With respect to the actual, ongoing administration of the district’s financial assets, the CEO shall not cause or allow material deviation from the annual budget or budget policy adopted by the Board, cause or allow any fiscal condition that is inconsistent with achieving the Board’s Ends, or places the long-term financial health of the district in jeopardy.

Accordingly, the CEO may not:

1. Expend more funds than have been received in the fiscal year unless revenues are made available through other legal means, including the use of fund balances, the authorized transfer of funds from reserve funds, and tax anticipation notes.
2. Indebt the organization.
3. Expend funds from the fund balance reserve unless authorized by the Board.
4. Permanently transfer unencumbered moneys from one fund to another unless authorized by the Board as allowed under law.
5. Fail to settle payroll and debts in a timely manner.
6. Make any purchase:

1. Without exercising reasonable precaution against conflict of interest;
2. Without having considered comparative prices based on items of similar quality;
3. Without considering a balance between long-term quality and cost.

7. Fail to use competitive procurement procedure as required by law.
8. Allow reports or filings required by any state or federal agency to be overdue or inaccurately filed.
9. Receive, process or disburse funds under controls that are insufficient under generally accepted accounting procedures.
10. Fail to aggressively pursue receivables after a reasonable grace period.
11. Fail to keep complete and accurate financial records by funds and accounts in accordance with generally recognized principles of governmental accounting.
12. Fail to publish and post a financial condition statement annually.

Adopted:  07.07.03

Revised:  06.27.05

Monitoring Method:          Internal Report
Monitoring Frequency:     Annually in May

Lake Washington School District Board of Directors