165.011. Tuition--accounting of school moneys, funds--uses--transfers to and from incidental fund, when--effect of unlawful transfers--transfers to debt service fund, when.
Tuition--accounting of school moneys, funds--uses--transfers to andfrom incidental fund, when--effect of unlawfultransfers--transfers to debt service fund, when.
165.011. 1. The following funds are created for the accounting of allschool moneys: teachers' fund, incidental fund, capital projects fund anddebt service fund. The treasurer of the school district shall open an accountfor each fund specified in this section, and all moneys received from thecounty school fund and all moneys derived from taxation for teachers' wagesshall be placed to the credit of the teachers' fund. All tuition fees, statemoneys received under section 163.031, RSMo, and all other moneys receivedfrom the state except as herein provided shall be placed to the credit of theteachers' and incidental funds at the discretion of the district board ofeducation, except as provided in subsection 6 of section 163.031, RSMo. Moneyreceived from other districts for transportation and money derived fromtaxation for incidental expenses shall be credited to the incidental fund.All money derived from taxation or received from any other source for theerection of buildings or additions thereto and the remodeling orreconstruction of buildings and the furnishing thereof, for the payment oflease-purchase obligations, for the purchase of real estate, or from sale ofreal estate, schoolhouses or other buildings of any kind, or school furniture,from insurance, from sale of bonds other than refunding bonds shall be placedto the credit of the capital projects fund. All moneys derived from the saleor lease of sites, buildings, facilities, furnishings, and equipment by aschool district as authorized under section 177.088, RSMo, shall be creditedto the capital projects fund. Money derived from taxation for the retirementof bonds and the payment of interest thereon shall be credited to the debtservice fund, which shall be maintained as a separate bank account. Receiptsfrom delinquent taxes shall be allocated to the several funds on the samebasis as receipts from current taxes, except that where the previous years'obligations of the district would be affected by such distribution, thedelinquent taxes shall be distributed according to the tax levies made for theyears in which the obligations were incurred. All refunds received shall beplaced to the credit of the fund from which the original expenditures weremade. Money donated to the school districts shall be placed to the credit ofthe fund where it can be expended to meet the purpose for which it was donatedand accepted. Money received from any other source whatsoever shall be placedto the credit of the fund or funds designated by the board.
2. The school board may transfer any portion of the unrestricted balanceremaining in the incidental fund to the teachers' fund. Any district thatuses an incidental fund transfer to pay for more than twenty-five percent ofthe annual certificated compensation obligation of the district and has anincidental fund balance on June thirtieth in any year in excess of fiftypercent of the combined incidental teachers' fund expenditures for the fiscalyear just ended shall be required to transfer the excess from the incidentalfund to the teachers' fund. If a balance remains in the debt service fund,after the total outstanding indebtedness for which the fund was levied ispaid, the board may transfer the unexpended balance to the capital projectsfund. If a balance remains in the bond proceeds after completion of theproject for which the bonds were issued, the balance shall be transferred fromthe incidental or capital projects fund to the debt service fund. Aftermaking all placements of interest otherwise provided by law, a school districtmay transfer from the capital projects fund to the incidental fund theinterest earned from undesignated balances in the capital projects fund. Aschool district may borrow from one of the following funds: teachers' fund,incidental fund, or capital projects fund, as necessary to meet obligations inanother of those funds; provided that the full amount is repaid to the lendingfund within the same fiscal year.
3. Tuition shall be paid from either the teachers' or incidental funds.Employee benefits for certificated staff shall be paid from the teachers'fund.
4. Other provisions of law to the contrary notwithstanding, the schoolboard of a school district that meets the provisions of subsection 6 ofsection 163.031, RSMo, may transfer from the incidental fund to the capitalprojects fund the sum of:
(1) The amount to be expended for transportation equipment that isconsidered an allowable cost under state board of education rules fortransportation reimbursements during the current year; plus
(2) Any amount necessary to satisfy obligations of the capital projectsfund for state-approved area vocational-technical schools; plus
(3) Current year obligations for lease-purchase obligations entered intoprior to January 1, 1997; plus
(4) The amount necessary to repay costs of one or more guaranteed energysavings performance contracts to renovate buildings in the school district,provided that the contract is only for energy conservation measures as definedin section 640.651, RSMo, and provided that the contract specifies that nopayment or total of payments shall be required from the school district untilat least an equal total amount of energy and energy-related operating savingsand payments from the vendor pursuant to the contract have been realized bythe school district; plus
(5) An amount not to exceed the greater of:
(a) One hundred sixty-two thousand three hundred twenty-six dollars; or
(b) Seven percent of the state adequacy target multiplied by thedistrict's weighted average daily attendance, provided that transfer amountsin excess of current year obligations of the capital projects fund authorizedunder this subdivision may be transferred only by a resolution of the schoolboard approved by a majority of the board members in office when theresolution is voted on and identifying the specific capital projects to befunded directly by the district by the transferred funds and an estimatedexpenditure date.
5. Beginning in the 2006-07 school year, a district meeting theprovisions of subsection 6 of section 163.031, RSMo, and not making thetransfer under subdivision (5) of subsection 4 of this section, nor makingpayments or expenditures related to obligations made under section 177.088,RSMo, may transfer from the incidental fund to the debt service fund or thecapital projects fund the greater of:
(1) The state aid received in the 2005-06 school year as a result of nomore than eighteen cents of the sum of the debt service and capital projectslevy used in the foundation formula and placed in the respective debt serviceor capital projects fund, whichever fund had the designated tax levy; or
(2) Five percent of the state adequacy target multiplied by thedistrict's weighted average daily attendance.
6. Beginning in the 2006-07 school year, the department of elementaryand secondary education shall deduct from a school district's state aidcalculated pursuant to section 163.031, RSMo, an amount equal to the amount ofany transfer of funds from the incidental fund to the capital projects fund ordebt service fund performed during the previous year in violation of thissection; except that the state aid shall be deducted over no more than fiveschool years following the school year of an unlawful transfer based on a planfrom the district approved by the commissioner of elementary and secondaryeducation.
7. A school district may transfer unrestricted funds from the capitalprojects fund to the incidental fund in any year in which that year's Junethirtieth combined incidental and teachers' funds unrestricted balancecompared to the combined incidental and teachers' funds expenditures would beless than ten percent without such transfer.
(L. 1963 p. 200 § 6-1, A.L. 1977 H.B. 130, A.L. 1992 S.B. 581, A.L. 1993 S.B. 380, A.L. 1994 S.B. 676, A.L. 1995 S.B. 255, A.L. 1996 S.B. 795, et al., A.L. 1997 H.B. 604 merged with H.B. 641 & 593, A.L. 1998 H.B. 1469 merged with S.B. 658 merged with S.B. 781, A.L. 1999 H.B. 889, A.L. 2000 S.B. 944, A.L. 2001 S.B. 543, A.L. 2003 S.B. 686, A.L. 2005 S.B. 287)(Source: RSMo 1959 § 165.110)
Effective 7-01-06