Operating Monroe Local School District with fiscally sound management practices is integral to the ongoing well-being of the District. Responsible management of operational costs while maintaining a high level of educational excellence within the District is the primary focus of the Board, administrators, teachers and other school personnel when making budgetary decisions.

The District maintains that, in order to preserve financial effectiveness, a yearly ending cash balance equal to sixty (60) days of the prior year’s operating expenses be the minimum operational benchmark for determining cash needs for the General Fund. Operating expenses are found in Line 4.50 of the Five (5) year forecast, which includes all general fund expenditures. This budget reserve will be accounted for in a special account and documented on the annual Five (5) Year Forecast in Line 9.045 (Fiscal Stabilization Fund). The cash balance reserve will be approved as a part of the annual five-year forecast and will be calculated yearly.

While the minimum benchmark is established at sixty (60) days of operating expenses, the general direction of the District will be to maintain a higher balance, if possible, to adequately protect the District from unexpected fluctuations in revenues and/or expenses

The District’s finances are monitored monthly, and when there is knowledge that such a cash balance may not be achieved at the end of any year within the five (5) year financial forecast period, the Treasurer shall report such a finding to the Board. This step requires analysis of the reason for the shortfall, the availability of any other sources of funds, before using reserves, and evaluation of the time period that the funds will be needed and replenished

Upon such notification by the Treasurer, the Superintendent and Treasurer shall propose options, which may include reduction in force, reductions in curricular choices, reductions in services, and possibly additional tax levies that the Board shall consider to forestall such an eventuality. This plan will be developed by the Board, the Superintendent and the Treasurer prior to the next five (5) year forecast adoption as to how the District will work toward attaining a cash ending balance of sixty (60) days of operating expenses for the General Fund.

Adopted 6/30/16