Certified Annual Budget
In accordance with the Code of Iowa, the Board of Education annually adopts a budget following the required public notice and hearing for all funds, except blended component units, internal service funds and trust and agency funds. The budget may be amended during the year utilizing similar statutorily prescribed procedures. Iowa school districts prepare their budgets on the GAAP (Generally Accepted Accounting Principles) basis.
Formal and legal budgetary control for the Certified Budget are based on four major classes of expenditures known as functional areas, not by fund or fund type. These four functional areas are instruction, support services, non-instructional programs and other expenditures. Although the budget document presents functional area expenditures or expenses by fund, the legal level of control is at the aggregated functional area level, not at the fund or fund type level. The Code of Iowa also provides that district expenditures in the General Fund may not exceed the amount authorized by the Iowa School Finance Formula.