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9.5 - The Financial Condition Policy

9.5 - The Financial Condition Policy

SERIES 9 - FINANCES AND ACCOUNTING

With respect to operating the School in a sound and prudent fiscal manner, the Headmaster may not jeopardize the financial condition of the School. Accordingly, the Headmaster may not:

  1. Cause the School to incur indebtedness other than trade payables incurred in the ordinary course of doing business and short-term equipment leases.
     
  2. Use funds from grants to the School for any purpose other than the uses stated in the application approved by the granting entity, even on a short-term or temporary basis.
     
  3. Use restricted contributions for any purpose other than that required by the contribution.
     
  4. Settle payroll and debts in other than a timely manner.
     
  5. Allow expenditures to deviate materially from BOD-stated priorities.
     
  6. Create new job positions at the school without BOD approval, or complete a salary plan for staff that exceeds BOD guidelines for the overall annual payroll increase.

    The annual audited fund balance shall include amounts sufficient to maintain any required reserves as may be necessary to comply with Colorado State Statutes. These reserves include a set aside of:
  • 3% of local source, state source, and per pupil revenue to satisfy the requirements of the Tabor Act.
  • An additional 8% of budgeted operating expenses as required by the bonding authority.

The Headmaster may not allow the funds in the general fund reserves to be less than $500,000,
45 days of cash on hand per bond issuance documents, without approval of the Board of Directors.

Adopted: 02-25-1999
Amended: 12-16-2004
Amended: 3-26-2020
 

  1. Student Funds

    Student activity funds must be deposited in specific accounts or investments authorized by law. Funds must be expended in accordance with Liberty Common School financial procedures for the purposes authorized by the student organizations. Student activity funds are subject to annual audit as part of the school’s annual audit. The board will establish supervision of all funds raised by any student group or student organization using the school’s name. The board may also provide for a continuing audit of student funds by school personnel. The Headmaster shall establish procedures for student activity funds.

    Adopted: 06-28-2001