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Policy Index

702a. COMMON TRUST FUNDS


Date Adopted: August 24, 1998
Date Revised: February 5, 2001

1.  Purpose

1.  The School District accepts with gratitude bequests for the advancement of education and the general welfare of its students and staff.

2.  All bequests must contribute to the objectives of the School District and be in accordance with the goals of a democratic society.

3.  Upon acceptance of the bequest, a Board resolution shall establish for the record the purpose of the bequest.

2. Scope
1. This policy shall govern the custody, accounting, and disbursement of all trust funds under the control or jurisdiction of the School District of Philadelphia as well as requests to the Board of City Trusts for the granting of funds.

2. The term Trust Funds shall include:

a.  Funds established by the Board of Education resolution for which the School District serves in a fiduciary capacity and maintains accounts,

b.  Funds for which the School District serves as an agent for the Board of City Trusts in the recommendation of awards.

c.  A minimum bequest of $10,000.00 shall be established for trust funds to be held in perpetuity.  Contributions of over $10,000.00 which the donor does not wish to be held in trust will be treated as grants under Policy #702.

d. Bequests of lesser amounts shall be accepted as grants (under Policy #702) to be expended within one year of receipt, unless a different time period is specified in the resolution of the Board of Education which authorizes accepting the grant.

e. Multiple-year bequests of lessor amounts may, with the approval of the Board of Education, be held without distribution until such time as the $10,000.00 threshold is met, at which time a trust will be established.
 3. The term Student shall apply to all who are or have been enrolled in any authorized course or program of the School District of Philadelphia during the current or previous school year.

4. The term Staff shall include any employee, present or past, of the School District of Philadelphia.


3.  Authority

1. The responsibility for the overall supervision of Common Trust Funds shall reside in the Office of the Chief Executive Officer.  No disbursement shall be made without prior approval of the Chief Executive Officer or her/his designee.

2. The Board reserves the right to refuse to accept any bequest that does not contribute toward the achievement of the goals of this District. Any assets purchased through Trust Funds by the Board, or its designee, shall become the property of the District and is subject to the same controls and regulations as are other properties of the District.


4.  Procedure

1. No later than October 1 of each school year, the Chief Financial Officer shall issue to the Office of the Chief Executive Officer a statement of account regarding the financial condition of each Common Trust Fund.

2. No later than November 1 of each school year, the Office of the
Chief Executive Officer shall notify in writing the availability of funds to all office heads, Cluster Leaders and Principals for whose locations or programs trust funds are held.

3. The officials noted in 4.2 shall make requests in writing to the
Office of the Chief Executive Officer for the disbursement of
  Trust funds.

4. The Office of the Chief Executive Officer shall receive all requests for disbursements and shall conduct a review of these requests including, where necessary, a legal opinion by the General
Counsel.

5. The Office of the Chief Executive Officer shall notify the initiating office, cluster or school of the decision regarding the requested expenditure.  Should the request be approved, the initiating office, cluster or school shall then follow established procedure for request of funds by submitting the appropriate forms for purchases or payments to individuals.

6. There shall be no special Board resolutions for such expenditures
unless so required by the provisions of the Pennsylvania School Code, the Trust Fund, or any other applicable law or regulation.

7. In the matter of trusts administered by the Board of City Trusts,
Steps 4.2 through 4.5 shall be followed with the exception that the Office of the Chief Executive Officer shall submit requests for disbursement to the appropriate Office of the Board of City Trusts.

5. Delegation of Responsibility
The Chief Executive Officer shall counsel potential donors on the appropriateness of bequests; encourage individuals and organizations considering a contribution to the schools to consult with the principal or Chief Executive Officer before designating funds to that end; report to the Board all bequests which she/he has accepted on behalf of the Board; acknowledge the receipt and value of any bequest accepted by the School District. All such bequests shall be recorded in the appropriate inventory listing and property records.