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TRANSFER OF FUNDS BETWEEN LINE ITEMS/AMENDMENTS/
PURCHASES NOT BUDGETED Appropriate fiscal controls shall ensure that the board does not spend more than authorized funds. The Business Administrator/Board Secretary shall keep the Board informed of the district's financial status according to law. When funds are not available for a proposed expenditure, a legal transfer from one line account to another within major accounts may be made by the Board of Education if it is apparent that the necessary surplus funds do exist in another line account, and it can be demonstrated that proposed expenditure would be educationally warranted in the current fiscal year. Except in the case of federal basic skills improvement funds, the board designates the Superintendent or his/her designee to approve such transfers among line items and programs as are necessary between meetings of the board. Transfers approved by the Superintendent or his/her designee shall be reported to the board, ratified, and recorded in the minutes at a subsequent meeting of the board, but not less than monthly. Orders for proposed purchases that would exceed the line amount or were not contemplated in the budget as adopted will be held until a transfer form is received from the originator and the transfer is approved by the Board of Education. In the event of an emergency (the time required for the Board of Education to act would endanger the health or welfare of pupils and staff, or would expose school property to possible damage) a purchase order up to the amount of $5,000 may be placed by the Business Administrator/Board Secretary, and in the case of repairs the amount may not exceed $10,000. Proceeds of bonds authorized and issued but not used, or entirely used, for the purposes issued may be transferred only to debt service account of the district. Free balance may not be transferred to debt service without action by the voters. When the necessity arises for an unbudgeted expenditure, and there are no available funds in other line items in the same category, the need for these funds shall be submitted to the Board of Education’s appropriate Committee for discussion. After discussion, this transfer shall be submitted for approval of the full Board of Education with complete explanation of the unbudgeted and potential expenditure. Date: April 14, 1986 September 8, 1997 First Reading October 13, 1997 Approved November 19, 2001 First Reading December 10, 2001 Approved Legal References: N.J.S.A. 2C:30-4 Excess expenditures N.J.S.A. 6A:23-2.1 et seq. Double Entry Booking and Accounting Transfer of Funds between Line Items/Amendments/Purchases Not Budgeted N.J.S.A. 18A:17-9 Secretary; report of appropriations, etc.; custodial duties, etc. N.J.S.A. 18A:18A-7 Emergency purchases and contracts N.J.S.A. 18A:22-8.1 Transfer of amounts among line items and program categories ... N.J.S.A. 18A:22-8.2 Prohibited transfers N.J.S.A. 18A:24-48 through -54 Application of proceeds to new purpose; in districts having boards of school estimate; certification by boards of education ... N.J.A.C. 6A:30-1.1 et seq. Evaluation of the Performance of School Districts Hawkins-Stafford Elementary and Secondary School Improvement Act of 1988 (Pub. L. 100-297) Manual for the Evaluation of Local School Districts (August 2000) Guidelines for Development of Application--Basic Skills Improvement Plan--New Jersey State Department of Education, revised annually Guidelines for Development of Program Plan--Bilingual/ESL Education Programs--New Jersey State Department of Education, revised annually Cross References: 3000/3010 Concepts and roles in business and noninstructional operations; goals and objectives 3100 Budget planning, preparation and adoption 3170 Budget administration 3300 Expenditures/expending authority 3320 Purchasing procedures 3570 District records and reports 3571 Financial reports 6142.2 English as a second language; bilingual/bicultural 6171.3 At-risk and Title 1 9127 Appointment of auditor 9325.4 Voting method 9326 Minutes Key Words Transfer of Funds, Budget, Budget Amendment |
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