The Mount Vernon Community School District is committed to providing the highest level of support for its students and staff, while being fiscally responsible and responsive to the patrons of the District. School finance is highly complex and sometimes difficult to understand, and every effort is made to communicate the financial reality of the District to the patrons on a regular basis. The District is proud of its positive track record on yearly audits that reveal the District is committed to engaging in sound financial practices, while maintaining the highest ethical standards in all financial matters. Information on this page includes documents related to the later yearly budget and financial audit, as well as providing information on the various funds that are part of the structure of school finance in the state of Iowa.
School District Funds
This fund receives revenues from the school finance formula. It is a governmental fund under GAAP (generally accepted accounting principles) and accounts for the revenues and expenditures for the educational program and most school district operations. All money received by a school corporation from taxes and other sources must be accounted for in the General Fund except money required by law to be accounted for in another fund. Expenditures include employee salaries and benefits (except nutrition and day care), textbooks, tuition, open enrollment, supplies, contracted services, travel, etc.
Student Activity Fund
Money from student-related activities such as admissions, activity fees, student-fundraising events or other student-related co-curricular or extracurricular activities are deposited in this fund. Expenditures for interscholastic athletics, student councils, clubs, and other student activities are in this fund.
This fund is supported by a property tax levy used for early retirement, unemployment, tort liability, and insurance. This fund may join and pay funds into a local government risk pool to protect against liability. The district belongs to the Iowa Association of School Board’s Safety Group that provides insurance on vehicles, buildings, errors and omissions, etc.
PERL (Public Education and Recreation Levy) Fund
This fund is supported by a 13.5 cent property tax levy used for expenditures on district grounds such as playgrounds and also for community education expenditures.
General Obligation (G.O.) Bonds
This fund accounts for expenditures funded by governmental obligation bonds to be used to build and equip new facilities. This fund cannot be used for salaries or programs needs.
Statewide School Infrastructure Sales and Services Tax (Sales Tax) Fund
This fund accounts for the revenue and expenditures connected to the statewide sales tax for a school district. Funds may be used for the same purpose as Capital Projects Fund and PPEL Fund and include construction of buildings, purchasing property, equipment, technology, etc. This fund cannot be used for salaries or programs needs.
PPEL (Physical Plant Equipment Levy) Fund
This fund is a capital project fund providing a maximum of $1.67 per $1,000 of assessed valuation. The board may approve 33 cents annually in property tax; and/or hold an election for up to $1.34 for a period of up to 10 years and funded by property tax. Funds may be used for the same purpose as Capital Projects Fund and Sales Tax Funds and include construction of buildings, purchasing property, equipment, technology, etc. This fund cannot be used for salaries or programs needs.
Voters may approve bonded indebtedness for a period of up to twenty years and a rate limit up to $4.05 per thousand dollars of assessed valuation. The debt levy revenue is used to pay the interest, interest, and indebtedness costs. Money available to service this debt and received from other sources are transferred to the debt service fund and the payment is then made from this fund. This fund cannot be used for salaries or programs needs.
This fund accounts for revenues and expenditures connected with operating the District’s lunch and breakfast programs. All 6X funds are enterprise funds used to account for operations that are operated in a similar manner to private business where revenues are based on fees charged and expenses are directly associated with the operations.
Day Care Fund
This fund accounts for the revenues and expenditures connected with operating the before and after school day care program which operates at Washington Elementary School. All 6X funds are enterprise funds used to account for operations that are operated in a similar manner to private business where revenues are based on fees charged and expenses are directly associated with the operations.
Foundation Trust Fund
This fund is an agency fund which accounts for the operating funds of the Mount Vernon Community School District Foundation which is a separate organization. An agency fund is used to account for funds that are held in a custodial capacity by the school district for individuals, private organizations, or other governments. This fund receives Foundation donations and expends funds as approved by the Foundation Board of Trustees. The school district serves as the fiscal agent for the Foundation but has no managerial responsibilities and is not an owner of the Foundation assets.