Financial Conditions and Activities B 2.7
DIVISION B POLICIES
Section 2 Executive Limitations
2.7 Financial Conditions and Activities
With respect to the actual, ongoing financial condition and activities, the head of school shall not cause or allow the development of fiscal jeopardy or a material deviation of actual expenditures from board priorities established in ends policies.
Accordingly, the head of school shall not:
2.7.1 Exceed the total operating expense budget nor the capital budget without board approval.
2.7.2 Accept money for a specified purpose that deviates materially from the board’s ends priorities.
2.7.3 Spend or permit spending of designated funds other than for specified purposes.
- 2.7.3.1 Use revenue collected as "building fund" for any purpose other than major capital renovations or new building projects. (SY 13-14:93)
- 2.7.3.1.1 Fail to report to the board annually the accrued amount and any expenditures from this fund. (SY 13-14:93)
2.7.4 Fail to settle payroll obligations and debts in a timely manner.
2.7.5 Fail to ensure compliance with government regulations, nor allow government ordered payments, or filings to be overdue or inaccurately filed.
2.7.6 Acquire, encumber, or dispose of real property.
2.7.7 Fail to aggressively pursue material receivables, after a reasonable grace period.
2.7.8 Enter into contracts or lease commitments longer than two years.
- 2.7.8.1 All contracts or leases must be signed by a member of the Leadership Team. (SY 10-11:153)
2.7.9 Fail to receive board approval before applying for a loan (except for a short-term loan that will be repaid from the current fiscal year’s income), assuming the burden of a new obligation or waiving a right. (SY 09-10:8)
2.7.10 Fail to provide board members with monthly financial statements, which include the balance sheet and statement of operations.
2.7.11 Fail to operate without a schedule of tuition and fees.
- 2.7.11.1 Preferential tuition assistance will be applied to all full-time Christian workers who are members of a pre-approved mission. (SY18-19:64)
- 2.7.11.2 Pre-approved preferential tuition assistance levels will be set annually for mission organizations that meet an established criteria.
- 2.7.11.3 Fee schedule will include accident insurance for all students. (SY 05-06:210)
2.7.12 Fail to have an audit of the accounting records performed.
- 2.7.12.1 Annual school audits and/or verification of accounting records shall be performed by a certified public accountant or a qualified public accounting firm, to render an opinion as to the probable accuracy of the year’s reported profit or loss and financial position. These results shall be used as the basis for an annual public statement to constituents.
- 2.7.12.2 The annual auditor’s report will be presented to the board at the first board meeting after being received by the finance committee. (SY 08-09:11)
2.7.13 Fail to have school facility usage guidelines.
- 2.7.13.1 The highest priority for rental of school facilities shall be for mission-related ministry.
2.7.14 Fail to finance the operation and maintenance of CAJ by tuition, fees, services, and/or other contributions.
(SY 09-10:8 Renumbered from 2.7.10 after addition of 2.7.9; SY 10-11:121)
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