Last modified: 4 2 月, 2025

Policy No. 6020 Budget Preparation and Administration

Download Policy No. 6020 Budget Preparation and Administration

目的

The purpose of the budget policies of the Provo City School District Board of Education is to guide the preparation and administration of the budget.

1. Operating Budget Policies
   • The district will cover current expenditures with current revenues. The district will avoid budgetary procedures that cover current expenditures at the expense of meeting future years’ expenditures, such as postponing expenditures, accruing future years’ revenues, or rolling over short-term debt. (Utah Code 53G-7-305)
   • The budget will provide for adequate maintenance of capital, equipment, and for orderly replacement of capital facilities and equipment.
   • The district will maintain an online budgetary control system to assist in following the budget plan.
   • The district will prepare monthly reports comparing actual revenues and expenditures to budgeted amounts. (Utah Code 53G-7-309)
   • Where possible, the district will integrate performance measurement and productivity indicators with the budget. 
   • The district will use a budgeting method where all expenses must be justified each year.
   • The district will comply with all state and federal requirements when budgeting to ensure maintenance of effort (MOE) requirements are met for all programs. The district understands waivers may be granted by the state if significant declines in state or local revenue occur. “Maintenance of Effort” is a level of financial support that the Utah State Board of Education requires a district to meet each year for various state and federal restricted programs.
   • Programs using an allocation will be distributed equitably regardless of Title I status or Special Education student numbers. Documentation will be kept for all calculations in regards to MOE.
   • When budgeting, the district will not supplant state and local funds with federal funds. Any budget adjustments throughout the year will also follow this guideline.
2. Capital Improvement Budget Policies
   • The district will develop and administer a multi-year plan for capital improvements and update it annually.
   • The district will budget for major capital projects in accordance with the priorities of the board of education.
   • ·The district will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budgets.
   • The district will maintain all assets at a level adequate to protect the district’s capital investment and to minimize future maintenance and replacement costs.
   • The district will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to the board for approval.
   • The district will restrict any new or replacement construction to be consistent with state guidelines for school building utilization.
3. Debt Management Policies
   • The district will confine long-term borrowing to capital projects and purchases of equipment, as required by law.
   • Total general obligation debt will not exceed 4% of the reasonable fair market value of taxable property within the district. (Utah Constitution, Article XIV, section 4 (1)(b))
   • The district will not use long-term debt for current operations.
   • The district will meet all debt service obligations when due.
   • The district will maintain communication with bond rating agencies about its financial condition. The district will follow a policy of full disclosure in every financial report and official statement.
   • The district will provide to the capital markets ongoing disclosure of annual financial information and material events that may affect the district’s financial strength.
4. Revenue Estimation Policies
   • The district will estimate annual revenues by an objective, analytical process. The district will not include revenue in the budget that cannot be verified with documentation of its source and amount. 
5. Fund Balance and Reserve Policy
   • In order to maintain and protect the long-term financial capacity of the district, total fund balance and reserves in the General Fund will be maintained at or near 5% of total General Fund revenue.
   • The capital fund will maintain the minimum balance deemed adequate for emergency repair situations.

法律参考资料

• Utah Code 53G-7-305
• Utah Code 53G-7-309
• Utah Constitution, Article XIV, section 4 (1)(b))

教育委员会批准

• October 9, 2012
• Revised and Board Approved:   December 10, 2024

Related Procedures and forms

• 6020 程序 1 预算调整
• 6020 表格 1 预算提案申请与规划
• 6020 表格 2 预算增减