Model Monitoring Report
Policy Title: 2.6. Asset Protection

This is my report on your Executive Limitation policy and is presented in accordance with your monitoring schedule. I certify that the information contained in this report is true.

_____________________ Superintendent                                 _____________ Date

The Superintendent shall not cause or allow district assets to be unprotected, inadequately maintained, or unnecessarily risked.

Interpretation:
I interpret “assets” to mean physical and intellectual property of the District with a value greater than $5,000.
I interpret “unprotected” to mean assets without insurance and/or a plan/guiding procedures.
I interpret “inadequately maintained” to mean a lack of preventive maintenance, repair, or renovation which may cause an asset to deteriorate and experience an accelerated depreciation, within available financial resources.
I interpret “inappropriately used” to mean the utilization of assets not in accordance with the desired Ends of the district.
I interpret “unnecessarily risked” to mean the exposure of assets to circumstances resulting in a higher likelihood of theft or otherwise being unavailable for the asset’s intended purpose.

Further, without limiting the scope of the foregoing by this enumeration, the Superintendent shall not

Provision #1: Fail to insure against theft and casualty losses to at least 80 percent of replacement value and against liability losses to board members, staff, and the organization itself in an amount greater than the average for comparable organizations

Interpretation: I interpret this to mean that in order to replace damaged/lost assets, ensure the assets of the organization are insured against loss. The coverage should be comparable to other similar entities.

Rationale: The rationale is self-evident in this provision.

Evidence: We are currently insured through the Vermont School Boards’ Insurance Trust that protects the Orange Southwest Supervisory Union in the following areas:

I report compliance.

Provision # 2: Allow un-bonded personnel access to material amounts of funds

Interpretation: I interpret this to mean that insurance is in place for all appropriate financial personnel. There are procedures governing personnel access to material resources.

Rationale: Insurance coverage for all employees with access to fiscal resources of the school districts is essential to protect the overall integrity of the financial system. Insurance ensures that fraud, negligence, or theft by an employee will have a limited impact on the school district.

Evidence:

I report compliance.

Provision # 3: Subject facilities and equipment to improper wear and tear or insufficient maintenance.

Interpretation: I interpret this to mean all facility reviews and maintenance plans are in place for all school district buildings and grounds. Board is informed about the financial resources needed to implement the plans and that school budgets reflect the identified facility needs (within fiscal limitations).

Rationale: Proactive maintenance plans, explicitly stated facility needs with associated costs, and appropriate budgets are essential to ensure school district assets are protected.

Evidence: Short and long-term maintenance plans are in place for each building in the OSSU. Boards receive facilities progress reports throughout the year. Budgets include funds for maintenance and equipment needs as determined in district plans within available resources. Finally, Boards approve all expenditures from maintenance reserve funds in addition to budgeted funds.

I report compliance (given the lack of financial capacity to complete all RUHS and RTCC facility needs).

Provision #4: Unnecessarily expose the organization, its board, or its staff to claims of liability

Interpretation: I interpret this to mean the superintendent’s behavior and the behavior of all district employees will be governed by state and federal law.

Rationale: The best way to preserve the legal liability of the school district is to ensure policies and procedures are current, Boards and Staff are aware and understand the policies and procedures, and that required trainings (Federal and State) occur annually. In summary, a deliberate provision for staff awareness of legal responsibilities and professional behavior is essential.

Evidence: We currently carry Errors and Omissions insurance through the Vermont School Boards’ Insurance Trust. We provide education and training to staff and Board members on Federal and State laws annually as required. Written procedures indicating appropriate procedures for various activities within the district are in place and available on our web site in the central office. This past year, mandatory training was shifted to electronic format through Survey Monkey. For example, Boards received FERPA and Students Records training and Staff received Act 1, FERPA, and Bullying & Harassment training via this medium. There are significant other trainings throughout the year for staff in areas such as appropriate use of technology, CPI and Restraint, First Aid and CPR, and Bullying & Harassment.

I report compliance.

Provision # 5: Make any purchase (a) wherein normally prudent protection has not been given against conflict of interest; (b) of over $15,000 without having obtained comparative prices and quality.  Orders shall not be split to avoid these criteria.

Interpretation: I interpret this to mean the superintendent will identify all potential areas of conflict of interest prior to purchases and will follow all state bidding laws.

Rationale: The rationale is self-evident in this provision.

Evidence: There have been no known conflicts of interest in purchasing or bids during the past school year. Enclosed the Business Manager identified a list of contracts exceeded $15,000 that went out to bid and that State bidding laws were adhered to.

I report compliance.

Provision # 6: Fail to protect intellectual property, information, and files from loss or significant damage

Interpretation:
I interpret this to mean I will follow best practices, procedures, and laws for the protection of district information and intellectual property.

Rationale: Intellectual property, information, and files contain confidential and privileged content that must be protected to ensure employee and student rights in accordance with the law (Federal and State) and from a moral perspective. As such, Federal and State guidelines for the storage, destruction, and transfer of these materials must be explicitly written into procedures and implemented into practice.

Evidence:

I report compliance.

Provision # 7: Receive, process, or disburse funds under controls that are insufficient to meet the board-appointed auditor's standards.

Interpretation
Interpret this to mean I will follow GAAP (Generally Accepted Accounting Procedures), PSAB (Public Sector Accounting Board standards), and the Auditor’s directions when managing the school district’s financial resources.

Rationale: There are well-founded guidelines (GAAP) and external financial experts (Auditor) to guide the fiscal operations of the school district. Abiding by these guidelines serves to protect the fiscal integrity of the school district and minimize its liability.

Evidence: The districts followed GAAP and PSAB standards. District Audited financial statements revealed no breaches of compliance.

I report compliance.

Provision # 8: Compromise the independence of the board’s audit or other external monitoring or advice, such as by engaging parties already chosen by the board as consultants or advisers

Interpretation: I interpret this to mean I will not interfere with the external auditing process and not utilize auditing personnel for other financial business. I will ensure the annual audit takes place in a timely manner.

Rationale: The external audit is, in its purest form, a report card on the overall functioning of the school district. As such, the CEO and CFO should cooperate (and not disrupt) the audit process to all possible extent. As a primary safeguard to maintaining fiscal integrity, the external audit(or) should remain as neutral to the administration and operations of the district as possible.

Evidence: The School Board hires an external auditor to conduct all external audits. Audits are conducted in the fall of each year. In addition, the OSSU Board meets with the external auditor, without the administration, to review the audited statements and to determine if concerns exist.

I report compliance.

Provision # 9: Endanger the organization's public image, its credibility, or its ability to accomplish its Ends.

Interpretation: Interpret this to mean I shall not cause or allow any practice, activity, decision, or organizational circumstance that is unlawful, unsafe, imprudent, or in violation of commonly accepted educational and professional ethics and practices.

Rationale: The school district’s image, credibility, and ability to accomplish its Ends must be protected at all times. A deliberate provision and attention to maintaining a current, purposeful, legal, and ethical financial system significantly improves the district’s ability to achieve its Ends and maintain the support of its communities.

Evidence: I have not received any complaints by the Board or Community that the public image, credibility, or ability to accomplish our Ends has been endangered. Other evidence to support compliance include:

I report compliance.

Policy Wording: With respect to the policy wording that the superintendent shall not cause or allow district assets to be unprotected, inadequately maintained, or unnecessarily risked.
Superintendent Interpretation: I interpret compliance with the overall policy to mean that all nine policy provisions are in compliance.
Evidence: All provisions are in compliance.