TABLE OF CONTENTS

SECTION 7—BUSINESS AND FINANCIAL MANAGEMENT

7.1—FISCAL YEAR
7.2—ANNUAL OPERATING BUDGET
7.3—MILLAGE RATE
7.4—GRANTS AND SPECIAL FUNDING
7.5—PURCHASES OF COMMODITIES
7.6—ACTIVITY ACCOUNT
7.7—CASH IN CLASSROOMS
7.8—PERSONAL PROPERTY
7.9—PROPERTY INSURANCE
7.10—PUBLIC USE OF SCHOOL BUILDINGS
7.11—USE OF SCHOOL FUNDS FOR NON-SCHOOL RELATED PURPOSES
7.12—EXPENSE REIMBURSEMENT
7.13—MANAGEMENT AND DISPOSAL OF DISTRICT PROPERTY
7.14—USE OF DISTRICT COMPUTERS
7.15—RECORD RETENTION AND DESTRUCTION
7.16—INFORMATION TECHNOLOGY SECURITY
7.17—FOOD SERVICE PREPAYMENT
7.17.1—EXCESS FOOD
7.18––DISPOSAL OF NON-NEGOTIATED CHECKS OR UNCLAIMED PROPERTY
7.19—SERVICE ANIMALS IN DISTRICT FACILITIES
7.19.1—THERAPY ANIMALS
7.20––ELECTRONIC FUND TRANSFERS
7.23—HEALTH CARE COVERAGE AND THE AFFORDABLE CARE ACT
7.24—ADVERTISING ON SCHOOL BUSES

BUSINESS and FINANCIAL MANAGEMENT

7.1—FISCAL YEAR

The District’s fiscal year shall begin July 1 and end on the following June 30.

Legal Reference:	A.C.A. § 6-20-410

Date Adopted:  June 16, 2008
Last Revised:  June 16, 2008

7.2—ANNUAL OPERATING BUDGET

The Superintendent shall be responsible for the preparation of the annual operating budget for the District. The Superintendent shall present the budget to the Board for its review, modification, and approval.

The budget shall be prepared in the electronic format as prescribed by the State Board of Education and filed with the Division of Elementary and Secondary no later than September 30 of each year.

The approved budget shall provide for expenditures that are within anticipated revenues and reserves. The District Treasurer shall present monthly reconciliation reports and a statement on the general financial condition of the District monthly to the Board.

Any changes made to the budget shall be in accordance with District policy and state law.

Legal References:	A.C.A. § 6-13-701(e)(3)
			A.C.A. § 6-20-2202

Date Adopted:  June 16, 2008
Last Revised:  April 16, 2018

7.3—MILLAGE RATE

The Board shall publish one time in some newspaper published in the county in which the district lies, at least sixty (60) days in advance of the school election at which the annual ad valorem property tax for the district is decided by the electors, the District’s proposed budget, together with a millage rate sufficient to provide the funds necessary for the District’s operation.

Legal References:	A.C.A. § 6-13-622
Arkansas Constitution: Article 14 Section 3 (c) as amended by Amendment 74

Date Adopted:  June 16, 2008
Last Revised:  June 27, 2011

7.4—GRANTS AND SPECIAL FUNDING

The Superintendent or his/her designee may apply for grants or special funding for the District. Any grants or special funding that require matching District resources shall receive Board approval prior to the filing of the grant’s or special resource’s application.

Date Adopted:  June 16, 2008
Last Revised:  June 16, 2008

7.5—PURCHASES OF COMMODITIES

Purchases shall be made in accordance with State laws and procurement procedures governing school purchases that are deemed to be in the best interest of the District and are the result of fair and open competition between qualified bidders and suppliers. No bids shall be taken for professional services.

DEFINITIONS
“Commodities” are all supplies, goods, material, equipment, computers, software, machinery, facilities, personal property, and services, other than personal and professional services, purchased on behalf of the District.

“micro-purchases” are purchases with a value of less than ten thousand dollars ($10,000) when purchased with Federal funds.

“Professional services” are legal, financial advisory, architectural, engineering, construction management, and land surveying professional consultant services.1

“Specifications” means a technical description or other description of the physical and/or functional characteristics of a commodity.

Commodities
The superintendent shall develop procedures for the procurement of micro-purchases that provide for the distribution of purchases between eligible vendors to the extent possible.

Purchases of commodities with a purchase price of more than ($20,910) require prior Board3 approval; however, if an emergency exists, the Superintendent may waive this requirement.

The district shall notify in writing all actual or prospective bidders, offerors, or contractors who make a written request to the district for notification of opportunities to bid. The notification shall be made in sufficient time to allow actual or prospective bidders, offerors, or contractors to submit a bid or other appropriate response.4 The board shall accept bids submitted electronically by email or fax for any and all district purchases, unless specified to be submitted by other means or methods, and except those bids which have been specified to have a designated date upon which the bids shall be opened. The superintendent shall be responsible for ensuring submitted bids, whether written, faxed, or emailed, are retained in accordance with policy 7.15—RECORD RETENTION AND DESTRUCTION.

The district will not solicit bids or otherwise contract for a sum greater than twenty-five thousand dollars ($25,000) with vendors that are on the “excluded parties list” if the contract is to be paid from federal grant funds.5

All purchases for a Federal program with an estimated purchase price between ten thousand dollars ($10,000) twenty thousand nine hundred ten dollars ($20, 910) and all purchases of commodities with an estimated purchase price that equals or exceeds twenty thousand nine hundred ten dollars ($20, 910) shall be procured by soliciting bids.6 Specifications shall be devised for all commodities to be bid that are specific enough to ensure uniformity of the bid and yet not so restrictive that it would prevent competitive bidding. The bid specifications shall not include the name or identity of any specific vendor. The Board reserves the right to reject all bids and to purchase the commodity by negotiating a contract. In such an instance, each responsible bidder who submitted a bid shall be notified and given a reasonable opportunity to negotiate.6

Bids shall be awarded after careful examination of the details of the bid to determine the best overall value to the District. In instances where the low bid was not accepted, a statement of the reasons the low bid was not accepted shall be attached to the bid. Bidders submitting written bids shall be notified in writing of the bid award.

Whenever possible, a preference will be given to small and minority businesses; women’s business enterprises; and labor surplus area firms.8

The District shall provide a preference to Arkansas residents whenever the District is accepting bids to purchase materials and equipment as part of a construction project if:
a.	One (1) or more Arkansas residents who submitted bids made written claim for a preference at the time they submitted a bid; and
b.	An Arkansas resident’s bid does not exceed the lowest qualified bid from a nonresident by more than five percent (5%).
If the qualifications for the Arkansas resident preference are met, then the District shall take the lowest bid from an Arkansas resident regardless of whether the Arkansas resident was one of the individuals who requested the preference.

The following commodities may be purchased with State funds without soliciting bids provided that the purchasing official9 determines in writing that it is not practicable to use other than the required or designated commodity or service, and a copy of the written determination is attached to the purchase order:
1.	Commodities in instances of an unforeseen and unavoidable emergency;
2.	Commodities available only from the federal government;
3.	Utility services;
4.	Used equipment and machinery;10 and
5.	Commodities available only from a single source. 1

Commodity purchases with Federal funds may be purchased without soliciting bids only when one or more of the following circumstances apply:
1.	The item is available only from a single source;
2.	The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
3.	The Federal awarding agency or appropriate unit of the Division of Elementary and Secondary Education expressly authorizes the noncompetitive purchase in response to a written request from the District; or
4.	After solicitation of a number of sources, competition is determined inadequate.

The District may purchase a new motor vehicle, other than a school bus, without soliciting bids if, at the time of the purchase, the:
a.	Purchase is from a motor vehicle dealer licensed in Arkansas;
b.	Purchase price of the motor vehicle does not exceed the fleet price awarded by the Office of State Procurement; and
c.	Motor vehicle to be purchased is the same make and model motor vehicle as the make and model the fleet price was awarded for by the Office of State Procurement.

Prospective bidders, offerors, or contractors may appeal to the district’s superintendent if they believe the district failed to follow district bidding and purchasing policy or state law.

Any award of a contract shall be subject to revocation for ten (10) working days from:
o	The initial awarding of the contract; or
o	If an appeal is received, resolution of the appeal.

The intent is to provide prospective bidders, offerors, or contractors the opportunity to appeal the bid award if they believe the facts warrant an appeal. Any appeal shall be in writing by certified mail and received by the district office, “attention to the superintendent” within seven (7) calendar days following the initial and revocable award of the contract.

If the district receives an appeal of a bid award, they shall notify, in writing, those prospective bidders, offerors, or contractors who have made a written request to the district for notification of opportunities to bid that an appeal has been submitted. The notification shall state: 
•	that the contract award has been halted pending resolution of the appeal and could be revoked; 
•	the reasons for the appeal;
•	that the recipient of the letter may respond to the protested issues identified in the appeal;
•	the date the decision on the appeal will be made and notification sent;
•	that if the appeal is upheld, the bidding process will be re-opened;
•	that if the bidding is re-opened, changes will be made to the request for bids as necessary to satisfy the reasons for upholding the appeal.11

The sole authority to resolve any appeal made relating to this policy shall rest with the superintendent. The superintendent’s decision shall be final and conclusive. In the event the district upholds an appeal, the sole responsibility of the district to the aggrieved bidder(s) shall be the re-opening of the bidding process.

Except when prohibited by law13, the  District reserves the right to extend or renew a contract that was previously awarded under the process governed by this policy and law, provided the extension or renewal meet the following criteria:
1.	The equipment and services provided under the extended or renewed contract meets or exceeds the specifications of the original bid.
2.	The extended or renewed contract agreement complies with the state of Arkansas’s documentation requirements.
3.	The cost of the extended or renewed contract is the same or less than the original contract.
4.	The extension or renewal is approved by the local school board.

Professional Services
The District does not use a bidding process when procuring professional services. Instead, when the District needs to procure professional services, the District shall:
1.	Select three (3) qualified firms;
2.	Determine the most qualified firm by considering, at a minimum, the:
•	Specialized experience and technical competence of the firm with respect to the type of professional services required;
•	Capacity and capability of the firm to perform the work in question, including specialized services, within the time limitations fixed for the completion of the project;
•	Past record of performance of the firm with respect to such factors as control of costs, quality of work, and ability to meet schedules and deadlines; and
•	Firm's proximity to and familiarity with the area in which the project is located;
3.	Negotiate a contract for the project with the most qualified firm.

When negotiating a contract, the District and the selected firm shall jointly prepare a detailed, written description of the scope of the proposed services. If the District is unable to negotiate a satisfactory contract with the firm selected, negotiations with that firm shall be terminated and the District shall negotiate a contract with the next most qualified firm. In the event the District is unable to negotiate a contract with any of the original selected firms, the District shall reevaluate the necessary professional services, including the scope and reasonable fee requirements, and return to step one.

The District encourages firms who provide professional services to submit annual statements of qualifications and performance data to the District. The District shall request any additional information as needed for a particular public project.

Notes:		1 The definition of "professional service" contains the entire list of professional services in A.C.A. § 19-11-801 that are automatically removed from the bidding process. The board has the option to add additional professional services to this list with a two-thirds (2/3) vote for each service type to be added. Services that can be added to the list are services that require a firm or individual to hold a valid license specific to perform the type of service in question.

2 Insert an amount less than ten thousand dollars ($10,000) for Federal purchases and twenty thousand nine hundred ten dollars ($20, 900) for purchases without Federal funds if your board determines a lesser amount is appropriate.

3 Your district may elect to employ a “designated agent of the district,” if so, substitute it for “Board.”

4 ASBA strongly recommends that each district keep a record of all requests to be a “bidder.”

5 Names of vendors on the excluded parties list can be found at http://www.epls.gov.

6 For Federal purchases, be sure that your purchasing procedures include the different procedures for micropurchases, small purchase threshold purchases, and formal bids.

In accordance with A.C.A. § 15-4-1304 and 1305, your procedures will need to address how your district intends to ensure that the state goal of at least twenty percent (20%) of the purchases of food products by entities that receive at least twenty-five thousand dollars ($25,000) of state funds and have a food service program is spent on local farm or food products. More information on what to include in your procedures may be found on page 38 of the USDA document found at https://fns-prod.azureedge.net/sites/default/files/f2s/F2S_Procuring_Local_Foods_Child_Nutrition_Prog_Guide.pdf.

7 Any commodities purchased by the district through the TAPS program satisfies the state bidding requirements; however, for purchases with Federal funds, districts are required to demonstrate that an effort was made to determine that the taps purchase price is the best price. The verification effort may be demonstrated through an email, fax, letter, or written documentation of a telephone call.

Be aware that A.C.A. § 18-44-503 requires a district or education coop to receive a bond in the amount of the contract from a contractor for projects to repair, alter, or erect a public building, structure, or improvement that exceeds twenty thousand dollars ($20,000).

8 This language is required by 2 C.F.R. § 200.321 and the process you will use to provide the preference should be clearly set forth in your purchasing procedures, which must include all of the following:.
1.	Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
2.	Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;
3.	Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
4.	Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
5.	Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
6.	Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) above.

9 This is the school board if specified in this policy (see #3 above) as the body to approve the purchase of commodities.

10 Used school buses, over two years old as defined in A.C.A. § 6-21-306(a), are exempt from bidding requirements.

1 A “sole source justification document” should be attached to the purchase order and maintained in the audit file for all commodities purchased as such. DESE stipulates the following seven (7) criteria that the justification must meet:
•	Why the service or product is needed;
•	The methods used to determine that a lack of responsible/responsive competition exists for the service or product;
•	How it was determined that the provider possesses exclusive capabilities;
•	Why the service or product is unique;
•	Whether or not there are patent or property rights which make the required service or product unavailable from other sources;
•	What the district would do if the provider/service product were no longer available;
•	Any program considerations which make the use of a “sole source” critical to the successful completion of the district’s task.

2 A.C.A. § 6-21-304 specifically states the parameters required within the appeal process. Your district could choose to alter the paragraph and how it intends to deal with the appeal and its resolution. An example would be to award a financial settlement to the appellant if the appeal is upheld. Another example would be to state, by policy, the length of time for the resolution of the appeal process.

13 An example of when simply extending a contract without going through the bid process is prohibited includes certain purchase contracts for the child nutrition programs.

Legal References:	A.C.A. § 6-21-301, 303, 304, 305, 306, 307
A.C.A. § 6-24-101 et seq.
A.C.A. § 15-4-1301 et seq.
A.C.A. § 18-44-503
A.C.A. § 19-11-259
A.C.A. § 19-11-801 et seq.
2 C.F.R. § 200.67
2 C.F.R. § 200.319
2 C.F.R. § 200.320
2 C.F.R. § 200.321
2 C.F.R. § 200.324
48 C.F.R. § 2.101

Date Adopted:  June 16, 2008
Last Revised:  June 17, 2019

7.5F—COMMODITIES BIDDER AFFIDAVIT

SALEM SCHOOL DISTRICT

FULTON COUNTY

I, ________________________________________, hereby state:

(1) I am the duly authorized agent of _______________________________, the bidder submitting the competitive bid which is attached to this statement. I certify the facts as detailed below pertaining to the non-existence of collusion among and between bidders and state officials, as well as to the facts pertaining to the giving or offering of things of value to government personnel in return for special consideration in the awarding of any contract pursuant to the bid to which this statement is attached.

(2) I am fully aware of the facts and circumstances surrounding the making of the bid to which this statement is attached and have been personally and directly involved in the proceedings leading to the submission of the bid.

(3) Neither the bidder nor anyone subject to the bidder's direction or control has been a party:
(A) To any collusion among bidders in restraint of freedom of competition by agreement to bid at a fixed price or to refrain from bidding;

(B) To any collusion with any state official or employee as to quantity, quality, or price in the prospective contract, or as to any other terms of the prospective contract; or

(C) In any discussions between bidders and any state official concerning exchange of money or other thing of value for special consideration in the awarding of a contract.

(4) I hereby guarantee that the specifications outlined in the bid shall be followed as specified and that deviations from the specifications shall occur only as part of a formal change process approved by the Board of Directors of the school district.

__________________________________________ 

Signature 

Subscribed and sworn to before me this _____ day of ___________, 20__.

________________________________ 

Notary Public

7.6—ACTIVITY ACCOUNT

The District shall maintain an account of activity funds. The funds for the account are those revenues derived from the sale of tickets to athletic contests or other school sponsored activities; the sale of soft drinks, and fees charged by clubs and organizations.

Activity funds are considered “school funds” and as such may only be spent for school related purposes.

The Superintendent shall be the custodian of all activity funds and shall be responsible and accountable for the funds. The Superintendent may appoint a co-custodian for each school in the District who shall also be responsible for the activity funds he/she maintains.

Legal References:	A.C.A. § 6-13-701(g)
A.C.A. § 6-20-417

Date Adopted:  June 16, 2008
Last Revised:  June 27, 2011

7.7—CASH IN CLASSROOMS

Teachers shall deposit daily to the principal’s office all activity funds collected in their classrooms. No cash or checks are to be left in any classroom overnight.

Date Adopted:  June 16, 2008
Last Revised:  June 16, 2008

7.8—PERSONAL PROPERTY

To avoid confusion and the potential for misunderstandings, District staff who brings personal property to school to use in the performance of their jobs should label the items with their names. Any such items should be removed from the school at the close of school each year. The District assumes no responsibility for damage to, or the loss of, personal property brought to District facilities by District staff.

Date Adopted:  June 16, 2008
Last Revised:  June 16, 2008

7.9—PROPERTY INSURANCE

The Superintendent shall be responsible, with approval of the Board, for maintaining adequate insurance coverage for all District properties. At a minimum, the District will purchase insurance coverage sufficient to meet the requirements by the Arkansas Commission for Public School Academic Facilities and Transportation.

Legal References:	A.C.A. § 6-21-114(d)
Arkansas Commission for Public School Academic Facilities and Transportation Rules Governing Property Insurance Requirements

Date Adopted:  June 16, 2008
Last Revised:  June 27, 2011

7.10—PUBLIC USE OF SCHOOL BUILDINGS

It is the policy of the Board that District school buildings may be used by citizens of the District to conduct lawful meetings for social, civic, or recreational purposes provided such meetings do not interfere with the regular school work. The Superintendent shall be responsible, with Board approval, for establishing procedures governing such use of school buildings. The governing procedures shall be viewpoint neutral. Building principals shall be consulted to determine if there exists any conflict with planned school activities prior to other groups being allowed to use school facilities.

The District may charge a fee for the use of school facilities.  Any organization or group that uses school facilities is responsible for cleaning the facility or contracting with a school custodian for cleaning services.

Organizations using school facilities assume full and complete responsibility for the conduct of all persons, regardless of age, associated with their use of the facility while they are in or about the facility. Smoking or the use of tobacco or products containing tobacco in any form or the use of drugs or intoxicants is prohibited. Firearms of any kind are not allowed on school property unless the person carrying the firearm is permitted to do so by law as defined in A.C.A. § 5-73-120.

Legal Reference:	A.C.A. § 5-73-119
A.C.A. § 5-73-120
A.C.A. § 6-10-130
A.C.A. § 6-21-101
Arkansas Constitution Article 14, § 2

Date Adopted:  June 16, 2008
Last Revised:  April 16, 2018

7.11—USE OF SCHOOL FUNDS FOR NON-SCHOOL RELATED PURPOSES

School funds shall not be used for political, charitable, or humanitarian purposes.

No employee of the District shall use school time, school property, school personnel, or school equipment for the purpose of furthering the interests of any political party, the campaign of any political candidate or the advocacy of any political issue or ballot issue whether partisan or non-partisan. School employees may participate as part of a community organization that is renting a school facility for a political purpose.

Legal Reference: Arkansas Constitution Article 14 § 2

Date Adopted:  June 16, 2008
Last Revised:  June 23, 2009

7.12—EXPENSE REIMBURSEMENT

The requirements of this policy shall govern reimbursement for expenses related to travel and/or attendance at conferences and professional development activities incurred by district employees and/or members of the Board of Directors on behalf of the district. Employees are only eligible for reimbursement for travel expenses for travel which has been approved in advance. Original receipts must accompany all requests for reimbursement to the extent that such receipts are customarily available. For a receipt to be valid it should contain the name of the issuing company, the date, and the amount. No cash advances shall be made for travel. Mileage, lodging, and meal expenses will not be reimbursed when incurred for the personal convenience of the employee and not required by the reason for the travel. Reimbursement for travel shall be for the lesser of the cost between travel by air or by car with some consideration allowed for length of time of the method of travel.

To the extent practicable, employees shall have the district pay initial conference and professional development registration fees and associated necessary and materials. In the occasional circumstances where this is not practical, the district shall reimburse the employee for such fees if they were authorized in advance and are supported with proper receipts.

The district will not reimburse expenses of any non-school board member or non-employee who accompanies the school board member or employee during his/her school related travel.

Reimbursable Expenses

Mileage that is driven for a district sanctioned purpose in an employee’s personal vehicle shall be reimbursed provided appropriate documentation is submitted establishing the date and time, place, and purpose of the travel. Mileage shall be reimbursed at the rate of 45 cents per mile and shall be based on the shortest, most reasonable, route available.

Meals may be reimbursed for travel which necessitates an overnight stay when submitted according to the dictates of this policy. Reimbursement shall be prorated based on the percent of a day the employee is away on travel. For example, if an employee returns from his/her travel in the afternoon, he/she is only eligible for reimbursement for breakfast and lunch expenditures. When an overnight stay is involved, meals shall be reimbursed up to, but not to exceed a total of $30.00 for each day.  No reimbursement for tips or guest meals shall be made. Meals are only reimbursable in conjunction with travel requiring an overnight stay.

Travel necessitating overnight lodging shall be reimbursed to the extent that it is not lavish and is reasonable based on circumstances of the expenditure. Proper documentation establishing the date and time, place, and purpose of the travel must be submitted along with a receipt for the overnight accommodations. To the extent practicable, employees shall receive assistance from administrators or their designee in arranging travel plans to help keep expenses to a minimum.

All claims for reimbursement and all school credit card purchases must be accompanied by an itemized receipt. 

Expenses not covered

The district shall not reimburse the following items/categories of expenses.
•	Alcoholic beverages;
•	Entertainment expenses – including sports or sporting events; pay per view or game expenses at motels;
•	Replacement due to loss or theft;
•	Discretionary expenses for items such as clothing or gifts;
•	Medical expenses incurred while on route to or from or at the destination of the reason for the travel;
•	Optional or supplementary insurance obtained by the employee for the period covered during the travel; and
•	Tips

Credit Cards

Only those employees specifically issued credit cards to be used in the performance of their jobs to purchase goods, services, or supplies on behalf of the district shall be allowed to use such cards. Employees who incur reimbursable expenses as defined in this policy are expected to pay for them initially by any means they choose and then submit their request for reimbursement. The district assumes no responsibility for the payment of any personal credit card charges incurred by a district employee.

Airport Associated Expenses

Receipts for airport associated expenses are required for reimbursement. All airline flights shall be by coach/economy class. Upon arrival at their destination, employees are expected to take the less expensive option between a taxi and an airport shuttle service to his/her hotel or meeting site. When circumstances dictate that a rental car is necessary and/or the most economical approach to the travel requirements, the least expensive car that will accomplish the job should be rented. The district shall not reimburse for any kind of rental car supplemental insurance.

Cross References: 3.20—LICENSED PERSONNEL REIMBURSEMENT OF TRAVEL EXPENSES
8.14— CLASSIFIED PERSONNEL REIMBURSEMENT OF TRAVEL EXPENSES

Date Adopted:  June 16, 2008
Last Revised:  June 16, 2008

7.13—MANAGEMENT AND DISPOSAL OF DISTRICT PROPERTY

Definitions
For the purposes of this policy, the following definitions apply:
“Commodities” are all supplies, goods, material, computers, software, machinery and other equipment purchased on behalf of the district having a useful life of more than one (1) year and an acquisition cost of one thousand dollars ($1,000) or more per unit.

“Fair market value” means the amount a reasonable buyer would be willing to pay for a particular piece of property based on an objective set of criteria, which may include, but are not limited to: any improvements or damage to the property; the demand for similar property; the selling price for the property by the producer of the property or re-sale outlets; and the value of the property as determined by an independent appraiser.1

“Real property” is land and whatever is erected or affixed to land, such as structures or buildings.

“Surplus commodities” are those commodities that are no longer needed, obsolete, irreparable, or worn out.

“Surplus real property” is real property that is not presently needed or foreseen to be needed by the District, and that has been authorized for sale as surplus real property by vote of the School Board. Surplus real property may include unused or underutilized facilities.

“Trash” are those items that would otherwise belong to another category of goods or property defined in this policy, but which, due to the property’s age or an act of God, have less value than it would cost to repair the item. Examples could include, but are not limited to, fire damage, vehicle accidents, extreme age, and/or decline in value of the item.

“Unused or underutilized facility” means a school facility or other real property that:
•	As a whole or in a significant portion, is not being used for a public educational, academic, extracurricular, or administrative purpose and the nonuse or underutilization threatens the integrity or purpose of the school facility or other real property as a public education facility; and
•	Is not subject to either a lease to a third party for fair market value or an executed offer to purchase by a third party for fair market value as of July 30, 2017.

General Policy
The District’s purchases of commodities shall be in accordance with Policy 7.5—PURCHASES AND PROCUREMENT and, to the extent applicable, the procurement requirements of any granting source of funding used to purchase the commodity. The Superintendent shall develop procedures governing the use, management, and dispersal of commodities. At a minimum, the procedures will cover the following topics:
•	labeling all commodities2;
•	establishing adequate controls to account for their location, custody, and security;
•	annually auditing the inventory of commodities and updating a listing of such commodities to reconcile the audit with the district’s inventory records. The audit will be documented and account for any transfer and/or disposal of a commodity.
•	Disposing of surplus commodities and surplus real property, whether purchased in whole or in part with federal grant funds or with local funds.
The disposal of school property must be for the benefit of the school district and consistent with good business principles.

Disposal of Surplus Commodities
The Board of Directors recognizes that commodities sometimes become of no use to the District and thus meet this policy’s definition of surplus commodities.

The Superintendent or designee(s) will determine the objective fair market value (FMV) of surplus commodities. The District will strive to dispose of surplus commodities at or near their FMV.3

The Superintendent may declare surplus any commodity with an FMV of less than one thousand dollars ($1,000). Surplus commodities with an FMV of less than one thousand dollars ($1,000) will be periodically sold by the most efficient, cost effective means that is likely to result in sales at or near FMV.

The Superintendent may submit a list of surplus commodities deemed to have a FMV of one thousand dollars ($1,000) or greater to the Board of Directors for authorization to sell such surplus commodities. Once the Board of Directors has authorized the sale of such surplus commodities, the Superintendent or designee(s) may sell that surplus commodity as the need arises. Items with a FMV of one thousand dollars ($1,000) or greater will be sold by the most efficient, cost effective means that is likely to result in sales at or near FMV. If the Superintendent chooses to dispose of the surplus items by bid, the Superintendent or designee may set a minimum or reserve price on any item, and may reject all bids. The Superintendent or designee is authorized to accept the high bid provided the high bid is at or near FMV without further Board action unless the high bid comes under the jurisdiction of Arkansas ethics legislation, in which case the provisions of A.C.A. §§ 6-24-101–107 would apply.

If attempts at public sales fail to produce any interested buyers or bidders, such remaining unsold commodities may then, at the discretion of the Superintendent, be disposed of as scrap or junk or be donated to appropriate charitable or education related entities. Computer or technology equipment will be cleansed of data prior to disposal.

Disposal of Surplus Real Property
The Board of Directors recognizes that real property it owns sometimes becomes no longer of use to the District and thus meets this policy’s definition of surplus real property.

By February 1 of each year, the District shall submit a report to the Division of Public School Academic Facilities and Transportation (Division) that identifies all unused or underutilized school facilities in the District and the unused or underutilized school facilities, if any, that are designated in the District’s facilities master plan to be re-used, renovated, or demolished as part of a specific committed project or planned new construction project.

If the Division classifies a District facility or District real property as being unused or underutilized, the District may appeal the Divisions determination to the Commission for Public School Academic Facilities and Transportation (Commission).

The District shall make unused or underutilized public school facilities available for lease4 for no more than FMV5 to any open-enrollment public charter school (charter) located within the District’s geographic boundaries that makes a request under the charter’s statutory right of access unless the District makes an affirmative showing by a preponderance of the evidence to the Commission that:
1.	The school facility, or the property to which the school facility is attached, will be needed by the District to accommodate future growth of the District; or
2.	Use of the school facility or other real property by a charter would have a materially negative impact on the overall educational environment of an educational campus located within five hundred feet (500’) of the school facility or other real property sought to be leased by the charter.

The terms of a lease executed between the District and a charter shall provide that the lease shall be cancelled and be of no effect if the charter:
a.	Fails to use the facility or other real property for direct student instruction or administrative purposes within two (2) years of the effective date of the lease;
b.	Closes, has its charter revoked, or has its charter application denied by the charter authorizer; or
c.	Initially uses the facility or other real property, but then leaves the facility or other real property unused for more than one hundred eighty (180) days.

If requested or agreed to by the charter, The District may sell the unused or underutilized facility or other real property to the charter for FMV.

If the District decides to sell, lease, or otherwise transfer ownership of a District facility, a charter6 located within the District’s geographic boundaries shall have a right of first refusal to purchase or lease the facility for FMV. The charter’s right of first refusal shall continue for two (2) years after the date the District last used the school facility or other real property as an academic facility.

If the District decides to sell or lease a District facility or other real property that has been identified by the Division as an unused or underutilized school facility to a third party that is not a charter, then the District may not sell or lease the facility until the later of:
•	Two (2) years after the date the facility or other real property is identified by the division as an unused or underutilized public school facility, so long as no charter has claimed a right of access or a right of first refusal; or
•	Three (3) years from the date the District facility or other real property has been identified by the division as an unused or underutilized public school facility if the District designated the facility or other real property to be reused, renovated, or demolished as part of a specific committed project or planned new construction project in the District’s facilities master plan.

The District may petition the division for a waiver of the time restrictions for the sale or lease of a District’s unused or underutilized facility. The petition shall include a statement that the District believes that no charter would be interested in leasing or purchasing the unused or underutilized school facility. If the District receives a waiver, the District may immediately sell, lease, or otherwise dispose of the unused or underutilized facility. The District may appeal the denial by the Division of a waiver to the Commission.

The Superintendent may submit a request to the Board of Directors for authorization to sell surplus real property. Once the Board of Directors has authorized the sale of such surplus real property, the Superintendent or designated individual(s) may sell that surplus real property as the need arises and this policy allows. The Superintendent or designee(s) shall be responsible for getting a determination of the objective FMV of surplus real property5. The district will strive to dispose of surplus items at or near their FMV. The real property may be listed for sale with a real estate broker, and the Superintendent or designated individual may contract on behalf of the district to pay the usual and customary sales commission for such transactions, upon sale of the property.
If the Superintendent chooses to dispose of the surplus items by bid, the Superintendent or designee(s) may set a minimum or reserve price on any item, and may reject all bids. The Superintendent or designee is authorized to accept the high bid7 provided the high bid is at or near FMV without further Board action unless the high bid comes under the jurisdiction of Arkansas ethics legislation, in which case the provisions of A.C.A. §§ 6-24-101–107 would apply.

If attempts at public sales fail to produce any interested buyers or bidders, such remaining unsold real property may then, if agreed to by the Superintendent and Board of Directors, be donated to appropriate education related entities, not-for-profit organizations, the county, city, or incorporated town in accordance with the provisions of state law.8

Items obtained with federal funds shall be handled in accordance with applicable federal regulations, if any.

The District may not make a part of the disposal of District real property a covenant that prohibits the sale or lease of former District facilities or other real property to a charter that is located within the District’s geographic boundaries.

Disposal of Surplus Real Property After Consolidation
Except as otherwise prohibited by this policy, real property of a consolidated school district that is no longer being used for educational purposes and has not been sold, preserved, leased, or donated two (2) years after the effective date of consolidation shall be made available for use by a publicly supported institution of higher education, a technical institute, a community college, a not-for-profit organization, a county, a city, or incorporated town by the Board of Directors for the following purposes:
•	Having the real property preserved, improved, upgraded, rehabilitated, or enlarged by the donee;
•	Holding of classes by statutorily authorized education related entities; or
•	Providing community programs and beneficial educational services, social enrichment programs, or after-school programs.

Trash
Trash, as defined in this policy, may be disposed of in the most cost efficient or effective method available to the district.

Notes:	1 One option when determining FMV is to see what the property’s value is if the property is sold for salvage or scrap instead of putting the property up for general sale, which may even result in a higher FMV depending on the property in question.

2 Due to federal monitoring and disposal requirements, we suggest differentiating the labeling of items purchased with federal funds from non-federal fund items.

3 The FMV of items must be established prior to their disposal. The determination of the surplus commodity’s FMV will determine whether the superintendent has to submit it to the board. You need to document how you reached FMV; Digital photos can be very useful, particularly if you decide FMV seems low.

The disposal of items purchased with federal grant funds is governed by the following requirements, which are located at 2 C.F.R. § 200.313(e):
(e) Disposition. When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non–Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with Federal awarding agency disposition instructions:
(1)	Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation to the Federal awarding agency.
(2)	Except as provided in § 200.312 Federally-owned and exempt property, paragraph (b), or if the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair-market value in excess of $5,000 may be retained by the non–Federal entity or sold. The Federal awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the Federal awarding agency’s percentage of participation in the cost of the original purchase. If the equipment is sold, the Federal awarding agency may permit the non–Federal entity to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses.
(3)	The non–Federal entity may transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, the non–Federal entity must be entitled to compensation for its attributable percentage of the current fair market value of the property.
(4)	In cases where a non–Federal entity fails to take appropriate disposition actions, the Federal awarding agency may direct the non–Federal entity to take disposition actions.

4 A.C.A. § 6-21-815(c)(1) states “a school district shall make unused or underutilized public school facilities available for lease or purchase”. We have elected to only include a requirement for the district to enter into a lease of the unused or underutilized property in the policy because A.C.A. § 6-21-815(c)(3)(A) allows the charter to petition the Commission to force a lease of the property but does not allow a similar forced sale of the property; this is a separate issue from the charter’s right of first refusal if you decide to sell the property.

5 The FMV of items must be established prior to their disposal. In the case of real property, this should be established by means of a survey and real estate appraisal by a licensed surveyor and appraiser performed within the preceding six (6) months.

The disposal of real property purchased with federal grant funds is governed by the requirements contained in 2 C.F.R. § 200.311, which states in part:
(c)	 Disposition. When real property is no longer needed for the originally authorized purpose, the non–Federal entity must obtain disposition instructions from the Federal awarding agency or pass-through entity. The instructions must provide for one of the following alternatives:
(1)	Retain title after compensating the Federal awarding agency. The amount paid to the Federal awarding agency will be computed by applying the Federal awarding agency’s percentage of participation in the cost of the original purchase (and costs of any improvements) to the fair market value of the property. However, in those situations where the non–Federal entity is disposing of real property acquired or improved with a Federal award and acquiring replacement real property under the same Federal award, the net proceeds from the disposition may be used as an offset to the cost of the replacement property.
(2)	Sell the property and compensate the Federal awarding agency. The amount due to the Federal awarding agency will be calculated by applying the Federal awarding agency’s percentage of participation in the cost of the original purchase (and cost of any improvements) to the proceeds of the sale after deduction of any actual and reasonable selling and fixing-up expenses. If the Federal award has not been closed out, the net proceeds from sale may be offset against the original cost of the property. When the non–Federal entity is directed to sell property, sales procedures must be followed that provide for competition to the extent practicable and result in the highest possible return.
(3)	Transfer title to the Federal awarding agency or to a third party designated/approved by the Federal awarding agency. The non–Federal entity is entitled to be paid an amount calculated by applying the non–Federal entity’s percentage of participation in the purchase of the real property (and cost of any improvements) to the current fair market value of the property.

6 If there is more than one (1) charter located within the geographic boundaries of a school district, the charter authorizing panel will determine the charter that will have the right of first refusal.

7 If a charter has a right of first refusal on the property to be sold and the charter was not the entity who made the high bid, the charter must be provided an opportunity to match the high bid. If the charter agrees to match the high bid, the charter’s offer to match the high bid must be the bid that is accepted.

8 A.C.A. § 6-13-111 and A.C.A. § 6-21-108 are the statutes that cover donating District property. Please keep in mind that selling below FMV has the same legal connotation as donating. A.C.A. § 6-13-111(c) and (d) establish a system for selling district owned real property that fails to draw a buyer at a previously established Fair Market Price. We suggest consulting the statute for assistance in such a situation. A.C.A. § 6-21-108 sets forth additional requirements for consolidated school districts that is included as a separate section later in the policy.

Legal References: 	A.C.A. § 6-13-111
A.C.A. § 6-13-620
A.C.A. § 6-21-108
A.C.A. § 6-21-110
A.C.A. § 6-21-803
A.C.A. § 6-21-806
A.C.A. § 6-21-815
A.C.A. § 6-21-816
A.C.A. § 6-24-101–107
2 C.F.R. § 200.311
2 C.F.R. § 200.313

Date Adopted:  June 21, 2010
Last Revised:  June 17, 2017

7.14—USE OF DISTRICT COMPUTERS

Board members, staff, and students shall use computers for any purpose other than their specific use associated with school business. School employees who use computers for non-school purposes, except as permitted by the district’s Internet/computer use policy, shall be subject to discipline, up to and including termination. Students who use computers for non-school purposes, except as permitted by the district’s Internet/computer use policy, shall be subject to discipline, up to and including suspension or expulsion.

Students who use school-issued computers for non-school purposes, except as permitted by Policy 4.47— POSSESSION AND USE OF CELL PHONES AND OTHER ELECTRONIC DEVICES, shall be subject to discipline, up to and including suspension or expulsion.

Except when authorized in the SCHOOL BUS DRIVER’S USE OF MOBILE COMMUNICATION DEVICES policies of 3.51 and 8.24, all employees are forbidden from using school-issued cell phones while driving any vehicle at any time. Violation may result in disciplinary action up to and including: 2
o	Suspension for students; and
o	Termination for employees.

Except when authorized in the SCHOOL BUS DRIVER’S USE OF MOBILE COMMUNICATION DEVICES policies of 3.51 and 8.24, no employee or student shall use any device for the purposes of browsing the internet; composing or reading emails and text messages; or making or answering phone calls while driving a motor vehicle which is in motion and on school property. Violations may result in disciplinary action up to and including:3
o	Suspension for students; and
o	Termination for employees.

Cross References:	3.34—LICENSED PERSONNEL CELL PHONE USE
3.51—SCHOOL BUS DRIVER’S USE OF MOBILE COMMUNICATION DEVICES
4.47— POSSESSION AND USE OF CELL PHONES, OTHER ELECTRONIC DEVICES
8.24—SCHOOL BUS DRIVER’S USE OF MOBILE COMMUNICATION DEVICES
8.25— CLASSIFIED PERSONNEL CELL PHONE USE

Legal References:	IRC § 132(d)
IRC § 274(d)
IRC § 280F(d)(4)
IRS Publication 15 B
A.C.A. § 6-19-120
A.C.A. § 27-51-1504
A.C.A. § 27-51-1609

Date Adopted:  June 16, 2008
Last Revised:  June 17, 2019
7.15—RECORD RETENTION AND DESTRUCTION

It is necessary to maintain district records in a manner that provides for efficient document storage and retrieval and is conducive to eliminating unnecessary record retention. Due to the variety of records that may need to be retained and accessed, the superintendent shall ensure that all staff receive appropriate training to understand this policy. Staff shall also understand the possible ramifications to the district and/or themselves for failure to properly maintain records and follow the requirements contained in this policy.

Definitions
“Directly or directly interested” (“directly”) means receiving compensation or other benefits personally or to an individual’s household from the person, business, or entity contracting with the District.

“Indirectly or indirectly interested” (“indirectly”) means that a family member, business, or other entity in which the individual or a family member has a financial interest will receive compensation or benefits.

“Record” is defined for the purposes of this policy, as an item or items, whether electronic or material, that are created by, at the request of, or received by and purposefully retained by a board member, administrator, or employee in the ordinary course of District business. Examples include, but are not limited to:
•	Any kind of correspondence;
•	Calendars;
•	Computer files and documents (which may include drafts);
•	Telephone logs;
•	Expense records; 
•	Audio or video recordings that are created for the purpose of monitoring the security of District property, or the safety of District students, or open public meetings;
•	Documentation related to transactions or contracts for:1
o	Services with Board members, administrators, employees, or members of their families covered under the statutorily defined ethical restrictions associated with a contract for services provided for the District involving a Board member, administrator, or employee who "directly or indirectly" benefits from the contract;
o	An exemption granted by the Division of Elementary and Secondary Education (DESE) from the statutorily defined ethical restrictions associated with a contract for employment or for services provided for the District that involves a District administrator, board member, or employee.

The superintendent shall be responsible for establishing a schedule for the routine destruction of district records that accommodates the needs of the district. The schedule shall specify the length of retention for any records not specifically delineated by this policy and be distributed to staff on a need-to-know basis according to their respective employment duties and responsibilities. The schedule should accommodate the need for records to be stored as a blend of printed, bound and electronically recorded (e.g., audio tape, video tape, micro-fiche, computer disk) material. The superintendent or designee shall ensure the effective and efficient securing, cataloging, storing, and appropriate scheduled destruction of all records. 

The following records categories shall be retained for the time specified.
a.	Board of Education Minutes – forever
b.	Personnel files – forever 
c.	Student files – until the student receives a high school diploma or its equivalent, or is beyond the age of compulsory school attendance2
d.	Student records of attendance/graduation – forever3
e.	Financial Records – five (5) years4
f.	Documentation, including letters of approval, related to transactions or contracts for services covered by this policy and Arkansas statutes for Board members or members of their families or for waivers granted to District employees - thirteen years5
g.	Documentation relating to payments or reimbursements made by a vendor on behalf of a board member, administrator, or employee for travel, lodging, food, registration, entertainment, or other expenses6 – Three (3) years 
h.	Employment applications, including applicant lists, applicant interview evaluations, documentation in response to requests for reasons for a failure to be interviewed and/or hired, and hiring determinations - five (5) years7
i.	Expenditures made with federal grant monies8 – governed by the terms of each grant
j.	Video Surveillance Recordings – the timeline established in Policy 4.48—VIDEO SURVEILLANCE AND OTHER STUDENT MONITORING
k.	Emails – whatever the district’s policy is on this subject9
l.	Documents filed with the IRS, including those required in Policy 7.23‑Health Care Coverage and the Affordable Care Act – four (4) years
m.	Statewide assessment security agreement – Three (3) years

The superintendent or designee shall be responsible for determining when there is a need to interrupt the routine destruction of records.10 When the superintendent or designee makes the decision to cease the routine disposal of records, staff affected by the decision shall be promptly informed of the decision and of the nature of records that are to be retained.; such records shall be retained until the superintendent or designee has authorized their destruction. Employee training on the district’s records retention schedule shall specifically include information on the records that may need to be retained due to pending disciplinary or legal actions that otherwise would be subject to routine disposal. If an employee has doubt about the need to retain any record otherwise scheduled for destruction, he/she shall consult with the superintendent or designee prior to destroying such records.11

The records’ storage system devised by the superintendent and designee(s) shall be organized in a manner that enables the efficient retrieval of data and documents. The district shall have adequate backup of electronically stored critical data.12 The system shall be communicated to employees in a manner that enables them to understand and follow the system’s requirements. 

In retaining and destroying records, no employee shall:
•	Destroy, alter, mutilate, conceal, cover up, falsify, or make a false entry in any record that may be connected to a disciplinary matter or lawsuit or to a matter within the jurisdiction of a federal or state agency, in violation of federal law and regulations or state law and rules.
•	Alter, destroy or conceal a document, or attempt to do so, with the intent to impair the document’s availability for use in a disciplinary matter, lawsuit or an official proceeding or otherwise obstruct, influence or impede any lawsuit or official proceeding, in violation of federal law and regulations or state law and rules.
•	Retaliate or discriminate against an employee who refuses to violate this policy or to coerce or threaten an employee to violate this policy.
Failure to follow the requirements set forth in this policy may result in disciplinary action against the employee(s), up to and including termination. The district’s board of directors prohibits and will not tolerate any form of reprisal, retaliation or discrimination against any employee who, in good faith, has attempted to comply with this policy.

Notes:	1 While A.C.A. § 6-24-105(b)(1)(A)(i) permits a district to employ a Board member's family member for up to $5,000, and (c)(2)(A)(i) permits a district to enter into a non-employment contract with a board member’s family member for up to a $10,000 limit, during the total tenure of the Board member without the District having to receive waivers for such employment, the need to retain documentation for all compensation exists if for no other reason than to establish when that the limit may be reached.
	
2 These are the records required to be maintained during a student’s attendance at your district and must be aligned with Policy 4.38—PERMANENT RECORDS. 

3 This is limited to the dates a student attended school in your district and if the student earned a diploma. This is information students and adults need from time to time to prove they lived somewhere or to enroll in a college, for security clearances, or for background checks.

4 This is a suggested length of time. The minimum time your district must keep financial records (specifically original receipts of district expenditures) is until the records have been audited. In setting up your retention schedule, you might consider the warrantee and/or depreciation schedule of the items purchased and keep all financial records until, at a minimum, the warranty has expired or the item has been fully depreciated. As with all other retention schedules, relevant data must be retained if there is pending litigation or the likelihood of litigation until the matter is resolved.

5 A.C.A. § 6-24-115 makes it a criminal act to violate the statutes governing Board member and District employees' ethical behavior. A.C.A. § 5-1-109(c)(2) allows for a public servant to be charged for felonious conduct for up to ten years after the officer leaves office or the violation should have been discovered (whichever comes first), but this can be extended by an additional three years if the individual is out of state for a continuous period under A.C.A. § 5-1-109(g). Employees are included in the definition of public servants, so the same retention requirements apply to both Board members and employees.

6 DESE’s rules only require all documentation to be retained for an individual if the total amount of the payments or reimbursements from vendors the individual receives during the fiscal year amount to three hundred dollars ($300) or more. We recommend retaining the documentation on all individuals regardless of whether the dollar amount was reached.

7 The requirements contained within A.C.A. § 21-3-302 and 303 necessitate the addition of this record retention category. The five (5) year retention length is not required by statute but is recommended. Any civil suit that would require the documents included in the employment application would be barred after five (5) years by A.C.A. § 16-56-115. Retention for the five years would assure you had the necessary records if a suit was filed during that time.

8 We suggest making this determination on a case-by-case basis using the latest of: the terms required by the grant, any related litigation is concluded, the records have been audited, or the 5 year statute of limitations for contracts has expired.
	
9 Routine deletion of records, email or other records, is not a problem so long as prompt action is taken to stop the deletion relating to matters that common sense and/or previous experience indicates could result in legal and/or disciplinary action. In districts that have routine deletion settings for electronic devices, the person responsible for halting the routine destruction of district records will need to inform the district’s Network Administrator (or equivalent) when events trigger the need to retain information that would otherwise be routinely deleted.

10 Due to the potential adverse repercussions for the failure to cease the destruction of such records, the person responsible for making a “cessation” decision should be close to the source of the cause precipitating the cessation. When an incident occurs that common sense and/or previous experience indicate could result in legal and/or disciplinary action, the routine destruction of district records relating to the incident must be suspended until such time as the legal or disciplinary action, or the likelihood of such action, has concluded. The Federal Rules of Civil Procedure (FCRP) as amended in December of 2006 specifically require litigants to be able to produce pertinent electronically stored information (ESI). FCRP’s Rule 37(f) specifically acknowledges the need for routine deletion of records. The issue becomes one of a “good faith” effort to stop record destruction when necessary. The committee’s (responsible for developing the rules) notes on this matter state,:
“When a party is under a duty to preserve information because of pending or reasonably anticipated litigation, intervention in the routine operation of an information system is one aspect of what is often called a ‘litigation hold.’ Among the factors that bear on a party’s good faith in the routine operation of an information system are the steps the party took to comply with a court order in the case or party agreement requiring preservation of specific electronically stored information.”
Records that cannot be produced in a timely manner and/or have been destroyed when common sense and/or previous experience indicated legal and/or disciplinary action could result can cause the district unnecessary and expensive trouble. Besides the inevitable bad public relations of having destroyed records that, the press will be sure to point out, obviously should have been retained, there can also be significant financial costs and/or penalties for the process of attempting to retrieve the records. ASBA would like to stress that deleting electronic records doesn’t really get rid of them until they have been overwritten several times by new entries. The process of getting to the supposedly deleted records can be a costly one.

11 If there is any doubt concerning the need to retain, prudence would dictate retention.  

12 While there is a need and/or a place for different formats of document storage/retention (paper, audio tape, video tape, micro-fiche, computer disk), the space required for records storage quickly tilts the equation in favor of electronic methods to the maximum extent possible. The vast majority of documents can be transferred electronically (if created electronically) or scanned into a digital format (if created on paper) and stored on external hard drives, firewalls, servers, tape drives, CDs or DVDs. While this method/process is not free, it can be relatively inexpensive and quite possibly save the district money in the long run when stored records are needed. Consult with your district’s technology person to devise the system that will best meet your district’s needs, but here are a few points to consider. 1) When scanning, store the documents as PDFs which uses little memory space. If you do the scanning in an Optical Character Recognition (OCR) format, the final documents can be stored in a data base and searched which can save you many hours and much frustration when you need to retrieve something (which is, after all, the reason for the storage). 2) Make multiple copies of the stored documents on separate external storage devices and store the duplicate devices at separate locations to ensure the survival of at least one copy if there is a fire or natural disaster that destroys one of the storage sites. This should be included as part of the district’s Disaster Recovery Plan. 3) It is important to remember that technology gets old and obsolete. This necessitates that you establish a schedule or a trigger for the updating of the stored data/documents that are to be retained for more than 10 years. For example, CDs and external hard drives are being replaced with storage servers or cloud-based storage. In short, you need to include file format update/upgrades as part of your district’s technology plans.

Cross References:	1.22—RECORDING OF BOARD MEETINGS
Policy 3.19—LICENSED PERSONNEL EMPLOYMENT
4.48—VIDEO SURVEILLANCE AND OTHER STUDENT MONITORING
Policy 7.16—INFORMATION TECHNOLOGY SECURITY
Policy 8.13—CLASSIFIED EMPLOYMENT

Legal References:	A.C.A. § 5-1-102
A.C.A. § 5-1-109(c)(2), (g)
A.C.A. § 6-13-619
A.C.A. § 6-17-104
A.C.A. § 6-17-2301
A.C.A. § 6-18-901
A.C.A. § 6-24-102(8)(15)
A.C.A. § 6-24-105(d)
A.C.A. § 6-24-106(c)(6)
A.C.A. § 6-24-107(c)
A.C.A. § 6-24-115
A.C.A. § 21-3-302, 303
A.C.A. § 25-19-106
DESE Rules Governing Ethical Guidelines and Prohibitions for Educational Administrators, Employees, Board Members, and Other Parties
DESE Rules Governing the Arkansas Educational Support and Accountability Act
26 C.F.R. § 31.6001-1
34 C.F.R. § 99.2
Federal Rules of Civil Procedure Numbers 16, 26, 33, 34, 37, and 45

Date Adopted:  June 23, 2009
Last Revised:  June 17, 2019
7.16—INFORMATION TECHNOLOGY SECURITY

The superintendent shall be responsible for ensuring the district has the necessary components in place to meet the district’s needs and the state’s requirements for information technology (IT) security. To aid the superintendent in creating, monitoring, and updating the District’s IT Security system, the superintendent shall appoint an information security officer (ISO). The ISO shall be responsible for:
a)	Overseeing the District-wide IT security system;
b)	Development of District IT policies and procedures;
c)	Development and leading of employee training on the IT Security requirements;
d)	Ensuring compliance with the adherence to the Division of Elementary and Secondary Education (DESE) IT Security standards.

The ISO shall work with other IT staff, the superintendent, and district management appointed by the superintendent to develop a District IT Security system necessary to meet the requirements of this policy and ADE’s standards. The IT security system shall contain the necessary components designed to accomplish the following:

1. The District IT security system shall contain mechanisms, policies, procedures, and technologies necessary to prevent disclosure, modification, or denial of sensitive information.

For the purposes of the IT Security system, “sensitive data” is any and all student and employee data that is either personally identifiable information (PII) or any non PII information that, if assembled together, would allow a reasonable person to identify an individual. Sensitive data includes, but is not limited to: 
•	Student personally identifiable information, except as allowed by the Family Educational Rights and Privacy Act (FERPA);1 and
•	Employee personally identifiable information, except as required by Ark. Code Ann. § 6-11-129.

All District employees having access to sensitive information shall receive annual IT security training, which shall emphasize the employee’s personal responsibility for protecting student and employee information.

2. Physical access to computer facilities, data rooms, systems, networks and data will be limited to those authorized personnel who require access to perform assigned duties.

User workstations shall not be left unattended when logged into sensitive systems or data that includes student or employee information. Workstation settings shall be set for automatic log off and require a password for the system to restore from screensavers.

All equipment that contains sensitive information shall be secured to deter theft. No sensitive data shall be retained on laptops and/or remote devices (home computer, thumbdrives, cellphones, CDs, etc.) unless it is encrypted in accordance with the Arkansas State Security Office’s Best Practices.

Server rooms and telecommunication rooms/closets shall be protected by appropriate access control. The rooms shall be segregated from general school or District office areas to restrict access. Server room access control shall be enforced using lock and key to allow unescorted access only to IT or management staff who require the access to perform their job functions.

3. Network perimeter controls will be implemented to regulate traffic moving between trusted internal (District) resources and external, untrusted (internet) entities. All network transmission of sensitive data shall enforce encryption where technologically feasible.

The District shall maintain a network configuration management program that includes at a minimum: 
a)	A network diagram identifying all connections, addresses, and purpose of each connection including management approval of all high risk internetfacing ports such as mail (SMTP/25), file transport protocol (FTP/20-21), etc.
b)	All public facing (internet) servers and workstations segmented on a demilitarized zone (DMZ) that keeps them separate from the internal District network.

All wireless access shall require authentication. The DISTRICT wireless networks will deploy network authentication and encryption in compliance with the Arkansas State Security Office’s Best Practices. Scans for rogue wireless devices will be conducted at a minimum monthly. Any Rogue wireless device shall be disabled.

Remote access with connectivity to the District internal network shall be achieved using encryption.
Appropriate WARNING BANNERS shall be implemented for all access points to the District internal network.

4. System and application access will be granted based upon the least amount of access to data and programs required by the user in accordance with a business need-to-have requirement.

The District shall enforce strong password management for:
•	Employees and contractors as specified in Arkansas State Security Office Password Management Standard.
•	Students as specified in Arkansas State Security Office K-12 Student Password Management Best Practice.

User access shall be limited to only those specific access requirements necessary for an employee to perform his/her job functions. Where possible, segregation of duties shall be utilized to control authorization access.

User access shall be granted and terminated upon timely receipt of a documented access request/termination. All access requests shall require approval by the ISO or designee. Ongoing access shall be reviewed for all users at a minimum annually.

Audit and log files shall be generated and maintained for at least ninety (90) days for all critical security-relevant events, including but not limited to:
•	Invalid logon attempts;
•	Changes to the security policy/procedures; and
•	Failed attempts to access objects by unauthorized users.

IT administrator privileges for operating system(s), database(s), and applications shall be limited to the minimum number of staff required to perform these sensitive duties.

5. Application development and maintenance for in-house developed student or financial applications will adhere to industry processes for segregating programs and deploying software only after appropriate testing and management approvals.
Any custom-built student or financial applications or supporting applications that interface, integrate with, or provide queries and reporting to/from student or financial systems shall be developed using a system development life cycle approach that incorporates at a minimum:
a)	Planning, requirements, and design;
b)	User acceptance testing (UAT);
c)	Code reviews; and
d)	Controlled migration to production.

Any changes to core or supporting applications that provide student or financial processing or reporting shall be implemented in a controlled manner that includes at a minimum:
•	Documentation of any change, including changes to both infrastructure and application;
•	Management approval of all changes; and
•	Controlled migration to production, including testing as appropriate.

6. Monitoring and responding to IT related incidents will be designed to provide early notification of events and rapid response and recovery from internal or external network or system attacks.

The District shall develop and maintain an incident response plan to be used in the event of system compromise that shall include:
a)	Emergency contacts;
b)	Incident containment procedures; and
c)	Incident response and escalation procedures.

7. To ensure continuous critical IT services, the District ISO will develop a business continuity/disaster recovery plan appropriate for the size and complexity of the District IT operations.

The district-wide business continuity plan shall include at a minimum:
•	Procedures for performing routine backups at least weekly and the storage of backup media at a secured location other than the server room or adjacent facilities. Backup media shall be stored off-site a reasonably safe distance from the primary server room and retained in a fire resistant receptacle.
•	A secondary backup processing location, such as another School or District building, shall be identified.
•	A documented calling tree with emergency actions to include:
o	Recovery of backup data;
o	Restoration of processing at the secondary location; and
o	Generation of student and employee listings to ensure an accurate head count.

8. Server and workstation protection software will be deployed to identify and eradicate malicious software attacks such as viruses, spyware, and malware.

Spyware and virus protection software shall be installed, distributed, and maintained on all production platforms, including:

a)	File/print servers;
b)	Workstations;
c)	Email servers;
d)	Web servers; and
e)	Application and database servers.

Malicious software protection shall include:
•	Weekly update downloads;
•	Weekly scanning;
•	The malicious software protection to be in active state (real-time) on all operating servers/workstations.

All security-relevant software patches shall be applied within thirty (30) days and critical patches shall be applied as soon as possible.

Legal References:	Commissioner’s Memo RT-15-010
A.C.A. § 4-110-101 et seq.

Date Adopted:  June 23, 2009
Last Revised:  June 17, 2019

7.17—FOOD SERVICE PREPAYMENT

Meal Charges
The district does not provide credit for students to charge for meals, a la carte, or other food and beverage items available for purchase in the school food service areas. Meals, a la carte, or other food and beverage items may be purchased by either providing payment for the items at the time of receipt or by having a prepaid account with the District that may be charged for the items. Parents, or students choosing to do so, may pay in advance for meals, a la carte, or other food and beverage items through any of the following methods:2
•	Submitting cash or check payment in the high school lunchroom and to the classroom teacher in the elementary;
•	depositing funds through the District’s online service;

A student’s parents will be contacted by authorized District personnel regarding a student’s prepaid account balance as needed;

Unpaid Meal Access6

In accordance with Arkansas law, the District allows students whose accounts do not have enough funds to purchase a meal, to receive an unpaid reimbursable meal at no charge.  The District will notify a student’s parents:7 When the student’s prepaid account balance has dropped to the point that the student will begin receiving unpaid meals; Each time the student receives the first unpaid meal after money has been deposited into the student’s prepaid account; and After the student has received five (5) unpaid meals.

Students who have submitted proper documentation to receive a meal modification in accordance with Policy 4.50—SCHOOL MEAL MODIFICATIONS shall receive the same type of modification for an unpaid meal.

Legal References:	Commissioner’s Memo CNU-17-003
Commissioner’s Memo CNU-17-024
A.C.A. § 6-18-715

Date Adopted:  June 21, 2010
Last Revised:  June 17, 2019

7.17.1—EXCESS FOOD

Definition

“Excess food” means any food that remains after the serving of breakfast and lunch to students during the school day; however, “excess food” does not include any food that has expired, been opened, or been consumed.

Excess food shall be handled in accordance with U.S. Food and Drug Administration regulations and Arkansas Department of Health rules.

Excess Food Sold a la carte1

Excess food may be sold a la carte no later than the day immediately following the day the excess food was served in the District’s school meal service.

Donation of Excess Food

When it is not feasible for the District to reuse excess food, excess food may be donated to a non-profit organization, such as a community food bank, homeless shelter, or other nonprofit charitable organization.

The District’s Child Nutrition Director (Director), after consultation with and approval by the superintendent, may identify a nonprofit “partner” that will accept the District’s excess food. Before the District may donate food to the nonprofit partner, the Director shall obtain a copy of the nonprofit partner’s 501(c)(3) documentation and contact information for use when excess food is available for donation.

Whenever excess food is donated, the Director shall document all of the following on the form provided by the Child Nutrition Unit:
1.	What, how much and when excess food donations are made;
2.	Who picks up the excess food for the nonprofit partner, including a signature along with the date and time of the pick up; and
3.	Signature of the child nutrition staff when excess food is donated to the nonprofit partner.

Following the donation of excess food, the Director shall:
a.	Monitor excess food donations;
b.	Report excess food cost to administration; and
c.	Revise planned production and menus to minimize excess food.

The nonprofit partner shall agree to provide the District’s students the first opportunity to receive the donated excess food. The superintendent, Director, and nonprofit partner shall work together to adopt procedures2 for the providing of excess food to the District’s students.

Notes:	1 If your district does not have an a la carte program, delete this portion of the policy.

2 When developing the procedures, one item to consider would be to have the district (not the school food authority) either provide space the nonprofit partner may use to provide a refrigerator or the district could provide space and a refrigerator for the nonprofit partner to use to store the donated food until the completion of the distribution of the donated food to the district’s students; this would reduce the amount of time that the excess food is outside of a temperature controlled environment between when the food is donated and the food is distributed.

Legal References:	A.C.A. § 6-18-716
Commissioner’s Memo CNU-16-033
7 C.F.R. § 210.10
7 C.F.R. § 210.11

Date Adopted:  June 17, 2019
Last Revised:  June 17, 2019

7.18––DISPOSAL OF NON-NEGOTIATED CHECKS OR UNCLAIMED PROPERTY 

State law specifies how the district is to dispose of retained funds in the form of issued but non-negotiated checks that have been not been presented for payment within one calendar year. The district shall dispose of these retained funds in accordance with the law and remit the amount of all non-negotiated checks to the Unclaimed Property Division of the Arkansas Auditor’s Office.

The district shall make a good faith effort to return physical items that have been left on district property to their rightful owners. When contact information is known for the owner of an item of a non-perishable nature left at the district, the district shall use the information to attempt to contact the owner to inform him/her of the location of the item. Owners of such items shall be given at least three weeks to pick up the item he/she left at the district. If the owner fails to pick up the item within the time allotted, the district may dispose of the item in a manner of its choosing.

The district is under no obligation to retain an abandoned, perishable item left on district property.

Legal References: 	A.C.A. § 18-28-201
A.C.A. § 18-28-202(11), (c), (d)
			A.C.A. § 18-28-204
			A.C.A. § 18-28-206
			A.C.A. § 18-28-207
			A.C.A. § 18-28-208(a)
A.C.A. § 18-28-210(b)(c)
			A.C.A. § 18-28-217
			A.C.A. § 18-28-221(a)
			A.C.A. § 18-28-224

Date Adopted:  June 21, 2010
Last Revised:  June 21, 2010

7.19—SERVICE ANIMALS IN DISTRICT FACILITIES

In accordance with the provisions of the Americans with Disabilities Act, service dogs and trained miniature horses (service animals) are permitted for use by individuals with disabilities on district property and in district facilities provided the individuals and their animals meet the requirements and responsibilities covered in this policy.

When an individual with a disability seeks to bring a service animal into a district facility, the district is entitled to ask the individual:  
a.	If the animal is required because of a disability; and
b.	What work or task has the animal been trained to perform.2
While the district is not entitled to ask for documentation that the animal has been properly trained, the individual bringing the animal into a district facility will be held accountable for the animal’s behavior.

Any service animal brought into a district facility by an individual with a disability must have been trained to do work or perform tasks for the individual. The work or tasks performed by the service animal must be directly related to the handler’s disability. Examples of work or tasks include, but are not limited to, assisting individuals who are blind or have low vision with navigation and other tasks, alerting individuals who are deaf or hard of hearing to the presence of people or sounds, providing non-violent protection, pulling a wheelchair, assisting an individual during a seizure, alerting individuals to the presence of allergens, retrieving items such as medicine, providing physical support and assistance with balance and stability to individuals with mobility disabilities, and helping persons with psychiatric and neurological disabilities by preventing or interrupting impulsive or destructive behaviors. 

The crime deterrent effects of an animal’s presence and the provision of emotional support, well-being, comfort, or companionship do not constitute work or tasks for the purposes of this policy.

Individuals with disabilities shall be permitted to be accompanied by their service animals in all areas of a public entity’s facilities where members of the public, participants in services, programs or activities, or invitees, as relevant, are allowed to go.
 
A service animal shall be under the control of its handler. A service animal shall have a harness, leash, or other tether, unless either the handler is unable because of a disability to use a harness, leash, or other tether, or the use of a harness, leash, or other tether would interfere with the service animal’s safe, effective performance of work or tasks, in which case the service animal must be otherwise under the handler’s control by means of voice control, signals, or other effective means.

District staff may ask an individual with a disability to remove a service animal from the premises if:
(1) The animal is out of control and the animal’s handler does not take effective action to control it; or
(2) The animal is not housebroken.

If the district excludes a service animal due to the reasons listed above, the district shall give the individual with a disability the opportunity to participate in the service, program, or activity without having the service animal on the premises.

The District and its staff are not responsible for the care or supervision of a service animal brought onto district property or into district facilities by an individual with a disability.

The District shall not ask or require an individual with a disability to pay a surcharge, even if people accompanied by pets are required to pay fees, or to comply with other requirements generally not applicable to people without pets.

Individuals should be aware that under Arkansas law the misrepresentation of an animal as a service animal or a service animal in training to a person or entity operating a public accommodation may subject the individual to a civil penalty.

Legal References:	28 CFR § 35.104
28 CFR § 35.136
28 C.F.R. § 36.302
A.C.A. § 20-14-304
A.C.A. § 20-14-308
A.C.A. § 20-14-314

Date Adopted:  June 27, 2011
Last Revised:    June 17, 2019

7.19.1—THERAPY ANIMALS

Definitions
“Therapy animal” means an animal that is a graduate of a program through an assistance dog organization that is a member of Therapy Dogs International or a similar nonprofit organization that attempts to select the highest standard of training for animals for the purpose of emotional support, well-being, comfort, or companionship to school district students. Therapy animals are the personal property of a school district employee or volunteer and are not owned by the school district. Therapy animals do not meet the definition of “service animals” under the Americans with Disabilities Act. 

“Therapy animal handler” means an employee of the school district or volunteer who has received training and passed an evaluation from Therapy Dogs International or a similar nonprofit organization for handling a specific therapy animal and who will be handling and overseeing care of that specific therapy animal for the entire time the animal is on a District campus.

The District recognizes that specially trained therapy animals can provide educational benefits for District students. District staff who wish to have therapy animals made available to students shall submit a plan to the building principal. The proposal shall address all of the following areas:
1.	The location for the therapy animal to be kept when the therapy animal is on campus, which must meet all of the following conditions:
a.	Direct access to the outdoors to permit the therapy animal to enter and exit the building without using the building’s interior hallways;
b.	Free of an intake for the building ventilation system or an independent ventilation system;
c.	Non-porous surfaces, including carpet-free floors, for easy hair removal, cleaning, and sanitation;
2.	The proposed therapy animal or the therapy animal service provider:
a.	The certification the proposed therapy animal has received, including the training required to receive the certification;
b.	the credentials of the certification providers ; 
c.	Copy(ies) of the temperance evaluation (s) of the proposed therapy animal;
d.	The credentials of the temperance evaluator(s);
e.	Proof Demonstrating the therapy animal is current on all vaccinations;
3.	Students:
a.	The set(s) of students whom the therapy animal is intended to serve;
b.	Proposed training to be provided to students on the appropriate behavior and treatment of the therapy animal;
c.	Consequences for inappropriate treatment of the therapy animal;
d.	The anticipated goals for and intended uses of the therapy animal;
4.	The therapy animal’s handler must provide:
a.	The individual(s) who will be responsible for handling the therapy animal;
b.	Training obtained by the proposed handler(s);
c.	The credentials of the providers of the handler’s training;
d.	Proposed schedule for the handler(s) to provide necessary care for the therapy animal, including exercise, feeding, watering, bodily functions, and any cleanup resulting from caring for the animal; and
e.	Proof of an insurance policy that provides liability coverage for the therapy animal while on District property.
student’s parents The building principal may reject the proposal if:
•	The proposal does not meet the requirements of this policy;
•	The principal does not perceive any educational benefit to be achieved based on the information contained in the proposal;
•	The building principal believes that the time required to meet the needs of the therapy animal is inconsistent with the assigned duties of the school employee(s) proposed as the therapy animal’s handler(s); or
•	The proposal is otherwise inconsistent with the needs of the school or school building.

The building principal shall submit any proposal the principal desires to be approved to the superintendent, or designee, for final review and approval. If the superintendent, or designee, approves the proposal, the superintendent, or designee, shall submit written approval for an individual documented therapy animal or for a therapy animal service before the individual animal or an animal provided by the therapy animal service may be present on a District campus.

Any approved therapy animal program may have its approval suspended or curtailed, at any time, for any reason. District employees shall not receive any additional pay, stipend, or compensation for providing the therapy animal or for being the handler and/or the owner of the therapy animal. The supervision and care of the approved therapy animal is solely the responsibility of the therapy animal handler(s) when the therapy animal is on a District campus. The therapy animal handler will assume full responsibility and liability for any damage to school district property or injury to district staff, students, or others while the therapy animal is on a District campus. The therapy animal handler must maintain an insurance policy that provides liability coverage for the therapy animal while on District property.

Approved therapy animals must be clean, well groomed, in good health, house broken, and be current on all vaccinations and immunizations. An approved therapy animal shall have appropriate identification identifying it as a therapy animal at all times while on District property. The therapy animal shall be under the control of the therapy animal’s handler(s) at all times, which requires the therapy animal be attached to the therapy animal’s handler by means of a leash or harness whenever the therapy animal is on District property and outside of its designated room.

The building principal is to receive a verbal report within fifteen (15) minutes of any act of aggression or defensive behavior by the therapy animal towards a human, which includes vocalizations such as growling, or any aggressive or inappropriate behavior by a student directed toward a therapy animal. A full written incident report shall be submitted to both the building principal and the superintendent, or designee, before the close of the following school day. An act of aggression or defensive behavior by a therapy animal shall result in:
•	An immediate end of the current student’s session with the therapy animal;
•	The prohibition of any further interactions between the therapy animal and students for the remainder of the school day; and
•	Exclusion of the therapy animal from campus until the superintendent, or designee, completes an investigation and authorizes the therapy animal’s return to campus.

At no time will a therapy animal be taken through a District building to meet with a student. Students who have time scheduled with a therapy animal shall go to the room where the therapy animal is located. A student shall not schedule or attend a session with the therapy animal until the student’s parents, or the student if over eighteen (18) years of age, provides written authorization for the student to use the services of a therapy animal.
If a student demonstrates symptoms of an allergic reaction during or after a session with the therapy animal, they shall receive written notification of the possibility of their student’s allergy and that the student shall not have any future sessions with the therapy animal. If other student’s in the same classroom demonstrate symptoms of an allergic reaction following a student’s return to class after a session with the therapy animal, no further sessions with the therapy animal shall be scheduled for students in that classroom and the parents of a student who demonstrated symptoms of an allergic reaction shall receive written notification of their student’s possible allergy.

This policy is not intended to, and does not, allow students, parents, or staff to bring emotional support animals onto any District campus. Individuals who bring an animal onto a District campus that does not meet the definition of a service animal under policy 7.19—SERVICE ANIMALS or that has not been approved under this policy shall be asked to leave campus. Repeated violations may result in disciplinary or legal action.

Cross Reference: 7.19—SERVICE ANIMALS

Date Adopted: April 16, 2018
Last Revised: April 16, 2018

7.20––ELECTRONIC FUND TRANSFERS

District funds shall only be disbursed by the district treasurer upon the receipt of checks or warrants signed by the District Board of Directors' Disbursing Officer and the Superintendent or through the electronic transfer of funds. Any electronic transfer of funds must be initiated by the District and authorized in writing by both the Disbursing Officer of the school district Board of Directors and the Superintendent.

For the purposes of this policy, "initiated by the District" means the District controls both the timing and the amount of the funds transfer.

The district treasurer shall maintain evidence of authority for the disbursement in the form of invoices, payrolls that conform with written contracts on file in his/her office, or other appropriate documentation indicating an authority to disburse District funds.

"Other appropriate documentation" includes one-time, signed authorization for recurring transactions. The Board of Directors Disbursing Officer must pre-authorize the electronic transfer of funds for non-recurring transactions which can be accomplished by a signed authorization or an email authorizing such a disbursement of funds.

Cross Reference:	1.16 —DUTIES OF BOARD DISBURSING OFFICER

Legal References:	A.C.A. § 6-13-701(e)
			Commissioner's Memo Com-12-036

Date Adopted:  July 16, 2012
Last Revised:  July 16, 2012

7.23—HEALTH CARE COVERAGE AND THE AFFORDABLE CARE ACT
Definitions
“Dependant”, for purposes of this policy, means an employee’s child(ren) and/or spouse who are enrolled by the employee in health care coverage through the District’s health care plans.

 “Full-time school bus driver” means a person employed by the District to drive regular routes during the annual school year:
1.	Who contracts with the District to operate a school bus for at least seven hundred twenty (720) hours during the school year;
2.	Whose primary source of income during the school year is obtained by operating a school bus for the District; or
3.	Who contracts with the District to operate a school bus and is designated by the superintendent as a full-time school bus driver, regardless of the number of hours for which the person is contracted.

 “Full-time employee”, for purposes of this policy, means an employee who is: 
a.	In a position1 requiring on average thirty (30) hours of actual performance per week during the annual school year; or
b.	A full-time school bus driver.

“Responsible individual” means a primary insured employee who, as a parent or spouse, enrolls one or more individual(s) in health care coverage through the District’s health care plans.

“Variable hour employee”, for the purposes of this policy, means an individual, other than a full-time school bus driver, who has no base minimum number of hours of performance required per week.

Health Insurance Enrollment
All full time District employees are eligible to enroll themselves; their spouse, so long as the spouse is not otherwise eligible for insurance through his/her employer's sponsored plan; and their child(ren) in one of the insurance plans through the Public School Employee Life and Health Insurance Program (PSELHIP). Variable hour employees are not eligible to enroll in a PSELHIP plan. If a variable hour employee’s measurement period finds that the employee averaged thirty (30) or more hours per week, then the employee is treated as a full time employee rather than a variable hour employee and is eligible for health insurance. New full time employees have sixty (60) days following the start date of the employee’s contract to elect to enroll in a PSELHIP plan; all new employees shall be informed in writing of the start date of the employee’s contract and that the employee has sixty (60) days from that date to elect PSELHIP coverage. Coverage for new employees who choose to enroll in a PSELHIP plan shall take effect on the first of the month following the date on the enrollment application.  Coverage shall be in effect until the end of the calendar year. Employees who experience a Qualifying Status Change Event5 have sixty (60) days from the date of the Qualifying Status Change Event to file an application to change coverage information. All employees who continue to be eligible may elect to continue coverage and make changes to their PSELHIP plan for the following plan year during the yearly open enrollment period.

The District shall ensure all employees are provided education annually on the advantages and disadvantages of a consumer-driven health plan option and effective strategies of using a Health Savings Account (HSA).

District Contribution to Premiums
At a minimum, the District shall distribute the statutorily required contribution rate to all employees who are enrolled in one of the PSELHIP plans, which shall include any mandatory increases to the contribution rate due to increases to the salary schedule. In accordance with the State Health Insurance Portability Rules (SHIP), the District shall continue to pay the premium contribution for an employee who transfers to another Arkansas school district that also participates in the SHIP through August 31 of the calendar year the employee leaves the district so long as the employee:
1)	Completes his/her contract with the District;
2)	Provides the District with notice that the employee is transferring to another district by no later than the Friday following the last student contact day9;
3)	Provides the District with proof of employment at another Arkansas district; and
4)	Has the employee portion of the premium deducted from his/her end-of-year checks or pays the District business office the employee’s portion of the premium by the 15th10 of both July and August.

Measurement Method of Employee Hours
Option 1: The District uses the look-back method for determining if an employee qualifies as a full-time employee.
W-2
For all full-time employees who are enrolled in a PSELHIP plan, the District shall indicate in box twelve (12) of the employee’s Form W-2 the cost of the employee’s health care coverage by using code “DD”.811

IRS Returns
The District will electronically file with the IRS by March 31 of each year the forms required by the IRS on the health insurance coverage of each full-time employee for the previous calendar year, whether or not the full-time employee participates in a health insurance plan through the PSELHIP.
Statement of Return
The District shall send to each full-time employee a Statement of Return (Statement) regarding the IRS Return filed on the employee. The Statement shall contain: The District’s name, address, and Employer Identification Number (EIN) as well as a copy of the IRS Return filed on the employee. The District shall send a copy of the Statement to the employee on or before January 31 of the calendar year following the calendar year the information in the Statement covers. The District shall send only one Statement to the household of an employee who meets the definition of a responsible individual that will include all requisite information for both the responsible individual and the responsible individual’s dependant’(s). The Statement will be mailed to the employee’s address on record.
Record Retention
The District shall maintain copies of the Statements sent to employees in accordance with the requirements for documents transmitted to the IRS in Policy 7.15—RECORD RETENTION AND DESTRUCTION.

Legal References:	A.C.A. § 6-17-1117
A.C.A. § 21-5-401 et seq.
26 C.F.R. § 54.4980h-0 et seq.
26 C.F.R. § 31.6001-1
26 C.F.R. § 301.6056-1

Date Adopted:  July 27, 2015
Last Revised:  June 17, 2019

7.24—ADVERTISING ON SCHOOL BUSES

Under the authority granted by A.C.A. § 6-19-129 and the Commission for Arkansas Public School Academic Facilities and Transportation Rules Governing Advertising on School Buses:1

The District has chosen NOT to permit the selling of advertising space on District owned school buses and shall NOT use the space provided by law for any purpose.2

Cross References:	5.29—WELLNESS POLICY
			6.9—MEDIA RELATIONS AND NEWS RELEASES
			7.5—PURCHASES AND PROCUREMENT

Legal References: 	A.C.A. § 6-19-129
			A.C.A. § 7-1-111
Commission for Arkansas Public School Academic Facilities and Transportation Rules Governing Advertising on School Buses
7 C.F.R. § 210.31

Date Adopted: June 19, 2017
Last Revised: April 16, 2018