Board Policy Guide, Section V

BUSINESS OPERATIONS

5.1  BUSINESS POLICY STATEMENT

5.2  BUDGET DEVELOPMENT

5.3  STUDENT FEES

5.4  FISCAL CONTROL

5.5  PURCHASING PROCEDURES

5.6  BOOSTER CLUBS AND PARENT-TEACHER ORGANIZATIONS 

5.7  FINANCIAL SYSTEM AND EXPENDITURE REPORTS

5.8  EARLY PAYMENT OF BILLS

5.9  OPERATION AND MAINTENANCE OF PLANT

5.10  FOOD SERVICES

5.11  RENTAL OF SCHOOL FACILITIES

5.12  CONSTRUCTION PROJECT MANAGEMENT

5.13   INSURANCE COVERAGE FOR FACILITIES, EQUIPMENT AND EMPLOYEES

5.14  SAFETY PROGRAM

5.15  HAZARDOUS CHEMICAL SAFETY (H.C.S.) PROGRAM

5.16  INVESTMENTS

5.17  ACTIVITY FUNDS

5.18  TRANSFER OF SUPPLIES AND EQUIPMENT BETWEEN SCHOOLS

5.19  NAMING FACILITIES

5.20  CAPITALIZATION POLICY

5.21  FMS CASH BALANCE POLICY

5.22 DEBT MANAGEMENT POLICY

5.23 ENERGY MANAGEMENT POLICY

SECTION V

BUSINESS OPERATIONS

5.1 BUSINESS POLICY STATEMENT

5.1.1       The Board recognizes that money and money management comprise the foundational support of the school system and its educational programs.  The Board expects the operation and maintenance of school facilities and equipment to set high standards of safety, to promote the health of pupils and staff, to reflect the aspirations of the community, and to support the efforts of the staff to provide sound educational opportunities.

5.1.2       To make that support as effective as possible, the Board will:

A.    encourage advance planning;

B.    explore all practical sources of dollar income;

C.    guide the expenditure of funds in order to extract the greatest educational returns;

D.    expect quality accounting and reporting procedures.

Adopted:

Last Revision:  4/13/17

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5.2 BUDGET DEVELOPMENT

5.2.1       The Superintendent of Schools shall determine the manner in which the annual budget is to be developed with input from a budget committee consisting of community members and district employees.

5.2.2       The Board shall meet to consider the tentative budget prior to formal presentation of the budget.  The Board shall also meet to present the budget to the public and shall adopt the budget at that meeting according to state statute.

5.2.3       The Superintendent and administrative staff shall submit the annual budget to the Public Education Department as required.  The Superintendent shall administer the budget in conformity with legal requirements and the actions of the Board.

Adopted:

Last Revision:  4/13/17

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5.3 STUDENT FEES

5.3.1       All fees to be paid by students in connection with any coursework or activity must be approved by the Superintendent or designee who shall provide advance notice to the Board of the proposal.  No fee may be charged for any coursework, which is required by law, regulation or policy.

Adopted:

Last Revision: 4/13/17

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5.4 FISCAL CONTROL

The Board is ultimately responsible for the control of all funds of the school district including all funds collected at individual schools.  That responsibility is delegated through the administrative structure of the District to the Superintendent and Chief Financial Officer.  Control over funds including Activity Funds at the building or worksite level is the responsibility of the Principal or Supervisor in compliance with established district procedures.

Adopted:

Last Revision:  4/13/17

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5.5 PURCHASING PROCEDURES

5.5.1       All purchases from district funds shall be made in accordance with applicable statutes, regulations and district purchasing procedures.  The district purchasing procedures must be updated annually and approved by the Board. The Superintendent, the Chief Procurement Officer and business staff shall establish and maintain a purchase order system providing for authorized signatures for all purchases made.  All purchases of and contracts for supplies, materials, equipment and contractual services shall be based, when necessary, on competitive bids or proposals as provided in the New Mexico Procurement Code.  Bids or proposals shall be sealed and shall be opened by the Superintendent or designee.

5.5.2       Bids are reviewed by the Finance Committee and recommended to the Board.

5.5.3       The Board may reject any or all bids or proposals.

5.5.4       Any purchase by the District (including activity and club accounts) from any school employee or member of the Board of Education must comply with the State Procurement Code as well as the following criteria:

A. All purchases that may involve an employee or board member must be informally bid by obtaining three (3) written quotes regardless of the amount of the purchase.

B. The Chief Procurement Officer must approve purchase orders issued to any business that involves an employee or board member that has the low quote in section A above. The Board of Education will receive a monthly report detailing these purchase orders for their review.

Adopted:

Last Revision:  4/13/17

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5.6 BOOSTER CLUBS AND PARENT-TEACHER ORGANIZATIONS

5.6.1  Purpose

The Board of Education recognizes the importance of athletic and extracurricular activities and educational programs in the well-rounded development of public school students.  Participation in such activities and programs builds character, a sense of responsibility and discipline, and promotes proper conduct, all of which are central to the educational mission of the public schools and the School District.

The Board of Education further recognizes the contribution and support which its athletic and extracurricular activities and educational programs receive from parents and members of the community who have organized booster clubs, parent-teacher organizations (PTO’s) and other support groups with similar purposes.  This Policy is adopted to define the relationship between the School District and booster clubs, PTO’s and similar groups whose purpose is to support the School District’s activities and educational programs.

5.6.2  Outside Club or Group Status

Booster clubs and PTO’s are neither School-Sponsored Cubs nor Student-Initiated Clubs as those clubs or groups are defined in School Board Policy 3.37.  Booster clubs and PTO’s shall constitute “Outside Clubs or Groups” as defined in School Board Policy 3.37.

Each booster club and PTO shall be responsible for establishing itself as a separate entity, whether that be by registering with the New Mexico Public Regulation Commission or otherwise.  Booster clubs and PTOs shall obtain their own tax exempt or taxpayer identification numbers.  Booster clubs and PTOs are sole and separate entities and are responsible for their own compliance with applicable federal, State and local laws.  Booster clubs and PTOs shall be responsible for establishing their own internal financial and other controls.  Booster clubs and PTOs should not use the School district or school address for any booster club or PTO correspondence.

5.6.3  Booster Clubs

Booster clubs for athletics, marching band, drama, choir, or other athletic, fine arts or academic activities are welcome to form, support and assist such student activities or programs, both financially and with volunteer assistance. Booster clubs must comply with the requirements of this Policy in order to use the name of the school or School District, school or School District mascots or logos, and/or to have access to School District facilities as an Outside Club or Group. 

All booster organizations must operate within the applicable standards and guidelines set by the New Mexico Activities Association, and shall not promote, encourage or acquiesce in any violation of student or team eligibility requirements, conduct codes or sportsmanship standards.

Upon formation and annually thereafter, each booster club shall provide to the Superintendent the names, telephone numbers and addresses, and position held of each current officer of the booster club.

5.6.4  Parent-Teacher Organizations

The Board of Education encourages the formation and operation of PTOs at each school site or campus in the School District to provide financial support or volunteer assistance to the school.  PTOs must comply with the requirements of this Policy in order to use the name of the school or School District, school or School District mascots or logos, and/or to have access to School District facilities as an Outside Club or Group. 

Upon formation and annually thereafter, each PTO must provide the site administrator and Superintendent with the name, telephone number, addresses, and position held of each current officer of the organization.

5.6.5  Booster Club and PTO Constitution and Bylaws

Each booster club and PTO must prepare and submit to the Superintendent a copy of its organizational bylaws and constitution prior to initiating such support or assistance.  It is suggested that the bylaws include, but not be limited to, the following:

a.    Functions and Prohibited Functions of the club and its members

b.    Objectives of the club

c.     Membership

d.    Officer Selection/Duties/Length of Term of Officers/Board of Directors

e.     Meetings

f.     Standing Committees

g.    Dues

h.    Projects/Fund Raising Guidelines

i.     Budget and Fiscal Reporting

1. Specific Fiscal Auditing and Accounting Procedures

2. Disbursement requires two signatures

       3. Expenditure Guidelines

       4. Treasurer Reporting 

j.     Amendments

5.6.6  Finance and Accounting by Booster Club and PTO’s

Each booster club or PTO shall require two signatures for any disbursement over $50.  Booster club and PTO funds and accounts are not School District accounts and shall not be included in the School District budgeting and accounting for annual School District audit purposes.  Funds collected by the booster club or PTO shall not be deposited into the School District’s student activity accounts. Employees of the School District shall not be named on any bank account of any booster club or PTO.

As an express condition to the Board of Education’s consent for the booster club or PTO to use the School District’s name, school name, school or School District mascots or logos, and/or to use School District facilities as an Outside Club or Group, the booster club or PTO shall conduct an annual accounting or audit of its receipts and disbursements and submit a financial or audit report, performed in accordance with generally accepted accounting or auditing principles, to the Superintendent by July 31 of each calendar year for the preceding school year. 

Booster clubs affiliated with school athletics shall submit their detailed financial report of expenditures and revenue within six (6) weeks after the end of the particular sport’s season.  Booster clubs and PTOs with gross annual income in excess of $100,000 are required by New Mexico law, Section 6-5A-1 NMSA 1978, to have an annual audit of their financial affairs. 

The officers of each booster club or PTO shall be responsible for safeguarding any funds raised by the organization and for ensuring that funds are spent only for purposes related to the goals and objectives of the booster club or PTO, and the published or advertised reasons for the particular fund-raising activity.  The organization’s bylaws shall specify a financial accounting system considered adequate under customarily and currently accepted accounting standards.   It is suggested that the officers of any booster club or PTO who collect or disburse monies for any purpose be provided with a fidelity bond by the booster club or PTO. 

The booster club or PTO shall not represent or imply that its activities, contracts, purchases, or financial commitments are made on behalf of or are legally binding upon any school within the School District or the School District itself.  Such a disclaimer shall appear on all purchase orders, contracts or other forms of financial commitment issued by the booster club or PTO.

Booster clubs and PTOs shall not use the School District’s tax exempt number for any of their activities.

5.6.7  Activities and Fundraising

Booster clubs and PTO’s shall notify and obtain the approval of the Deputy Superintendent or District Athletic and Activities Director to assure that scheduling of activities and fundraisers does not conflict with School District programs or activities, and that the activity or fundraising project is consistent with the goals and mission of the school or School District.  All activities and fundraising projects shall comply with School Board Policies, federal, state and local law, and in particular, shall comply with any applicable provisions of the New Mexico Bingo and Raffle Act, NMSA 1978, Sections 60-2F School employees, including athletic coaches, trainers or sponsors of school-sponsored student groups, shall not act as the primary organizers or spokespersons for any booster club or PTO activity or fundraising project.  Participation in fundraising activities or fundraising projects by a booster club or PTO shall not be considered as a factor in a student’s level of participation in any school activity or athletic program.

A written proposal is required for any activity or fund-raising project which involves the use of the school or School District name, school or School District mascots or logos, and/or use of School District facilities.  The proposal must be approved by the Deputy Superintendent or Designee, before any final arrangements are made and before the activity or fund-raising project commences.

A written proposal containing the following information shall be submitted to the Deputy Superintendent or designee at least 30 days prior to the activity:

a. Name and phone number of the sponsoring organization and person(s) in charge of the activity or fund-raising project;

b. Type of activity or fund-raising project (i.e. candy sale, carnival, walk-a-thon etc.);

c. Date(s), time(s), and place(s) of the activity or fund-raising project;

d. Purpose of the activity or fund-raising project;

e. The projected goal (in dollar amount) for the activity or fund-raising project;

f. The projected cost of the activity or fund-raising project.

Alcohol shall not be served as part of an approved activity or fund-raising project regardless of where the activity or fund-raiser is conducted.

Booster clubs and PTOs may make gifts or donations from activities and fund-raising projects to a school or to the School District.  When gifts or donations are made, the booster club or PTO relinquishes all control over the gift, donation or funds.

5.6.8 Insurance

Booster clubs and PTOs are encouraged to maintain a general liability insurance policy that names the School District as an additional insured party.  If the booster club or PTO elects to remain uninsured, it is at the booster club’s or PTO’s own risk.  The School District cannot and shall not extend its own liability or other forms of insurance to booster clubs or PTOs.

As a condition of a booster club’s or PTO’s use of the name of the school or School District, school or School District mascots or logos, and/or access to School District facilities as an Outside Club or Group, each booster club and PTO shall agree that the School District will not be liable for injury to the property of the group itself or participants in the group’s activities resulting from their participation in the group’s activities.  Booster clubs and PTOs who use School District facilities shall comply with School Board Policy 5.11, other applicable School Board Policies, the School District safety rules, Section 6.50.17.8 NMSA 1978, and all federal, State and local laws.  The School District shall not warrant the suitability of any School District facility or the facility’s contents for the uses intended by any booster club or PTO.

5.6.9  Title IX

The School District must comply with Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681 et seq.) and must undertake a continuous evaluation of its compliance with Title IX.  This Policy is intended to promote compliance with Title IX. 

In advance of any gift or donation, booster clubs and PTOs shall discuss such gift or donation with and receive authorization from the Superintendent or the Deputy Superintendent/Designee.

At the time of making a gift or donation, booster clubs and PTOs shall provide the following written information to the Superintendent and/or the Deputy Superintendent/Designee:

a.    A full and complete description of the gift or donation, including the monetary value of the gift or donation.

b.    The name, address and contact information of the booster club or PTO representative who is responsible for the gift or donation.

c.     The date of the gift or donation.

The Board of Education reserves the right to refuse any gift or donation offered to the School District by booster clubs and PTOs for any reason as deemed appropriate by the Board of Education.

The School District shall evaluate with respect to Title IX requirements all gifts and donations offered to the School District by booster clubs and PTOs.  If the Superintendent and/or the Deputy Superintendent/Designee finds that the acceptance of a gift or donation from a booster club or PTO will create an imbalance of benefits such as to violate Title IX, the Superintendent and/or the Deputy Superintendent/Designee shall develop and recommend to the Board of Education either the rejection of the gift or donation or a proposal for the redistribution of School District funds to offset the imbalance of benefits created by the gift or donation.

The terms and conditions of the acceptance of any gift or donation are to be determined at the time of the making of the gift or donation.

5.6.10 No Assumption of Responsibility

Nothing in this Policy shall be construed as the School District’s or the Board of Education’s assumption of responsibility for any activity conducted by a booster club or PTO.

Adopted:       8/26/10

Last Revision: 4/13/17

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5.7 FINANCIAL SYSTEM AND EXPENDITURE REPORTS

5.7.1  The Superintendent and business staff shall establish and maintain for the school district a complete, auditable financial system, which meets all statutory and regulatory requirements of the State of New Mexico and more particularly the Public Education Department.

5.7.2  A complete statement of expenditures shall be available for review by the members of the Board of Education in the Business Office each month.  The Superintendent will file all required state and federal fiscal reports.  All funds over which the Board of Education has direct control shall be audited annually, as required by law.

5.7.3  A complete inventory of district property shall be maintained, as required by law.

5.7.4 PER-PUPIL EXPENDITURES (PPE)

The Elementary and Secondary Education Act (ESEA), as amended by the Every Student Succeeds Act (ESSA) (P.L. 114–95), in Part A, Subpart 1, Section 1111 Subsection (h)(1)(C)(x), requires the inclusion of per-pupil expenditures (PPE’s) of Federal, and State and local funds, including actual personnel expenditures and actual non-personnel expenditures of Federal, State and local funds, disaggregated by source of funds, for each local education agency (LEA) and each school in the State for the preceding fiscal year in the annual state report card. The District will collect and report the per pupil expenditure data by school location site and LEA allocations (disaggregated by federal and state/local sources) and maintain supporting data for the calculations.

Adopted:

Last Revision:  5/09/19

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5.8 EARLY PAYMENT OF BILLS

5.8.1  The Superintendent or designee is authorized to approve vouchers for payment prior to board meetings.  These vouchers shall be presented to the Board of Education at a regularly scheduled meeting of the following month for review and the formal approval needed to incorporate the action into the minutes.

Adopted:

Last Revision: 4/13/17

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5.9 OPERATION AND MAINTENANCE PLANT

5.9.1 The Superintendent of Schools or designee is responsible for maintaining clean, safe and attractive school facilities and grounds.  The Superintendent shall keep the Board of Education advised of short-range and long-range needs toward this goal and shall advise the Board as to appropriate sources and balances of funding from operational funds, bond issues, capital improvement funds and any other applicable state or federal funds.  It is a State mandate that the District maintain an approved Preventative Maintenance Plan.

5.9.2  A program to provide effective security for all school property, including vandalism protection, is to be developed and periodically reviewed.

5.9.3  It shall be the responsibility of the Superintendent or designee to ensure that the safety of students and employees is a primary consideration in the development and maintenance of school buildings, school grounds, and other facilities of the district, and in the planning and implementation of all school programs and activities.  To this end, all employees, students, and patrons are encouraged to be safety conscious and to make recommendations to the administration for the enhancement of safety.

5.9.4   Farmington Municipal Schools is committed to efficient use of natural resources.  All employees, students and school volunteers are expected to actively contribute to energy savings and efficiency. The Superintendent or his/her designee is responsible for establishing energy conservation regulations/procedures.

Adopted:

Last Revision:  4/13/17

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5.10 FOOD SERVICES

The Superintendent of Schools or designee is authorized to operate a food services program.  The Superintendent or designee is responsible for ensuring that this program meets all requirements set out by the state and federal governments.  The Board of Education shall be kept informed of the status of the program.  Changes in prices shall be made only by the Board.

Adopted:

Last Revision: 4/13/17

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5.11 RENTAL OF SCHOOL FACILITES

5.11.1  School buildings and grounds may be made available for educational, cultural, civic, recreational, governmental and general political activities which are sponsored by responsible, recognized organizations, agencies or institutions, provided that the activity does not interfere with the programs and best interests of the district.  The building principal is authorized to make all approvals for community use of buildings and grounds under the directions contained in this policy.  The Board reserves the right to hear appeals on any decision recommended by the Superintendent.

5.11.2  A rental fee schedule shall be prepared by the Superintendent or designee for review and approval by the Board.

5.11.3  The Superintendent is authorized to set aside or reduce any scheduled or normal rental fees when a mutually beneficial relationship is established between the school district and a proposed user of school facilities.  The Superintendent shall report to the Board all such arrangements.  The Superintendent is authorized to act on any rental proposal not covered in this policy.  When this occurs, the Superintendent shall report the action to the Board and advise the Board of any needed change in the policy.

5.11.4  It is the intent of the Board that parent-teacher groups, scouting groups, booster clubs and any other school-related organizations should have the use of school facilities for their regular meetings without charge.  When such groups hold special events, the charge for facilities use is to be per fee schedule on district facilities use form.

5.11.5  It shall be the responsibility of the Superintendent or designee to assure that adequate supervision of school facilities is provided during periods of community use of facilities.

5.11.6 Official representatives of all groups using school facilities must sign an Application & Site Use Agreement. Any person using school facilities must also sign an Accident Waiver and Release of Liability Form. Representatives of all groups must also sign a form, which indicates acceptance of responsibility for the care and supervision of the facilities and for payment of actual expenses, if any. Groups are not required to provide liability insurance to use the facilities.

5.11.7  The Superintendent may, when it is deemed to be in the best interest of the district, require a cash deposit above the rent to be charged to cover damage to rental property.  The deposit, less payment for damage done beyond wear and tear on the property, shall be refunded within thirty (30) days.

5.11.8  Keys to school facilities shall not be issued to, nor loaned to, persons not employed by the Board of Education unless prior approval has been obtained from the building principal and a signed receipt for the key has been obtained by the person making the loan or issuing the key. Loss of a key requires an immediate report of the loss to the principal. The principal is responsible for maintaining an accurate and complete inventory of all keys and must require an employee to sign a receipt for all keys.

5.11.9  Rental charges in this policy are for the facilities only.  Other charges may be added when special equipment is to be provided the facility user.

5.11.10  Charges for use of cafeteria facilities by groups other than school groups must be approved by the Principal.  Use of school kitchens for purposes other than normal lunch preparation must be coordinated with the Chief of Operations and meet all local/state Environmental Health Agency requirements (i.e. food handlers permits).  Parent-Teacher organizations, school advisory groups, etc., working closely with and assisting the schools may use the facilities provided proper arrangements for use and supervision are cleared by the principal and Chief of Operations.  The Superintendent and the Board of Education reserve the right to designate the use of any facility at any time and may set aside these regulations when, in their opinion, the public interest is to be served by such exception.

5.11.11  Without exception, all entities and/or persons who rent a FMS school facility under this policy are required to comply with the Concussion Management Protocol, a copy of which will be provided with the Application & Site Use Agreement referenced in Policy 5.11.6, above.  Failure to comply with the Concussion Management Protocol on the part of the lessee will result in the cancellation of the current rental agreement and denial of further FMS facility rentals to the lessee.

Adopted:

Last Revision: 4/13/17

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5.12 CONTRUCTION PROJECT MANAGEMENT

5.12.1 The Superintendent or designee is charged with the responsibility of drafting educational specifications for building construction or renovation.

5.12.2 Educational specifications shall be drafted with the help of personnel who are to use the structure and others who may appropriately be involved. Specifications must comply with the requirements of PSFA (Public Schools Facility Authority).  The District is required to maintain a five-year Facility Master Plan.

5.12.3 Educational specifications shall take into account the latest trends in education, environmental control, and energy conservation as they apply to the schools, and at no time is a building to be constructed before the intended usage and specifications are set forth in writing.

5.12.4 Educational specifications will not only include the curriculum needs but also the needs for economy, sanitation, health, safety and welfare of the children and staff.

5.12.5 The educational specifications shall be realistic in relation to the budget set forth for the project.

5.12.6 The Superintendent and/or administrative staff, architect and/or engineer jointly shall conduct inspections to determine the date of substantial and final completion, and the Superintendent shall require the contractor to furnish all final inspection certificates or permit releases.

5.12.7 Before beneficial occupancy, an inspection of the facility shall be made by the Superintendent and/or administrative staff, architect and builder jointly in order that the architect may set forth items which are deficient and set forth responsibilities for beneficial occupancy.

5.12.8 Change orders, which exceed or would significantly change either the scope of the project or project budget, will be submitted to the Board of Education so that authorization is part of the minutes of the Board of Education meeting.

5.12.9 If during the course of construction a change order of an emergency nature is needed the Superintendent or designee may authorize the change order.  The Superintendent shall then advise the Board of Education that a change order had to be allowed in order to continue the project.

5.12.10 The architect shall collect from the contractor the “as-built” plans, all information regarding the mechanical equipment warranties and other pertinent documents regarding the new facilities.  These documents and warranties will be submitted to the Chief of Operations at the time the architect submits the final pay estimate for the contractor.  They shall be carefully safeguarded for reference purposes as needed over the life of the facility.

Adopted:

Last Revision: 4/13/17

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5.13 INSURANCE COVERAGE FOR FACILITIES, EQUIPMENT AND EMPLOYEES

5.13.1  The District shall provide and maintain the broadest, most complete insurance coverage of its facilities and its employees at the most economical cost possible consistent with sound insurance principles, state and federal statutes and regulations, and the District’s resources.  Periodic review of all programs shall be made to ascertain needed change toward that goal.

Adopted:

Last Revision: 4/13/17

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5.14 SAFETY PROGRAM

The Farmington Municipal Schools has established the following Safety Program:

5.14.1  Policy Statement

The Farmington Municipal Schools will maintain a sincere and dedicated commitment to the safety of its member employees, property, and to the interest of the public recognizing that safety is a part of every member organization, a part of every job and school function and, moreover, an obligation of each member employee.  The Farmington Municipal Schools accepts the basic discipline that no job or function is so important or urgent that time cannot be fully allowed to ensure its safety in the interest of the member employees, students, and the public.  This policy will be satisfied by the Farmington Municipal Schools management through their commitment to and participation in active effort toward safety, health and overall accident prevention.

5.14.2  Assignment of Responsibilities

The prime responsibility for the safety and loss prevention program rests with the Farmington Municipal Schools.  All members will be responsible for the Safety Program operation and function.  All levels of management, supervision and employees will be responsible for the safety efforts applicable to their organization and individual job assignments to perform each and every function encountered safely and without undue risk or hazard.  A successful Safety Program is achieved only through the total commitment and the responsible actions represented by management and its member employees.  Assigned responsibilities shall include, safety and health audits, maintenance of records and statistics, accident investigation and reporting, safety training and safety communications.

The Farmington Municipal Schools will continue to make every effort to meet or exceed the safety needs of all school organizations, their employees, and to the public interest to maintain compliance with all applicable safety and health codes, standards, regulations, and policies.

5.14.3 Without exception, all entities and/or persons who rent a FMS school facility under this policy are required to comply with the Concussion Management Protocol, a copy of which will be provided with the Application & Site Use Agreement referenced in Policy 5.11.6, above.  Failure to comply with the Concussion Management Protocol on the part of the lessee will result in the cancellation of the current rental agreement and denial of further FMS facility rentals to the lessee.

Adopted:

Last Revision: 4/13/17

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5.15 HAZARDOUS CHEMICAL SAFETY (H.C.S.) PROGRAM

5.15.1 Policy Statement

The Farmington District will develop and maintain a Hazardous Chemical Safety (H.C.S.) Program in accordance with appropriate state and federal environmental guidelines.  The purpose of the program shall be to safeguard the health and safety of students, employees and school patrons from the effects of hazardous chemicals/materials, and shall guide the safe use of such chemicals when their use is necessary.

5.15.2 Assignment of Responsibilities

The prime responsibility for the H.C.S. program rests with the Farmington Municipal Schools.  The Superintendent or his/her designee shall be responsible for program functions to include annual inventory of chemicals/materials, labeling, or disposal, provision of Material Safety Data Sheets (MSDS), and employee training.  Private contractors or other vendors working on school district sites shall also be notified of the presence of such chemicals/materials prior to the start of work.  Contractors will be required to provide similar information to the District in a timely manner.  The program shall include mandatory training of all employees.

5.15.3 Compliance

The Farmington Municipal Schools will continue to make every effort to meet or exceed state and federal H.C.S. requirements, through provision of safety equipment, employee training, and designation of specially trained personnel for guidance and use in H.C.S. situations.

Adopted:

Last Revision: 4/13/17

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5.16 INVESTMENTS

5.16.1 The goal of the investment policy is to comply with applicable statues and Public Education Department regulations. The Board of Education is designated as the board of finance.

5.16.2 Cash balances placed in interest-bearing deposits (investments) shall be equitably distributed among qualified banks and savings and loan associations within the geographic boundaries of the school district in the proportion that each such bank’s or savings and loan association’s net worth bears to the total net worth of all banks and savings and loan associations having their main office or a manned branch office within the geographic boundaries of the school district.

If only a branch bank is located within the school district, both the main (located outside of the school district) and the branch bank’s net worth shall be used in calculating each bank’s equitable share. The opposite is true of savings and loan associations. Only savings and loan associations located within the school district shall be used in calculating each savings and loan equitable share by using percentage of deposits to total deposits of the associations.

The school district declares the following banks and savings and loan associations to be qualified to receive public monies:

  • Wells Fargo
  • Bank of the Southwest
  • Bank of America
  • Citizens Bank
  • Four Corners Community Bank

5.16.3 Cash balances shall be fully invested (100% of available cash, less float and compensating balances) at all times and shall be equitably distributed among all banks and savings and loan associations having their main or manned branch offices within the school district boundaries.

The interest rate to be paid on time deposits shall not be less than the rate fixed by the State Board of Finance.

Time deposits authorized by the board of finance are not subject to a maximum rate. Funds that are declared “excess” due to the inability or unwillingness of a local financial institution to accept its prorata share of deposits may be invested in other financial institutions or the Local Government Investment Pool.

Eligible investments are:

A. Certificates of deposits (CDs) of banks and savings and loan associations,

B. Repurchase agreements (Repo’s) collateralized at 102% by U.S. Treasury Securities and in which the perfected interest is obtained on the collateral, and,

C. The Local Government Investment Pool pursuant to Section 6-10-10.1 NMSA 1978.

D. U.S. Government Obligations. Securities that are issued by the United States Government or by its agencies or instrumentalities and that are either direct obligations of the United States or are backed by the full faith and credit of the United States Government or agencies guaranteed by the United States Government.

5.16.4 Safekeeping of Securities

All investment securities other than local financial institution Certificates of Deposit purchased by the school district shall be held in third-party safekeeping by an institution acceptable to the school district. The safekeeping institution shall issue a safekeeping receipt to the school district listing the specific instrument, rate, amount, maturity date, instrument number, term and other pertinent information.

5.16.5 Collateralization

Deposit-type securities (i.e., certificates of deposit) shall be collateralized in accordance with the State Board of Finance Bank Collateral Policy and the State Board of Finance Savings and Loan Collateral Policy which are adopted and attached hereto and incorporated within, this investment policy. Such collateral shall be held by an independent third party financial institution acceptable to the school district. Securities eligible as collateral are those defined under State Law (6-10-17 NMSA 1978).

5.16.6 Classification for Collateralization

A.  Risk assessment ratios will determine collateral level requirements for financial institutions holding deposits of public money as listed below.

(1) If a depository bank’s primary capital-to-asset ratio as defined by the FDIC is:

a)    6.1 percent or greater, the depository bank shall be required to maintain collateral with an aggregate market value equal to 50 percent of the amount of the deposit;

b)    5.0 percent to 6.0 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to 75 percent of the amount of the deposit;

c)    less than 5.0 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to 102 percent of the amount of the deposit.

(2) If the ratio of a depository bank’s net operating income after taxes to its total average assets is:

a)    .61 percent or greater, the depository bank shall be required to maintain collateral with an aggregate market value equal to 50 percent of the amount of the deposit;

b)    .51 percent to .60 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to 75 percent of the amount of the deposit;

c)    less than .51 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to 102 percent of the amount of the deposit;

d)    a newly chartered depository bank is exempt from this ratio requirement for its first year of its operation; for its second year of operations, the depository bank shall annualize its net operating income beginning with the first quarter of the second year; if this ratio is less than .61 percent, the state treasurer shall review the depository bank’s financial condition and may request additional collateral.

(3) If the depository bank’s non-performing loans to primary capital ratio; is:

a)    34.9 percent or less, the depository bank shall be required to maintain collateral with an aggregate market value equal to 50 percent of the amount of the deposit;

b)    35.0 percent to 49.9 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to 75 percent of the amount of the deposit;

c)    greater than 49.9 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to102 percent of the amount of the deposit.

(4) If a depository bank’s deposit ratio is:

a)    less than 10 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to 50 percent of the amount of the deposit;

b)    10 percent or greater, the depository bank shall be required to maintain collateral with an aggregate market value equal to 102 percent of the amount of the deposit.

(5) If a depository bank’s equity ratio is:

a)    less than 200 percent, the depository bank shall be required to maintain collateral with an aggregate market value equal to 50 percent of the amount of the deposit;

b)    200 percent or greater, the depository bank shall be required to maintain collateral with an aggregate market value equal to 102 percent of the amount of the deposit.

B. Should the risk assessment ratios established in this section result in different levels of collateral for a depository bank, the state treasurer shall request the highest collateral level required by any ratio.

C. Collateral levels shall be required until the risk assessment ratios of the depository bank return to a level which allows collateral to be kept at a lower level or at statutory minimum level as appropriate.

Adopted:

Last Revision: 4/13/17

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5.17 ACTIVITY FUNDS

5.17.1  Inasmuch as the Public Education Department holds the local Board of Education responsible for the accounting and administration of all activity funds, these funds will be reported to the Board of Education.

5.17.2  All extracurricular/co-curricular activities must be approved by the School Administrator before such organizations can be linked with the schools and before they propose to raise and spend money in behalf of some activity connected with the schools. Any fund, which is raised for the use and/or benefit of a school group shall be deposited in the “Activity Fund” in the school business office. Requisitions for this money shall be made on the “Activity Purchase Order” form provided by the school.

5.17.3  Those who collect or receive school activity money, fine money or money for lost or damaged school property are held responsible for the money and should always get a receipt or deposit slip from whoever accepts the money for deposit. Any sum of money should be deposited in the bank at once and never left in the school overnight. A receipt must be given to the person (s) from whom money is collected.

Adopted:

Last Revision: 4/13/17

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5.18 TRANSFER OF SUPPLIES AND EQUIPMENT BETWEEN SCHOOLS

From time to time, personnel will move within the district.  Procedures need to be in place to assure the orderly transfer of supplies, equipment and inventory as well as the appropriate equipping of schools.  Every school is allocated funds to purchase supplies and equipment according to the needs of the school.  All supplies and equipment belong to the school and students for which they were purchased.

Adopted:

Last Revision: 4/13/17

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5.19 NAMING FACILITIES

The Board of Education will determine the names of schools and other facilities governed by the Farmington Municipal Schools.  Prior to any facility being named after a person/family, there must be formal written approval by that person/family.

5.19.1 Selection of a Name for a New Facility

Names of new facilities will be determined by the Board after public opinion has been solicited through a five (5) member committee that includes representation from the Board (1), administration (1), other staff (1), and community (2).  This committee’s recommendation to the Board of Education will include a prioritized list of up to three (3) names. The name of the facility will remain until the facility is replaced with new construction on a new location or the un-naming process is followed. The Board of Education will make the final determination through a majority vote.

5.19.2  Request for a Change in the Name of a Facility

A request for a facility name change will be addressed by the Board upon receipt of petitions requesting such a change.  Any such request must include signatures representing sixty percent (60%) of the registered voters residing within current school attendance boundaries.  The Board will also consider a name change if the majority of its members agree that there is a compelling reason to do so. Each proposal for naming shall be considered on its merits. In this regard, all attention shall be given to both the long-term and short-term appropriateness of a naming and recognition. If granted, the name of the facility will remain until the facility is replaced with new construction on a new location or the un-naming process is followed.

5.19.3 Request for Naming or Renaming a Portion of a Facility

A request to name or rename a special facility (library, lounge, gym, etc.) or a portion of a facility will be addressed by the Board upon the receipt of a petition from the facility (campus).  Any such request must include signatures from sixty percent (60%) of the faculty/staff of the school and sixty percent (60%) of the members of a parent organization (if applicable) or approval of the school campus administrator’s SAC (School Advisory Committee). If granted, the name of the portion of the facility will remain until the facility is replaced with new construction on a new location.

5.19.4  Continuing the Name of a Facility or Portion of a Facility that has been replaced by new construction (Current Location).

When a facility or portion of a facility that has been replaced by new construction and has been previously named in an individual’s honor, the District and local Board of Education firmly believes in honoring such individuals as an important part of that school’s history. The new facility will maintain the name of the facility or portion of the facility. (For example: A gym that has been removed and rebuilt on the current location, the name would remain. If a current gym is remodeled and a second “New” Gym is built, the remodeled gym will keep the name for which it is honored to be named after, the new gym would not be named.)

5.19.5  Facility that has been replaced by new construction (New Location).

When a facility has been replaced by new construction and has been previously named in an individual’s honor, the District and local Board of Education firmly believes in honoring such individuals as an important part of that schools history. The new facility will recognize the individual(s) with a brief history and a plaque to be displayed in the new facility. (Because this is a new site, only the name of the school will remain. All other names associated with portions of the buildings will be honored through recognition by a brief history and plaque to be displayed.) We reserve the right to determine what this recognition (Plaque/History) looks like to maintain consistency and design with in the facility.

5.19.6  Un-Naming of a Facility or Portion of a Facility

The district reserves the right to un-name previously named facilities or portion of a facility in circumstances where the Districts best interests are not served by the continued recognition of the name(s). The Board of Education will make the final determination through a majority vote.

Adopted:

Last Revision: 4/13/17

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5.20 CAPITALIZATION POLICY

5.20.1  Capitalization of Assets

Real or personal property acquired by gift or purchase with an estimated useful life greater than one fiscal year shall be capitalized and depreciated according to the capitalization thresholds and estimated useful lives assigned to each category of capital assets. Property, plant and equipment will be categorized by the asset types and depreciated using straight line depreciation in accordance with the estimated useful lives as listed in Appendix A.

A.  The capitalization threshold that will apply to all District assets except for building and land improvements/replacements is $5,000. 

B.  Building and land improvements/replacements that extend the estimated useful life of sites or buildings will have a threshold of $100,000. For an improvement/replacement to be capitalized, it must be a part of a major repair or rehabilitation project that increases the value and/or useful life of the building and increases the service utility of the building. That is, an improvement/replacement may be capitalized if the new item/part is of significantly improved quality and higher value compared to the old item/part (i.e. replacement of an old shingle roof with a new metal roof). Replacement or restoration to original utility level would not be capitalized. Determinations may need to be made on a case-by-case basis.

C.  Capitalization of assets with a cost above $5,000 acquired with Federal grants will be in accordance with the regulations set forth in the Education Division General Administrative Regulations (EDGAR) section 34 CFR 80.32.

D.  Expenditures incurred in construction such as materials, labor, engineering, supervision, legal, insurance, and overhead will be capitalized as “construction in progress” until the project is completed and placed in service. No depreciation will be taken on construction in progress.

5.20.2  Records of Capital Assets

A.  Accurate records will be maintained of the location, cost and accumulated depreciation of capital assets. Cost includes the acquisition cost as well as any ancillary costs, such as freight, installation and setup costs, associated with preparing the asset for its intended use. Detailed capital asset ledgers will be maintained to include the following asset information:

•      Asset Type

•      Description

•      Tag Number

•      Serial Number

•      Location

•      Account Code

•      Cost (Original/Historical)

•      Useful Life

•      Depreciation Expense

•      Accumulated Depreciation

B.  The physical existence of capital assets will be verified and reconciled to the fixed assets records. An inventory of assets will be performed on a periodic basis based on a random selection of assets listed on the capital asset ledgers. If an asset is moved from one location to another, management approval will be required on the “Inventory Record Form”. Inventory Record Forms need to be sent to the Business Office whenever an asset is moved in order to enter the appropriate information in the capital asset ledgers. The form should be sent within 15 days of the transfer.

5.20.3  Depreciation of Capital Assets

The cost (less salvage value) of all capitalizable assets, with the exceptions of land and construction in progress, will be allocated (depreciated) over the estimated useful lives in a rational and systematic manner. The District will use the straight line method to allocate depreciation. The straight line method allows for an equal amount of the cost of an asset to be allocated to each accounting period in its useful life. Depreciation will begin when an asset is placed into service.  Depreciation will be calculated using the half-year convention for the year of acquisition and the year of disposal.

5.20.4  Disposition of Capital Assets

Control over the disposition of property will be maintained not only to preserve the accuracy of the capital assets records but also to ensure that assets are safeguarded, improper disposal is avoided, and the best possible terms are received for disposal. All disposals must comply with the approval requirements detailed in the New Mexico statutes Section 13-6-2, NMSA, 1978. Assets acquired with Federal grants will be disposed of in accordance with the regulations set forth in the Education Division General Administrative Regulations (EDGAR) Section 34 CFR 80.32. If a department wants to dispose of a capital asset, they must prepare an “Inventory Record Form” prior to the disposal and submit it to the Business Office in order that the capital asset records may be updated to reflect the retirement and disposition of the specified capital assets.

APPENDIX A

CATEGORY DESCRIPTION LIF
CODE     
     
LD  LAND 
PW  PAVING, WALLS, FENCING  20 
ME  MISC. EQUIPMENT 
BS  BLEACHERS, SWINGS, PLAYGROUND  20 
BD  BUILDINGS  50 
RO  ROOFS & REPAIRS  10 
RN  ROOF – NEW  25 
PO  PORTABLES  25 
PE  PE EQUIPMENT  10 
PA   PA EQUIPMENT & CAMERAS  10 
CE  COMMUNICATION EQUIPMENT 
PS  PHOTOCOPIERS, SHRED, LAM, FAX  10 
PH  PHOTOCOPIER 
SP  SOFTWARE PROGRAMS  10 
SW  SWITCH NETWORK, TERM. SERVER  10 
CL  COMPUTER <   $5000 
CO  COMPUTER >= $5000 
PP  PRINTERS & PLOTTERS 
LP  LCD PROJECTORS  10 
SE  SHOP EQUIP., SAWS, MACHINES 
AP  APPLIANCES – SINKS, REFRIDG, OVEN, DISHWASHER  15 
MI  MUSICAL INSTRUMENTS / PIANOS  10 
AU  AUDIO, HEARING TESTER / NURSE  10 
FA  FURNITURE & ACCESSORIES  10 
SA  STAGE & AUDITORIUM  15 
MO  MOWERS & FORKLIFTS  15 
TC  TRUCKS, CARS & UTIL TRAILERS 
BU SCHOOL BUSSES 

Adopted:  10/27/11

Last Revision:  4/13/17

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5.21 CASH BALANCE POLICY

Farmington Municipal Schools Board of Education (the “Board”) recognizes the need for maintaining an adequate operational cash fund balance to assure sound fiscal management of its financial resources and to assure the availability of funds when unexpected financial demands are made on the Farmington Municipal Schools.

Farmington Municipal Schools shall maintain an operational fund ending cash balance level within the parameters of applicable state law of its final budgeted operating expenditures.   Finances of the district shall be managed to maintain these parameters.

For purposes of this policy, “operational fund” means the specific 11000 sub-fund of the general fund as designated by the New Mexico Public Education Department.

For purposes of this policy, “ending cash balance” means the total of the beginning balance of a specific fund plus revenue minus expenditures of that same specific fund.

The Superintendent shall manage the district’s finances and take appropriate action to ensure an operation fund ending cash balance in the range of seven to nine-percent (7% – 9%) of the current year’s budgeted operating revenues for any given fiscal year.

Upon accumulation of the operating fund cash balance of at least seven-percent (7%), the operating fund cash balance may only be drawn down below that level under one or more of the following circumstances:

1.    An unexpected loss of revenue which includes, but is not limited to, a mid-year reduction in operation revenues from the New Mexico Legislature and/or the New Mexico Public Education Department which were not included in the final approved budget, or

2.    Approval from the Board of Education for a non-budgeted expenditure.

3.    Upon approval from the New Mexico Public Education Department through a budget adjustment request.  In an emergency, the Superintendent may spend the operational fund cash balance prior to approval of the budget adjustment request as long as the current budget is maintained at a positive balance.

Farmington Municipal Schools will not maintain an emergency reserve within the operating fund cash balance. The amount of temporary loans made to federal and state grants to cover outstanding reimbursement requests at June 30th would prohibit the cash balance from reaching an amount set as an emergency reserve within the limits set by state statute.

Upon receiving any indication that the operation fund ending cash balance may not equal at least seven­percent (7%) at any point, the Chief Financial Officer shall immediately report the information to the Superintendent.   The Superintendent will inform the Board of Education.  It shall be the responsibility of the Chief Financial Officer to provide recommendations to the Superintendent that may assist in accumulating and maintaining the operating fund cash balance as outlined in this procedural directive.

Adopted:       8/14/14

Last Revision:  4/13/17

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5.22 DEBT MANAGEMENT POLICY

5.22.1 Purpose

The Farmington Municipal Schools (the “District”) recognizes the foundation of any well-managed debt program is a comprehensive debt management policy.  A debt management policy sets forth the parameters for issuing debt and managing the outstanding debt portfolio.  In addition, it provides guidance to decision makers regarding the purposes for which debt may be issued, types and amounts of permissible debt, timing and method of sale that may be used, and structural features that may be incorporated.  Adherence to a debt management policy helps to ensure that the District maintains a sound debt position and that credit quality is protected.

It is the intent of the District to establish a debt management policy to:

  • Ensure high quality debt management decisions;
  • Impose order and discipline in the debt issuance process;
  • Promote consistency and continuity in the decision making process;
  • Demonstrate a commitment to long-term financial planning objectives, and
  • Ensure that the debt management decisions are viewed positively by rating agencies, the investment community and taxpayers.

5.22.2 Debt Policy Guidelines

The District’s general debt policy management guidelines provides for the following:

a.   Full and timely payment of principal and interest on all outstanding debt;

b.   Debt shall be incurred only for those purposes as provided in the State Constitution and State Statutes;

c.   Capital improvements should be developed, approved and financed in accordance with District resolutions and the Facility Master Plan;

d.   The District will evaluate the impact of debt amounts and debt service requirements of any new proposed debt within the overall context of outstanding debt. The amount of debt will be limited to 6.0% of the District’s taxable assessed value;

e.   Principal and interest retirement schedules shall be structured to: (1) meet available cash flow available to service debt, (2) achieve a low borrowing cost for the District, (3) accommodate the debt service payments of existing debt and (4) respond to perceptions of market demand. Level debt service and shorter maturities shall always be encouraged to demonstrate to rating agencies that debt is being  managed prudently and retired at a sufficiently rapid pace;

f.    The District will utilize refunding of bonds on an opportunistic basis.

g.   Debt incurred shall generally be limited to obligations with serial and term maturities but may be sold in other structures if circumstances warrant;

h.   The average life of the debt incurred should be no greater than the projected average life of the assets being financed;

i.    The payment of debt for General Obligation Bonds shall be secured by the full faith, credit and taxing power of the District.  The District shall not pledge any District revenues to guarantee indebtedness of others;

j.    The District shall select a method of sale that achieves the financial goals of the District.  Such sales can be competitive, negotiated or private placement, depending upon the project and market conditions.  The recommendation by the District’s Financial Advisor will be considered in the decision as to the most appropriate sale method.  The recommended method of sale for each financing as approved by the Chief Financial Officer shall be subject to Board approval.

k.   The District shall make every attempt to earn and maintain the highest investment grade rating achievable;

l.    The District shall maintain good communications with bond rating agencies to ensure complete and clear understanding of the credit worthiness of the District;

m.  Selected underwriters and financial advisors shall adhere to the Municipal Securities Rulemaking Board (“MSRB”) and the Securities and Exchange Commission (“SEC”) rules and regulations;

n.   Every financial report, bond official statement and Comprehensive Financial Annual Report (“CAFR”) shall follow a policy of full, complete and accurate disclosure of financial conditions and operating results. All reports shall conform to guidelines issued by the Government Finance Officers Association (“GFOA”), Securities and Exchange Commission (“SEC”) and the Internal Revenue Service (IRS) to meet the disclosure needs of rating agencies, underwriters, investors and taxpayers.

o.   Federal income tax laws generally restrict the ability to earn arbitrage in connection with tax-exempt bonds.  Every attempt shall be made to eliminate or minimize negative arbitrage.

Adopted:  8/14/14

Last Revision:  4/13/17

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5.23 CONSERVATION POLICY

The Board embraces energy conservation and believes it to be our responsibility to ensure that every reasonable effort is made to conserve energy and natural resources while exercising sound financial management.

We recognize the importance of adopting an energy conservation policy to govern this program.  We also affirm the implementation of this policy will be the joint responsibility of the board, administration, faculty, staff, students, support personnel, and Cenergistic.  Success is based on cooperation amid all groups.

To ensure the overall success of our behavior-based energy conservation program, the following areas will be emphasized:

      1.   A designated campus Administrator will be accountable for energy conservation on his/her campus with Energy Specialist teams conducting energy audits and providing timely feedback.

      2.   All personnel at each campus are expected to make a positive contribution to maximize energy conservation and produce real energy savings.

      3.   Cenergistic will implement its energy conservation program primarily through an energy management team led by the Energy Specialist(s) in accordance with “Energy Guidelines” that will be adopted by administration and will define the “rules of engagement” for our energy program.

      4.   Accurate records of energy consumption and cost will be maintained by the Energy Specialist for each campus to provide verifiable performance results on the goals and progress of the energy conservation program.

Further, to promote a safe, healthy learning environment and to complement the energy conservation program,  each campus s hall review  and  adhere to  the preventive maintenance and monitoring plan administered by the campus physical plant for its facilities and systems, including HVAC, building envelope, and moisture management.

The Board is responsible for overseeing the operations and fiscal accountability of each institution under its governance, the Board embraces energy conservation and desire for the District to become a nationwide institutional leader in energy conservation as part of our social responsibility to respect our natural resources, the Board has engaged Cenergistic to use its expertise to develop and implement a comprehensive, behavior-based energy conservation program across the District.

The Board directs the President/Superintendent and his/her agents to develop and implement short and long-range strategies to maximize energy conservation.

Adopted:  8/28/14

Last Revision:  4/13/17

Section V Adopted:  4/13/2017

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