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Policy Categories Archives: Section D: Fiscal Management

Section D contains policies on school finance and the management of funds. Policies on the financing of school construction and renovation are filed in Section F: Facilities Development.

Budget Implementation


The district budget serves as the control to direct and limit expenditures. Overall responsibility for this control rests with the Superintendent, who will establish the procedures for budget control and reporting throughout the district.

Statutory References: RSA 32:5, 32:10, 32:3

Adopted: September 21, 1983
Adopted: February 3, 2000


Budget Planning


Budget planning for the Candia School District will be an integral part of program planning so that the annual operating budget may effectively express and implement all programs and activities of the school system. Budget planning will be a year-round process involving broad participation of school board members, administrators, principal, directors, coordinators, teachers, and other personnel within the school system.

The Superintendent will have overall responsibility for budget preparation, including the construction of, and adherence to, a budget calendar. The Principal will develop and submit budget requests for his/her school after seeking the advice and suggestions of staff members.

The budget request will reflect the administrators’ judgement as to the most effective way to use resources in achieving progress toward educational objectives of the school.

Adopted: February 10, 1987
Adopted: February 3, 2000

Annual Budget

CSD File: DB

One of the primary responsibilities of the School Board is to secure adequate funds to carry out a high-level program of education.

The adopted annual school budget is the financial outline of the district’s educational program; it is the legal basis for the establishment of tax rates. The annual school budget process is an important function of school district operations and should serve as a means to improve communications within the school organization and with the residents of the community.

The Superintendent will be responsible for preparing and presenting to the Board for adoption, the annual school budget. The Board expects the Superintendent to work closely with the Principal and other administrators in their respective areas in studying the needs of the school and in compiling a budget to meet those needs. The Principal is expected to confer with appropriate staff in getting budgetary requests and information on requirements.

In developing each operating budget, it will be the policy of the Board to provide an optimum educational program for the students with an awareness of the taxpayers’ ability to support such a program.

Adopted: February 3, 2000

Budget Management Goals

CSD File: DA

The Candia School Board recognizes that money and money management comprise the foundation of the whole school program. To make that support as effective as possible, the Board intends:
1. To encourage advance planning through the best possible budget procedures;
2. To explore all practical and legal sources of revenue;
3. To guide the expenditure of funds so as to achieve the greatest educational returns;
4. To require maximum efficiency in accounting and reporting procedures; and
5. To maintain a level of funding consistent with Board goals.
As trustee of community, state, and federal funds allocated for use in local education, the School Board has the responsibility to protect the funds and use them wisely.

Adopted: February 10, 1987
Adopted: February 3, 2000



The books and accounts of the district shall be audited annually. The audit to be performed will meet the basic audit procedures prescribed by CPA standards.

The School Board will confirm the selection of the auditors after hearing the recommendation from the Superintendent or Business Administrator. Such audit will be made in accordance with RSA 197:25.

Statutory References: RSA 197:25, RSA 671:5

Adopted: February 10, 1987
Adopted: February 3, 2000


Capital (Fixed) Assets


The Candia School District has invested in a broad range of capital assets that are used in the school system’s operations. The Superintendent will designate the person responsible for managing the District’s capital assets and maintaining the fixed assets inventory. In accounting for capital assets, the District will implement the standards required by Statement 34 of the Government Accounting Standards Board.

Capital assets are real or personal property that have a value equal to or greater than the capitalization threshold of the particular classification of asset.

Capital assets include:
– Land
– Land Improvements (not depreciable)
– Land Improvements (depreciable)
– Infrastructure
– Construction in Progress
– Vehicles
– Furniture, Equipment and Machinery

All assets, or at least a representative sampling, including those that are reported on a composite basis, must be evaluated once annually to reflect either an increase or decrease in total value.


For financial reporting purposes, capitalization threshold is set at $5,000 per item.

Capital assets may be acquired through donation, purchase, or may be constructed. The asset value for donations will be the fair market value at the time of the donation. The asset value, when purchased, will be the initial cost of the item/items. The asset value of constructed assets include all costs of construction.


For all assets that qualify as a depreciable asset, the straight-line, full-year depreciation method should be utilized to depreciate the capital asset, over the estimated useful life of the related asset.


When capital assets are sold or otherwise disposed of, the inventory of capital assets should be relieved of the cost of the asset and the associated accumulated depreciation. Assets will be removed on an annual basis in conjunction with the annual update. The appropriate depreciation will be taken for the year of disposal.

Adopted: May 9, 2002
Revised: October 2, 2008
Revised: June 6, 2013
Revised: November 2, 2017

Fund Balance Policy


1. In accordance with the governmental accounting standard, GASB Statement No. 54, the
School Board recognizes the following five categories of fund balance for financial reporting
a. Nonspendable Fund Balance – non-cash assets such as inventories or prepaid items.
b. Restricted Fund Balance – funds legally restricted for specific purposes, such as grant,
food service and expendable trust funds.
c. Committed Fund Balance – amounts that can only be used for specific purposes
pursuant to a formal vote of the School Board.
d. Assigned Fund Balance – amounts intended by the Board for specific purposes. The
Board can choose to delegate this authority to the Superintendent or Business
Administrator, depending on the situation. Items that would fall under this type of fund
balance could be encumbrances.
e. Unassigned Fund Balance – residual spendable fund balance after subtracting all of the
above amounts.

2. Committed Fund Balance. The School Board, as the government’s highest level of decision-making
authority, may commit fund balance by a formal vote prior to the government’s fiscal
year-end for that fiscal year. Future modification or rescission of committed funds must
likewise be accomplished by a formal vote of the School Board prior to fiscal year-end.

3. Assigned Fund Balance. The School Board expressly delegates to the Superintendent,
through the Business Administrator, the authority under this policy to assign funds for
particular purposes.

4. Spending Prioritizations:
a. When an expenditure is incurred that would qualify for payment with either restricted or
unrestricted funds, it will be paid from restricted funds.
b. When an expenditure is incurred that qualifies for payment from either of the three
unrestricted fund balance categories, it will be applied in the following order:
1) Committed, 2) Assigned, and 3) Unassigned.

5. Deficit Fund Balance. At year end if any of the special revenue funds (i.e. food service,
vocational education funds, etc.) has a deficit unassigned fund balance then the
Superintendent is authorized to transfer funds from the general fund to cover the deficit,
providing the general fund has money to do so.

6. The School Board will turn back any unassigned general fund balance at year-end to offset
the next fiscal year’s tax rate for the Town.

7. Annual Review. Compliance with the provisions of this policy shall be reviewed as a part of
the annual budget adoption process.

Adopted: October 6, 2011
Revised: June 6, 2013
Reviewed: May 7, 2015
Reviewed: April 7, 2016

Fiscal Accounting And Reporting

CSD File: DI

The district’s accounting system will be in conformance with the New Hampshire Financial Accounting Handbook published by the State Department of Education. An adequate system of encumbrance accounting will be maintained.

The School Board shall receive financial reports and statements showing the financial condition of the school district. These statements/reports shall be prepared on a scheduled basis during the school year, two of which shall contain estimates to project cost for the full year including actual encumbered expenses. The School Board may ask for a statement or report at any time.

Adopted: February 10, 1987
Adopted: February 3, 2000
Reviewed: February 10, 2022

School Properties Disposal Procedure

CSD File: DN

It is the policy of the School Board to obtain maximum utilization from all school property.

Property owned by the school district shall be determined to be obsolete or surplus when any one of the following criteria has been met:
a. The property exists in quantities exceeding the possibility of the effective educational use by the school district.
b. The property is unsound, out-of-date, inaccurate or in an unusable or economically unrepairable condition.

Determination as to whether any of the above criteria applies to property currently possessed by the school district shall be made by the Superintendent, who may delegate this responsibility to qualified personnel, provided all requirements of the law are met.

Disposal of property which meets the above criteria shall be in a manner most advantageous to the school district and shall be according to the following priority outcomes:
1. Sale
2. Trade in or exchange
3. Donation to students, parents, or non-profit agencies, whichever is appropriate
4. Discard in an appropriate manner.

The sale of property which is expected to raise more than $250.00 must be advertised in at least one local newspaper. The sale of property which is expected to raise more than $500.00 must be specifically approved by the district’s School Board.

Adopted: September 13, 1978
Revised: February 10, 1987
Adopted: February 3, 2000
Revised: November 6, 2014

Cash In The School Building

CSD File: DM

Prudent measures shall be taken for monies that are left in the school overnight. The building Principal shall take measures to ensure regular and routine deposits to avoid large sums of money from being stored in the building. All monies collected shall be receipted and accounted for.

Deposits must be made at least once weekly.

Adopted: February 3, 2000
Revised: May 5, 2022