BOZEMAN SCHOOL DISTRICT

R = required

7000 SERIES

FINANCIAL MANAGEMENT

TABLE OF CONTENTS

7000 Goals

7110 Budget and Program Planning

7120 Budget Preparation and Adoption

7121 Budget Adjustments

7142 Emergency Budget Adoption

7143 Lapse of Budget

7150 Fraud Prevention

7210 Revenues

7215 Obligations and Loans

7225-7225P Fundraising

7250 Rental or Lease of School District Property

7260-7260P Donations, Endowments, Gifts, and Investments

7260F Receipt of Donation

7261 Memorials

7270-7270P Grants

7270F Grant Proposal Development Plan

7310 Budget Implementation and Execution

7320-7320P Purchasing

7321-7321P Purchasing Cards

7324-7324P Vendor Authorization

7325 Accounting System Design

7326 Documentation and Approval of Claims

7329-7329P Petty Cash and Change Boxes

R 7330 Payroll Authorization

7332 Advertising in Schools/Revenue Enhancement

7335 Personal Reimbursements

7336-7336P Travel Allowances and Expenses

7338 Allowability of Costs - Federal Programs

7340 Cash Management - Federal Programs

7410 Fund Accounting System

7418 Inactive Funds

7425-7425P Extra- and Co-Curricular Funds

7426 School District Bank Accounts

7427 Clearing Accounts

7430 Financial Reporting and Audits

7433 Audits

7500 Property Records

7510 Capitalization Policy for Fixed Assets

R 7515 Fund Balances

7520 Independent Investment Accounts

7530 Procurement of Supplies or Services

7535 Electronic Signatures

7550 Indirect Cost Reimbursement

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7000

Goals

Because educational programs are dependent on adequate funding and the proper management of those funds, District goals can best be attained through efficient fiscal management. As trustee of local, state, and federal funds allocated for use in public education, the Board shall fulfill its responsibility to see that funds are used to achieve the intended purposes.

Because of resource limitations, fiscal concerns often overshadow the educational program. Recognizing this, the District must take specific action to ensure that education remains primary. This concept shall be incorporated into Board operations and into all aspects of District management and operation.

The Board seeks to achieve the following goals in the District’s fiscal management:

Engage in advance planning, with staff and community involvement, to develop budgets which will achieve the greatest educational returns in relation to dollars expended.

Establish levels of funding which shall provide superior education for District students.

Provide timely and appropriate information to staff who have fiscal responsibilities.

Establish efficient procedures in all areas of fiscal management.

Legal Reference: Title 20, Chapter 9, MCA Finance

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7110

Budget and Program Planning

A district's annual budget is evidence of the Board's commitment to the objectives of the instructional programs. The budget supports the immediate and long-range goals and established priorities within all areas, instructional, non-instructional and administrative programs.

Prior to presentation of the proposed budget for adoption, the Superintendent shall prepare for the Board's consideration appropriate documentation supporting recommendations which shall be designed to meet the needs of students within the limits of anticipated revenues.

Program planning and budget development shall provide for staff participation and the sharing of information with patrons before any action by the Board.

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7120

Budget Preparation and Adoption

The Board of Trustees shall discuss the ensuing year’s Elementary and High School District budgets at any meeting between January 1 through July 31 each year.

The Board of Trustees shall meet at their regular place of meeting on the date specified in Policy 1400 - Board Meetings, for the purpose of adopting final budgets for the Elementary and High School Districts. A notice of said meeting shall be published in a newspaper of general circulation between July 24 and August 4. The resulting budgets shall constitute the final budgets of the Elementary and High School Districts for the current fiscal year. After the final budgets are adopted, they shall be forwarded to the County Superintendent of Schools.

Cross Reference: 1400 Board Meetings

Legal Reference: All proceedings pertaining to the adoption of budgets shall be conducted in accordance

with Montana Code Annotated (M.C.A.), Sections 20-9-101 through 20-9-142.

Policy History:

Adopted on: 12/08/1986

Revised on: 3/25/1996, 6/10/1997, 8/11/1997, 4/25/2022

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7121

Budget Adjustments

When any budgeted fund line item is in excess of the amount required, the Board may transfer any of the excess appropriation to another line item(s) within the same fund. The Board authorizes the administration to transfer line items within the same budgeted fund to adjust line item overdrafts or to meet special line item needs. Line item budget transfers to adjust line item overdrafts are at the discretion of the administrators.

Total budget expenditures for each fund as adopted in the final budget shall constitute the appropriations of the District for the ensuing fiscal year. The Board will be limited in the incurring of expenditures to the total of such appropriations.

With timely notice of a public meeting, trustees, by majority vote of those present, may declare by resolution that a budget amendment (in addition to the final budget) is necessary. Budget amendments are authorized for specified reasons by § 20-9-161, MCA. The resolution must state the facts constituting the need for the budget amendment, the funds affected by the budget amendment, the anticipated source of financing, the estimated amount of money required to finance the budget amendment, and the time and place the trustees will meet for the purpose of considering and adopting the budget amendment for the current school fiscal year.

The meeting to adopt a budget amendment will be open and will provide opportunity for any taxpayer to appear and be heard. Budget procedures will be consistent with statutory requirements. When applicable, the District will apply for state financial aid to supplement the amount to be collected from local taxes.

Legal Reference: § 20-9-133, MCA Adoption and expenditure limitations of final budget

§ 20-9-161, MCA Definition of budget amendment for budgeting purposes

§ 20-9-162, MCA Authorization for budget amendment adoption

§ 20-9-163, MCA Resolution for budget amendment – petition to superintendent of public instruction

§ 20-9-164, MCA Notice of budget amendment resolution

§ 20-9-165, MCA Budget amendment limitation, preparation, and adoption

procedures

§ 20-9-166, MCA State financial aid for budget amendments

§ 20-9-208, MCA Transfers among appropriation items of fund – transfers from fund

to fund

Policy History:

Adopted on: 12/08/1986

Revised on: 11/11/1991, 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7142

Emergency Budget Adoption

Total budget expenditures for each fund as adopted in the budget shall constitute the appropriations of the district for the ensuing fiscal year. The Board shall be limited in the incurring of expenditures to the total of such appropriations.

With timely notice of a public meeting, Trustees, by majority vote of those present, may declare by resolution that a budget emergency exists. Emergency budgets are authorized by Section 20-9-161 M.C.A. for specified crises.

The resolution shall state the facts of the emergency, the estimated amount of funds needed, and the time and place when the Board will meet for the purpose of considering and adopting an emergency budget.

The meeting to adopt an emergency budget shall be open and shall provide opportunity for any taxpayer to appear and be heard. Budget procedure shall be consistent with statutory requirements. When applicable, the district shall apply for state financial aid to supplement that amount to be collected from local taxes.

Legal Reference: 20-9-161 M.C.A. through 20-9-167 M.C.A.

Policy History

Adopted: 12/08/1986

Revised on: 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7143

Lapse of Budget

As of June 30, the last day of the fiscal year, all appropriations for a budgeted fund shall lapse with the exception of:

Uncompleted improvements in progress of construction; and

Any obligation for the purchase of personal property ordered but not paid for during the current fiscal year.

Claims presented under a lapsed appropriation shall be an obligation of the budget for the next fiscal year.

Legal Reference: 20-9-209 MCA

Policy History:

Adopted on: 12/08/1986

Revised on: 11/11/1991, 4/25/2022

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7150

Fraud Prevention

All employees, Board members, consultants, vendors, contractors and other parties maintaining a business relationship with the District shall act with integrity and due diligence in matters involving District fiscal resources.

Definition

For the purpose of this policy, fraud and financial impropriety shall include but not be limited to:

Forgery or unauthorized alteration of any document or account belonging to the District.
Forgery or unauthorized alteration of a check, bank draft, or any other financial document.
Misappropriation of funds, securities, supplies, or other District assets, including employee time.
Impropriety in the handling of money or reporting of District financial transactions.
Profiteering as a result of insider knowledge of District information or activities.
Unauthorized disclosure of confidential or proprietary information to outside parties.
Unauthorized disclosure of investment activities engaged in or contemplated by the District.
Accepting or seeking anything of material value from contractors, vendors, or other persons providing services or materials to the District, except as otherwise permitted by law or District policy.
Inappropriately destroying, removing, or using records, furniture, fixtures, or equipment.
Failure to provide financial records required by state or local entities.
Failure to disclose conflicts of interest as required by law or District policy.
Any other dishonest act regarding the finances of the District.

The Superintendent, or designee, shall maintain a system of internal controls to deter and monitor for fraud or financial impropriety in the District.

Reporting

Any person who suspects fraud or financial impropriety in the District shall report the suspicions immediately to any supervisor, the Superintendent, Board Chairperson, or local law enforcement.

Reports of suspected fraud or financial impropriety shall be treated as confidential to the extent permitted by law. Limited disclosure may be necessary to complete a full investigation or to comply with law. Employees involved in an investigation shall be advised to keep information about the investigation confidential.

Retaliation

Neither the Board nor any District employee shall unlawfully retaliate against a person who in good faith reports perceived fraud or financial impropriety.

Investigations

In coordination with legal counsel and other internal or external departments or agencies, as appropriate, the Superintendent or Board Chairperson shall promptly investigate reports of potential fraud or financial impropriety.

Response

If an investigation substantiates a report of fraud or financial impropriety, the Superintendent shall promptly inform the Board of the report, the investigation, and any responsive action taken or recommended by the administration.

If an employee is found to have committed fraud or financial impropriety, the Superintendent shall take or recommend appropriate disciplinary action, which may include termination of employment. If a contractor or vendor is found to have committed fraud or financial impropriety, the District shall take appropriate action, which may include cancellation of the District’s relationship with the contractor or vendor.

When circumstances warrant, the Board or Superintendent may refer matters to appropriate law enforcement or regulatory authorities. In cases involving monetary loss to the District, the District may seek to recover lost or misappropriated funds.

The final disposition of the matter and any decision to file a criminal complaint or to refer the matter to the appropriate law enforcement or regulatory agency for independent investigation shall be made in consultation with legal counsel.

Analysis of Fraud

After any investigation substantiates a report of fraud or financial impropriety, the Superintendent shall analyze conditions or factors that may have contributed to the fraudulent or improper activity. The Superintendent shall ensure that appropriate administrative procedures are developed and implemented to prevent future misconduct. These measures shall be presented to the Board for review.

Policy History

Adopted on: 1/13/2014

Revised on: 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7210

Revenues

The District will seek and utilize all available sources of revenue for financing its educational programs, including revenues from non-tax, local, state, and federal sources. The District will properly credit all revenues received to appropriate funds and accounts as specified by federal and state statutes and accounting and reporting regulations for Montana school districts.

The school district will collect and deposit all direct receipts of revenues at least once each week. The school district will make an effort to collect all revenues due from all sources including, but not limited to, unpaid rental fees, bus fees, fines, and other fees and charges. In the event that an accounts receivable remains unpaid after 90 days, the account receivable may be turned over to a collection agency at the discretion of the Superintendent.

Legal Reference: Title 20, Chapter 9, MCA Finance

Title 10, Chapter 10, ARM Special Accounting Practices

Policy History:

Adopted on: 12/08/1986

Revised on: 4/08/1996, 9/21/2020

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7215

Obligations and Loans

The District may, without a vote of the electors of the District, secure loans from or issue and sell to the board of investments or a bank, building and loan association, savings and loan association, or credit union that is a regulated lender under Montana law, obligations for the purpose of financing all or a portion of:

the costs of vehicles and equipment and construction of buildings used primarily for the storage and maintenance of vehicles and equipment;
the costs associated with renovating, rehabilitating, and remodeling facilities, including but not limited to roof repairs, heating, plumbing, electrical systems, and cost-saving measures as defined in Montana law;
the costs of nonpermanent modular classrooms necessary for student instruction when existing buildings of the district are determined to be inadequate by the trustees;
any other expenditure that the district is otherwise authorized to make including the payment of settlements of legal claims and judgments; and
the costs associated with the issuance and sale of the obligations.

Before seeking to secure a loan or issue and sell obligations to a regulated lender, the District shall first offer the board of investments a written notice of the board's right of first refusal. If the board of investments accepts the offer to issue a loan or purchase obligations, the board shall provide a written response to the trustees by the later of:

120 days following delivery of the trustees' offer to the board; or
the day after the next meeting of the board of investments.

If the trustees have not received a written acceptance by the deadline the District may seek to secure a loan or issue and sell an obligation to a regulated lender as outlined in this policy and Montana law.

The District may access its major maintenance aid account for school facility projects, including the payment of principal and interest on obligations issued in accordance with this policy and Montana law for school facility projects,

Legal Reference: Section 20-9-471, MCA Issuance of obligations

Section 20-9-525, MCA School major maintenance aid account

Policy History:

Adopted on:

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7225

Fundraising

Fundraising provides important revenue enhancements that support District operations, District-sponsored groups, and District Partner Organizations. For purposes of this policy:

“Fundraising” means any organized activity for the purpose of raising funds.
“Crowdfunding” means raising money from a large number of people, typically through a website.
“District-sponsored group” means a student organization operating with an account approved in accordance with Policy 7425 Student Extracurricular Funds.
“District Partner Organizations” are those organizations who have been identified as District partners in accordance with Policy 4530.

Bozeman School employees representing an approved District function and District-sponsored groups may raise funds or acquire materials to benefit the District. Only crowdfunding platforms that have been approved by the Superintendent or designee may be used in fundraisers.

All fundraising proposals must be approved in advance of soliciting funds. Further, any fundraising requiring Board authorization or matching funds—including in-kind contributions—must be presented to the Board for authorization.

Only employees and District-sponsored groups are permitted to operate under this policy. Individuals and non-District groups may not use the District’s name, network, or infrastructure to conduct fundraising activities.

The Superintendent will develop procedures to ensure the effective administration of this policy.

Cross Reference: 7260 Donations, Endowments, Gifts, and Investments

3530 Student Fund Raising Activities

4530 Cooperative Programs with Business and the Business Community

7425 Extra and Co-Curricular Funds

Legal Reference: §20-6-601, MCA Power to accept gifts

§20-6-604, MCA Sale of property when resolution passed after hearing – appeal procedure

§2-2-102(3), MCA Definitions

§2-2-104, MCA Rules of conduct for public officers, legislators, and public employees

20-9-501, MCA Extracurricular Fund for Pupil Functions

Policy History:

Adopted on: 1/14/2019

Revised on: 9/21/2020, 7/29/2024

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7225P

Fundraising

Fundraising provides important revenue enhancements that support District operations, District-sponsored groups, and District Partner Organizations. Fundraising revenue generated from corporate sponsorships and fixed or semi-permanent signage (signage that remains in place after an activity/event) with font size greater than two inches is reserved for District operations. With the approval of the Superintendent or designee, revenue generated by other fundraising efforts including gameday experience advertising such as PA announcements, TV Screens, removable signage, fixed or semi-permanent signage with font size smaller than two inches, and “extra signage” that doesn’t interfere with fixed signage may be used to support District sponsored groups or District Partner Organizations.

Pre-approval by the building administrator is required for all fundraising initiatives prior to soliciting donations, regardless of the amount of the request. Additionally, Central Office review and pre-approval is required for all fundraising proposals that:

Are expected to raise more than $2,500

Have technology, curriculum, facility, or other Districtwide implications

Further, any fundraisers requiring Board authorization or matching funds—including in-kind contributions—must be presented to the Board for authorization.

If the proposal is denied, the employee proposing the fundraiser will receive notification of the reason for denial. Reasons for denial may include:

The proposal requests the purchase or use of technology that is not compatible with the Bozeman Schools current or future plans for the purchase and/or use of technology and/or not supported by the District’s technology department.
The proposal requests the purchase of curriculum materials and supplies that are not aligned with established District curriculum.
The proposal requests materials that could be substituted by similar materials that will be or are already supplied by the District.
The proposal seeks to start a program that would require the continued use of materials or funding beyond what is obtained through the proposal.
The proposal will result in demands on staff not involved in the proposal.
The proposal is in conflict with or detracts from adequate instructional time and/or established goals in the Long Range Strategic Plan.
The proposal or crowdfunding platform necessitates electronic access to District bank accounts.
The proposal requests athletic equipment or donations not consistent with or in direct conflict with the athletic programs of the Bozeman Public Schools.
The proposal is in conflict with current and/or planned curriculum and instruction initiatives, District policy, one or more of the District’s Collective Bargaining Agreements, regulations of the Office of Public Instruction and/or Montana General Laws.
The proposal competes or interferes with District Food Service operations or regulations

Guidelines

Only employees and District-sponsored groups are permitted to raise funds in the name of the District. Individuals and non-District groups may not use the District’s name, logos, network, or infrastructure to conduct fundraising unless specifically approved by the Superintendent.

All funds raised in the name of the District must be deposited directly to District-owned accounts. It is expressly prohibited for employees or other individuals to deposit funds raised in the name of the District into a personal or otherwise non-District owned account. Funds must be used on the purposes for which they were raised unless donors specifically authorize other uses for them.

As public employees, staff members are subject to Montana public employee ethics laws. Staff members may not solicit or accept material, cash, or equipment through a fundraising effort that could be considered a gift of substantial value or that otherwise violates the ethics statutes. However, the District recognizes that cash or cash equivalent transactions may be warranted in certain instances. To mitigate the risk associated with these transactions, additional steps are required:

Each individual request must receive prior approval by the Business Office.
In addition to the requirements listed above, the fundraising file must include verification of the amount received, a receipt for the goods actually purchased, and a signature from the building administrator.

All non-monetary donations (supplies, equipment, etc.) obtained through a fundraising effort are the property of the Bozeman School District and all inventory procedures apply. The items will remain in the school where the author was located at the time of the donation.

Crowdfunding Proposals

A Bozeman School employee or District-sponsored group may submit a crowdfunding proposal to benefit the District by raising funds via an online crowdfunding platform that has been approved by the Business Office. Crowdfunding platforms will be approved only if:

Proceeds are deliverable to the District by check only. Crowdfunding platforms will not be given electronic deposit authority or access to the District bank account information unless specifically authorized by the Superintendent or designee.
Proceed checks are mailed and made payable to the school, not to an individual person.
The requestor has put a system for tracking individual student balances in place, if applicable.

As with all fundraisers, preapproval is required for all crowdfunding proposals. Proposals for fundraisers performed via crowdfunding must clearly state the proposer’s intent to use crowdfunding and include a full copy of all crowdfunding and crowdfunding documents. Employees may not sign or agree to terms with a crowdfunding platform without advance approval from the Superintendent or designee.

Non-monetary “Wish List” Fundraising

A Bozeman School employee or District-sponsored group may submit a proposal to benefit the District by acquiring materials via an online wish list platform. The proposal must be pre-approved by the building principal. Wish list proposals will be approved only if:

Materials sought that are instructional in nature must clearly enhance instructional opportunities provided to students, and must follow and adhere to all selection processes outlined in policy/procedure #2311/P.
All items received via a wish list platform are the property of Bozeman Public School and not owned by the employee.
All items received via the wish list platform must be shipped to the school site or district building.
Any advertising or sharing of the wish list publicly must be pre-approved by the building principal.

CORPORATE SPONSORSHIP PROGRAM

Objective

The Bozeman School District Corporate Sponsorship Program is designed to provide District funding and to help High Schools maintain their current excellence of extra-curricular program offerings. By nurturing the physical, mental and social development of Bozeman youth, these extra-curricular programs enhance the student/athlete total educational process and provide opportunities which will greatly affect many student/athlete’s life-long goals and dreams.

Review Committee

Proposals for corporate sponsorships shall be submitted to and evaluated by a committee comprised of the following staff, as appropriate:

District Activities Director
High School Principal/Designee
Department Administrator or Supervisor
Business Office/Financial Services Designee

Evaluation Criteria

All corporate sponsorship proposals shall be evaluated according to, but not limited by, the following criteria:

National Federation and MHSA rules
Equity requirements
Appropriateness of company or product in relation to high school activities
Assurance of maintenance of control over programs by School District #7
Possible conflicts between competitive sponsors

Policy History:

Adopted on: 1/14/2019

Revised on: 7/29/2024, 8/28/2025, 2/02/2026

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7250

Rental or Lease of School District Property

The Board of Trustees through the Superintendent or designee shall be authorized to rent or lease the real and personal property of the school district. Such property shall be rented or leased for lawful purposes only. The rental or lease shall be in the best interest of the school district and shall not interfere with the conduct of the district's educational program and related activities. Appropriate insurance requirements per Policy #4330 will be made of the renter. Proceeds from the rental or lease of property shall be deposited and expended according to statutory provisions.

The Board of Trustees authorizes the Superintendent or designee to establish the procedures and the rental fees for the rental and leasing of school district real and personal property.

Cross Reference: 4330 Community Use of School Facilities

Legal Reference: 20-6-607 MCA

82-10-200 MCA

Policy History:

Adopted on: 12/08/1986

Revised on: 11/11/1991

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7260

Donations, Endowments, Gifts, and Investments

The Superintendent or his/her designee may accept gifts, endowments, legacies, and devices given to the school district subject to conditions imposed by the donor or without obligation relative to use and/or disposal. Acceptance of gifts by anyone other than the Superintendent is subject to final approval of the Superintendent.

When the Superintendent determines that the conditions for acceptance of a gift are exceptional he/she shall place the offer on a board agenda as a singular action item. Conditions that may be exceptional include but are not limited to:

requiring individual, corporate or business identification to be placed on the gift or elsewhere on District property (Policy #4530 allows specific examples of this);
requiring the District to expend funds in order to use the gift;
the gift alters the District curriculum;
the gift is controversial or highly visible; or
the gift is of significant value.

Neither the Board nor the Superintendent will approve any gifts that are inappropriate.

Unless otherwise specified by the donor, when a district receives a donation the trustees may deposit the donation in any budgeted or non-budgeted fund at the discretion of the trustees and may thereafter transfer any portion of the donation to any other fund at the discretion of the trustees.

If the trustees accept a donation and the donor specifies the donation for an endowment, the trustees shall deposit the donation in the endowment fund. Endowments received by the school district will be deposited to an endowment fund as an expendable or non-expendable trust. Unless the conditions of the endowment instrument require immediate disbursement, money deposited in the endowment fund shall be invested by the Board according to the provisions of the Uniform Management of Institutional Funds Act (Title 72, chapter 30, MCA).

If the District deposited donated funds in an endowment fund without specific instruction by the donor, the Board may move the donated funds and any accumulated interest to any other budgeted or nonbudgeted fund of the District and may spend donated funds and any accumulated interest unless restricted by condition imposed by the donor.

The Board authorizes the Superintendent to establish procedures for determining the suitability or appropriateness of all gifts received and accepted by the District. Once accepted, donated funds are public funds subject to state law. Benefactors may not adjust or add terms or conditions to donated funds after the donation has been accepted.

The Board directs that all school funds be invested in accordance with District investment policy.

Cross Reference: Policy/Procedures 3530/3530P, 4222/4222P, 4530/4530P, 7280/7520

Legal Reference: § 20-6-601, MCA Power to accept gifts

§ 20-7-803, MCA Authority to accept gifts

§ 20-9-212, MCA Duties of county treasurer

§ 20-9-213(4), MCA Duties of trustees

§ 20-9-604, MCA Gifts, legacies, devises, and administration of endowment fund

§ 72-30-209, MCA Appropriation for expenditure or accumulation of endowment fund – rules of construction

Policy History:

Adopted on: 12/08/1986

Revised on: 10/25/1993, 9/24/2001, 1/10/2005, 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7260P

Endowments and Gifts

School employees may tentatively accept gifts to the School District with the prior approval of the administrator in charge of the school or department receiving the gift, and subject to final acceptance by the Superintendent.

Appropriateness of Gifts

The following guidelines should be used to determine the appropriateness of gifts:

Does the item meet the same standards of selection as those applied to the purchase of such items by the School District?

Is it appropriate to the program?

Is it usable?

Does the item meet safety standards?

Does it fit within the existing furnishings or programs of the District?

Can the gift be maintained without undue cost to the District?

Is the item free from liens or encumbrances?

Gifts which will require maintenance and/or installation or are not free from liens or encumbrances must be reviewed by the Superintendent or designee prior to acceptance. In instances where the Superintendent or designee doubts the appropriateness or usefulness of an offered gift, the gift may be declined or the matter may be referred to the Board.

The donation of technology equipment, i.e., computers, hardware, and software, must fit with the District’s computer hardware/software guidelines. In order to promote equity among classrooms, a single computer donated by a family may be assigned to a specified classroom for the time period that family’s student is in the classroom. After this period of time, assignment of the equipment shall be at the discretion of the school principal.

Acknowledgement of Gifts

Gifts and donations to the School District from school support organizations (i.e., Parent Advisory Councils, Booster Clubs, Friends of Music, etc.) will be reported to the Board annually at the end of each school year. School principals shall compile the information for the Annual Report.

The attached receipt should be completed by the school or department receiving the donation and signed by the Superintendent or designee. All donations of tangible assets with a market value greater than or equal to $5,000 and a useful life of more than one year will be placed on the District’s Fixed Asset records. The description should be as detailed as possible and include serial numbers if applicable.

Form 7260F

BOZEMAN SCHOOL DISTRICT NO. 7

RECEIPT OF DONATION

INDIVIDUAL/ORGANIZATION NAME:: .

School or Department Receiving the Donation

Bozeman School District No. 7 acknowledges receipt of your donation of:

(description of donation including serial number if applicable)

You have indicated the estimated market value of your donation is $ . Donations of $300 or more will be publicly acknowledged by the Board of Trustees unless you request otherwise.

Thank you for supporting Bozeman Public Schools.

Administrator for School or Department Receiving the Donation

District Clerk

Bozeman School District No. 7

Federal ID Number: 81-6000413

Policy History:

Adopted on: 4/1995

Revised on: 7/07/2004, 7/20/2005

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7261

Memorials

The School Board recognizes that the death of a student, staff or community member is deeply felt by the school community and may invoke a desire to make a memorial contribution. Therefore, only monetary donations will be accepted.

Memorials for deceased students, staff or community members made to the Bozeman School District will be handled in accordance with Policy 7260. Non-permanent spontaneous memorials such as flowers, cards and posters, will be respectfully removed by the end of the school day.

Any permanent memorials in existence before this policy was adopted can only be removed by a vote of the Board of Trustees.

Individual cases may be reviewed by the Superintendent or designee.

Policy History:

Adopted: 4/28/2008

Revised on: 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7270

Grants

The Board of Trustees recognizes the importance of seeking grant funds from federal, state, or local agencies, or private sources that are consistent with district goals and objectives or which create facilities or purchase equipment that will promote district goals and objectives.

Any grant in excess of $25,000 or any grant requiring the expenditure of District funds must be approved by the Board of Trustees. The Superintendent shall have the authority to approve grants up to $25,000. If a grant is to be used for District personnel the opportunity to competitively apply for a grant must be available to all district schools under the same eligibility criteria.

The Superintendent or designee, shall develop and disseminate written procedures regarding grant application and administration.

Policy History:

Adopted on: 11/08/2004

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7270P

Grants

Submittal of a Copy of the Grant

Grantwriters must provide a full copy of all grant proposals to required approvers before submitting it to the funding agency. The grant must include an itemized budget.

Review

For grants under $2,500 approval may be granted by the supervisor of the grant writer. Grants over $2,500 must be reviewed by the Superintendent or designee. Grant proceeds may not be used to pay District employees unless approved in advance by the Human Resource and Business Office administrators. Any grant requiring Board authorization or matching funds will be presented to the Board for authorization.

Notification

Grant writers must inform the supervisor and Business Office of an approved award upon notification from the funding agency. All checks should be forward to the Business Office for deposit.

Guidelines

The District will determine appropriateness of grants and acknowledgement of grants.
Contracts with commercial enterprises for sponsorships must follow policies #4222 and #4530.

Policy History:

Adopted on: 11/08/2004

Revised on: 5/03/2021

Form 7270F

GRANT PROPOSAL DEVELOPMENT PLAN

Contact Name:

_______________________________________________________________

School/Department: Phone:

________________________________ ______________________________

Project Title: _____________________________________________________________

Granting Organization: _____________________________________________________

Date Application Due: ________________ Budget: $_________________________

Project Director: ___________________ Project Supervisor: _________________

Check: New___ Continuation___ Applying Type: Formula__ Competitive__ Contract__

GENERAL PLANNING (Please complete the following. Attach additional page if needed.)

1. Briefly describe the proposed project. (In 2 – 3 sentences, please include what the project will do, why it is needed, and its relevance to district goals.)

_____________________________________________________________________________________

2. Estimated budget and any match necessary. Does grant allow for “indirect” or ‘administrative” costs? If not allowed, documentation MUST be provided to the Business Office. If yes, you must budget for them at the current rate of 4.08% (Elementary); 6.81% (High School) for 2009-10.

_____________________________________________________________________________________

3. Other District services/programs to be directly or indirectly involved or affected, e.g., Technology/Transportation/Custodial/Energy/Financial/Reporting Requirements/etc.

_____________________________________________________________________________________

4. Explain any long-term District or site commitment required by the funding source or program design.

_____________________________________________________________________________________

5. Are there reporting requirements for this grant? If yes, please describe requirements.

_____________________________________________________________________________________

APPROVALS

For grants that require the Superintendent or designee signature, this form must be on file in the Curriculum Office one week prior to the grant application deadline. If the plan is not filed in a timely fashion, the Superintendent or designee reserves the right to not sign the grant.
I understand my department/school will be responsible for, and has already identified, any matching funds needed if this grant is received.
I have read the policy and procedures related to Grants. _____ (initial).

SIGNATURES

Supervisor/Principal:____________________________ Date:_______________

Curriculum Office: ____________________________ Date:_______________

cc: District Clerk

Policy History:

Adopted on:

Revised on: 2/15/2010

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7310

Budget Implementation and Execution

Once adopted by the Board, the operating budget shall be administered by the Superintendent’s designees. All actions of the Superintendent/designees in executing programs and/or activities delineated in that budget are authorized according to these provisions:

Expenditure of funds for employment and assignment of staff shall meet legal requirements of the state of Montana and adopted Board policies.

A listing of expenditures describing goods and/or services must be presented for Board ratification each month.

Purchases will be made according to the legal requirements of the state of Montana and adopted Board policy.

Legal Reference: § 20-3-332, MCA Personal immunity of trustees

§ 20-9-213, MCA Duties of trustees

Policy History:

Adopted on: 12/08/1986

Revised on: 1/13/2014

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7320

Authorization and Control

The Superintendent or designee is authorized to direct expenditures and purchases within the limits of the detailed annual budget for the school year. Board approval for purchase of capital outlay items is required when the aggregate total of a requisition exceeds the amount specified in 20-9-204 (3), MCA except the Superintendent shall have the authority to make capital outlay purchases without advance approval when it is necessary to protect the interests of the District or the health and safety of the staff or students.

The Superintendent or designee shall establish requisition, purchase order, and contracting procedures as a means of monitoring the expenditure of funds. Policies 2310 and 2311 shall be used for the selection and purchase of library materials and textbooks. Staff who obligate the District without proper prior authorization may be held personally responsible for payment of such obligations.

The Board authorizes purchases to be made using the provisions of the Montana Procurement Act (Title 18, Chapter 4 Montana Code Annotated) as appropriate.

Bids and Contracts

Whenever it is in the interest of the District, the District will execute a contract for any building furnishing, repairing, or other work for the benefit of the District. If the sum of the contract or work exceeds the amount specified in 20-9-204 (3), MCA, the District will call for formal bids by issuing public notice as specified in statute. Specifications will be prepared and made available to all vendors interested in submitting a bid. The contract shall be awarded to the lowest responsible bidder, except that the trustees may reject any or all bids as per § 18-4-307, MCA as stated below in the legal reference. The Board, in making a determination as to which vendor is the lowest responsible bidder, will take into consideration not only the amount of each bid, but will also consider the skill, ability, and integrity of a vendor to do faithful, conscientious work and to promptly fulfill the contract according to its letter and spirit. Bidding requirements do not apply to a registered professional engineer, surveyor, real estate appraiser, or registered architect; a physician, dentist, pharmacist, or other medical, dental, or health care provider; an attorney; a consulting actuary; a private investigator licensed by any jurisdiction; a claims adjuster; or an accountant licensed under Title 37, Chapter 50.

Advertisement for bid must be made once each week for two (2) consecutive weeks, and a second (2nd) publication must be made not less than five (5) or more than twelve (12) days before consideration of bids.

The Superintendent may establish bidding and contract-awarding procedures. Each bid and procurement procedures completed by the District will comply with applicable nondiscrimination laws. Each vendor or contractor awarded a contract under this policy or any District procurement process shall comply with all applicable nondiscrimination laws. Bid procedures will be waived only as specified in statute. Any contract required to be let for bid shall contain language to the following effect:

In making a determination as to which vendor is the lowest responsible bidder, if any, the District will take into consideration not only the pecuniary ability of a vendor to perform the contract, but will also consider the skill, ability, and integrity of a vendor to do faithful, conscientious work and promptly fulfill the contract according to its letter and spirit. References must be provided and will be contacted. The District further reserves the right to contact others with whom a vendor has conducted business, in addition to those listed as references, in determining whether a vendor is the lowest responsible bidder. Additional information and/or inquiries into a vendor’s skill, ability, and integrity are set forth in the bid specifications.

Cooperative Purchasing

The District may enter into cooperative purchasing contracts with one or more districts for procurement of supplies or services. A district participating in a cooperative purchasing group may purchase supplies and services through the group without complying with the provisions of 20-9-204(4), MCA if the cooperative purchasing group has a publicly available master list of items available with pricing included and provides an opportunity at least twice yearly for any vendor, including a Montana vendor, to compete, based on a lowest responsible bidder standard, for inclusion of the vendor's supplies and services on the cooperative purchasing group's master list.

Cross Reference: 2310 Selection of Library Materials

2311 Instructional Materials

Legal Reference: §§ 18-1-101, et seq., MCA Preferences and General Matters

§§ 18-1-201, et seq., MCA Bid Security

§§ 18-4-121, et. seq., MCA Montana Procurement Act

§ 18-4-307, MCA Cancellation of invitations for bids or requests for proposals

§ 20-9-204, MCA Conflicts of interests, letting contracts, and calling for bids

- exceptions

§ 20-10-110, MCA School Bus Purchases – contracts- bids

Debcon v. City of Glasgow, 305 Mont. 391 (2001)

Title 30, Chapter 20 Financial Industry Nondiscrimination

Title 49, Chapter 2, Part 3 Prohibited Discriminatory Practices

Policy History:

Adopted on: 12/08/1986

Revised on: 3/27/1995, 5/13/1996, 9/27/1999, 5/14/2001, 6/11/2007, 8/15/2011, 5/13/2013, 9/21/2020, 7/15/2024, 7/28/2025

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7320P

Purchasing: Authorization, Control, and Procurement

The following procedures shall be in effect for the purchase of buildings, furnishings, materials, supplies, repairs, and other necessary items.

All purchases shall be authorized by a budget manager or designee. A budget manager may designate another employee to approve purchases in the manager’s place; however, purchase requisitions may not be initiated and approved by the same employee. Any such designation must be reported to the Business Office in writing and acknowledged by the designee. The budget manager still retains ultimate responsibility for the building or department budget, regardless of if a designee has been appointed.

In addition to budget manager approval, all purchases of $10,000 and over require the signature of the Superintendent or designee. All purchases between $20,000 and the bid limit specified in 20-9-204, MCA require the signature of the Executive Director of Business and Operations. Capital outlay purchases in excess of the bid limit specified in 20-9-204, MCA must be approved by the Board prior to issuing a purchase order or a contract to the vendor.

A. Purchases $5,000 and Below

For projects whose anticipated cost is $5,000 or below the budget manager must:

Honor any first-call agreements if they are in effect.
Perform due diligence as needed to determine the best value has been obtained.

B. Purchases between $5,000 and $20,000

For projects whose anticipated cost is expected to be between $5,000 and $20,000, the budget manager must:

Obtain and document a minimum of two verbal quotations from vendors unless:

Fewer than two vendors are available,
The purchased item or service is exempt from the bid requirements established in 20-9-204, MCA, or
The budget manager otherwise determines that the best value has been obtained and clearly documents the rationale for the exception.

Record all quotations with the work order or purchase order.
Select the lowest responsible bidder and obtain a written confirmation of that vendor’s quotation.

C. Purchases over $20,000 up to the bid limit specified in 20-9-204, MCA

Projects for which the anticipated cost is expected to be between $20,000 and up to the bid limit specified in 20-9-204, MCA the budget manager must:

Obtain and document a minimum of three written quotations from vendors for the purchase involved unless:

Fewer than three vendors are available.
The purchased item or service is exempt from the bid requirements established in 20-9-204, MCA, or
The budget manager otherwise determines that the best value has been obtained and clearly documents the rationale for the exception.

Attach all quotations to the purchase order, or with the appropriate work order.
Offer the lowest responsible bidder an order authorizing him/her to proceed with the work or delivery of material or services at the cost quoted.

D. Purchases over the bid limit specified in 20-9-204 MCA

Purchases over the bid limit specified in 20-9-204 MCA must be offered to public bid unless there is a state contract with the vendor for the items to be purchased. The following procedures shall be in effect for purchasing through the bidding process:

Advertisement for bid must be made once each week for two (2) consecutive weeks, and a second (2nd) publication must be made not less than five (5) nor more than twelve (12) days before consideration of bids.
Formal bids shall be opened at the time and place stated in the official advertisement for bids, and any interested member of the public may attend the bid opening. It shall be the bidder’s sole responsibility to see that his/her bid is delivered to the District prior to the time set for opening of bids. Any bid received after the time set for opening the bids shall be returned to the bidder unopened and shall receive no consideration by the District.
Formal bid tabulations shall be presented at the next meeting of the Board.
Bid awards shall be made by the Board in consideration of staff recommendations.
Brand names and manufacturers’ catalog numbers used in specifications are for the purpose of identification and to establish a standard of quality. Bids on equal items shall be considered providing the bidder specifies brand and model, and furnishes descriptive literature. The acceptance of alternative “equal” items shall be conditioned on the District’s inspection and testing after receipt. If not found to be equal, the material shall be returned at the seller’s expense and the contract canceled. In circumstances where only one brand will fulfill all requirements only that brand name will be specified.
The District shall reserve the right to reject any or all bids, waive any formalities and make the award in its best interest.
On construction projects, the bidder shall agree to comply with prevailing wage and affirmative action requirements and shall provide a performance bond, a bid bond, and a labor bond (see policies #9242, 9243 and 9245).
Any contract required to be let for bid shall contain language to the following effect:

The Trustees shall award a contract or purchase order to the lowest responsible bidder. The following factors shall be considered in determining the lowest responsible bidder:

The ability, capacity and skill of bidder to perform the work required.
The character, integrity, reputation, judgment, experience and efficiency of the bidder.
The ability of the bidder to perform the work in the time specified.
The quality of performance of previous contracts or services.
The previous and existing compliance of the bidder with laws relating to public works.
Such other information related to the performance of the contract as the Superintendent deems advisable.

An acceptable bid or offer and a District purchase order shall constitute the only contract necessary for the purchase of supplies, equipment, and minor repairs or construction projects, except that the successful bidder shall meet all conditions included in the specifications.
Formal written contracts shall be prepared for all major construction and repair projects. Each contract awarded by the School District shall specify that in all instances products manufactured or produced by Montana industry and labor shall be preferred for use in all projects and in all materials, supplies and equipment procured if such products, materials, equipment and supplies are comparable in price and quality. Failure to comply shall disqualify such contractor for future contracts for a period of two years. Such contracts shall be signed by the Superintendent or Designee on behalf of the District after the contracts have been awarded by a majority vote of the Board with action recorded in the minutes of the Board meeting. All contracts shall provide that, in the event of a suit by the District to enforce the terms of the contract, venue for the suit shall be laid in Gallatin County and that, if the District is successful in the suit, the court may order reimbursement of the District’s attorney’s fees and court costs in such amount as the court deems reasonable.

In accordance with CFR 200.319(c), all purchase solicitations shall:

Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible.

When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a ‘‘brand name or equivalent’’ description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and

Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.

Standards of Conduct for District Employees

The District maintains the following code of conduct for any employees engaged in award and administration of contracts supported by Federal Funds:

No District employee will engage in any procurement when there is a conflict of interest, real or perceived, and District employees cannot solicit or accept any gratuities, favors or anything of monetary value from prospective vendors. This shall not preclude district personnel from serving on boards or participating in organizations that support the district’s need to obtain quality services and supplies.
No District employee shall participate in the selection, award or administration of a contract when any of the following persons have a financial interest in the firm selected for award:

The employee
Any member of the employee’s immediate family
People with whom the employee has an intimate personal relationship
An organization which employs or is about to employ any of the above

Employees are expected to behave with the utmost integrity and never be self-serving, be fair in all aspects of the procurement process, be alert to conflicts of interest, and avoid any compromising situations. Employees found to be in violation of this policy are subject to disciplinary action, up to and including termination.

Legal References: CFR 200.319(c) Competition

CFR 200.318(c)(1) General Procurement Standards

Policy History:

Adopted on:

Revised on: 3/1995, 5/1996, 3/2002, 6/2007, 8/2011, 1/2013, 10/2013, 10/2014, 10/2017, 6/2018, 8/2022, 1/2023

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7321

Purchasing Cards

The Board authorizes the use of purchasing cards to streamline and increase the efficiency of the district’s purchasing process. The use of school district purchasing cards shall be authorized for specific purposes and only for expenses, which are allowable under school policy and state law. Those purposes may include charges for supplies, equipment, school business meetings and travel expenses. District policies on quotations, bids and travel allowances shall be complied with when using purchasing cards. The school district Business Office will be responsible for obtaining, assigning and canceling the purchasing cards.

Purchasing cards which are the property of the school district may be used by authorized trustees and employees for school district business only. All charges must be properly accounted for and documented, and approved by the administrator with responsibility for the budget appropriations being used. School district purchasing cards shall not be used for personal charges. Any improper personal charges are the employee’s financial obligation and are grounds for discipline up to and including termination of employment. All purchasing cards must be returned to the Business Office upon an employee’s termination of employment or upon specific request of the Superintendent or designee.

The Superintendent is authorized to establish procedures for the use of purchasing cards.

Policy History:

Adopted: 5/11/1998, 2/10/2014

Revised: 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7321P

Purchasing Cards

The following procedures shall be in effect for the use of the Purchasing Cards:

1. Purpose

The goal of the Bozeman Public Schools Purchasing Card is to eliminate the cost and time associated with writing and approving the purchase order, processing the receiving paperwork, and preparing individual checks to merchants.

The program is designed to offer District employees an additional purchasing tool that is fast, easy, and convenient; not to be used as a way to circumvent existing purchasing policies. All purchases still need prior approval as prescribed in 7320P.

The Purchasing Card program carries District liability, not individual liability. Employees will not be required to pay their monthly charges using personal funds, provided the purchases are within acceptable District policies. Use of the card does not impact the employee’s personal credit rating. However, employees are responsible for safeguarding the card as if it were their personal card.

2. Use and Control of the Card

A. Authorization

Authorization controls are set in accordance with the District’s purchasing and accounting guidelines. Administrators will determine who will receive a card in their building or department, and they will assign cardholder charging limits in conjunction with the Business Office. The Business Office will control and maintain a central listing of all cardholders and their limits. Supervisors and principals may request reports for their respective location at any time.

Each transaction on the credit card statement needs to be reconciled and charged to the correct account. The cardholder’s Transaction Log must be notated with the account before it is returned to the Business Office.

B. Purchasing Procedures

(1) On-Site Purchases

a. The cardholder selects the goods and presents them with the card to the cashier.

b. The cashier completes the sale and obtains authorization.

c. The cardholder signs the sales authorization slip and receives a detailed cash register receipt to be retained after entry into his/her transaction log.

(2) Telephone/Fax Orders (discretion should be used as if the card is the employee’s own)

a. The cardholder selects the goods or services, prepares the order form and calls or faxes the order into the supplier.

b. The cardholder instructs the supplier to charge the goods to his/her card number.

c. The cardholder enters the pertinent information into his/her transaction log.

d. The cardholder must instruct the supplier to forward the detailed receipt for retention.

C. Allowed Uses

Examples of allowed uses of the Purchasing Card:

Instructional or operational supplies
Subscriptions
Seminar/workshop registrations
Minor equipment
School business meeting expense
Domestic Travel expenses (airline and lodging)
International Travel expenses (pre-authorized by the Business Office)
Postage

D. Disallowed Uses

Examples of disallowed uses of the Purchasing Card:

Food and gas expenses incurred while traveling. These items are reimbursed to the employee through per diem and mileage rates, respectively (refer to Policy #7336).
Any personal expenditure
Any purchase from a non-approved vendor (refer to Policy #7324).
Any purchase intended to bypass the District’s obligation to the competitive bidding process.
Alcoholic beverages, drugs, pharmaceutical products or other controlled substances.
Payments to individuals, employees or students for any reason.
Moving expenses.
Cash or cash equivalent (ie gift cards), donations or contributions to individuals, employees, students, or organizations, unless allowable under McKinney Vento Grant rules and regulations.
Firearms, ammunition, explosives or other items that are considered dangerous.
Purchase or removal of hazardous or radioactive materials.
Cash advances.
Goods purchased outside the United States or from any foreign vendors where currency exchange taxes or fees are incurred.

E. Card Control

Individual Cards

Each cardholder is responsible for the security of their card and all the transactions made against it. The card will be issued in each individual’s name and all purchases made against that card will be assumed to have been made by that individual. Only the individual to whom the card is issued is authorized to use the card. Lending or sharing an individual card is strictly prohibited. The individual will also be responsible for ensuring all card activity is recorded in the transaction log and reconciling the transaction log to the monthly statement.

Department Cards

Department cards will be issued in the name of the school and department. The department head will be the card custodian whose responsibility will be to monitor card use and will maintain a check-out log to assure proper use and accountability of department cards. The custodian will also be responsible for ensuring all card activity is recorded in the transaction log and reconciling the transaction log to the monthly statement.

F. Card Suspension/Termination

Employees who do not comply with the purchase procedures and/or statement and receipt submission requirements will have their card suspended until their direct Supervisor submits a formal request to the Business Office to re-activate the card.

Employees who fail to comply with the procedures after their initial suspension will have the card revoked indefinitely.

3. Issuance of Cards

A. New Cards

The following steps are to be taken to obtain a new purchasing card:

(1) The cardholder’s Supervisor or Principal must send a direct request to the Director of Business Services. This request must include the cardholder's full legal name and requested credit limit amount.

(2) The employee reviews and signs the “Purchasing Card Employee Agreement”.

(3) The form is then forwarded to the Business Office for processing.

(4) The bank will distribute the new card to the employee within 10 days of Business Office approval.

B. Changes to Existing Cards

The following steps are to be taken to change a card:

(1) The cardholder’s Supervisor or Principal must submit a direct request to the Director of Business Services with the proposed change.

(2) The Business Office will review the request and approve or deny requested changes.

(3) The employee will receive notification after the change has been processed.

C. Cancellation of Cards

The following steps are to be taken when a card is canceled or an employee leaves the District:

(1) The supervisor or principal is responsible for collecting the card when notified by either the employee of their intent to leave or by the Business Office.

(2) The supervisor or principal immediately cuts the card in half and forwards the destroyed card to the Business Office.

(3) The Business Office notifies the US Bank to cancel the card upon receipt of the destroyed cards.

4. Monthly Statement Reconciliation and Record Retention

The cardholders are required to obtain both a sales authorization slip, which is signed by the cardholder, and a detailed cash register receipt from the merchant. Packing lists, order forms and cash register tapes are not acceptable forms of proper documentation. The cardholder is then required to enter the transaction with the proper General Ledger Account onto the Transaction Log. The receipt and sales authorization slip are to be maintained with the Transaction Log.

Each cardholder will receive a monthly statement from the Business Office detailing all activity on their card for the previous month. The cardholder will be required to reconcile all transactions on their statement to their Transaction Log and sign the Transaction Log as acknowledgment that all the transactions are accurate and legitimate. The reconciled and signed Transaction Log, with supporting receipts and sales slips, will be forwarded to the Business Office within 5 days of receiving their monthly statement.

5. Transaction Dispute Process

In the event that a problem with a transaction arises, the cardholder is responsible for resolving the dispute. If the discrepancy is due to a merchant error, the cardholder should contact the merchant within 24 hours of receiving their statement to rectify the problem. If the merchant agrees that an error has been made, the correction must be credited to the card. Cash or check refunds are strictly forbidden.

If the cardholder cannot resolve the dispute with the merchant or if the discrepancy is due to bank error, the cardholder should contact the Purchasing Card Department at US Bank within 24 hours of receiving their statement. After US Bank has completed its investigation, the cardholder will be notified of the resolution. If the dispute is not resolved to the cardholder’s satisfaction, the cardholder should contact the Business Office.

6. Lost or Stolen Cards

A lost or stolen card must be reported to the Business Office immediately. The Business Office will contact the bank to report the loss or theft. A replacement card will be sent by the bank to the Business Office. If the loss or theft is noticed outside of normal business hours, the cardholder should contact the bank’s Purchasing Card Department directly to report the card lost or stolen. However, a cardholder cannot request a replacement card. The Director of Business Services and Accounting Supervisor are the only District employees authorized to request new or replacement cards.

7. Contacts

District Business Office - 406-522-6037 or 406-522-6038

Policy History:

Adopted on:

Revised on: 9/2008, 7/2017, 11/16/2021, 9/14/2022, 1/6/2025, 11/03/2025

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7324

Vendor Authorization

The Board of Trustees directs that all vendors doing business with the school district are required to be approved and authorized. All purchases for goods and services must be limited to authorized vendors only. Vendors are required to follow established procedures for the acquisition and purchase of goods and services specified by the school district which are intended to ensure conformity in the purchasing process.

The Superintendent or designee is authorized to establish the procedures for approving school district vendors.

Legal Reference: 20-7-608 M.C.A. Offer or Acceptance of Enrollments or Other Inducements

20-3-332 M.C.A. Personal Immunity and Liability of Trustees

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7324P

Vendor Authorization and Selection

The Business Office shall maintain a list of approved vendors. The list shall be updated as budget managers approve purchases from new vendors through these procedures.

Vendor Authorization and Selection for Facilities

The Facilities Department shall keep a list of all vendors who express an interest in performing work for the District. The Facilities Department shall publicly advertise at least once a year for the purpose of updating this list.

The Director of Facilities shall also use other means as necessary (seek recommendations from other districts, use the phone directory, etc.) to locate vendors capable of performing work for the District.

The Director of Facilities shall select vendors based on the following criteria:

Demonstrated ability in the craft required.

Greatest likelihood of obtaining the most cost efficient result.

Rotate selection among vendors who are otherwise equally capable unless a first-call agreement is in effect.

First-call agreements shall be for no longer than one year at a time; and shall be obtained by negotiating with two or more vendors who express interest in doing all the district’s work in one craft area for the school year; and shall apply only to projects whose anticipated cost is $1,000.00 or less. The basic premise of these agreements shall be to obtain an hourly rate less than the normally charged rate for the craft involved in exchange for one vendor being given the first opportunity to perform each item of work in its craft area.

The vendor must have on file in the Facilities office proof of Worker’s Compensation Insurance unless an Independent Contractor Exemption is on file in the Facilities office. The vendor must also have on file in the Facilities office proof of liability insurance if it is expected that the vendor will perform more than $3,000 in labor during the school year.

Vendor Authorization/Tax Exempt Financial Products

Bozeman Public Schools allows employees to contribute to certain tax deferred financial products authorized by IRS codes. A wide variety of products is available in the marketplace. The district does not wish to constrain the choice of employees, nor will the district endorse a product line in any tax deferred or tax exempt financial area.

However, to assure efficiency in business operations, certain criteria have been designed and will be uniformly applied.

The district will make no payroll deductions to any plan until and unless the vendor of that plan presents affidavits from ten (10) district employees who expressly wish to have payroll deductions made on their behalf.

It is incumbent upon the vendor of any such plan to maintain a minimum enrollment of ten (10) district employees. Ninety days after a vendor has fallen below the minimum of ten (10) required district participants in the plan, the district may by serving notice to the employees and the vendor terminate any further payroll deductions to that plan.

In the event of the loss of the availability of a financial product, the district of course will allow an employee so desiring to choose from any of the other qualified plans.

The district is aware that some plans are represented by more than one local agent. Irrespective, the district will make only one contribution monthly to the parent financial plan. It shall be incumbent upon the plan to work out any details of who may represent the plan and of how agent fees are to be credited and paid. The district assumes no responsibility in these matters.

Vendor Authorization/Employee Benefits

Certain employee benefits are prescribed by collective bargaining agreements, including health insurance, dental insurance, disability insurance, vision insurance and term life insurance. Also, the district has provided supplementary term life insurance. The district currently administers a cafeteria plan under provisions of Section 125 of the IRS codes and may elect to make other benefit options available to employees from time to time.

Group rates are significantly lowered as the numbers of employees increase through elective participation. Therefore, the district will enter into an agreement with only one vendor for each of the insurance benefits, and the district may elect to combine one or more of the insurance benefits. The district’s joint insurance committee oversees these matters, and recommends to the Board of Trustees the product line or lines thought best to meet the needs of the employees. The district retains one or more agent of record to act for and on behalf of the district in benefits management and advisement, to provide information, evaluations and analyses in all areas of employee benefits for Bozeman School District No. 7; and to negotiate directly with the home office of any interested company or current provider with respect to insurance policies and contracts. Additionally, the agent is specifically authorized to call for and review administrative services relative to IRS Section 125 flexible employee benefit plans, and to review with the district options that might be considered for inclusion within any flexible benefit plan so qualified. The agreement with the insurance advisor may be terminated or modified at any time by either party by providing a 30 day written notice of the termination to the other party.

The agreement with any agent of record shall be reviewed and renegotiated not less than annually.

The agreements with providers of any and all insurance benefits to district employees shall also be reviewed not less than annually, and shall be renegotiated with the current provider or placed out for bid based in part on the recommendation of the district’s then current insurance advisor, and in part on the recommendation of the district joint insurance committee.

Nothing herein, however, shall constrain the Board of Trustees from directing that any or all of its insurance plans be bid at any time, nor shall the Superintendent be constrained from making recommendations to the Board regarding any insurance matters.

Policy History:

Adopted on: 2/06/1989

Revised on: 11/11/199, 3/21/1995

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7325

Accounting System Design

The School District accounting system shall be established to present with full disclosure the financial position and results of the financial operations of the School District funds and account groups in conformity with generally accepted accounting principles. The accounting system must be in compliance with the accounting system requirements established by legislative action. The accounting system shall be able to demonstrate compliance with finance-related legal and contractual provisions.

Policy History:

Adopted on: 12/08/2006

Revised on:

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7326

Documentation and Approval of Claims

All financial obligations and disbursements must be documented in compliance with the statutory provisions and audit guidelines. The documentation will specifically describe acquired goods and/or services, the budget appropriations applicable to payment, and the required approvals. All purchases, encumbrances and obligations, and disbursements must be approved by the administrator designated with the authority, responsibility and control over the budget appropriations. The responsibility for approving these documents cannot be delegated.

The school district Business Office will be responsible for the development of the process and forms to be used in the requisition, purchase and payment of claims.

Policy History:

Adopted on: 12/08/2006

Revised on: 9/21/2020

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7329

Petty Cash and Change Boxes

The use of petty cash accounts shall be authorized for minor purchases only. The petty cash accounts are for purchases of minimal amounts. Individual personal reimbursements and larger purchases should not be made from petty cash funds. Petty cash accounts will be maintained as cash on hand, and the total dollar amount of each petty cash account and change box will be limited to amounts set by the Superintendent or designee pursuant to procedure #7329P.

Each administrator of a school or department with a petty cash account or change box will appoint and designate a fund custodian to carry out the bookkeeping and security of the accounts. All school district petty cash accounts will be handled on an imprest basis whereby the actual amount of cash on hand plus the petty cash receipts must equal the original petty cash amount. Monies which are not specifically petty cash monies shall not be commingled with the petty cash account. At the conclusion of each school year, all petty cash accounts and change boxes must be closed out and the petty cash vouchers and cash on hand returned to the Business Office for processing.

The school district Business Office shall be responsible for establishing the procedures involving the use and management of petty cash accounts and change boxes.

Policy History:

Adopted on: 12/08/1986

Revised on: 9/23/1996, 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7329P

Petty Cash Accounts

Requests for petty cash funds be made to the Business Office.

When departments need to replenish the fund, they should prepare a claim to their petty cash fund and charge the appropriate account codes based on the purchases that have been made. All receipts and other documentation of the petty cash purchases should be attached to the claim.

At the end of the school year, or when the department has finished with the petty cash fund, remaining funds and all unprocessed receipts will be returned to the Business Office.

Petty cash funds are limited to:

High Schools $600

Middle Schools $350

Emily Dickinson, Hyalite, Meadowlark, $200

and Morning Star Elementaries

All other schools and departments $100

Change Cash Accounts

High School athletics/activities will be allowed up to $4,000 for their change boxes.

Food Service will be allowed up to the following amounts for their change boxes:

Elementary K-5 $100

Middle Schools $400

High Schools $800

Adult Education $400

Business Office Use:

To establish the fund, prepare a claim to the particular petty cash fund, coded to the appropriate petty cash or change box codes. For instance: For a middle school or elementary petty cash fund, charge the elementary petty cash account and for a high school petty cash fund, charge the high school petty cash account. Central Administration office funds should be charged to the appropriate fund(s).

When the funds are returned, verify that the correct amount has been returned, give the individual a receipt, prepare a list of the accounts and proper proportions in order to make the deposit to the original funds.

Policy History:

Adopted on:

Revised on: 12/01/1987, 9/24/1996, 12/02/1999, 11/05/2004, 4/24/2019, 9/09/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7330

Payroll: Authorization

Employment of all certified and classified staff must be approved by the Board of Trustees. Authority to pay for such services rendered, follow this approval. The Board may act on behalf of individual staff to deduct a certain amount from the staff member's salary warrant and remit an agreed amount to a designee of the staff member. No deductions may be made from the wages of a staff member except for federal and state income taxes, social security, medical insurance, and state retirement, without the consent of the employee or a legally administered wage attachment.

Legal Reference: 20-4-201 Employment of Teachers and Specialists by Contract

20-4-301 Duties of Teachers

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7332

Advertising in Schools/Revenue Enhancement

Revenue enhancement through a variety of District-wide and District-approved marketing activities, including but not limited to advertising, corporate sponsorship, signage in or on District facilities, is a Board-approved venture. The Superintendent or designee may approve such opportunities subject to certain restrictions in keeping with the community standards of good taste. Preferred advertising includes messages encouraging student achievement and establishment of high standards of personal conduct.

All sponsorship contracts will allow the District to terminate the contract if it is determined that it will have an adverse impact on implementation of curriculum or the educational experience of students.

The revenue derived should:

Enhance student achievement;
Assist in maintenance of existing District athletic and activity programs; or
Support scholarship programs for students participating in athletic, academic, and activity programs, who demonstrate financial need or merit.

Appropriate opportunities for marketing activities include but are not limited to:

Fixed signage.
Banners.
District-level publications.
Television and radio broadcasts.
Athletic facilities, including stadiums, high school fields, and high school gymnasiums.
District-level projects.
Expanded usage of facilities beyond traditional uses (i.e., concerts, rallies, etc.).
Individual school publications (when not in conflict with current contracts).

Advertising will not be allowed in classrooms, other than corporate-sponsored curriculum materials approved subject to Board policy.

The following restrictions will be in place when seeking revenue enhancement. Revenue enhancement activities will not:

Promote hostility, disorder, or violence;
Attack ethnic, racial, or religious groups;
Discriminate, demean, harass, or ridicule any person or group of persons on the basis of gender;
Be libelous;
Inhibit the functioning of the school and/or District;
Promote, favor, or oppose the candidacy of any candidate for election, adoption of any bond/budget issues, or any public question submitted at any general, county, municipal, or school election;
Be obscene or pornographic, as defined by prevailing community standards throughout the District;
Promote the use of drugs, alcohol, tobacco, or firearms;
Promote any religious or political organization; or
Use any District or school logo without prior approval of the Superintendent or designee.

Cross Reference: 2120 Curriculum and Assessment

2309 Library Materials

2311 Instructional Materials

4530 Cooperative Programs with Business and the Business Community

Policy History:

Adopted on: 9/21/2020

Revised on:

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7335

Personal Reimbursements

While it is recommended that all purchases of goods or services be made within established purchasing procedures, there may be an occasional need for an employee to make a purchase for the benefit of the school district from his/her personal funds. In that event, an employee will be reimbursed for his/her personal purchase under the following criteria:

It is clearly demonstrated that the purchase is of benefit to the school district.

The purchase was made with the prior approval of an authorized administrator.

The item purchased was not available from resources within the school district.

The claim for personal reimbursement is properly accounted for and documented with an invoice/receipt.

The school district Business Office will be responsible for the development of the procedures and forms to be used in processing claims for personal reimbursements.

Policy History:

Adopted on: 12/08/1986

Revised on: 10/23/2000

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7336

Travel Allowances and Expenses

The District will reimburse employees and trustees for travel expenses while traveling outside the District and engaged in official District business. District employees who are not exempted by another policy will be reimbursed according to the accompanying schedule of travel. All travel expenses must be reported on the established travel expense and approved by the employee’s supervisor and the Superintendent or designee.

The District Business Office is responsible for development of procedures and forms to be used in connection with travel expense claims and reimbursements.

Legal Reference: § 2-18-501, MCA Meals, lodging, and transportation of persons in state service

§ 2-18-502, MCA Computation of meal allowance

§ 2-18-503, MCA Mileage – allowance

IRS.gov

Policy History:

Adopted on: 12/08/1986

Revised on: 3/30/1992, 8/09/1999, 11/12/2012, 6/11/2018

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7336P

Travel Allowances and Expenses

Failure to attend a conference/event without documentation of an unavoidable event/s will result in the employee being held responsible for repayment of any non‐refundable charges paid by or invoiced to the Bozeman School District on behalf of the employee.

Travel Allowance Schedule (per day)

Lodging Costs (includes tips, receipt required)

The United States General Services Administration (“GSA”) establishes limits on certain costs—including

travel—paid with federal funding sources. The GSA lodging limits change annually and are available online at

Per Diem Rates | GSA.

In-state lodging costs not paid with federal funds may not exceed the limits established by the Montana Department

of Administration.

Meal Allowance (includes tips)

In-State Out-of-State

Travel Travel

Morning Meal $11.20 $16.00

Allowance if in travel status between the hours of

12:01 a.m. and 10:00 a.m.

Not eligible if departure is after 6:59 a.m.

Mid-day Meal $13.30 $19.00

Allowance if in travel status between

10:01 a.m. and 3:00 p.m.

Evening Meal $19.60 $28.00

Allowance if in travel status between 6:01 p.m.

and 12:00 midnight. Not eligible if return to

Bozeman before 6:01 p.m.

In order for travel meal reimbursements to be excludable from wages, employees must be traveling away from their tax home on their employer’s business. In general, ‘traveling away from tax home’ means:

The employee must remain outside Gallatin County substantially longer than an ordinary day’s work, and
The employee needs to obtain substantial sleep or rest to meet the demands of the work while away from home.

Meal allowance payments that do not meet these criteria will be processed and taxed through payroll.

Mileage Reimbursement:

The District uses the IRS standard mileage rate for travel reimbursements paid using District funds. Effective July 1, 2026 the rate is $0.76 per mile. The mileage reimbursement rate for travel from January 1, 2026 through June 30, 2026 is $0.725 per mile.

In no case will the mileage reimbursement exceed the cost of the least expensive commercial airfare to the destination traveled.

Commercial Air Transportation:

Will be reimbursed according to the least expensive class of service available. A receipt is required.

The following items will not be reimbursed:

Items for which personal receipts are required but are not provided.
Any personal expenses,
Telephone call charges, and
Alcoholic Beverages.

Exceptions to the Travel Allowance Schedule

Exceptions to the travel allowance schedule will be applied under the following circumstances and situations:

The employee is required to engage in official school business in a city with unusually high lodging and food costs, and the employee is unable to locate accommodations at a rate consistent with the travel allowance schedule.
The employee attends a banquet at a conference or convention, the cost of which exceeds the meal allowance schedule.
Meals provided to employees in the course of entertaining guests or conducting business are allowable and excludable from wages if the expenses are ordinary and necessary and meet either the Directly-Related Test or Associated Entertainment Test described in the most current IRS Taxable Fringe Benefit Guide. All meals purchased under this provision may be approved at the discretion of the District Clerk.
Lodging at or below federal rates is temporarily unavailable due to special functions such as fairs, sporting events, conventions, or seasonal demand.
There is a shortage of available lodging facilities that agree to accept federal rates at the destination site.
Federal rates, or rates significantly lower than a conference hotel rate, are not available at another lodging facility within a reasonable distance from the site where business activities are to occur. (Consider the cost of ground transportation and the employee's safety or convenience walking to alternative lodging facilities.)
It is necessary for purposes of accessibility and/or security for the employee to stay at the hotel or near the site where the conference or meeting the employee is attending is being held.
Emergency travel arrangements prevent finding accommodations at or below federal per diem rates.
Remote locations with limited accommodations within a 15-mile radius prevent finding accommodations at or below federal per diem rates.

Travel Expense Advance

Whenever an employee is required to engage in official school business outside of the school district, a travel advance of eighty percent (80%) may be made for the anticipated travel expenses according to the schedule of travel expense allowances. The approved request for a travel advance must be presented to the Business Office for processing at least ten (10) business days prior to the scheduled departure. The travel status must exceed twenty-four (24) hours and the anticipated travel expenses must exceed One Hundred Dollars ($100).

District Purchasing Cards

The use of school district purchasing cards shall be authorized for specific purposes and only for expenses which are allowable under school policy and state law. Those purposes may include charges for school business meetings, lodging expenses, and commercial air transportation. The school district Business Office will be responsible for obtaining and assigning the cards.

Purchasing cards which are the property of the school district may be used by authorized Trustees and employees for school district business only. Before payment will be made by the school district, the charges must be properly accounted for and documented, and approval made by the administrator with responsibility for the budget appropriations being used for the payment of the charges. School district purchasing cards shall not be used for personal charges. Any improper personal charges are the employee’s financial obligation. All purchasing cards must be returned to the Business Office upon an employee’s termination of employment or upon specific request of the Superintendent of Schools.

Policy History:

Adopted on:

Revised on: 11/11/1988, 1/16/1990, 3/30/1992, 1/04/1993, 1/20/1995, 1/02/96, 1/07/1997, 8/04/1997,

2/10/1998, 8/09/1999, 1/27/2000, 1/27/2001, 1/15/2002, 1/13/2003, 1/12/2004, 1/12/2005, 1/06,

12/2006, 7/2008, 1/2009, 11/2009, 1/2010, 1/2011, 7/2011, 1/2013, 12/2013, 12/2014, 1/2016,

10/2016, 1/2017, 1/2018, 6/2018, 1/2019, 1/2021, 1/11/2022, 4/06/2022, 6/22/2022, 7/18/2023,

1/04/2024, 1/07/2025, 1/06/2026, 8/10/2026

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7338

Allowability of Costs - Federal Programs

Expenditures must be aligned with approved budgeted items. Any changes or variations from the approved budget and grant application need prior approval from the state or granting agency.

Delegation of Responsibility

When determining how the school district will spend its grant funds, the District Authorized Representative will review the proposed cost to determine whether it is an allowable use of federal grant funds before obligating and spending those funds on the proposed good or service.

Allowability Determinations

All costs supported by federal education funds must meet the standards outlined in EDGAR, 2 CFR Part 3474 and 2 CFR Part 200, Subpart E, which are listed below. The Authorized Representative must consider these factors when making an allowability determination. A section entitled, Helpful Questions for Determining Whether Costs are Allowable, is located at the end of this document.

Part 200 sets forth general cost guidelines that must be considered, as well as rules for specific types of items, both of which must be considered when determining whether a cost is an allowable expenditure of federal funds. The expenditure must also be allowable under the applicable program statute (e.g., Title I of the Every Student Succeeds Act (ESSA), or the Carl D. Perkins Career and Technical Education Act (Perkins)), along with accompanying program regulations, nonregulatory guidance and grant award notifications.

Restrictions in state and local rules or policy also must be considered.

General allowability determination factors include the following:

Be Necessary and Reasonable for the performance of the federal award. A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision to incur the cost was made. For example, reasonable means that sound business practices were followed, and purchases were comparable to market prices.

When determining reasonableness of a cost, consideration must be given to:

Whether the cost is a type generally recognized as ordinary and necessary for the operation of the district or the proper and efficient performance of the federal award.
The restraints or requirements imposed by factors, such as: sound business practices; arm’s-length bargaining; federal, state and other laws and regulations; and terms and conditions of the federal award.
Market prices for comparable goods or services for the geographic area.
Whether the individual incurring the cost acted with prudence in the circumstances considering responsibilities to the district, its employees, its students, the public at large, and the federal government.
Whether the district significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the federal award’s cost. (2 CFR Sec. 200.404)

Whether a cost is necessary will be determined based on the needs of the program. Specifically, the expenditure must be necessary to achieve an important program objective. A key aspect in determining whether a cost is necessary is whether the district can demonstrate that the cost addresses an existing need, and can prove it. For example, the school entity may deem a language skills software program necessary for a limited English proficiency program.

When determining whether a cost is necessary, consideration may be given to:

Whether the cost is needed for the proper and efficient performance of the federal award

program.

Whether the cost is identified in the approved budget or application.
Whether there is an educational benefit associated with the cost.
Whether the cost aligns with identified needs based on results and findings from a needs

assessment.

Whether the cost addresses program goals and objectives and is based on program data.

Allocable to the federal award. A cost is allocable to the federal award if the goods or services involved are chargeable or assignable to the federal award in accordance with the relative benefit received. This means that the federal grant program derived a benefit in proportion to the funds charged to the program. (2 CFR Sec. 200.405)

For example, if fifty percent (50%) of a teacher’s salary is paid with grant funds, then that teacher must spend at least fifty percent (50%) of his/her time on the grant program.

Consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the school entity.
Conform to any limitations or exclusions set forth as cost principles in Part 200 or in the terms and conditions of the federal award.
Consistent treatment. A cost cannot be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been assigned as an indirect cost under another award.
Adequately documented. All expenditures must be properly documented.
Be calculated in accordance with generally accepted accounting principles (GAAP), unless provided otherwise in Part 200.
Not included as a match or cost-share, unless the specific federal program authorizes federal costs to be treated as such. Some federal program statutes require the nonfederal entity to contribute a certain amount of nonfederal resources to be eligible for the federal program.
Be the net of all applicable credits. The term “applicable credits” refers to those receipts or reduction of expenditures that operate to offset or reduce expense items allocable to the federal award. Typical examples of such transactions are: purchase discounts; rebates or allowances; recoveries or indemnities on losses; and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the state relate to the federal award, they shall be credited to the federal award, either as a cost reduction or a cash refund, as appropriate. (2 CFR Sec. 200.406)

Selected Items of Cost

Subpart E of Part 200 sets forth principles to be applied in establishing the allowability of fifty-five (55) specific cost items (commonly referred to as Selected Items of Cost), at 2 CFR Sec. 200.420-200.475. These specific cost items are listed in the chart below along with the citation to the section of Subpart E addressing the allowability of that item. These principles are in addition to the other general allowability standards, and apply whether or not a particular item of cost is properly treated as direct cost or indirect (F&A) cost. Meeting the specific criteria for a listed item does not by itself mean the cost is allowable, as it may be unallowable under other standards or for other reasons, such as restrictions contained in the terms and conditions of a particular grant or restrictions established by the state or in Board policy. If an item is unallowable for any of these reasons, federal funds cannot be used to purchase it.

School district personnel responsible for spending federal grant funds and for determining allowability must be familiar with and refer to the Part 200 selected items of cost section. These rules must be followed when charging these specific expenditures to a federal grant. When applicable, employees must check costs against the selected items of cost requirements to ensure the cost is allowable, and also check state, district and program-specific rules.

The selected item of cost addressed in Part 200 includes the following (in alphabetical order):

Item of Cost	Citation of Allowability Rule
Advertising and public relations costs	2 CFR § 200.421
Advisory councils	2 CFR § 200.422
Alcoholic beverages	2 CFR § 200.423
Alumni/ae activities	2 CFR § 200.424
Audit services	2 CFR § 200.425
Bad debts	2 CFR § 200.426
Bonding costs	2 CFR § 200.427
Collection of improper payments	2 CFR § 200.428
Commencement and convocation costs	2 CFR § 200.429
Compensation – personal services	2 CFR § 200.430
Compensation – fringe benefits	2 CFR § 200.431
Conferences	2 CFR § 200.432
Contingency provisions	2 CFR § 200.433
Contributions and donations	2 CFR § 200.434
Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements	2 CFR § 200.435
Depreciation	2 CFR § 200.436
Employee health and welfare costs	2 CFR § 200.437
Entertainment costs	2 CFR § 200.438
Equipment and other capital expenditures	2 CFR § 200.439
Exchange rates	2 CFR § 200.440
Fines, penalties, damages and other settlements	2 CFR § 200.441
Fund raising and investment management costs	2 CFR § 200.442
Gains and losses on disposition of depreciable assets	2 CFR § 200.443
General costs of government	2 CFR § 200.444
Goods and services for personal use	2 CFR § 200.445
Idle facilities and idle capacity	2 CFR § 200.446
Insurance and indemnification	2 CFR § 200.447
Intellectual property	2 CFR § 200.448
Interest	2 CFR § 200.449
Lobbying	2 CFR § 200.450
Losses on other awards or contracts	2 CFR § 200.451
Maintenance and repair costs	2 CFR § 200.452
Materials and supplies costs, including costs of computing devices	2 CFR § 200.453
Memberships, subscriptions, and professional activity costs	2 CFR § 200.454
Organization costs	2 CFR § 200.455
Participant support costs	2 CFR § 200.456
Plant and security costs	2 CFR § 200.457
Pre-award costs	2 CFR § 200.458
Professional services costs	2 CFR § 200.459
Proposal costs	2 CFR § 200.460
Publication and printing costs	2 CFR § 200.461
Rearrangement and reconversion costs	2 CFR § 200.462
Recruiting costs	2 CFR § 200.463
Relocation costs of employees	2 CFR § 200.464
Rental costs of real property and equipment	2 CFR § 200.465
Scholarships and student aid costs	2 CFR § 200.466
Selling and marketing costs	2 CFR § 200.467
Specialized service facilities	2 CFR § 200.468
Student activity costs	2 CFR § 200.469
Taxes (including Value Added Tax)	2 CFR § 200.470
Termination costs	2 CFR § 200.471
Training and education costs	2 CFR § 200.472
Transportation costs	2 CFR § 200.473
Travel costs	2 CFR § 200.474
Trustees	2 CFR § 200.475

Helpful Questions for Determining Whether Costs are Allowable -

In addition to applying the cost principles and standards described above, district staff involved in expending federal funds should ask the following questions when assessing the allowability of a particular cost:

Is the proposed cost allowable under the relevant program?
Is the proposed cost consistent with an approved program plan and budget?
Is the proposed cost consistent with program specific fiscal rules? For example, the school entity may be required to use federal funds only to supplement the amount of funds available from nonfederal (and possibly other federal) sources, or only as a match for funds from nonfederal sources.
Is the proposed cost consistent with EDGAR?
Is the proposed cost consistent with specific conditions imposed on the grant (if applicable)?
Is the proposed cost consistent with the underlying needs of the program? For example, program funds must benefit the appropriate population of students for which they are allocated. This means that, for instance, funds allocated under Title III of the Elementary and Secondary Education Act (ESEA) governing language instruction programs for Limited English Proficient (LEP) students must only be spent on LEP students and cannot be used to benefit non-LEP students.
Will the cost be targeted at addressing specific areas of weakness that are the focus of the program, as indicated by available data?

Any questions related to specific costs should be forwarded to the District Authorized Representative who shall consult with the school solicitor for clarification as appropriate.

Personnel Activity Reports – Time and Effort Documentation

The Bozeman School District follows the guidelines in 2 CFR 200.430, Compensation for Personal Services, as well as requirements in specific grants. Therefore, salaries and wages charged to Federal grants will be supported as follows:

Charges will be based on documented payrolls approved by responsible officials of the Organization.

Every staff member whose compensation is charged, in whole or in part, directly to Federal awards, will complete a timesheet or activity report that accounts for the total activity for which the employee is compensated.

These reports will reflect an after-the-fact determination of the actual activity of each employee. Budget estimates will not be used as support for charges to awards.

These reports must be approved by the individual employee and by their supervisor, who has first-hand knowledge of the activities performed by the employee.

Charges for non-exempt employees will also be supported by records required by the Fair Labor Standards Act.

Salaries and wages of employees used in meeting cost sharing or matching (in-kind) are supported in the same manner as salaries and wages charged to Federal awards.

Policy History:

Adopted on: 6/11/2018

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7340

Cash Management - Federal Programs

Generally, the school district receives payment from the Montana Office of Public Instruction (OPI) on a reimbursement basis. In some circumstances, the district may receive an advance of federal grant funds. This policy addresses responsibilities of the district and district staff under those alternative payment methods. In either case, the district shall maintain accounting methods and internal controls and procedures that assure those responsibilities are met.

Payment Methods

Reimbursements -

The District Business Office will periodically request reimbursement for actual expenditures incurred under federal grants. Reimbursement will be submitted on the appropriate form provided by the OPI. All reimbursement requests will be based on actual disbursements, not on obligations. OPI will process reimbursement requests within the timeframes required for disbursement.

Consistent with state and federal requirements, the school district will maintain source documentation supporting the federal expenditures (invoices, time sheets, payroll stubs, etc.) and will make such documentation available for review upon request.

Reimbursements of actual expenditures do not involve interest calculations.

Advances

When the district receives advance payments of federal grant funds, it must minimize the time elapsing between the transfer of funds to the district and the expenditure of those funds on allowable costs of the applicable federal program. (2 CFR Sec. 200.305(b)) The district shall attempt to expend all advances of federal funds within seventy-two (72) hours of receipt.

When applicable, the district shall use existing resources available within a program before requesting additional advances. Such resources include program income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds. (2 CFR Sec. 305(b)(5))

The district shall hold federal advance payments in insured, interest-bearing accounts. The school district is permitted to retain for administrative expense up to $500 per year of interest earned on federal grant cash balances. Regardless of the federal awarding agency, interest earnings exceeding $500 per year shall be remitted annually to the Department of Health and Human Services Payment Management System. (2 CFR Sec. 200.305(b)(9))

Pursuant to federal guidelines, interest earnings shall be calculated from the date that the federal funds are drawn down from the G5 system until the date on which those funds are disbursed by the district. Consistent with state guidelines, interest accruing on total federal grant cash balances shall be calculated on cash balances per grant and applying the actual or average interest rate earned.

Remittance of interest shall be the responsibility of the District Clerk.

Policy History:

Adopted on: 6/11/2018

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7410

Fund Accounting System

The school district accounting system shall be organized on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources. All related liabilities and residual equities or balances, and changes therein, are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.

The following types of funds and account groups shall be used by the school district as required by law and sound financial administration consistent with legal and statutory operating requirements.

Governmental Funds:

General Funds

Special Revenue Funds

Capital Projects Funds

Debt Service Funds

Proprietary Funds:

Enterprise Funds

Internal Service Funds

Fiduciary Funds:

Trust and Agency Funds

Account Groups:

General Long-Term Debt Account Group

General Fixed Assets Account Group

A modified accrual basis of governmental accounting shall be utilized in measuring financial position and operating results.

Legal Reference: 20-9-201 M.C.A. Definitions and Application

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7418

Inactive Funds

The Board of Trustees directs that all school district funds which have served their purpose and which are no longer needed shall be closed. At the conclusion of each fiscal year, a review of all school district funds shall be conducted to determine if any funds have ceased their activity and need to be closed. A report showing all funds and their balances which need to be closed shall be presented to the Board of Trustees for approval of the transfer of any remaining cash balances to another appropriate fund as specified by law.

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7425

Extra and Co-Curricular Funds

The Board of Trustees is responsible for the establishment of an extracurricular fund for the purposes of the receipts and expenditures of money collected for pupil extracurricular functions through approved student body organizations and activities. All extracurricular money shall be (1) deposited and expended by check or purchasing card from a bank account maintained by the school district for the extracurricular fund (2) deposited and expended by check or purchasing card from an Independent Investment Account structure, or (3) deposited and expended through the county treasurer as a depository for student funds. No other district monies shall be commingled with student extracurricular funds.

The admission of new clubs or activities to the extracurricular fund requires approval from the Board of Trustees. Requests for account changes, transfers or account closures and related documentation must be submitted to the Business Office. All transactions made in the student extracurricular funds are subject to approval of the Board of Trustees.

The Board of Trustees authorizes the Superintendent or designee to designate the extracurricular fund custodians. The accounting procedures for all student extracurricular funds shall be established according to the State of Montana, Office of Public Instruction, procedures as set forth in the Student Activity Fund Accounting Handbook distributed by the Montana Association of School Business Officials.

Cross Reference: 7520 Independent Investment Accounts

Legal Reference: § 2-7-503, MCA Financial reports and audits of local government entities

§ 20-9-504, MCA Extracurricular fund for pupil functions

Policy History:

Adopted on: 12/08/1986

Revised on: 2/14/1994, 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Procedure 7425P

Extracurricular Funds

The following is a guideline for the handling of all extracurricular monies.

It is the responsibility of the sponsor of a group or activity to see that all monies of said group are collected and deposited with the fund custodian. In no case may proceeds run through a personal account or any payment platform not administered by the District.

Interest earned on investments of monies from the extracurricular groups or activities maybe held in a separate activity account and will be used to pay for the costs of administering the extracurricular fund. Allowable administrative costs include check costs, receipt costs, computer costs (including software, computer and printer maintenance costs), coin and bill counter costs, postage, envelopes, etc. Any balance in the interest account on June 30 of each year shall be prorated to all other accounts based on their June 30 cash balance.

The sponsor shall restrict purchases for the group activity to self and/or named office. Said sponsor will be knowledgeable of all debts incurred through the operation of said organization or activity and will be responsible to ensure that incurred debts are paid on a timely basis.

The fund custodian or their designee will be responsible for depositing all extracurricular monies, for writing checks for requested payments of said monies, for keeping accurate records of all deposits and withdrawals, for monthly bank reconciliations, for helping student treasurers set up books for their activity or group, and for providing deposit and withdrawal forms for their activity or group.. A monthly accounting of all extracurricular accounts shall be submitted to the Board of Trustees for their review and approval.

Following are the designated fund custodians:

High Schools - Principal

Middle Schools - Principal

Elementary – District Clerk

Policy History:

Adopted on: 12/08/1986

Revised on: 2/14/1994, 8/27/1997, 4/26/2019, 9/21/2020, 11/10/2022

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7426

School District Bank Accounts

The Board of Trustees directs that bank accounts may be established only for those purposes which are specified by law. Bank accounts may be established for accounting for student extra curricular funds and for the purpose of maintaining a clearing account for student extra curricular fund travel expenditures.

The Superintendent or designee shall be authorized to establish the procedures for designating the fund custodians for each bank account maintained by the school district.

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7427

Clearing Accounts

The Board of Trustees authorizes the establishment of clearing accounts with the County Treasurer or as a part of an Independent Investment Account structure. The purpose of the clearing accounts shall be to facilitate accounting of the disbursements from all the school district funds. Clearing accounts which will be temporary and have a normal balance of zero will have no purpose other than to facilitate accounting.

Cross Reference: 7520 Independent Investment Accounts

Policy History:

Adopted on: 12/08/1986

Revised on: 4/25/2022

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7430

Financial Reporting and Audits

The Board directs that financial reports of all District funds be prepared in compliance with statutory provisions and generally accepted accounting and financial reporting standards. In addition to reports required for local, state, and federal agencies, financial reports will be prepared monthly and annually and presented to the Board. Financial reports shall reflect financial activity and status of District funds.

Appropriate interim financial statements and reports of financial position, operating results, and other pertinent information will be prepared to facilitate management and control of financial operations.

Legal Reference: §§ 2-7-501, et seq., MCA Audits of Political Subdivisions

§ 2-7-503, MCA Financial Reports and Audits of local government entities

§ 20-9-212, MCA Duties of county treasurer

§ 20-9-213, MCA Duties of trustees

Policy History:

Adopted on: 12/08/1986

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7433

Audits

The Board of Trustees directs that school district audits shall be conducted in accordance with Montana law. Each audit shall be a comprehensive audit of the affairs of the school district and the school district funds. The audits shall comply with all statutory provisions and governmental auditing standards. The audit shall be conducted annually and cover the immediately preceding fiscal year. The independent auditor selected must be listed on the Montana Department of Administration’s roster of independent auditors authorized to conduct audits of Montana Local Governments.

Legal Reference: Sections 2-7-503 & 20-9-213 M.C.A.

Policy History:

Adopted on: 12/08/1996

Revised on: 7/25/2011

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7500

Property Records

For the purpose of this policy, “equipment” shall mean a unit of furniture, an instrument, a machine, or an apparatus which retains its shape and appearance with use, is nonexpendable, and does not lose its identity when incorporated into a more complex unit. The Superintendent or designee shall ensure that inventories of equipment are systematically and accurately recorded and are updated as needed to comply with applicable law, meet insurance requirements, and ensure accountability. No District-owned equipment shall be removed for personal or non-school use except according to Board policy.

Property records will show, appropriate to the item recorded, the:

Description and identification
Manufacturer
Date of purchase
Initial cost
Location
Serial number, if available
Model number, if available

Equipment may be identified with a permanent tag providing appropriate District and equipment identification.

Cross Reference: 7510 Capitalization Policy for Fixed Assets

Legal Reference: § 20-6-602, MCA Trustees’ power over property

§ 20-6-608, MCA Authority and duty of trustees to insure district property

Policy History:

Adopted on: 12/08/1986

Revised on: 11/11/1991, 6/10/2019, 9/21/2020

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7510

Capitalization Policy for Fixed Assets

A fixed asset is a property that meets all the following requirements:

Must be tangible in nature;

Must have a useful life of longer than the current fiscal year; and

Must be of significant value.

Must be used in conducting the District’s activities.

They include land, buildings, machinery, furniture, and other equipment, which the District intends to hold or continue to use over a long period of time.

Fixed assets may be acquired through donation, purchase, or may be self-constructed. The asset value for a donation will be the fair market value at the time of donation. The asset value for purchases will be the initial cost plus the trade-in value of any old asset given up, plus all costs related to placing the asset into operation. The cost of self-constructed assets will include both the cost of materials used and the cost of labor involved in construction of the asset. The District will capitalize assets whose individual acquisition costs are less than the threshold for an individual asset if those assets in the aggregate are deemed significant to the financial statements by the Superintendent or designee.

The following significant values will be used for different classes of assets:

Class of Fixed Asset Significant Value

Equipment and machinery $10000 or more

Buildings - improvements $25000.00 or more

Improvements other than to buildings $25000.00 or more

Land Any amount

Cross Reference: 7500 Property Records

Legal Reference: GASB Question 5.1 in implementation guide 2021-1

Policy History:

Adopted on: 12/08/1986

Revised on: 6/10/1997, 1/24/2000, 7/25/2011, 9/21/2020, 6/10/2024, 7/28/2025

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7515

Fund Balances

PURPOSE

This fund balance policy establishes a framework for the management of all excess funds managed by Bozeman School District No.7. The policy is in accordance with GASB Statement 54; management of fund balance. It also provides guidance and direction for Trustees as well as staff in the use of excess funds at year-end.

SCOPE

This fund balance policy applies to all funds in the custody of the District Clerk of Bozeman School District, Bozeman, Montana. These funds are accounted for in the District's annual audited financial reports and include, but are not limited to, the following:

General Fund
Special Revenue Funds
Capital Project Funds
Internal Service Funds
Any new funds created by the District, unless specifically exempted by the governing body; in accordance with state law or GASB pronouncements.

CLASSIFICATION OF FUND BALANCES

The school district shall classify its fund balances in its various funds in one or more of the following five classifications: nonspendable, restricted, committed, assigned, and unassigned.

DEFINITIONS

Fund balance---means the arithmetic difference between the assets and liabilities reported in a school district fund.

Nonspendable fund balance - amounts that are not in a spendable form (such as inventory) or are required to be maintained intact (such as the corpus of an endowment fund)

Restricted fund balance - amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation.

Committed fund balance - amounts constrained to specific purposes by the District itself, using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the District takes the same highest-level action to remove or change the constraint.

Assigned fund balance - amounts a school district intends to use for a specific purpose; intent can be expressed by the District or by an official to which the Board of Trustees delegates the authority.

Unassigned fund balance - amounts that are available for any purpose; these amounts are reported only in the general fund.

MINIMUM FUND BALANCE

The school district will strive to maintain a minimum unassigned general fund balance of 5 percent of the annual budget as of June 30.

ORDER OF RESOURCE USE

If resources from more than one fund balance classification could be spent, the school district will strive to spend resources from fund balance classifications in the following order (first to last): restricted, committed, assigned, and unassigned.

COMMITTING FUND BALANCE

A majority vote of the school board is required to commit a fund balance to a specific purpose and subsequently to remove or change any constraint so adopted by the board.

ASSIGNING FUND BALANCE

The school board, by majority vote, may assign fund balances to be used for specific purposes when appropriate. The board also delegates the power to assign fund balances to the Superintendent or designee. Assignments so made shall be reported to the school board on a monthly basis, as part of the Financial Reports.

An appropriation of an existing fund balance to eliminate a projected budgetary deficit in the subsequent year’s budget in an amount no greater than the projected excess of expected expenditures over expected revenues satisfies the criteria to be classified as an assignment of fund balance.

REVIEW

The school board will conduct, at a minimum, an annual review of the sufficiency of the minimum unassigned general fund balance level. This review will generally be done when the annual operating budget is adopted.

Legal References: Statement No. 54 of the Governmental Accounting Standards Board.

Policy History:

Adopted on: 8/05/2011

Revised on:

Bozeman Public Schools

FINANCIAL MANAGEMENT

Policy 7520

Independent Investment Accounts

The Board authorizes the establishment of independent investment accounts separate and apart from those funds maintained by the county treasurer. The Board may transfer cash into an independent investment account from any budgeted or non-budgeted fund, except those specifically prohibited by law.

The District may either:

Establish and use the account as a non-spending account, returning sufficient funds to the county treasurer in time to pay all claims against the applicable fund; or
Establish an associated subsidiary checking account to facilitate transfers to and expenditures from the investment account, provided:

All transactions are accounted for and reported as required by applicable accounting principles, and
The District enters into a written agreement with the county treasurer, in accordance with §20-9-235, MCA.

Legal Reference: § 20-9-235, MCA Authorization for school district investment account

ARM 10.10.612 Spending Investment Accounts

Policy History:

Adopted on: 4/25/2022

Revised on:

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7530

Procurement of Supplies or Services

The Board adopts all applicable provisions of the Montana Procurement Act (i.e., §§ 18-4-121, et seq., MCA).

The Board adopts the following provisions of the Montana Procurement Act:

§ 18-4-303(8), MCA – Competitive sealed bidding. With the exception of construction contracts, allows the District to negotiate an adjustment of the bid price with the lowest responsible and responsive bid in order to bring the bid within the amount of available funds, if, and only if, all bids exceed available funds and the lowest responsible bid does not exceed available funds by more than five percent (5%).

§ 18-4-306, MCA – Sole source procurement. A contract may be awarded for a supply or service item without competition when, the District determines in writing that:

(a) there is only one source for the supply or service item;

(b) only one source is acceptable or suitable for the supply or service item; or

§ 18-4-307, MCA - Cancellation of invitations for bids or requests for proposals. An invitation for bids, a

request for proposals, or other solicitation may be canceled or any or all bids or proposals may be rejected in whole or in part, as may be specified in the solicitation, when it is in the best interests of the state. The reasons therefore must be made part of the contract file.

Legal Reference: § 18-4-121, et seq., MCA Montana Procurement Act

§ 18-4-303, MCA Competitive Sealed Bidding

§ 18-4-306, MCA Sole Source Procurement--records

§ 18-4-307, MCA Cancellation of invitations for bids or

requests for proposals

2.5.604, ARM Sole Source Procurement

Policy History:

Adopted on:

Revised on:

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7535

Electronic Signatures

“Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

Electronic signatures or digital signatures can take many forms and can be created using many different types of technology. For the purpose of this policy, an electronic signature means any electronic identifier intended by the person using it to have the same force and effect as a manual signature.

District Use of Electronic Signatures

When not practical or possible to have an approved individual physically sign a document, and not otherwise prohibited by applicable laws, electronic signatures may satisfy the requirement of a written signature when transacting business with and/or for the District and/or with parents/guardians when the authenticity and reliability of such electronic signature(s) meets the provisions of this policy. In such instances, the electronic signature shall have the full force and effect of a manual signature.

In order to qualify for acceptance of an electronic signature the following additional requirements are applicable:

The electronic signature identifies the individual signing the document by his/her name and title, if appropriate;
The identity of the individual signing the document with an electronic signature is capable of being validated through the use of an audit trail;
The electronic signature, as well as the documents to which it is affixed, cannot be altered once the electronic signature is affixed. If the document needs to be altered, a new electronic signature must be obtained; and
The electronic signature conforms to all other provisions of this policy.

The District shall maintain District electronically signed records in a manner consistent with the District’s document retention policies and capable of accurate and complete reproduction of the electronic records and signatures in their original form. Such retention should include a process whereby the District can verify the attribution of a signature to a specific individual, detect changes or errors in the information contained in the record submitted electronically, and protect and prevent access and/or manipulation or use access/use by an unauthorized person.

Abuse of the electronic signature protocols by any District employee serves as grounds for disciplinary action up to and including termination.

Parent/Student Use of Electronic Signatures

The District may receive and accept electronic signatures as an original document from a parent/legal guardian, so long as the following provisions are met:

Such communication with signature, of its face, appears to be authentic and unique to the person using such signature;
The District is unaware of any specific individualized reason to believe that the signature has been forged;
The District is unaware of any specific reason to believe the document has been altered subsequent to the electronic signature; and
The signature is capable of verification.

The District’s Superintendent or designee may, at his or her discretion, request that an original of the electronic communication, signed manually by hand, be forwarded to the District in a timely manner.

District personnel may periodically audit the authenticity of such signature via a security procedure including such acts as making follow-up inquiry to the individual/entity who has submitted such electronic signature.

Should it be discovered that a student has falsified a parent’s electronic signature on an official District document, the student may be subjected to discipline and the Administrators of the District are authorized, at their discretion, to thereafter only accept manual signatures associated with any submitted school document.

Legal Reference: 30-18-102(9), MCA Definitions

30-18-106(4), MCA Legal recognition of electronic records,

electronic signatures, and electronic contracts

42.8.106, ARM Electronic submission of documents and electronic

signatures

Policy History:

Adopted on: 6/27/2016

Revised on:

Bozeman School District

FINANCIAL MANAGEMENT

Policy 7550

Indirect Cost Reimbursement

The Bozeman School District is authorized to receive indirect cost reimbursements from the Office of Public Instruction and various other grantors. Montana Code Annotated, 20-9-507, provides indirect cost reimbursements be spent at the discretion of the trustees.

The indirect cost reimbursements may be accumulated from year-to-year. Reimbursements may be used for general administrative expenses, cash flow purposes, and other District priorities at the discretion of the Superintendent or designee.

Prior to the end of each budget year the Business Office will present to the Board of Trustees, at a regular or special meeting, information regarding the amount of reimbursements available. The Board of Trustees authorizes the Authorized Representative to apply for indirect cost reimbursements each year.

Legal Reference: § 20-9-507, MCA Miscellaneous programs fund

Additional Reference: OPI Grants Handbook

Policy History:

Adopted on: 6/27/2016

Revised on: 9/21/2020

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