Board Oversight

Overview

Soil and Water Conservation Districts (SWCDs) boards and staff play a vital role in implementing the state’s soil and water conservation policy by providing a direct link between state and federal programs and their local communities including farm producers, lakeshore owners, partnering local governmental departments, and the broader public who is concerned about the sustainability of these critical resources. Without local levy authority, SWCDs rely on federal and state funding, charges for services, and county support. According to the Minnesota State Soil and Water Conservation Policy:

“Maintaining and enhancing the quality of soil and water for the environmental and economic benefits they produce, preventing degradation, and restoring degraded soil and water resources of this state contribute greatly to the health, safety, economic well-being, and general welfare of this state and its citizens.”

Due to the diverse and complex internal operation of SWCDs, coordination between the District Manager, fiscal agent/other staff, and District Board is important in the development of the SWCD’s annual budget, establishment of financial target, and meeting financial goals.

Look at Past Financial Trends

Complete a 5+year analysis of the SWCD’s financial statements (see Audited Financial Statements – Going Concern Calculation section of this chapter) to calculate the number of months the fund balance would support district operations. It’s not a perfect system since there are assumptions and pitfalls but it is good for reviewing long-term trends. Year-end financial statements require a modified accrual-based view of the district finances. Cash based views of finances do not work well for financial trend analysis. The same concept appears to be true for preparing an annual budget.

Establish a Financial Target

How many months of unassigned fund balance reserves should you have? Work with your Board to establish a financial target in terms of percent of operating budget, not a dollar amount. Establishing a fund balance in terms of percent of operating budget should include an assessment of the Board’s comfort with the financial risk of their revenue streams. For Boards who have a high certainty regarding the stability of their operating fund revenue streams, a lower fund balance reserve may be appropriate whereas Boards whose operational funds are unstable, subject to change or discontinuation, and at greater risk, a higher fund reserve balance may be needed to provide short-term coverage in the event a revenue stream is reduced or discontinued. Strive for unanimous agreement, not a majority or consensus, and make decisions based upon that target.

Governmental Accounting Standards Board (GASB) Statement of Position #54 minimum fund balance section states “determine and establish in their fund balance policy a desired minimum level of unrestricted fund balance.”

Sample Unassigned Fund Balance Policy

“The xxx SWCD acknowledges the need to maintain an unassigned fund balance for several purposes including cash flow and ability to reimburse cooperators of district programs in a timely manner. This need has increased in recent years as state and federal agency policies have changed to a system which includes withholding all or some revenues from the district and/or cooperators until projects are completed.

Taking in consideration “Statement of Position Fund Balances for Local Governments Based on GASB Statement No. 54” reviewed by the Minnesota Office of the State Auditor February 2014, xxx SWCD has reviewed estimated monthly unassigned fund balances (xxx through xxx), timing of revenue streams, and reliability and volatility of revenue streams. xxx SWCD will strive to maintain an unassigned fund balance of 50 to 75 percent of operating revenues, as measured at year end. Additionally, management should periodically monitor the unassigned fund balance throughout the year. Because estimated unassigned fund balances have fluctuated as much as xx percent in a 12-month period, the SWCD will consider the long-term trend in year-end fund balances when making decisions related to meeting unassigned fund balance goals.”

Classifications of Fund Balance

As part of the budgeting process, dedicating funds within the Committed or Assigned Fund Balance categories should be done only after sufficient discussion has occurred related to the specific purpose of setting aside the funds. For example, the District Board may have identified a need for a large equipment purchase where it could take several years to purposely budget and generate funds to cover the purchase. Budget for the capital asset, review budget to actual throughout the year, and at year end, reserve the amount within the Fund Balance if sufficient net revenues were generated. Dedicating funds within the Fund Balance demonstrates a planned approach for significant future cash needs of the district. Fund balance is divided into five classifications based primarily on the extent to which the district is bound to observe constraints imposed upon the use of the resources in the General Fund.

Non-spendable

This category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. (i.e. inventory, prepaid items, long-term receivables in the general fund, permanent principal of endowment funds)

Restricted

Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or is imposed by law through constitutional provisions or enabling legislation. (i.e. restricted by state statute, unspent bond proceeds, grants earned but not spent, debt covenants, taxes dedicated to a specific purpose, revenues restricted by enabling legislation)

Committed

The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action (resolution) of the District Board. Those committed amounts cannot be used for any other purposes unless the District Board removes or changes the specified use by taking the same type of action (resolution) it employed to previously commit those amounts. (i.e. governing body decision to set aside funds for a specific purpose, property tax levies for a specific purpose by resolution)

Assigned

Amounts in the assigned fund balance classification the District Board intends to use for specific purposes that do not meet the criteria to be classified as restricted or committed. In the General Fund, assigned amounts represent intended uses established by the district or the District Manager who has been delegated that authority by district resolution. (i.e. compensated absences, governing body decision to set aside funds for a specific purpose and District Manager could amend up to $xxx, governing body delegates the authority to assign fund balance to the District Manager, governing body has appropriated fund balance often to balance next year’s budget, positive residual balances in governmental funds other than the general fund)

Unassigned

Unassigned fund balance is the residual classification for the general fund and includes all spendable amounts not contained in the other fund balance classifications.

Manage Decisions to Meet Financial Goals

For SWCDs, the BWSR billable rate calculator closely represents actual cost of providing services. Although the billable rate calculator doesn’t factor in a profit margin, it does include nearly all costs and provides the opportunity to use non-federal/state funds, such as the county allocation, for other purposes.

The Board and staff should discuss the annual plan of work, outlining goals and accomplishments for the upcoming year(s). Create a draft budget starting with expenses to determine the amount of funding needed to accomplish the desired work plan. Identify revenue sources available and brainstorm about potential partnerships to help fund shared goals.

Review existing expenses such as fixed costs that are constant without regard to revenue generated such as personnel wages, rent, utilities, insurance, etc. Then consider variable expenses that fluctuate depending upon goods or services provided such as supplies, dues, capital purchases, special projects funded, etc.

Review more secure sources of revenue such as county funding, awarded grants, and approved contracts. Then consider other revenue sources such as potential contracts, grants applied for, charges for services, and sales. Strive to find diversification in funding sources. Since personnel costs are typically the largest item of the budget, what projects/programs will staff be working on in the next year to cover their personnel costs? If employees track all of their time, managers and supervisors can understand how employees spend their time and, during the budgeting process, staff workload can be aligned with funding sources available to cover the personnel costs. This should provide a good base for determining budget over the next year. Periodic review of budget to actual throughout the year helps the District Board determine if it is on target with anticipated revenues and expenses then adjust accordingly.

Contemplate putting together a tentative budget for the next 2-5 years related to revenue sources and projected expenses, including inflation.

Strategic Plan

When new opportunities arise or there’s the capacity to expand programs, the District’s Strategic Plan (if one exists) should be used to assist in the decision-making process. The Strategic Plan includes financial questions for making program decisions such as:

Budget Data in Accounting System

Once the budget has been developed and approved, consider entering it into the accounting system. To simplify the budget entry, it is acceptable to record the entire budget in the first month of the year (January column) vs. splitting the amounts out over all twelve months. Recording the budget within the accounting system would allow a budget vs. actual report to be generated.

Overview

One of the primary sources of funding for many conservation districts is the local county board. In order to optimize the partnership with the county board and ensure they have a full understanding of the district’s role in local conservation, a District Board may want to adopt the Know Yourself, Know Your County, and Make Your Ask paradigm.

Know Yourself

Before a SWCD can spread their message and express their value to others, the board and staff need to have a solid understanding of who they are as an organization and what they hope to accomplish in the future. For many organizations, there is a danger of falling into a rut where the same things done yesterday are what will happen tomorrow, without any clear understanding why. Many of these long-standing activities are important and fulfill the mission of the district but, without clearly stating and reaffirming current and future directions, there is a risk of continuing to do things the same way because it’s the way it has always been done. The efforts that go into knowing yourself will force the District Board and staff to consciously reaffirm the direction of the conservation district and give a clearer understanding of where the district wants to be in the near-term future.

Have a clear understanding and agreed upon statement of what you do and how you do it to explain the value of the district’s work: “Our mission is to …..”

• Define the SWCD’s outputs from the past year (trees sold, linear feet of shoreland restored, etc.)
• How outputs lead to outcomes: Shoreland buffer program – linear feet of shoreland restored – reduced suspended sediment in lake – improved water clarity in lake
• Provide data from past few years to support the info above

Many SWCDs also want to expand their operations and do more than they are doing now by providing more outreach and services to their cooperating landowners and community members. If so, be sure to define additional outputs for the upcoming year.
 
Evaluating current programs, outputs, and outcomes allows a SWCD board and staff to review what has happened in the recent past. This evaluation can show what has worked well, less well or not worked at all. Looking at outputs and outcomes can also allow for a general assessment of the efficiency of an operation. While looking to the past can help reinforce the foundation of a conservation district, looking toward the future will be critical in building a vision in which others, including county commissioners, are willing to invest.
 
Review budget and spending trends over the past few years, including inflation rate and staff wage increases. Use these inflation rates to predict the budget moving forward. If the expected annual rate of inflation holds true to the past rates, the district will need an additional $xx in revenue over the next five years just to maintain basic district operations at the current level. This information is vitally important as the SWCD Board and staff continue their working relationship with the county to enhance both near- and mid-term financial planning.

While it is important to consider and plan for the base operations into the future, many districts will want to do new things and expand their outreach and service to their landowners and other conservation partners. Working from desired outcomes, what inputs and outputs are needed to achieve the outcomes and how does this affect future budget planning?

Know Your County

Unlike SWCDs, which are Special Purpose Districts, counties are general purpose units of governments tasked with providing a variety of services. Many of these services are dictated by the state while others are selected by the local county board of commissioners.

By understanding how much of the county budget goes to support core services, conservation district boards and staff can better understand the budgetary and mental priorities of county commissioners and administrators or coordinators.

Within the larger expenditure record, there is a line item for the Conservation of Natural Resources.  This line item includes budget items such as the conservation and development of natural resources including agricultural and forestry programs and services, weed inspection services, and soil and water conservation services. Knowing the percentage of the county’s budget that goes toward natural resource management can provide a tool for better understanding how the county commissioners value conservation and how the SWCD intergovernmental transfer relates to the larger conservation of natural resources within the county.

The county budget for next year is likely determined but there is still room for some moderate changes. Cost savings in one area may be available for allocation to another area. Most county administrators will have next year’s budget for the county mostly framed based upon the current year’s budget. In addition, county department heads will also be anticipating future budgets that are fairly similar to the current year so changes to the next year’s budget structure are likely to require some significant negotiation. If the SWCD board and lead staff would like to see significant increases in their county allocation in next year’s budget, they will likely need to engage with their county department head allies to advocate for departmental reprioritization and reprogramming.

SWCD boards and staff have a comprehensive understanding of the programs which they deliver for the benefit of the county residents. However, many of these programs may not be clear to county board members. Providing enough program details so the county commissioners can understand the local benefits of a program is another critical step in giving the county commissioners enough information to better understand the value of the conservation district. (i.e. SWCD Cost Share Program – provided $15,000 to three landowners for the installation of BMPs to stabilize streambanks)

This similarity of representing the interests of residents within the county is a commonality that should allow for a strong relationship between the county commissioners and the soil and water conservation district supervisors. However, when SWCD supervisors are developing a working relationship with the county commissioner, it is important to account for the general purpose nature of county government. With county commissioners focused on the general government duties, they may not have a full understanding for the role of the soil and water conservation district within the county structure or even that a conservation district is different from a county department.

Make Your Ask

When conservation districts are thinking about making their ask of the county board, there should be significant deliberation and preparation beforehand to allow for a presentation that puts the conservation district and the budgetary request in the best light. This pre-work includes preparing the ask, activating partners, practicing, and making the ask. Following the ask and receiving the response from the county, evaluating the process is also important so the conservation district can make any modifications to the process for the next year’s ask.

The SWCD board would also begin working with the county administrator and individual board members to build an expected operational budget increase into the annual county request to offset the expected inflationary pressures so the district could continue providing high quality services to the residents of the county. Does a 10-year analysis of county allocation funding to inflation rates show the county allocation has kept pace?

Since 2016, BWSR has been providing local capacity service funding. The grant provides the SWCD with funds for the general administration and operation of the district and for building capacity. Eligible activities include staffing, facility administration, supplies, conservation practice cost share and incentives, and equipment. How has county funding increased to maximize this source of funding through BWSR?

Complete a 5+year analysis of the SWCD’s financial statements (use audited financial statement data if available - see Audited Financial Statements - Going Concern Calculation section of this chapter) to calculate the number of months the fund balance would support district operations. What is the trend? Compared to peers, how is the district trending?

Review the three previous years budgeted to actual, including the percentage of variance, and identify if the need exists to readjust budget in alignment with current spending needs. In addition to county support, external funding such as grants or charges for services could prove very helpful for increasing the fund balance of the district. Staff time tracking helps the district manager understand how employees spend their time and, based upon funding available, could help redirect employees’ activities towards funding sources thereby increasing state grant revenue and personnel costs chargeable to grants. Has there been any changes to the total charges for services revenue over the past few years? Perhaps a review of these activities is warranted. How do budget projections increase district capacity to enable investing in capital equipment purchases or increasing the fund balance?

When preparing a budget request with multiple components, itemizing the request will allow the county board and administrator/coordinator to have a fuller understanding of the conservation district’s budget request. During the itemization process, it is helpful to create a story scaffolding around the dollar amount. This puts the dollar amount within the larger context of what is being gained or lost through this particular item of the budget request and allows the county board to select items to fund or select items not to fund. It also allows the conservation district to provide a solid linkage to what is being lost if the funding request is not met. What does an itemized review of expenses by type for the past three years and compared to the proposed budget request look like?

When the SWCD board and staff have developed their ask, the next step is to activate the partners within the county governing structure and other supportive groups to communicate in support of the conservation district’s budget.

Prior to making the specific ask before the county board, remind the county department heads of the relationship between the conservation district and the department including the benefits the conservation district brings to the county department, particularly if there is no additional cost to the specific county departments. If there are any specific activities or projects that were done in cooperation with the county department staff or partners, these should be highlighted during the discussions. Indicating to the department head that the conservation district is planning to ask for an increase and explaining how this increase will allow for continued or enhanced cooperation can remind the department head small additional investments to the conservation district will bring real meaningful benefits to the department, often beyond what can be accomplished with direct funding from the county to the specific department.

In addition to working with the county department heads individually, the conservation district manager should make a specific effort to sit in on county department head meetings during which the county administrator presents budget targets and where the department heads may present their overall budget. Attendance at these specific budget meetings elevates the conservation district to an integral part of the county operational structure. This allows the conservation district manager to present the case for the conservation district’s budget and to understand the larger context within which the district’s budget operates in terms of the overall county budget.

Another important support structure are those landowners and others with whom the conservation district has partnered over the past year. When landowners or other project cooperators make direct contact with their county commissioner and county administrator/coordinator, those contacts carry far more weight than when a conservation district staff or board member advocates on behalf of their own organization. As conservation district staff are contacting their project partners, providing some coaching on what to say as they are making these contacts can help tailor a specific message in support of the conservation district. For example, what project was installed, what did the conservation district staff do in terms of design and project oversight, and if the project would have been installed without the presence of the conservation district.

Regular chats between the county commissioner and the SWCD board is a good place to casually inform the county commissioners about the district’s budget proposal and any potential requests for increases in funding. During these discussions, the SWCD board member may sense the county commissioner’s general feelings regarding the likelihood for success of the requested increase, the potential positions of other county commissioners, and if there is anything that might be particularly useful in enhancing the acceptance of the requested increase.

In order for the conservation budget presentation to carry the appropriate weight, it is beneficial to have both the conservation district manager and at least one board member in attendance at the county board meetings. If the conservation district board member can also present the budget request, it places the request as one between elected officials, which adds a further strength. In addition, based upon discussions with the county department heads, the county administrator/coordinator, and the individual county commissioners, the SWCD manager and board members should have an understanding for some of the questions and concerns which may arise following the budget request.

Once the SWCD board member or manager has made the budget request, which includes the budget increase, the conservation district personnel should allow the county commissioners to make the next move. As county commissioners begin to ask questions about the budget request, provide short but sufficient answers to the specific questions. Let the commissioners explore topics of their interest and concern.

Immediately following the conservation district’s presentation, the manager and attending conservation district board members should take some time to evaluate how the presentation went, compare impressions on the reactions of the county commissioners and determine next steps. How was the content? Was there a clear message? Was the presentation style appropriate to the setting?

What the district is today as it completes the process of knowing itself will change over time. The interests of the people and the uses of the land evolve following local, regional, national, and even international pressures and trends. As the people and the land use within a conservation district changes, a conservation district should evaluate and make the appropriate changes to ensure the goals and operational capacity of the district remain relevant to the local conservation needs.

District Fiduciary Duties

A SWCD is governed by specific state laws which provide the framework wherein much of district financial management occurs. Understanding these laws is important to know the parameters within which a district can operate financially. MN State Statute 103C.321 Officers and Employees:

• Oversee the completeness and accuracy of district receipts and expenditures
• Review the credit card statement for appropriate charges
• Be prepared to answer questions from other board members regarding monthly, quarterly, or annual financial data and reports
• Oversee payment of bills approved by the board and issuance of receipts for incoming funds
• Assure all bills authorized for payment by the district board are recorded in the meeting minutes
• Work with the district staff to develop a fiscal year budget
• Arrange for surety bonds covering appropriate SWCD supervisors and staff
  • MN Statute 103C.321.Subd.3 Employee and Officer Bonds. The district board shall provide for the execution of surety bonds for all employees and officers who are entrusted with funds or property.

Consider multiple year appointments for the treasurer position since the person identified to fill this role should adopt a long-term perspective to better understand how the district’s finances evolve over time which allows for enhanced responsiveness to changes. The treasurer should have financial expertise, familiarity with finances, or a willingness to learn the financial realm. Examples of this oversight may include:

• Knowledge of financial trends:
  • Revenues may be periodic
  • Some expenditures are constant
  • Deficit spending is troublesome
• Long-term fiscal outlook of the district
• Year to year review of the financial statement data (5+ year analysis)
• Provide a second review for the district staff of receivables and payables

Periodic review of budget to actual revenues and expenditures will help identify unmet expectations. When this occurs, the treasurer may lead the board discussion on what has changed, how it influences the budget, and whether expectations need to be adjusted.

Treasurer’s Report

The purpose of financial reporting is to make sure any decisions needed take into consideration accurate and up-to-date financial data. SWCDs are local units of government utilizing public funds. Therefore, regardless of the frequency of meetings, it is useful to give board members a treasurer's report monthly. The Board Treasurer should have knowledge, awareness, and/or oversight of the day-to-day expenses, including cash receipts and expenses for a given month.

Treasurer’s Reports can be tailored to fit the District’s needs. There’s less chance of human error if the data for the report is pulled directly from the accounting system. Districts are encouraged to utilize the functionality of computerized accounting to increase the integrity of the data reported and reduce staff time to prepare manual reports. If payroll is reported as a lump sum on the report, a detailed report (such as the Payroll Summary) should be included for the Treasurer’s review. Follow a similar approach for any amounts summarized (credit card charges, etc.). A sample Treasurer’s Report is included in the Appendix, along with instructions on how to set up the report in QuickBooks (common accounting software used by SWCDs but not specifically endorsed for usage).

Signature on a Treasurer’s Report validates the report has been reviewed and by whom. Validation of the review is considered a best practice demonstrating accountability in the management of public funds.

Internal Controls

The District Treasurer is an important role in fiscal oversight of the district. Best practice would be for the Treasurer to review district receipts and expenditures prior to the Board meeting, choose a few of each receipt/expenditure and review the original documents, then report the outcome to the full Board during the meeting. Each month test different types of expenditures.

Consider having the bank statement mailed or online viewing access given to someone, other than fiscal staff, who can provide review/oversight as an internal control. For more information, see the Bank Statements Internal Controls section of this chapter.

If the District Treasurer serves as the custodian of any imprest fund (i.e. Petty Cash), review of the itemized claim for all disbursements could occur prior to the board meeting and included as part of the Treasurer’s update to the board. Review should also be done when there are changes to investment, savings, or certificate of deposit accounts. The District Treasurer should review all credit card statements and supporting receipts/invoices for compliance with the Credit Card Policy. Sample policy provided in the Payables – Credit Cards section.

Overview

The job of board members is very complex and collaborative. Making the most of board meetings is essential to good governance, strong leadership, and healthy organizations. Since governance is a collective process, meetings are a necessity of board work. Good meetings increase member engagement, maximize collective wisdom, and ensure the right focus at the right time.

As a board member, be open to new ideas or perspectives. It’s okay to disagree and seek to understand through listening and open questions. Be aware of intent and impact. It is possible with the best of intentions to have a negative impact. Turn from negative judgment to compassionate inquiry. Don’t rush to consensus and create a “parking lot” for unresolved issues the board needs to revisit later.

Parliamentary Procedure

Boards generally utilize some type of parliamentary procedure during meetings. Robert’s Rules of Order is the standard for facilitating discussions and group decision making. Having an agreed upon set of rules helps meetings run smoother thus increasing productivity of the group.

Open Meeting Law

Per Minn. Statute 13D. Open Meeting Law, at least one copy of all printed or prepared meeting materials available to the board members before or during the meeting must be available in the meeting room for inspection by the public during the meeting. Best practice is to make the materials available on the SWCD website prior to the meeting.

Quorum

According to MN Statute 103C.315 Subd. 3, a majority of the supervisors is a quorum and the concurrence of a majority in any matter is required for its determination except as otherwise expressly provided.

Policy on Board Meetings

The district should have a policy in place related to when or how often the Board will meet and how bills/invoices are reviewed and paid. Be sure to include a contingency plan should a board meeting be cancelled or rescheduled.

Board Packet

A board packet serves as an outline for the meeting and provides relevant data for the topics to be discussed and decisions to be made at the meeting. The contents of the board packet will vary by organization, whether the meeting is public or private and should cue up the meeting so time is spent in robust dialogue and discussion vs. sharing information which could have been read in advance. Include as many relevant documents as possible per the agenda provided. Best practice would be to send out the board packet (mail, email, or link on SWCD website as pre-Board packet) at least one week in advance of the meeting to allow board members sufficient time to review.

Consent Agenda

To ensure more time for discussion, a consent agenda may be used to handle uncontested and routine business not requiring discussion. Typical items might be acceptance of minutes, final approval of items already vetted, and acceptance of routine reports. Such items are grouped into one agenda item and approved in one motion. Although consent agendas are an efficient use of time, be careful not to include important items warranting discussion and proper vetting by the board. To ensure items are indeed appropriate for the consent agenda, provide sufficient background materials in the board packet. Allow members to request an item be pulled from the consent packet if they feel a discussion is necessary.

Agenda

The meeting agenda is very important to cover all applicable items and the Chair’s responsibility to keep the members on task. Agenda items could include who is responsible for presenting each item and leading the discussion. Possible order of the agenda as follows:

• Call meeting to order
• Consent Agenda (if applicable)
• Adopt the agenda (in case of additions/changes)
• Secretary’s Report
  • Review and approval of last month’s Board meeting minutes
• Review of the Balance Sheet, Profit and Loss report and receipts/deposits (report in QuickBooks: Receipt Journal). During review, note the following:
  • Sources of revenue
  • Timing of revenue
  • May help explain motions requested throughout the meeting
• Bills pending and paid since last meeting
  • Best practice is for the Board to review bills prior to payment. Districts may choose to delegate this authority to district staff or the Board Treasurer, with the delegation reviewed on an annual basis and documented in the Board minutes.
• Treasurer’s report
• Cost-share project(s): approval of contract(s), approval of payment(s)
• District manager, staff, commissioner, or other reports
• Old Business (items discussed at previous meetings but not yet approved/finalized)
• New Business (new items not yet discussed at previous meetings):
  • Legislative update
  • BWSR update
• Workshops/trainings
  • Attended and upcoming
• Adjourn the meeting

Meeting Minutes

Meeting minutes are a summary of the Board discussion, not a word by word verbatim of the conversation. If the Board Treasurer or District staff provide their report in written form, attach as part of the meeting minutes. It may be helpful to draft the meeting minutes soon after the meeting with current memory. The minutes are unofficial until the next meeting where the minutes are reviewed and approved. The Board Secretary or district designated staff should record the meeting minutes.

Supervisor Duties

The duties of a district board supervisor may include hiring/firing lead staff, budgeting, and fiscal accountability, listening to your constituents, setting/changing direction, being transparent, seeking solutions, and respecting the decisions of the Board.

Supervisor Compensation

Per MN Statute 103C.315 Subd. 4 and law enacted during the 2021 1^st Special Session, a supervisor shall receive compensation for services up to $125 per day and may be reimbursed for expenses, including travel expenses, necessarily incurred in the discharge of duties. A supervisor may be reimbursed for the use of the supervisor’s own automobile in the performance of official duties at a rate up to the maximum tax-deductible mileage rate permitted under the federal Internal Revenue Code.

Internal Controls

The Board may delegate check signing authority to district staff, with the delegation reviewed on an annual basis. Best practice would be to limit additional check signing authority and access to bank accounts to two Board members such as the Treasurer and Chair.

The Treasurer’s Report section identifies internal controls the Treasurer and/or Board could provide.