I. School Authority and Duties

1. The Wilkes County Board of Education recognizes that there are school needs beyond the basic instructional program which should be supported with public funds in order to provide the quality of schools desired by the community and that within the limits of its financial resources the Board intends to provide financial assistance to meet those needs. However, individual schools may wish to obtain additional resources to supplement those funds provided by the Board and to finance activities (curricular and extracurricular) not funded by the Board. It is the purpose of this policy to provide for the budgeting and fiscal control of the Special Funds of Individual Schools.
2. The Wilkes County Board of Education authorizes and empowers individual schools to raise, receive, acquire, possess, invest, budget, account, expend, and exercise general responsibility and control over special funds, restricted and non-restricted, which are necessary for and incidental to the operation of individual schools; subject to the laws of the state of North Carolina, and the Board policies and administrative regulations of this school system.
3. All employees and volunteers who handle checks, receipts, deposits, money, or financial records related to the individual school accounts are expected to be familiar with applicable laws and Board policies.
4. The Principal will be responsible for the proper administration of financial activities of the school in accordance with provisions of law and appropriate accounting practices and procedures. The principal may establish a banking account in any local bank for monies collected at his/her school. Once a principal has selected a banking firm for his/her school accounts, he/she may not change the school accounts to another banking firm without good reason and only with the approval of the Board of Education.
5. The school treasurer will perform duties as provided in Board policy 8520, School Treasurer.
6. The finance officer will establish any procedures necessary to help ensure that all funds are handled in accordance with law, Board policy, and standards for accounting. All accounts are subject to audit at any time by the superintendent or finance officer.

II. Definition of Special Funds

III. Fiscal Control

1. Restricted Funds - Certain funds received, obtained or deposited into individual school accounts are restricted as to use and may only be expended for limited or specific purposes.
   1. Funds specifically restricted by action of the Board of Education, e.g. P. E. fees, Occupational Education Supply Funds.
   2. Funds of school clubs and organizations which require the approval of the organization and the principal for expenditure, e. g. Drama Club, Key Club, Debate Club.
   3. Funds for which school is acting only as a depository and disbursing agent, e. g. student insurance, charitable contributions, damaged book fees.
   4. Funds raised specifically for special school projects, e.g. band uniforms, field trips.
2. Non-restricted Funds - All other funds, not restricted as to use, may be expended at the discretion of the individual school principal for the following purposes: to support the general instructional program, improve school facilities and equipment, support school activities (curricular and extracurricular) or for any lawful school purpose subject to state law, Board policy and such administrative regulations as the superintendent may adopt.

IV. Individual School Budgets

1. Individual schools shall annually prepare a balanced budget covering their estimated revenues and expenditures for all non-restricted Special Funds. Expenditures from Special Funds shall be in accordance with the school budget. No obligations shall be incurred which cannot be liquidated by the end of the fiscal year except as approved by the superintendent.
2. The superintendent shall have the authority to approve the lease of instructional equipment, including computer hardware and software, by an individual school on the condition that the school's financial records evidence sufficient revenue to meet the financial obligations set forth in the lease. If the terms and conditions of an individual school's lease require the Board of Education to act as surety for the payment of the rent contained in lease of equipment, the lease must be recommended by the superintendent and approved by the Board.
3. A copy of each school's budget shall be submitted to the superintendent or designee for his consideration by October 15 of each year. The budget shall be submitted on a standard budget format developed by the Finance Officer. Individual school budgets may be amended due to variations in revenues and expenditures. A copy of any amendment shall be submitted to the superintendent or designee.
4. A copy of the budget and amendments shall be posted in the office and libraries at all times.
5. At least three times during the school year in October, January, and June 30, the end of the fiscal year, each principal shall post in the office and library an accounting of school funds raised and disbursed during the last reporting month.

V. Cash Balances at Individual Schools

1. The Wilkes County Board of Education believes that individual schools should not carry large balances in their cash reserve from year to year unless they have an approved project for which they are raising money that will require more than one year to complete. Further, the Board believes that money raised by a given group of students should benefit that group of students unless it is clearly stated that the project is long-term for the benefit of future students. In keeping with these beliefs and the recommendations of the auditors, the Board of Education recommends that local schools maintain a fund balance of eight percent (8%) of the total general fund expenditures of the prior year as a cash flow reserve and that the fund balance available not exceed fifty percent (50%) of the prior year's general fund expense.
2. Cash balances belonging to clubs and organizations would not be subject to these limitations. Additionally, schools may adopt a large capital expenditure that will take more than one year to complete or a project(s) that is not a normal part of the school's operation such as playground equipment or a school vehicle. Approved exceptions would allow fund balances to exceed fifty percent (50%) of the prior year's general fund expenditure.

VI. Reversion of Unspent Funds

1. Schools are expected to spend their annual allocations or allotments of funds for staff development, materials, and supplies within the fiscal year the funds are budgeted.
2. In the event a school has more than 100% of its annual allocation remaining unencumbered in its fund balance at the end of a fiscal year, June 30th, any funds in excess of that amount shall revert to Wilkes County Schools' general fund for reallocation during the next fiscal year unless the Superintendent is able to verify that the excess funds have been accumulated to pay for a future staff development activity. In addition, the school will receive no new allotments for staff development, materials, or supplies in the succeeding fiscal year.