Portland Village School

Finance Policy

Portland Village School recognizes that the quality and quantity of the learning programs are directly dependent on the funding provided. The school’s educational and charter goals should drive all of the fiscal planning and decisions.

The Board will:

1. Establish a Finance Committee which shall include at least the Principal, the Business Manager, and the Treasurer of the Board. Faculty participation is encouraged.

2. Develop a budget based on the Board’s priorities that does not risk financial jeopardy or fail to be derived from a multiyear plan.

3. Create transparency in both the budget creation process and the budget documents so that the Board, the staff, and the parents understand how the revenue and expenditures support the educational programs.

4. Oversee the establishment of procedures for budgeting and financial planning, asset management, and compensation and benefits.

The Principal will:

1. Oversee daily fiscal operations according to the adopted budget.

2. Provide timely and appropriate information to the Board for budget development and management.

Adopted 14 January 2009
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The budget shall include the following:

1. A summary format understandable to the Board and presented in a manner that clearly illustrates the relationship between the budget and the Board’s priorities.

2. Description of revenues and expenditures.

3. The amount spent in each budget category for the most recently completed fiscal year, the amount budgeted for each category for the current fiscal year and the amount recommended for the next fiscal year.

4. Plans for expenditures in any fiscal year based on a conservative projection of revenue to be available during the year.

5. Reasonable contingencies for the projected year-end fund balance to an amount equal to or greater than five percent of the projected revenue.

6. Anticipated changes in employee compensation, including inflationary adjustments, step increases, performance increases and benefits.

7. Adequate and reasonable budget support for governance priorities, including fiscal audits, Board and committee meetings, Board memberships and district legal fees.

Adopted 14 January 2009
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The Finance Committee will develop an asset plan which:

1. Insures against theft and casualty losses and against liability losses to board members, staff and the organization itself.

2. Plans for purchasing which
(a) ensures that prudent protection has been given against conflict of interest;
(b)compares prices based on items of similar quality;
(c) ensures the balance of long-term quality and cost and
(d) uses competitive procurement as required by law. Orders shall not be split to avoid these criteria.

3. Preserves capital through prudent financial investments.

4. Invests or holds operating capital and reserves in secure instruments, including insured accounts and bonds of at least AA rating at any time unless authorized by the board and in interest-bearing accounts except where necessary to facilitate ease in operational transactions.

5. Maintains sufficient liquidity so that funds are available when needed.

6. Achieves the best available rate of return on investment.

7. Establishes and maintains procedures for receiving, depositing, disbursing, and transferring funds to ensure that school assets are safeguarded.

8. Maintains reserve funds for:
a) Replacement of capital equipment at 1% of the budget or $10,000, whichever is less, annually or delegating unused funds within a particular year to the equipment replacement reserve up to a maximum of $100,000 at which time it can be used as an endowment.
b) Contingency fund with a targeted floor of 5% within the annual operating expenditures for use in unanticipated expenses in any particular year.
c) Capital Improvement Reserve Fund with a target of not less than $50,000 or as deemed necessary by the board.

9. With respect to the actual, ongoing administration of the school’s financial assets, the Principal shall not cause or allow material deviation from the annual budget or budget policy adopted by the Board, cause or allow any fiscal condition that is inconsistent with achieving the Board’s goals, or place the long-term financial health of the school in jeopardy.

The finances of the school will be maintained by the Business Manager with oversight by the Principal and the Finance Committee.

Income and/or expenditures that are in excess of the approved annual budget shall be handled as follows:

1. Income from school-wide fundraising which exceeds expected operational revenue shall be allocated by the Board for either:
a) use in the current fiscal year that it is earned, or
b) earmarked for the Capital Improvement Reserve Fund.

2. To protect the Board’s priority of fundraising for capital monies, classroom or specialty area (Spanish, Movement, Handwork, etc.) fundraising projects shall be limited in scope, limited to one per classroom or specialty area per year, and be subject to approval from the Principal.

3. If ADMw revenue exceeds budgeted projections, the additional revenue shall be allocated by the Finance Committee, and subject to Board approval.

4. The Principal may approve reallocations of expenditures under $10,000 between the allocated categories of the approved budget.

5. Reallocations of approved budget items exceeding $10,000 must be approved in advance by the Board of Directors.
a) When requesting a reallocation of funds above $10,000, the Principal shall present to the Board a proposal that includes:
1) the reallocation amount,
2) the category(s) from which the funds will come,
3) the rationale for the reallocation, and
4) budgetary implications.
b) If such condition arises that the Principal wishes to request a reallocation decision to be made before the next scheduled board meeting, the Principal may request of the President a fast track decision making option, to which the President may respond with either:
1) calling a special session of the Board within 7 days of the request, or
2) utilizing the Unanimous Consent Resolution provision set forth in the bylaws, for reaching a decision within 7 days.
c) For either option above, the Principal shall provide in writing to the Board a proposal that includes:
1) the rational for the need for fast track decision making,
2) the reallocation amount,
3) the category(s) from which the funds will come,
4) the rationale for the reallocation, and e) budgetary implications.

The Principal shall ensure the establishment of procedures which:

1. Prevent expenditures of funds from the fund balance reserve unless authorized by the Board.

2. Prevent transfer of unencumbered moneys from one fund to another unless authorized by the Board as allowed under law.

3. Settle payroll and debts in a timely manner.

4. Allow accurate and timely reports or filings required by any state or federal agency to be processed.

5. Receive, process or disburse funds under controls that are sufficient under generally accepted accounting procedures.

6. Pursue receivables after a reasonable grace period.

7. Keep complete and accurate financial records by funds and accounts in accordance with generally recognized principles of governmental accounting.

8. Publish and post a financial condition statement annually.

Adopted 14 January 2009
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1. With respect to employment, compensation, and benefits to employees, consultants, contract workers and volunteers, the Finance Committee shall develop a plan which
a) provides compensation that maintains the sustainability of the school and
b) provides a basic level of benefits to all eligible employees, though differential benefits to encourage longevity are not prohibited.

2. The Principal shall not establish or change salary benefits so as to cause negative unpredictable or inequitable situations.

Adopted 14 January 2009
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Investments of the school will be maintained by the Business Manager with oversight by the Principal and Board.

1. All funds shall be invested in a money market account, CD’s or U.S. Government
Funds. (Treasuries, Bonds, etc.)

3. An investment made by the Business Manager will not exceed a maturity of 18 months or the date of anticipated use of the funds by the school, whichever period is shorter. The Business Manager may make investments having a maturity longer than 18 months when the Board has adopted a written investment policy which has been submitted to the Oregon Short Term Fund Board for review and comment to the governing body, that includes guidelines concerning maximum investment maturity dates and that provides by its terms for readoption not less than annually. ORS 294.135

Adopted 14 January 2009
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