GVCC & GVA Financial Policies and Procedures
Global Village Charter Collaborative and Global Village Charter School Financial Policies and Procedures
Effective as of this date: July 1, 2012
1.1 The financial goal of the Global Village Charter Collaborative (“Collaborative”’; GVCC) and Global Village Academy (“Academy”; GVA) will be to conduct the operations and business of the Collaborative and the Academy with sound fiscal management and in all respects consistently with Colo. Rev. Stat. § 22-30.5-112(7). All fiscal activities shall be consistent with the GVCC or GVA Conflict of Interest Policy and with the School’s 501c3 tax-exempt status.
Legal Ref.: C.R.S. § 7-128-501
C.R.S. § 22-30.5-104(4)
2.0 FISCAL MANAGEMENT ORGANIZATION AND AUTHORITY
The financial management shall be the responsibility of the GVCC and GVA Board of Directors and the Principal and Chief Executive Director, respectively. The Principal shall administer the budget for Global Village Academy, and the Chief Financial Officer for the Global Village Charter Collaborative, making expenditures and commitments within the Board approved budget. The ultimate responsibility for the financial operations of the Academy and the Collaborative falls upon the Board, and the Principal and Chief Executive Officer, with the support of the GVCC Chief Financial Officer. The Chief Financial Offiicer shall act in an advisory capacity with regard to financial matters. Any expense that will result in an expenditure greater than 5% above the maximum of a line item in the budget approved by the Board requires Board approval before being expended.
The GVCC Chief Executive Officer for GVCC, with support from the GVA Principals and the Chief Financial Officer, shall be responsible for the installation and supervision of proper internal control systems to include, but not limited to:
- Receipt and deposits of moneys
- Payment of salaries and wages as adopted by the Board
- Timely payment of bills
- Accurate posting of transactions and reconciliation of accounts
- Responsible administration of employee benefits
- Procurement of assets
In order to assure each Academy’s financial integrity, the GVA Board shall determine and set aside sums for the School as contingency reserve to be included in each general fund budget to avoid borrowing money to conduct operations and a reserve for the possible purchase of the facility. Assets, funds, liabilities and financial records of the School shall be kept separate from the assets, funds, liabilities and financial records of any person, entity or other organization, including the Global Village Charter Collaborative.
Legal Ref.: C.R.S. 7-123-102
3.1 General The annual budget is the financial plan for the operation of the Collaborative and the Academy. It provides the framework for both expenditures and revenues for the year and translates into financial terms the educational programs and priorities of the each organization in the Collaborative.
The GVA Board assigns to the Principal and the GVCC Board assigns to the Chief Executive Officer overall responsibility for budget preparation, budget presentation and budget administration, but portions of this responsibility may be delegated in the discretion of the GVCC, Chief Financial Officer.
Insofar as possible, the budgets adopted by the GVA and the GVCC Board shall be sufficient to implement all programs and policies that have had each Board’s approval.
Legal Ref.: C.R.S. 22-44-101 through 22-44-117
C.R.S. 22-44-203 and 22-44-204 (3)
3.2 Budget Format The Academy and the Collaborative shall prepare the budgets in a summary format that is understandable by laypersons, allows for comparisons of revenues and expenditures by pupil, does not provide for expenditures, inter-fund transfers, or reserves in excess of available revenues and the beginning fund balance, and is otherwise compliant with the charter contract, the Collaborative Agreement and applicable law.
3.3 Budget Transfers Any Academy or Collaborative inter-fund transfer, including any transfer of unencumbered moneys from the contingency reserve account, which is within the general fund, to another fund requires Board approval Inter-fund loans, if any, shall be repaid within three months of the beginning of the next fiscal year.
The Board shall not transfer moneys between funds when such transfer is inconsistent with applicable law.
Legal Refs: C.R.S. 22-44-112
C.R.S. 22-44-102 (3)
4.0 TIMELINES AND SCHEDULES
4.1 Financial Record Keeping
- Financial records will be posted and reconciled on a monthly basis.
- Quarterly financial reports shall be prepared no later than 20 days following the end of each quarter.
- Financial records will be posted on the School’s website in accordance with the Financial Transparency Act.
4.2 Reporting A summarized total of revenues and expenditures of the Academy and the Collaborative funds shall be provided to the respective Boards at each regular meeting.
4.3 Budget Every February the GVA Principal and GVCC Chief Executive Officer shall meet with the Chief Financial Officer for the purpose of developing the budgets for the following school year.
- Proposed Academy and Collaborative budgets will be given to the GVCC Budget Committee, comprised of the treasurers of each board, for input.
- The Principal shall present the proposed new budgets to the Global Village Academy Board and the Chief Executive Officer to the GVCC Board of Directors by June 30th, with the preliminary budgets to be given to the appropriate authorizers when requested.
- A budget will be adopted by resolution no later than 30 days prior to the beginning of the applicable fiscal year.
4.4 Audit The audit described in Section 11 must be completed no later than 75 days after the end of the fiscal year unless a request for an extension of time is granted by the Academy and the Authorizer.
5.0 FINANCIAL EMERGENCIES If the Academy or Collaborative Board determines, during any budget year, that the anticipated revenues and amounts appropriated for expenditure in the budget exceed actual revenues available, the Board(s) may declare a fiscal emergency. Such declaration shall require the affirmative vote of two-thirds of the members of the Board(s).
The GVA and GVCC Board(s) will determine if a special session of the GVCC budget committee, and/or a school-based committee is appropriate and what actions should be taken.
Legal Ref: C.R.S. 22-44-115.5
6.0 GRANTS FROM PRIVATE SOURCES Only the Principal, Chief Executive Officer or their respective Boards may accept grants, gifts or bequests on behalf of the Academy or the Collaborative. The title to all gifts, grants and bequests to the Academy or to the Collaborative shall rest with the respective organization. All gifts and grants shall be consistent with the GVCC and GVA mission, applicable requirements of Section 501c3 of the Internal Revenue Code, and timely reported to the appropriate Board of Directors.
7.0 DEPOSITORY OF FUNDS All revenue received by the School shall be deposited in an official bank or banks as designated by the Chief Financial Officer. Such financial institutions must qualify as eligible public depositories in accordance with state law.
Legal Ref: C.R.S. 24-75-601 et seq.
8.0 FINANCIAL RECORDS All financial records of the Global Village Academy shall be maintained at the Global Village Charter Collaborative central administrative office.
9.0 INVENTORIES The Academy shall maintain a system for an annual inventory of all items costing $1,000 or more and having a life expectancy of over one year, with the exception of equipment permanently fixed in a building such as heaters or lockers.
The GVA Principal and the GVCC Chief Executive Officer shall develop procedures for conducting annual inventories of the Academy’s and the Collaborative’s property, conducting the inventory, and maintaining a record of the property.
10.0 AUDITS In accordance with state law, all funds and accounts of the Academy and the Collaborative shall be audited annually, following the close of the fiscal year.
The GVCC and GVA Boards shall appoint an independent auditor licensed to practice in Colorado and knowledgeable in government accounting to conduct the audits. The independent auditor shall serve at the discretion of each of the Boards.
The audit report shall contain, among other information:
- Financial statements prepared in conformity with Generally Accepted Governmental Accounting Principles and GASB 34. (The financial statements are the representation of the School, whether prepared by the School or by the auditor.)
- Disclosures in accordance with the Financial Policies and Procedures Handbook. The supplemental schedules of receipts and expenditures for each fund shall be in the format prescribed by the CDE and shall be in agreement with the audited financial statements of the School.
- All funds and activities of the Academy and the Collaborative.
- Budget to actual comparisons for each fund and activity.
- The auditor's opinion on the financial statements. If the opinion is anything other than unqualified, the reason must be explained. The opinion shall include general fixed assets.
- Disclosure of all instances of noncompliance with state law, including the Public School Finance Act of 1988, irrespective of materiality.
- A supplemental listing of all investments held by the Academy and the Collaborative at the date of the financial statements.
The auditor also shall make recommendations to the GVA and to the GVCC Board concerning its accounting records, procedures and related activities, as may appear necessary or desirable, and shall perform such other related services as may be requested by the Board.
The Academy shall submit copies to their authorizer, the State Auditor and the State Commissioner of Education.
The GVCC Board reserves the right to request an audit of any Academies or of the Collaborative at more frequent intervals if desired.
Legal Ref: C.R.S. 22-30.5-112(7)
C.R.S. 22-32-109 (1)(k)
C.R.S. 29-1-601 et seq.
11.0 PURCHASING AND PURCHASING AUTHORITY The GVCC Chief Financial Officer and the Chief Executive Officer, with the support and cooperation of the GVA Principal, shall be responsible for the installation and supervision of proper internal control systems for purchasing, including but not limited to, a purchase order system, proper verification of purchase, payment documentation and bidding procedures.
Legal Ref: C.R.S. 22-30.5-104(7)
C.R.S. 22-32-109 (1) (b)
11.1 PETTY CASH Any GVA petty cash fund, not to exceed $1,000, shall be maintained in the custody of the Office Manager with oversight of the GVA Principal.
11.2 PURCHASE ORDERS Purchase orders may be used, in the discretion of the Chief Executive Officer or the Chief Financial Officer under supervision of the Chief Executive Officer, as follows:
11.2.1 The GVA Principal will be responsible for the review of purchase orders originating from other employees. A purchase order (a PO) request will be completed by the individual requesting a purchase. The individual will submit the PO to the Principal for review. PO’s that are consistent with the budget and within the scope of the authority of the individual requesting the purchase may be approved by the Principal.
11.2.2 Availability of funds is checked at time of approval. All purchases must be charged to the correct budgetary account (not only where funds are available). The approved copy maintained by the GVCC Accounting Manager will list the budget line item(s) related to the PO for tracking purposes.
11.2.3 The vendor will ship the merchandise to the Academy or to the Collaborative, referencing the PO number. The individual requesting the purchase of goods and/or services shall maintain records as to the status of all such requests and shall be responsible for checking the items actually received against the PO and packing slip. After the requesting staff member checks the merchandise and signs for the receipt of the merchandise, the documentation will be forwarded to the GVCC Accounting Office.
11.2.4 When the receipt is recorded and the PO and invoice are reconciled, the GVCC Bookkeeping Office will process payment. The Bookkeeping Office will process payment only after receiving the necessary paperwork from the staff member making the purchase or Principal authorizing the purchase.
11.2.5 If the staff member receives an item that is not wanted after it is ordered, it is the PO originator’s responsibility to re-package the product, affix address labels, return the merchandise to the vendor and advise the GVCC Bookkeeping Office, and GVA Principal of any changes.
11.2.6 The purchasing power of the Academy or the Collaborative shall not be used to obtain goods or services for the private use of any employee.
11.2.7 Any employee who charges any item without an authorized PO may be held personally liable for that purchase.
11.2.8 Requests for receiving items in order to preview them should still cause a PO to be activated. If the items are kept, a written notification to the Bookkeeping Office requesting payment must be made.
11.2.9 Payments should be made in a timely manner to avoid penalties and late fees.
11.3 PAYMENT BY CHECK This procedure applies to purchases and services for where no PO has been issued and should apply only to the following:
- Recurring expenses, such as utilities, rent or payments to independent contractors, which are authorized on an ongoing basis or for which there is a short elapsed time between commitment to pay and time of actual payment.
- Expenses which cannot be handled through the normal PO process or petty cash procedure. Examples would be postage meter reimbursements, payment of dues for professional organizations and subscription renewals.
- Personal credit card and personal check use is strongly discouraged. Personal credit cards and checks are to be used only when no other method of payment is available. Reimbursement will be made when a Request for Payment is accompanied by an original receipt. A log of all checks issued will be maintained. All Academy checks for more than $12,500 will be signed by (1) either the Principal or Assistant Principal, and (3) Chief Executive Officer or the Board President or Board Treasurer.
11.4 PURCHASING CARD PURCHASES UP TO $1,000. General purchasing cards may be held by only the Academy Principal and the Assistant Principal and the Collaborative Chief Executive Officer and the Chief Development Officer. No gas purchase cards may be held by any party.
The Purchasing Cards shall be used for item/s with a total cost of $1,500.00 or less only. This type of purchase exists to help expedite the procurement of small dollar purchases that must be paid for right away. The purchasing card is the preferred method of purchasing small dollar goods and services up to the cardholder’s single transaction limit, not to exceed $1,500.00. Cards are subject to monthly dollar limits as well as individual transaction limits. The purchasing card is to be used by the person it is issued to and must only be used to pay for approved Academy or Collaborative purchases.
Employees using a card must sign the School’s cardholder agreement.
- Cardholder orders or picks up desired product(s)
- Cardholder uses Purchasing Card to pay for product(s); gives tax exempt number to vendor; receives items and receipt
- Cardholder provides the receipt and any additional documentation to the GVCC Accountant who prepares transaction log for purchase, attaching the original, itemized and detailed receipt
- GVCC Accountant reconciles individual monthly statement with transaction log; attaches transaction log and receipts to the statement; and signs for written approval to pay on the statement
- Accountant submits monthly statement and attachments to Principal or the Chief Executive Officer
- Principal or Chief Executive Officer reviews cardholders’ transactions for appropriateness and signs for written approval to pay on the statement
- All statements with the supporting documentation attached for every transaction listed on the statement should be forwarded to bookkeeper for payment. Complete documentation must be available for audit upon request.
11.5 PROHIBITED TRANSACTIONS It is a violation to use any payment method for any of these goods and services:
- Personal Purchases
- Cash or Cash Type Transactions
- Gift Certificates
- Split Transactions
- Alcoholic Beverages
- Contracts requiring an authorized signature
- Drug Enforcement Agency licensed substances
- Cash Type Merchants: money orders, wire transfer, stamp and coin stores, betting, lottery tickets, chips, wagers, financial and non financial institutions, manual cash disbursement, travelers’ checks, precious metals, foreign currency, automated cash disbursements, merchandise services.
Any improper transaction will be investigated and disciplinary action will be taken based upon the nature of the violation. Consequences of prohibited transactions may include job termination and/or criminal prosecution.
11.6 PURCHASE CONDITIONS All purchases of goods shall result in such goods being delivered to the Academy and/or the Collaborative locations and to no other location. When appropriate to the nature and magnitude of a transaction, contracts or other operative documents should indicate that payment and liability is an obligation of GVCC and GVA and not to any authorizer.
12.0 BIDDING REQUIREMENTS The Principal and the Chief Executive Officer shall secure bids on all single item purchases exceeding $25,000 and on all other purchases of supplies, equipment and projects when it is in the best interest of the Academy or Collaborative. Purchases valued at less than $25,000 but more than $5,000 shall be based upon quotations.
All contracts and open market orders shall be awarded to the lowest qualified supplier, taking into consideration the quality of materials or services and their contribution to program goals.
When time is of the essence, bid procedures may be waived provided prudent measures are taken to obtain the best price available under the circumstances (phone, quotations, etc.).
12.1 Waiver of Formal Bidding Procedures The Principal or Chief Executive Officer may waive, in writing, the formal bidding procedures of this chapter when time is of the essence and the best interests of the Academy or Collaborative will be served by such action. Proceeding under this section, the Principal or Chief Executive officer shall submit an informal memorandum to their respective Boards stating all essential terms of the contract and the reasons for proceeding under this section.
- Acquisition or disposal of unused or obsolete equipment.
- Food service requirements.
- Goods or services from agencies of the Federal, State, or Local government.
- Proprietary or sole source items or services.
All contracts for which formal procedures are waived under this section shall be reported to the respective GVA or GVCC Board.
12.2 Sole Source Contracts In the case of items available only from one source, purchases may be made based on negotiations with that source.
12.3 Professional Services This section shall not apply to professional services.
Legal Ref: C.R.S. 22-32-109 (1)(b)
13.0 EXPENSE REIMBURSEMENTS The Academy and the Collaborative shall reimburse employees and Board members within annual budgetary limitations for certain expenses incurred on behalf of the School.
13.1 The following procedures shall apply to expense reimbursements:
a. Official travel.
- Actual travel expense shall be reimbursed, limited to the maximum rate permitted by the State of Colorado for state employees, and mileage shall be reimbursed at the IRS approved rate per mile when private automobiles are used.
- Travel expenses shall be kept to a minimum whenever possible
- The Board discourages the use of private automobiles, but when used, will be kept to a minimum whenever possible.
b. Conference expenses. Conference expenses, including meals, lodging, travel, conference fees and miscellaneous associated expenses shall be either paid by the Academy or Collaborative or reimbursed to the employee if:
- The proper forms are submitted with sufficient documentation (travel expense form or mileage reimbursement report).
- The forms are approved by the individual with budget authority.
- There is sufficient budgeted money available.
c. Mileage reimbursements. The mileage expense report is to be completed by any employee who is requesting reimbursement for expenses incurred while using a privately-owned vehicle on GVA or GVCC business.
- The form should be completed and signed by the employee, approved by the Principal for the Academy or the Chief Executive Officer for the Collaborative and forwarded to the GVCC Bookkeeping Office for payment.
- Employees are not reimbursed between home and first and last duty assignment each day.
- Reports received more than 90 days after the due date may be denied.
d. Meal expenses. Meal expenses shall be reimbursed with receipts.
13.2 Employees may receive travel advances when properly authorized by the individual with budget authority. Advances shall not exceed an amount that can be substantiated by the employee based upon the length of anticipated travel. Employees receiving such travel advances shall complete and submit expense vouchers, accompanied by receipts, to the GVCC Bookkeeper as soon as practical upon their return from travel. If actual reimbursable expenses exceed the employee's advance, the Academy or Collaborative shall reimburse the difference. However, if the advance exceeds the actual reimbursable expenses incurred, the employee shall immediately reimburse the Academy or Collaborative for the difference. Receipts not received may become the expense of the employee.
13.3 Mileage and other expense reimbursement will be distributed along with other non-payroll checks following normal procedures. Reimbursements require approval/authorization by the Principal for the Academy and the Chief Executive Officer for the Collaborative.
14.0 SCHOOL PROPERTIES DISPOSAL The Principal for the Academy and the Chief Executive Officer has the authority to sell or lease any property which may not be needed in the foreseeable future upon such terms and conditions as he or she may approve. Funds received from such sale shall be documented and deposited into GVA or GVCC accounts.
If the property is sold to a state agency or political subdivision of the state, it shall not be necessary to find that the property may not be needed.
Legal Ref: C.R.S. 7-123-102(1)(e)
C.R.S. 22-32-110 (1) (e)
15.0 FUNDRAISING ACTIVITIES All fundraising programs must be submitted to the GVA Principal or the GVCC Chief Executive Officer for approval before any activity is to begin or announced to staff or students. It is the intention of the Boards that any activity should produce a reasonable return before a fundraising activity be approved. Funds collected from such activities shall be accounted for and deposited to the appropriate GVA or GVCC accounts.
16.0 FINANCIAL TRANSPARENCY & OTHER REPORTING All financial information required to be posted under the Financial Transparency Act shall be timely placed on the GVCC website by the Chief Financial Officer. The Chief Financial Officer is also responsible for timely filing of the annual Form 990 with the Internal Revenue Service.
Legal Ref.: C.R.S. 301 – 304
17.0 GVCC Role as Sole Corporate Member Acting as the sole corporate Member of each School, the Collaborative Board shall exercise or delegate all powers as Member reserved in the GVCC bylaws or the bylaws of a Academy including, without limitation —
17.1 Exercising all powers specified in the Collaborative Contract;
17.2 Assisting each School in negotiating and, through the Chief Executive Officer, contractors or otherwise, pre-clearing for final approval by a Charter Board any Major Agreement, and entering any agreement for counsel, accountants or auditors to serve the Collaborative or the School;
17.3 Approve or disapprove as otherwise provided in these Bylaws any proposal by a Charter Board, before it may be entered or have any legal effect whatsoever, to enact a Fundamental School Change;
17.4 Supervising, assisting each School in preparing, and if appropriate causing the preparation and delivery of such reports, applications for renewal, audits or other documents as may be required for any School to continue charter status or otherwise comply with law;
17.5 Make provision for a standard system of risk management to be implemented at each School;
17.6 Provide for appropriate technical assistance to the Charter Board is forming and adopting a School budget and, exercising its reserved powers as Member to alter or amend such budgets under Section 6.8 of these bylaws;
17.7 Selecting an accountant and an attorney for the Collaborative, who shall also be the accountant and attorney for the Schools;
17.8 Exercising all other powers reserved under the GVCC bylaws, bylaws of a School or the Collaborative Contract, and taking any action necessary or proper to protect the best interest of the Collaborative, the Schools and the students.
18.0 POLICIES NOT ADDRESSED All policies not addressed above will mirror those outlined in current Financial Policies and Procedures manual published by the Colorado Department of Education.