed fund balance of $1,000,000. If the School District experiences an excess of expenditures over revenues for a given fiscal year, the fund balance shall be consumed in the following order:

1. Restricted fund balance to the extent that expenditures related to the restriction contributed to the excess of expenditures over revenues.

2. Committed fund balance to the extent that expenditures related to the commitment contributed to the excess of expenditures over revenues. If a plan for periodic use of committed fund balance is reviewed and approved by the


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Board, the committed fund balance will not be reduced by more than the amount designated in the plan.

3. Assigned fund balance to the extent that expenditures related to the assignment contributed

to the excess of expenditures over revenues. 4. Unassigned fund balance for any remaining excess of expenditures over revenues. Fund Balance Delegation of Responsibility:

The responsibility for designating funds to specific classifications shall be as follows:

1. Non-spendable – shall be assigned by the Board 2. Restricted – shall be assigned by the Board 3. Committed – shall be assigned by the Board 4. Assigned – may be assigned by the Board or a designee appointed by the Board The Superintendent of Schools or his/her designee shall be responsible for the

enforcement of the Fund Balance policy. Budgetary Expenditure Reserve Policy: The budgetary expenditure reserve, for unexpected expenditures or unexpected increases in budgeted expenditures, is established by the Board of School Directors. It can be as high as one percent of the total budget. This reserve shall be a minimum of $75,000 (approximately 0.2 percent of the budget) based on past experience in establishing and controlling budgeted expenditures. Financial Reporting Policy: To establish and implement efficient procedures for accounting, reporting, investing, purchasing and delivery, payroll, payment of vendors and contractors, and all other areas of fiscal management. There are three financial reports that are required each year. Annual budget Annual financial report Annual audit Several financial reporting changes outline current requirements for financial reporting. They are: Your Schools Your Money (or Spending Analysis Management) GASB Statement 34 Standard and Poor’s Schools Evaluation System (SES) Applicable Laws and Regulations Act 16 of 2000 Municipal Code (Commonwealth Statute) Section 2932 Fiscal Code (Commonwealth Statute) School Code Sections 687, 508, 511, 521, 609, 801, 807.1 Generally Accepted Accounting Principles (GAAP) GASB 34 Policy History Adopted: 02/17/03 Amended: 01/23/12 Effective: 02/17/03 Reason for last amendment: 2002 Budget review and update


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3102 Calendar In December of each year, the Director of Financial Services shall prepare a budget calendar which specifies the dates that budget requests must be ready for review and who is responsible for preparation and review. The budget calendar shall also specify dates for school board review, public hearings, adoption and certifying a tax levy. An annual budget shall be presented to the Board of School Directors for review and tentative adoption as prescribed by State Law.

Applicable Laws and Regulations Policy History

Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:

3103 Fiscal Year

The fiscal year for the Franklin Regional School District shall begin July 1 and end June 30 of the succeeding year. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3104 Budget Planning and Preparation The Director of Financial Services shall prepare a tentative annual budget in accordance with existing state and local requirements as set forth by the State Constitution, Statutes, State Department of Education and the Board of School Directors. Each administrator shall prepare budget information and data regarding his/her school or department. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3105 Budget Hearing It is the policy of the Board that all reasonable means shall be employed by the Board to present and explain the proposed budget to residents and taxpayers of the district.


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The proposed budget as formulated by this Board shall be set forth in necessary detail using the forms of the State Education Department or similar documents and shall be made available to the public at the places required by law. A summary form of the budget shall also be prepared annually. This report shall be made available to the public in the district administration office and will become a part of the school district's annual report. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3106 Public Review and Adoption The Board of School Directors shall annually, at least thirty (30) days prior to the adoption of the annual budget, prepare a proposed budget and make available, printed or otherwise, for public inspection to all persons who may request a copy at least twenty (20) days prior to the date set for the adoption of the budget. Applicable Laws and Regulations PA Code 24PS6-652 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Added PA Code 3107 Tax Levy In order to establish, enlarge, renovate, equip, furnish, operate, and maintain any schools or departments herein provided, or to pay any school indebtedness that may at any time hereafter be created by any school district, or to enable it to carry out any provisions of this act, the Board of School Directors in this school district is hereby vested with all the necessary authority and power annually to levy and collect, in the manner herein provided, the necessary taxes required, in addition to the annual state appropriation, and shall have, and be vested with, all necessary power and authority to comply with and carry out any or all of the provisions of this act. All school taxes shall be levied and assessed by the Board of School Directors, therein, during the month of June each year, for the ensuing fiscal year. The Board of School Directors of the Franklin Regional School District is authorized and directed to levy annually only, a tax on each dollar of the total assessment of all property assessed and certified for taxation therein. Whenever the Board of School Directors of any school district shall, by resolution, fix the tax rate for any year at a mill rate, such resolution shall also include a statement expressing the rate of taxation in dollars and cents on each one hundred (100) dollars of assessed valuation of taxable property.


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Applicable Laws and Regulations Pennsylvania School Code Section 672, 603 PA Code 24PS6-652 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Added Pa Code 24PS 6-652 3108 Per Capita Taxes, Act 511 & Section 679 Each resident or inhabitant over eighteen years of age, in every school district of the third class, which shall levy such tax shall pay for the use of the school district in which she or he is a resident or inhabitant, a per capita tax will be assessed by the school district. Applicable Laws and Regulations Pennsylvania School Code Section 679, 680 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Changed district to third class 3109 Delinquent Taxes All unpaid school taxes assessed and levied upon real property shall be certified by the tax collector and referred to the Westmoreland County Tax Claim Bureau for further collection by January 31 of each year. All other delinquent taxes will be collected by the agency or person(s) designated by the Board of School Directors. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Tax collector no longer elected 3110 Budget Transfers Policy Purpose: To define the conditions under which budget transfers must be approved by the Board of School Directors and how often such approval shall occur. Policy Statement: Pursuant to Section 687 of the Pennsylvania School Code and interpretations thereto by the State Government, the Board has adopted the following policy as recommended by the Comptroller’s Office and the Attorney General’s staff.


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1. Transfers between Functions of the Chart-of-Accounts (e.g. between Functions 1100 and 1200) shall require prior Board approval. 2. Transfers between Major Objects in the Chart of Accounts (e.g. between Objects 300 and 400 shall require subsequent Board approval. All budget transfers, both those requiring prior and subsequent approval, shall be presented monthly to the Board. Budget changes that are not subject to Board review/approval shall be reviewed by the Administration to ensure legal compliance with expenditure mandates, both State and Federal. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 2002 Policy update


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3200 SYSTEM OF ACCOUNTS 3201 Chart of Accounts A chart of accounts shall be maintained which will provide an accurate record of revenues and expenditures, using the guidelines recommended by the Department of Education. Applicable Laws and Regulations Act 16 of 2000 GASB 34 24PS2-218 24PS6-613 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Changed to Chart of Accounts and applicable regulations cited

3202 Power to Incur Debt

The School District may, in any year, create and incur indebtedness against such school district and issue bonds payable as provided by the "Municipal Borrowing Law" for any or all of the following purposes: To purchase or acquire proper sites or grounds for school buildings, or lands additional to and existing school buildings; To erect, renovate, enlarge, equip or furnish any school building; To repair, remodel or rebuild any building of the school district, or to lease buildings or portions of buildings either built or altered for school use; To pay any indebtedness incurred by the municipality for or on account of the school district or for school purposes; To pay any refund of taxes decreed by an order of the court; To refund certain bonds, as herein provided; To fund floating indebtedness incurred for current expenses and debt services; To fund temporary indebtedness incurred for permanent improvements, or in anticipation of proceeds from a bond issue, and To purchase or acquire buildings for school use.


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Applicable Laws and Regulations Pennsylvania School Code Section 631, 782 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Added renovation of buildings and eliminated purchased school buses 3203 Debt Limit The Board of School Directors shall have the authority, without the assent of the electors, to issue bonds which will incur upon its own authority any amount of such indebtedness not in excess of five (5) per cent of the last assessed valuation of local property. The assent of the electors shall be required in all school districts to issue bonds which will incur any new debt or increase the indebtedness to an amount in excess of five (5) per cent of the assessed valuation of local property. The school district having no indebtedness or indebtedness less than five (5) per cent of the total assessed valuation of local property may at any time incur indebtedness for the purpose of providing funds in any fiscal year for current expenses and debt services, for permanent improvements, or in anticipation of proceeds from bond issues already officially authorized and approved by the Department of Community Affairs with such limitations and for such length of term as herein provided. The incurring of such temporary debt or borrowing money upon such obligation, shall receive the affirmative vote of not less than two-thirds of the members of the Board of School Directors. Such transaction shall be properly executed by the President, under the seal of the district and attested by the Secretary. Bids or quotations shall be solicited for all short term loans which the Board of School Directors has authorized. Funds shall be borrowed from the responsible organization offering the most favorable terms. The Board shall review the total amount of debt annually during the budget process and control the debt within legal limits as defined in Commonwealth law. Applicable Laws and Regulations Pennsylvania School Code Sections 632, 634, 635, 637 Debt Ceiling Law: Pennsylvania Probate, Estate and Fiduciaries Code, Act of June 30, 1972, No. 164, P.L. 508, as amended and supplemented Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Eliminated reference to school buses; Added reference to Debt Ceiling Act


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3204 School Depositories

The Board of School Directors shall designate one or more banks and/or trust companies as a depository or depositories for its school funds. Action to name a school depository requires the affirmative vote of a majority of the vote of the entire Board of School Directors.

Each depository of the school district must conform to all legal requirements for reporting, providing proper bond or other security in the amount and with such surety or sureties as required by the Board of School Directors and in compliance with current existing laws pertaining to public school district fund management. Applicable Laws and Regulations Pennsylvania School Code Sections 621, 622, 623, 624 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3205 Student Activity Funds Policy Purpose: Activity funds are to be used for the general welfare of the student only, and for activities not a part of the regular curriculum. These funds cover all extracurricular activities, clubs and student organizations. Policy Statement: School Board: Any new and unusual fundraising projects must receive the approval of the Board of School Directors. Depository methods for all monies will be prescribed by the Board of School Directors. The Board of School Directors shall appoint or assign a person to be responsible for the depositing of all monies into, and the writing of all checks from, any student activity fund within the school. Principals: Each principal shall be approved as the custodian of the student activity funds of his/her building. Each check shall be co-signed by the Principal and another person within the District designated by the Board of School Directors. All fundraising activities shall be approved by the Principal or his/her designee. The Principal shall be responsible for assuring that each activity is adhering to the bookkeeping system. Within each activity, the sponsor, or his/her designee, shall be required to document money received, complete deposit forms, support accurate record keeping, and deposit all funds into District approved banks or building safe until such time as funds can be deposited.


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At the end of each school year, it shall be the responsibility of each Principal to meet with the Supervisor of Transportation and Child Accounting to assure that his/her student activity books, invoices and completed reconciled bank statements are in order for auditing. General: The school name or school district shall not be used for any fundraising activities involving teachers and students when that activity is not an authorized school function. For all fundraising projects, two or more people shall be required to count the money, verify ticket sales and use a standard form for submitting this money to the Principal’s office for deposit into student activity accounts. On all fundraising projects, such as dances, musicals, plays, etc., the sale of tickets shall be coordinated so as to ensure the collection, deposit and accounting of all revenues. No employee of the Franklin Regional School District shall be permitted to purchase items for resale unless the order is submitted through the school building office or to the building principal and payment drawn on a student activity fund check. All sales shall be handled by club/organization officers and members, and profits from these sales shall go into the club/organization treasury. All items sold by organizations shall conform to the laws governing resale of goods as established by the Pennsylvania Department of Revenue. All clubs/organizations shall use a uniform approved bookkeeping system as per the Student Activity Accounts Handbook and the individual assigned the responsibility for student activity funds. Interest income earned on the activity funds will be prorated annually based on the average monthly balance for each club or activity. Monies left unused or uncommitted for one year after graduation of the class or club/ organization members shall be deemed to have been committed, and transferred to the Student Body Activities Account, Student Council, or other school-wide designated student activity account for any proper student activity related purposes. Purchase of materials or supplies on behalf of student activity related accounts shall be made consistent with the purchasing procedures in the Student Activity Handbook and school code. Applicable Laws and Regulations Pennsylvania School Code Section 511 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 2002 Policy update, including Administrative Procedures Applicable Administrative Procedures: FRSD Student Activity Accounts Handbook; PASBO Student Activity Funds Guide


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3300 PURCHASING 3301 General Purchasing Policy The function of the purchasing office is to serve the educational program by procuring the necessary supplies, equipment, and services. The Board of School Directors declares its intention to purchase competitively without prejudice and to make all purchases in compliance with Federal, State and Local laws and regulations to seek maximum educational value for every dollar expended. The acquisition of services, equipment, and supplies is centralized in the Finance Department, which functions under the supervision of a person designated by job description as the Director of Financial Services and through whose office purchasing transactions are coordinated. All purchases shall be coordinated with the end users. Applicable Laws and Regulations Pennsylvania School Code Sections 507, 508 Policy History Adopted: 02/17/03 Amended: 11/19/12 Effective: 02/17/03 Reason for last amendment: Added reference to Supervisor of Purchasing

3302 Purchasing Guidelines Policy Purpose: Purchasing guidelines shall be used to define the entire procurement function. The policy committee shall review purchasing guidelines annually and revise when appropriate. Policy Statement: The purchasing guidelines are intended to define the three areas of the purchasing functions: expenditure limits, supplier selection, and approval requirements. The following guidelines are prescribed: 1) Less than $100 - Petty Cash is used for miscellaneous school supplies obtained through local area purchases. Pre-approval by a building Principal or department supervisor is mandatory. Pre-approval requests shall be processed within two working days. This category of purchases shall not be used as a substitute for purchasing from the approved vendor list containing discounts. 2) Between $101 - $1,000 - These purchases are comprised of small individualized purchases or bulk single-source procurements, accomplished via pre-approved purchase orders. Pre-approval is secured from the building or department administrators and the Director of Financial Services. Fax or telephone orders are not permitted prior to pre-

approval. Employees are to competitively price items before seeking pre-approval to secure the lowest available price.

3) Between $1000 - $10,000 - Three documented telephone/verbal quotes shall be supplied by the requestor, with subsequent purchase order approval by the Administrative Budget Holder and the Director of Financial Services.


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4) Between $10,000 and $18,500 (or PDE-approved bid limit) - Three written quotations from potential suppliers/ contractors are required from the requestor, with subsequent purchase order approval by the Administration Budget Holder and the Director of Financial Services. All capital items in this range shall require Board approval prior to purchase or contract award.

5) Greater than $18,500 (or PDE-approved bid limit) - Shall invoke the sealed bid process, with solicitation of bids, pre-bid meetings, review of bids, and recommendation for award provided by the Director of Financial Services to the Board for approval.

Exceptions: The following exceptions (or exemptions) are provided for yearly, routine purchases of bulk items and for specialty purchases.

1) In the expenditure range of $1,000 to $10,000, sole-source procurements are acceptable for specialty items, for which there may be only one supplier, with the approval of the Director of Financial Services.

2) Bulk purchases greater than $18,500, which are pre-approved in the annual budget (e.g., textbooks), are exempted from the formal bid process. In fact, all bulk purchases using State, IU or Consortium piggyback contracts are exempted, recognizing the value of negotiated discounts on such bulk purchases, as long as the expenditures are within the pre-approved annual budget. Applicable Laws and Regulations Pennsylvania School Code Section 807.1 Policy History Adopted: 02/17/03 Amended: 11/19/12 Effective: 02/17/03 Reason for last amendment: 2002 Policy update Administrative Implementation Procedures: Purchasing Handbook 3303 Local Purchasing It is the intention of the Board to purchase goods and services locally, whenever they are available, of equal quality and at the lowest competitive prices.

Applicable Laws and Regulations Policy History

Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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3304 Sales Calls and Demonstrations

No sales representatives are to call on staff members without authorization from the building or department administrator. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3305 Advertisement of Bids The Board of School Directors shall authorize the administration to proceed with the preparation of bids and the advertisement of those bids. When bids are required by law, purchase may be made only after public notice has been given by advertisement once a week for three (3) weeks in not less than two (2) newspapers of general circulation. Such advertisement or notice shall give all necessary information, or give notice of convenient access thereof, in such manner that bidders can intelligently make bids for such contracts. The Board of School Directors shall accept the lowest responsible bidder, when the kind and quality of equipment, supplies and materials offered are equal but shall have the right to reject any and all bids or select any single item or group of items from any bid. Applicable Laws and Regulations Pennsylvania School Code Section 807.1 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Eliminate annual approval for upcoming year 3306 Bid Preparation Policy Purpose: Bid preparation has as its objective to maximize the competition among the broadest range and numbers of suppliers when submitting bids for District business and seek economy of scale when receiving pricing. Policy Statement: Bids will be written specifically by the requester in conjunction with purchasing to include instructions for each item (i.e., brand name, model number, etc.). Such specificity permits comparison of like items, consolidation of purchase orders and cost efficiencies.


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It will be a requirement of the District that all departments utilize the best purchasing advantage available to the District. Therefore, the District will provide specifications for materials to be ordered. The District will develop a standardized list of products for purchase wherever possible. It is the District’s intention to minimize the number of items ordered, along with the number of vendors used. Purchases requiring bid specifications shall have the bid specifications prepared by the best qualified internal personnel or external organization. The resulting specification shall be reviewed technically and legally before bids are solicited. The Bid Tracking Form shall be used to document the bid preparation, its review, cost/schedule estimates, contract award and performance on the contract. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: 11/19/12 Effective: 02/17/03 Reason for last amendment: 2002 Policy update Administrative Implementation Procedures: Bid tracking form 3307 Bid Awards

When the bids have been summarized and evaluated, with samples examined as necessary, the Administration shall prepare a recommendation to the Board specifying which companies should be awarded the contract(s). This submittal will also specify the evaluation process used by the Administration to reach the recommended decision. Recommendations for award will be made by the District in accordance with specifications established by the District, and prices offered by the supplier(s). Bids will be awarded to the lowest responsible bidder, kind, quality and material being equal. Additional factors to be considered in award of all bids will be past history of the supplier’s performance, serviceability, and safety.

The Franklin Regional Board of School Directors must approve all bids awarded by the

Franklin Regional School District. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Documentation of a procedure to evaluate bid and recommend bid awards.

3308 Volume Bidding

Cooperative purchasing with other school districts or intermediate unit agencies, and other volume bidding arrangements shall be utilized whenever practical. Individual purchases shall be combined or consolidated whenever possible, and blanket purchase orders will be used to consolidate volume purchasing.


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Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Added reference to Blanket Orders

3309 Waiver of Bidding Procedures

The normal bidding procedures as described in District policy may be waived under the following circumstances:

1. In those cases where the nature of the personal service relates closely to an individual and/or a firm (i.e., legal counsel, architectural consultant, etc.) the superintendent may, with the approval of the Board of School Directors, utilize procedures other than the traditional sealed bid process. 2. In those cases where an emergency condition exists, the Board of School Directors may waive the bidding procedures to expedite corrective action. 3. Where practical, the Administration shall request from the Pennsylvania Department of Education (PDE) waivers from mandated bidding requirements, including but not limited to: a. Use of a single prime instead of multiple primes on a major construction project; b. Increasing the limit for invoking the sealed bid process. Applicable Laws and Regulations Pennsylvania School Code Section 751 Act 16 of 2000 Policy History Adopted: 02/17/03 Amended: 11/19/12 Effective: 02/17/03 Reason for last amendment: To encourage seeking waivers 3310 Vendor Relations and Ethics

The school district’s suppliers, their products, personnel and services are a natural extension of the district’s own resources. It is the responsibility of all employees to work to maintain the good name of the school district, to develop and maintain good relations between the school district and its suppliers, and to keep in mind that personal contacts form much of the basis for the supplier’s opinion of the school district. Employees of the Franklin Regional School District will maintain and practice the highest possible standards of business ethics, professional courtesy and competence in all dealings. At all times, applicable laws must be strictly observed. In this regard, the following will be observed when dealing with suppliers and their representatives:


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Accord prompt and courteous reception, as well as fair and equal treatment to all suppliers and their representatives.

Provide equal opportunity for all suppliers to make price and specification quotations, except where the supplier has a proven record of bid, quotation, or contract default.

Guarantee the confidentiality of all specifications and price quotations made by vendors.

Decline to take advantage of seller’s honest errors, and show consideration for seller’s difficulties by cooperating with him/her whenever possible.

Avoid putting seller to unnecessary expense or inconvenience on returned goods.

Explain as clearly and fully as possible to suppliers the reason for rejection of their bids, quotations or proposals.

Keep informed about sources of supply, methods, services and materials, and where appropriate codes and standards do not apply, mandate test results for products being considered.

If, for valid reason, one supplier is permitted to re-quote, his competitors will be given the same opportunity. Re-quoting will be restricted to an absolute minimum and will only be permitted when the circumstances lead to a competitive bid environment. Bid auctioneering is not permitted.

Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: To ensure test results where codes and standards do not apply. 3311 Payment of Bills Before approving bills each month or authorizing needed transfer of funds, the Director of Financial Services shall determine that funds are properly allocated for the payment of each bill. Once receipt of goods and services has been verified, payment of bills shall be approved by the Board of School Directors and made by the Treasurer or authorized designee. Personnel rendering services to the school district at athletic contests in the Franklin Regional School District such as officials, shall be paid by check immediately following the contest or, if employees, will have the payments made through regular payroll procedures. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Added “or authorized designee” 3312 Gifts & Gratuities From Vendors

It is the responsibility of the Director of Financial Services to ensure that the following purchasing function priorities are observed:


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No district employee shall accept gifts, personal loans, or other special considerations from an individual or business organization doing business with, or intending to do business with, the school district.

Loans are not to be accepted from an individual or organization having prospective dealings with the school district unless it is a bank or savings and loan and is in the business of making loans to individuals and such loan is strictly independent of any activities within the school district.

No employee shall permit any influence which could conflict with the best interest of the school district, or prejudice the district’s reputation.

Association with supplier representatives at luncheons, dinners, or business organization meetings are helpful in establishing better business understanding, and is neither questionable nor unethical, provided that the Buyer keeps himself/herself free of obligations.

The responsibility for adherence to this policy is a joint one. Individuals who represent the school district must be beyond challenge or reproach in every business transaction, and not allow themselves to be placed into a position where their judgments can be influenced or appear to have been influenced.

Any employee who is offered or receives such payment or gift, with the exception of food products which must be consumed in the workplace, shall refuse it or return it to the giver in a tactful and dignified manner, advising the giver of the school district’s policy prohibiting its acceptance and report such occurrence to the business office.

Any employee not complying with this policy shall be subjected to appropriate disciplinary action, up to and including discharge.

Any prize or premium received through a vendor promotion shall be the property of the school district. The offering of such prizes/premiums shall not be construed as accruing advantage to any offer, equal in all other respects to any other offer.

Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: 11/19/12 Effective: 02/17/03 Reason for last amendment: 2002 Policy Update; revise wording

3313 Payment of Pre-Approved and Emergency Contracts

It is the purpose of the Board to effect the prompt payment of bills in order to enjoy the benefit of discounts and to treat fairly the persons with whom and entities with which the District contracts. Nevertheless, prompt payment of invoices when those invoices are individually approved by the Board, may be made difficult because of gaps in time between the receipt of invoices and the occurrence of scheduled Board meetings. Therefore, the Board, by the adoption of this policy, hereby authorizes the personnel set forth below to pay, upon receipt, the bills described in the following categories in accordance with the following procedures. Payment orders may be drawn by the personnel listed below pursuant to this policy for:

A. Payments due for:

1. Regular utility bills 2. Health, life, and other regular insurance contracts


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3. Regular payroll related expenditures (including but not limited to unemployment compensation, social security, retirement and worker's compensation).

B. Other emergencies deemed urgent and applicable by the Director of Financial Services and the Superintendent.

No payment shall be made under this policy until the Administration has determined that the payment invoice is in order and that the goods related thereto are in acceptable condition or the services related thereto were satisfactorily rendered. Additionally, in the event that such a purchase order relates to any matter in which the District has retained consulting services, including but not necessarily limited to services of architectural or engineering review, such payment will not be made until the additional approval of the consultant has been obtained. In no event shall any payment be made to the order of cash. Every payment made pursuant to this policy shall be reported to the Board at the next regular meeting thereof. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Changed Blue Cross to health insurance 3314 Standardization of Goods and Approved Vendors Items commonly used in the various schools, or units thereof, shall be standardized consistent with educational goals and in the interest of efficiency or economy. Such items shall be summarized annually by the Business Office and listed and posted in all school administration offices and distributed to authorized requisitioners. No deviation shall be permitted in buying substitute items without the express authorization of the Business Office. Also reviewed, posted and distributed annually will be the approved vendor list for purchase. The goal of the District is to minimize the number of purchase orders and maximize the use of approved vendors for repetitive purchases while taking advantage of competitive pricing. The approved vendor list shall be reviewed and revised annually to ensure quality of goods/services, timely delivery/performance and competitive pricing. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Emphasize the desire to reduce the number of purchase orders

3315 Conflicts of Interest

The district will not purchase supplies, materials, or services from any staff member of the School District. Neither will the District purchase supplies, materials or services from a member of the Board of School Directors. Likewise, the district shall not purchase supplies, materials, or equipment for or sell supplies, materials, or equipment to any person identified in this paragraph. Exception to the above


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policy may be made only by the Board of School Directors based upon specific notification of the exception by the Business Office. District employees providing professional development or training to other District employees may be paid for their services as per contract agreements and the Act 48 plan. Applicable Laws and Regulations Policy History: Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Provide for payment of professional development services


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3400 INSURANCE 3401 Insurance on Buildings: Public Liability, Insurance for Employees, Broker of Records The Franklin Regional School District shall have full power and authority to make and enter into any contract or contracts with any person, firm or corporation, including any mutual fire insurance company authorized to transact business in this Commonwealth, for the purpose of insuring against loss or damage by fire, or otherwise, any or all of the school buildings or other property owned or leased by the school district. The District shall have full power and authority to enter into any contract or contracts with any person, firm or corporation including any mutual insurance company authorized to transact business in this Commonwealth, for the purpose of insuring every employee of the school district against liability for damages sustained by pupils, or others as a result of the employee's negligence in the performance of his or her duties during the course of his or her employment. No contract or contracts of insurance shall be purchased from or through any person employed by the school district or serving as a member of the Board of School Directors.

The Franklin Regional School District shall purchase insurance for each of its school buildings and the contents therein for fire, extended coverage and vandalism, and malicious mischief. Also to be purchased is coverage in the following areas: Comprehensive General Liability, Comprehensive Automobile Liability, Excess Indemnity - Umbrella Liability, Boiler and Machinery Insurance, Workmen's Compensation, Travel Accident Policy, Fidelity Bonds and Broad Form Money and Security Loss Policy. The Director of Financial Services shall maintain a complete file of all policies and information concerning all insurance coverage. The Director of Financial Services shall assume the responsibility and shall determine that all insurance policies are kept in force. He/she will also require Certificates of Insurance from all on-site contractors to preclude District liability resulting from contractor negligence. Applicable Laws and Regulations Pennsylvania School Code Section 774 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:

3402 Liability for Personal Property

The District will not be responsible for the personal property of pupils, employees, or other persons using the school facilities. Articles of clothing, jewelry, money, and other articles of a personal nature or constituting personal property such as radios, eye-glasses, etc., are the responsibility of the student, employee, or person while in the school facility.


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Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Revise limits of liability

3403 Athletic Participation All students who participate in interscholastic sports shall be required to have medical/accident insurance coverage. The school district assumes no responsibility for medical expenses incurred by students. The Athletic Director shall require that all athletes document insurance coverage prior to any participation. The records shall be available in the office of the Director of Athletics and Extracurricular Activities. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Compliance and maintainenance records

3404 Student Accident

The District shall offer the opportunity for parents to participate in a student group accident insurance program. Such an insurance program shall be voluntary. Premiums are paid by parents. The District assumes no responsibility for medical expenses incurred by students. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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3405 Claims and Reporting

The Director of Financial Services shall be responsible for reporting all incidents and accidents and filing all claim reports with the insurance carriers as appropriate. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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3500 SALARY EXPENSE RELATED 3501 Salary Schedule The Board of School Directors shall establish and annually approve the salaries and/or salary schedules for all employees, including stipends, supplemental contracts and per diem agreements. Applicable Laws and Regulations

24 P.S. §§ 5-508 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Reference applicable laws

3502 Payroll Information

Pay dates will be established in accordance with holiday schedules and/or negotiated contractual agreements between the District and its employee groups. It is the employees’ responsibility to be certain that all personal information regarding payroll (Social Security, dependents, change of address, taxes, etc.) is personally given to the Director of Human Resources. The Director of Human Resources is responsible for providing the Business Office payroll information in an expeditious manner. Salary adjustments due to earning advanced degrees or additional credits will be made only at the beginning of the school term or the start of the second semester and will conform to the current language as included in the contractual agreement between the District and its employee groups. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Eliminate specific dates for payroll 3503 Deductions from Pay In compliance with the State Retirement Law, the Board of School Directors shall deduct the appropriate contribution from the full amount of each warrant issued to any qualified employee. Money deducted from pay warrants is transmitted quarterly (or as established by the Retirement Board) to the District as directed by the Public School Retirement Board. All employees entering school service are required to become members of the State School Retirement Plan, provided they qualify.


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Deductions may include the following: Federal income tax F.I.C.A. or Social Security Local wage tax (Borough and School) Retirement contributions Annuities Group health and accident insurance Hospitalization insurance PSEA, NEA and PSSPA dues Charitable organizations and others Credit Union United Way Other adjustments in compensation The federal and state government supplies income tax tables for the purpose of computing withholding tax according to information furnished by each employee on Form W-2, U.S. Treasury, Internal Revenue Service. Applicable Laws and Regulations Pennsylvania School Code Section 3334 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Amend list of deductions 3504 Mileage Reimbursement Members of the Board of School Directors, Superintendent, administrators, and other personnel shall be allowed the per mile reimbursement as established by current negotiated agreements, or in the Internal Revenue Service guidelines for approved trips or other authorized travel for the School District, in addition to other necessary expenses for toll, hotel, meals, etc. (See Policy 6117 for travel reimbursement.) Mileage shall be reimbursed quarterly. Professional and non-instructional personnel attending conferences or meetings approved by the Superintendent shall be reimbursed at the rate established in Policy 6117 and IRS mileage guidelines. Reimbursement for use of private cars for school business or for transportation to educational meetings, having pre-approval, is established by negotiated agreement and/or IRS guidelines. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Consolidate mileage reimbursement checks


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3505 Summer Salaries

Professional employees who wish to receive the balance of their pay in one lump sum at the end of the school year must file a request in writing to the Business Office no later than the second Monday in May for the year the request is made.

Professional employees shall notify the Superintendent’s office, the Director of Human Resources and the building office of changes in address. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Change of titles 3506 Tuition Reimbursement

District employees shall not be reimbursed for college credits or training until they have begun to work for the District. The amount of the reimbursement shall be determined by the collective bargaining agreements or individual contract agreements, and prorated on the basis of the current work assignment within the school year (i.e., part-time or full-time). The Director of Human Resources shall approve or deny requests for tuition reimbursement. Approval shall be secured prior to registering for a college course or training. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: To clarify language


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3600 REPORTING 3601 Publication of Notices Whenever notice is required to be published in one newspaper, such publication shall be made in a newspaper of general circulation as defined by the "Newspaper Advertising Act". If a notice is required to be published in more than one newspaper, it shall be published in at least one paper of general circulation in the Franklin Regional school community. When such notice relates to any proceedings or matter in court or holding an election for the increase of indebtedness, or the sale of bonds, to be paid by taxation, such notice shall also be published in the legal newspaper designated by the rules of the court of the county for the publication of legal notice and advertisement. Auditor's statements, advertisements for public contracts and for bids for materials and supplies, or lists of delinquent taxpayers, shall be published only in newspapers of general circulation. Proof of publication of any notice required to be given by the posting of handbills or statements shall be made by attaching an original copy of such handbill or statement actually printed and posted to an affidavit made by the person posting such notice. Such affidavit shall not be an interested party or an employee of any person or persons interested in the subject matter of said notice. The affidavit shall state where and when the notices were posted and where the notice was published in the newspapers. A printed copy, exactly as published in said newspaper, shall be securely attached to an affidavit of the publisher or his designated agent. Applicable Laws and Regulations Pennsylvania School Code Section 106 (24PS 1-106) Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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3602 Retention of Records The Board of School Directors shall retain as permanent record of the District, the minute book, each annual audit report, and each annual financial report. All financial records of the district, including financial account books, orders, bills, contracts, invoices, receipts, and purchase orders shall be retained by the district for a period of six years. Applicable Laws and Regulations Pennsylvania School Code Section 518 Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3603 Annual Audit An audit of the accounts of the school district shall be made annually by an independent certified public accountant selected by the Board of School Directors. The audit examination shall be conducted in accordance with generally accepted accounting principles (GAAP and GASB 34). This audit shall include all funds over which the Board has direct or supervisory control. An auditor's fee shall be established in each fiscal year. The Board of School Directors shall select an auditor experienced in school accounting and willing to perform the required services for the established fee. A statement of the financial condition of the school district shall be published annually in the official newspapers of the District immediately following the outside audit of accounts at the close of this fiscal year. Applicable Laws and Regulations Pennsylvania School Code Section 2401 GASB 34 GAAP Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: Added GASB 34 and GAAP


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3700 SCHOOL OWNED PROPERTY/GIFTS 3701A Sale of Unneeded or Obsolete Equipment When the district chooses to dispose of unneeded or obsolete equipment, the Board will recommend the formal public advertising for bid and/or public auction. Once formal bidding procedures have been carried out, and no bids are received, the District may dispose of the said equipment at its discretion. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:

3701B Sale or Removal of Obsolete Materials

Disposal of textbooks or other district materials will be conducted as follows: 1. Books or materials will be sold to a vendor of such materials, or students, if possible 2. Those materials that are unable to be sold will be offered to students and staff with no more than one copy per person 3. All remaining materials will be offered to a charitable organization or another school 4. After procedures 1-3 have been followed, any remaining materials will be discarded. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3702 Gifts and Donations to the Schools It is the policy of the Franklin Regional Board of School Directors to exercise appropriate control with respect to receiving any unsolicited contributions or gifts to any area of the school district. A gift, by definition, is any contribution of a monetary or material nature freely made by an individual or group to another individual or group without the expectation to the donator of reward, reimbursement, claim or hold after donation. No gifts or contributions, monetary or otherwise, shall be made without approval of the Franklin Regional School Board. A list of all gifts and contributions made to the district shall be reported to the Board by the Superintendent on an annual basis. Individuals or groups wishing to make an unsolicited gift to an individual class, department or school must provide formal written notification of the intent of such a contribution to the group sponsor


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and/or building administrator in order to determine administrative acceptability of the donation. The building administrator, in turn, will seek final Board approval of the gift. All district-oriented unsolicited contributions, or district-initiated gift solicitations shall be presented to the Superintendent as a written proposal for discussion and approval by the Board. The Board reserves the right to reject any and all proposed gifts whether monetary or material if they do not comply with the District’s mission, policy or strategic plan. Monetary gifts to the District earmarked as scholarship monies, endowments or sponsorships may be coordinated, for administratrive purposes, with the Franklin Foundation. The Franklin Regional School Board has the discretion to determine the nature and type of unsolicited or solicited monetary or material contributions that shall be administered by the Franklin Foundation or other groups. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3703 Gifts to Staff Members Students and their parents shall be discouraged from the presentation of gifts to District employees. Where a student feels a spontaneous desire to present a gift to a staff member, the gift shall not be elaborate or unduly expensive. The Board of School Directors considers and welcomes as more appropriate the writing of letters to staff members expressing gratitude or appreciation. The provisions herein are not intended to discourage acts of generosity in unusual situations. The Board reserves the right to accept or reject any/all gifts. Gifts that are accepted shall become property of the District. Applicable Rules and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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3800 INVESTMENTS 3801 Investment Practices The Board of School Directors, or its designee, shall invest School District funds consistent with sound business practices evaluating each investment opportunity in terms of risk, yield, liquidity, and legal restrictions. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3802 Investment Instruments The Board of School Directors shall authorize the Director of Financial Services to invest in such funds or investment instruments as allowable by law or regulations. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3803 New Investment Approvals Approval of any new or additional investment funds, investment programs, banks, or opportunities must be made by the Board of School Directors prior to such investments being made by the Director of Financial Services. Annually, the Director of Financial Services will provide a list of such investors for Board review and approval. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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3804 Investment Transfers The Board of School Directors shall delegate authority to the Director of Financial Services or, in his absence, the Supervisor of Purchasing/Accounting, to make necessary transfer of funds between accounts by means of telephone, verbal order, or written order for investment and cash management purposes. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment: 3805 Investment Reports The Director of Financial Services shall submit at least quarterly, to the Board of School Directors, a written report of the investment program. Applicable Laws and Regulations Policy History Adopted: 02/17/03 Amended: Effective: 02/17/03 Reason for last amendment:


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Documents

FRANKLIN REGIONAL SCHOOL DISTRICT - SERIES 3000 …...FRANKLIN REGIONAL SCHOOL DISTRICT - SERIES 3000 3000-2 3100 BUDGET 3101 Budget Policies and Procedures Policy Purpose The budget