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Maine RSU 21

Maine Regional School Unit 21

Arundel · Kennebunk · Kennebunkport

DJB - BUDGET TRANSFERS BETWEEN COST CENTERS

DJB - BUDGET TRANSFERS BETWEEN COST CENTERS

  1. Purpose
    Regional School Unit 21 (RSU 21) is committed to responsible stewardship and transparent management of public funds. This policy establishes the framework by which the Board fulfills its fiduciary oversight responsibility for appropriations transferred between voter-approved budget Cost Centers during the fiscal year. While operational flexibility is delegated to the Superintendent, this policy exists not to constrain day-to-day management but to ensure the Board and the public have timely, accurate visibility into how approved appropriations are being used.
     
  2. Definitions
    1. "Cost Center" means, by law 20-A MRSA §1485, appropriations (expenditures) for the RSU 21’s annual budget within eleven (11) categories:
      1. Regular Instruction;
      2. Special Education;
      3. Career and Technical Education; 
      4. Other Instruction;
      5. Student and Staff Support;
      6. System Administration;
      7. School Administration;
      8. Transportation and Buses;
      9. Facilities Maintenance; 
      10. Debt Service and Other Commitments; and 
      11. All Other Expenditures, including school lunch.

Appropriations for each Cost Center are approved by the voters of RSU 21 at an annual budget meeting followed by a budget validation referendum. The sum of the Cost Center appropriations equals RSU 21’s annual operating budget, which represents a legal limit on expenditures for a school year. Each Cost Center appropriation represents a sublimit on expenditures.

  1. "Transfer" means the reallocation of appropriated funds from one voter-approved Cost Center to another during the fiscal year for which the budget was adopted.
  2. “Transfer Threshold” is the maximum that may be transferred between Cost Centers by the Superintendent or designee without prior Board approval.
     
  1. Standards
    1. Statutory Authority
      Per 20-A MRSA §1485, to prevent over expenditure of a Cost Center budget during the fiscal year, the Board has statutory authority to Transfer a cumulative amount not exceeding 5% of the total appropriation for any Cost Center to another Cost Center or among other Cost Centers without voter approval. The voters of RSU 21, at a district-wide meeting or referendum, may authorize the Board to make Transfers between Cost Centers that exceed the 5% limit.
    2. Transfer Threshold
      The Transfer Threshold is set as the greater of $50,000 or 0.5% of the total appropriation of a Cost Center from which the Transfer is to be made.  The Superintendent, or designee, may not make a Transfer between the Cost Centers that exceeds the Transfer Threshold without prior Board approval. 
    3. Delegated Authority 
      The Board delegates to the Superintendent, or designee, the authority to make Cost Center Transfers that do not exceed the Transfer Threshold. Additionally, the Board retains oversight authority, fiduciary responsibility, and the ability to review, question, modify, limit, or rescind such delegation through Board policy and governance processes. Nothing in this delegation shall be construed to eliminate the Board’s fiduciary oversight responsibilities regarding district finances.
    4. Reporting
      The Superintendent or designee shall report Cost Center Transfers made under this delegated authority to the Finance Committee at its next regularly scheduled Committee meeting. The report shall identify the originating and receiving Cost Centers, the dollar amount of the Transfer, the rationale for the Transfer, and the cumulative amount of Cost Center Transfers made to date from the originating Cost Center. The Finance Committee may revise the reporting process and report contents through procedures established and maintained by the Finance Committee without a formal amendment to this Policy.
    5. Board Approval of Transfers Exceeding the Transfer Threshold
      When a proposed Transfer exceeds the Transfer Threshold, the Superintendent or designee must obtain prior Board approval before executing the Transfer. The Superintendent or designee shall present the proposed Transfer to the Board at a Board meeting in advance of the Transfer. The request for approval shall include the same information required in the reporting under Section 3d of this policy and shall be presented in a manner consistent with the procedures established and maintained by the Finance Committee.
    6. Audit Recommended Transfers   
      1. Budget Transfers or adjustments recommended as part of an audit may be processed when necessary to correct errors, ensure compliance, or properly classify revenues and expenditures. Based on recommendations by the auditors, and if timing does not align with scheduled Finance Committee meetings, the Superintendent or designee is authorized to approve and execute such Transfers, to ensure timely corrective action. All such actions shall be fully documented and reported to the Finance Committee at the next regular meeting. 
      2. Audit recommended Transfers may be made even if they exceed policy thresholds, provided they remain in compliance with approved appropriations and comply with applicable laws. 

 

Legal References:

20-A MRSA §1485, sub-§§1, 2, 3, 4 

Cross References:

DJA - Budget Planning and Adoption

DB - Annual Budget
BDE - Board Committees

BDF - Finance Committee

Adopted: 06/15/26

 

  • Section D