How to Prepare a Legal Memorandum of Law

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How to Prepare a Legal Memorandum of Law Powered By Docstoc
					   ISU Extension
    County Staff
Fiscal Responsibility
          ISU Extension County Staff
         Fiscal Responsibility Training


   1. To help staff understand the ISUE financial
      network and partnerships

  2. To help staff understand the District role as a
     government subdivision

  3. To prepare staff to keep the District records and
     prepare reports
             Iowa State

 Federal   Iowa State
  USDA     University

            County             of
State of   Extension      Understanding
 Iowa       District
Procedures                          County

             Memorandum of

              Extension Law
               Chapter 176A

             Code of Iowa
       Chapters 20, 21, 24 & 176A

             County Extension
              Legal Pyramid
       What do you know?
• Can you name the three governmental
  funding sources for Extension?
          Federal, State and County

• What is the document that explains the
  relationship of ISUE to a local Extension
          Memorandum of Understanding
               Fiscal Calendar
• The fiscal year for Extension is July 1-June 30.
• FY means fiscal year and is usually accompanied
  by the year.
   – FY09 is fiscal year 2009
        (July 1, 2008 – June 30, 2009)
  – FY12 is fiscal year 2012
         (July 1, 2011 – June 30, 2012)
             County Agricultural Extension District
                  Single “Fiscal Year” Cycle

                   Fiscal Year July 1 – June 30

Section        Activity                    Month
Prepare        Begin budgeting process     November/December
               Council organization        January
               Record budget               March
Budgeted       Start fiscal year           July 1
Year*          Council organization        January
               Year-end                    June 30
               annual financial reports    July
Certify        Audit                       September - March
  *Amend as needed July through May
  24-month Financial Cycle                                      Fiscal Year July 1 to June 30
Month/Year                Activity                                                   Notes
November 2006             Begin FY08 budgeting process                               Begin cycle
January 2007              Council and District organization for 2007 calendar year

March 2007                Record FY08 budget

June 30, 2007             FY07 year-end

July 2007                 FY07 annual financial reports

July 1, 2007              Start Fiscal Year 2008                                     ►

August – Sept 2007        Prepare the County Indirect Cost Rate Proposal for FY08

Sept. 2007– March 2008    FY07 audit                                                 End of cycle
November 2007             Begin FY09 budgeting process                               Begin cycle
January 2008              Council and District organization for 2008 calendar year

March 2008                Record FY09 budget

June 30, 2008             FY08 year-end

July 2008                 FY08 annual financial reports                              ◄

July 1, 2008              Start Fiscal Year 2009

August – Sept. 2008       Prepare the County Indirect Cost Rate Proposal for FY09

Sept. 2008 – March 2009   FY08 audit                                                 End of cycle
       Your interpretation?
• You are trying to get your council
  budget committee together to start
  work on the county budget for the next
  fiscal year. When should you try to
  schedule the meeting?

         Sometime between November and January
             Income Sources

OTHER                              Other
             CASH SUPPORT          --------- ---

                                   Tort Liability

GRANTS                              Resale

                 County Extension Law
                     Code of Iowa
                     Chapter 176.A
            County Agricultural Extension Law
• 176A.5 County agricultural extension council.
  There shall be elected in each extension district an
  extension council consisting of nine members. Each
  member of the extension council shall be a resident
  registered voter of the extension district.
• 176A.5.2. Each extension council shall meet at least
  two times during a calendar year and at other times
  during the year as the council determines. The date,
  time, and place of each meeting shall be fixed by the
•176A.8 Powers and duties of county agricultural
 extension council. The extension councils of each
 extension district of the state shall have, exercise, and
 perform the following powers and duties:

•176A.8.6 To prepare annually before March 15 a
 budget for the fiscal year beginning July 1 and ending
 the following June 30, in accordance with the
 provisions of chapter 24 and certify the same to the
 board of supervisors of the county of their extension
 district as required by law.
176A.13 To carry over unexpended county agricultural
  extension education funds into the next year so that
  funds will be available to carry on the program until
  such time as moneys received from taxes are
  collected by the county treasurer. However, the
  unencumbered funds in the county agricultural
  extension education fund in excess of one-half the
  amount expended from the fund in the previous year
  shall be paid over to the county treasurer.

176A.14 To file with the county auditor and to publish
  in two newspapers of general circulation in the
  district before August 1 full and detailed reports …
       Know your Iowa Code?
• What section of the Iowa Code would help you with
  the question about going into closed session?

       - Iowa Code Chapter 21

• What is your public notification policy for council

       - Posting agenda 24 hours in advance in public

• Council meeting does not have a quorum.
County Fiscal Policy
Section II, 2.3 Public Funds2
   A. Public Funds are those funds owned by a public
       entity such an extension district. This includes
       both tax and non-tax monies. All monies raised
       by users of the district entity are owned by the
       district, not the user, and are under the control
       of the local council.
   B. All public funds are the legal responsibility of the
       council. Legal responsibility assigned by law
       cannot be transferred by council action.
   C. All public funds have the same legal
       requirements for accounting, reporting, auditing
       and allowing, proper signatures, segregation of
       duties, publishing, bonding, investing and
       uniform financial accounting procedures.
     Categories of Public Funds
•   County Tax Fund
•   Grants/Contracts Fund
•   Fee Program Fund
•   Donor Restricted Fund
•   Donor Unrestricted Fund
•   Tort Fund
•   Unemployment Fund
     What type of fund is it?
• Ag field specialist conducts ProAg Workshop
        – Fee Program Fund

• 4-H family contributes to the “XYZ Memorial
  Scholarship Fund”
        – Donor Restricted Fund

• Retail business donates to the 4-H program
        – Donor Unrestricted Fund
Section III, 3.2 Appropriate Expenses

• A. Expenses paid with money collected and
  disbursed by the county extension council should be
  used to deliver quality, research-based information
  for the benefit of all Iowans.
      - The public purpose is determined by the
        extension council based on local expectations
        and standards for the spending of public funds.
      - Council establish policies within approved
               Agency Fund

A County Agricultural Extension District may allow
an Agency Fund to be established to hold funds in
custody for an entity cooperating with Extension
programs. These funds are owned and managed
by the entity, not by the County Extension Council.

The Agency Fund allows only non-Extension money
to be deposited, or held, in it. Agency funds
typically involve only the receipt, temporary
investment, and remittance of assets to their
rightful owners.
                  Agency Fund           (cont.)

Extension must not have the ultimate decision-making authority
about the use of the funds, consider these criteria:

A. Is the non-Extension entity legally separate? If so, the legal
   entity has sole decision-making authority for the money held in
   the fund.
B. If any of the following apply, the Extension Council probably has
   the ultimate decision-making authority:
  (1) Is the entity appointed by the Council?
  (2) Does the entity carry out any part of the Extension program?
  (3) Is the Council able to, if so desired, impart its will on the
  (4) Does the Council support the entity with other funding
      through the Education Operating Fund?
          County Agricultural Extension District
                  Extension Council

  Operating Fund                   Agency Fund
       All of County          Only Other People’s Money
    Extension’s Money              (Not IN & OUT)
    Any Money can be                 Must meet test
 Controlled by the County
Extension Council’s Budget    Somebody else’s direction
 Public Funds subject to         Semi-Public subject to
   State of Iowa law               Extension rules
  Publish detail annually          Publish summary
  Carryover Restriction        No Carryover Restriction
  Examples of Public Good
• A volunteer policy determines that screening and
  recognition are components of the county’s
  volunteer management system.

• A program policy determines that recognition is a
  component of the youth and 4-H program.

• A policy to allow food purchases in support of
  educational programs/meetings
   County Fiscal Management and Council
           Organizational Forms

Budget Materials and Proof of Publication

  Entry Form
  Form 678 – Adopted Budget & Certificate of Taxes
  CB-1 – County Budget Worksheet
  CB-2 – Approved Budget Summary
  Form 674 – Notice of Public Hearing
  Form 674-A – Attachment 1 – Supplemental Detail – General Levy
  Form 674-A – Attachment 2 – Supplemental Detail – Tort and
        Unemployment Levies
  Affidavit of Publication
Reorganization Materials & Certificate
       ECO-1 – Notice of Organizational Meeting
       ECO-2 – Minutes of Organizational Meeting
       ECO-3 – Certificate of Organization

Certificate of Bond
       ECO-4 – Notice of Treasurer Bonding
       Certificate of Bond

Bank Statement – with deposit slips or electronic imaging attached
Monthly Bank Reconciliation
Balance Sheet Report
Council Revenue and Expense Statement
Directors Revenue and Expense Statement
Voucher Report for Council – from council meeting to council meeting
Bank Register Report – from first day of month to last day of month
Transactions Reports
Year End Reports & Proof of Publication

  Balance Sheet Report as of June 30th

  Council Revenue and Expense Statement – July 1 to June 30

  Directors Revenue and Expense Statement – July 1 to June 30

  Transactions Reports – July 1 to June 30

   Published Report as of June 30th

  Proof of Publication

Send two copies to AEED at year-end
              Thank you
• Thank you for your participation in the
  county fiscal self-study.

• If you have questions, please contact
  your Area Director.
Study course prepared by:
            Area Extension Education Directors:
                  Sherry Glenn, Central
                   Lois Hunt, Southeast
                  Alan Ladd, Southwest
                  Don Nitchie, Northwest
             Mary Schrandt-Prouty, Northeast

Laurie Gustafson, Director of ISU Extension Budget & Finance

                  Editing by Jolene McCoy
         External Relations Specialist, Central Area.

                      September 2008

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