Iowa Admin. Code r. 281-98.62
Current through Register Vol. 47, No. 10, November 13, 2024
Rule 281-98.62 - [Effective 11/6/2024] Management fundThe purpose of this fund is to pay the costs of unemployment benefits; early retirement benefits; insurance agreements; liability insurance to protect the school districts from tort liability, loss of property, and environmental hazards; and judgments or settlements relating to such liability. The authority to establish a management fund is available to school districts but not to area education agencies.
(1)Sources of revenue in the management fund. Sources of revenue in the management fund include a property tax and interest on the investment of those moneys.(2)Appropriate uses of the management fund. Appropriate expenditures in the management fund include the following:a. Costs of unemployment benefits as provided in Iowa Code section 96.31.b. Costs of liability insurance to protect the school districts from tort liability, loss of property, and environmental hazards.c. Costs of final court judgments, including judgments for attorney fees and court costs, entered against the district or a settlement made for a tort liability claim including interest accruing on the judgment or settlement to the expected date of payment.d. Costs, including prepaid costs, of insurance agreements to protect the school districts from tort liability, loss of property, environmental hazards, or other risk associated with operations, but not including employee benefit plans.e. Costs of early retirement benefits to employees under Iowa Code section 279.46 to pay a monetary bonus, continuation of health or medical insurance coverage, or other incentives for encouraging employees to retire before the normal retirement date for employees 55 years of age or older who notify the board of directors prior to April 1 of the fiscal year that they intend to retire not later than the start of the next following school calendar.f. Costs of a physical inventory or cybersecurity vulnerability study conducted solely for the purpose of insurance.g. Transfers to the debt service fund for payment of principal and interest when due on general obligation bonds issued under Iowa Code section 296.7 to protect the school district from tort liability, loss of property, environmental hazards, or other risk associated with operations.h. Transfers to the appropriate fund for the portion of an insurance claim that was eligible under the insurance agreement but was denied because it was within the deductible limit.i. Payment of costs of mediation and arbitration, including legal fees associated with such mediation or arbitration, but not including the results of the mediation or arbitration if those costs do not qualify under paragraph 98.62(2)"c" above.(3)Inappropriate uses of the management fund. Inappropriate expenditures in the management fund include the following: a. Costs for employee health benefit plans.b. Costs to conduct physical inventories of property for purposes other than insurance.c. Costs to conduct actuarial studies.d. Costs for supplies or capital outlay.e. Transfer to a trust fund for other postemployment benefit (OPEB) cost or estimated cost calculated pursuant to Governmental Accounting Standards Board (GASB) Statement 45, as effective on February 7, 2024.f. Any other costs not expressly authorized in the Iowa Code.Iowa Admin. Code r. 281-98.62
ARC 8054B, lAB 8/26/09, effective 9/30/09Amended by IAB April 15, 2015/Volume XXXVII, Number 21, effective 5/20/2015Amended by IAB December 9, 2015/Volume XXXVIII, Number 12, effective 1/13/2016Adopted by IAB April 17, 2024/Volume XLVI, Number 21, effective 5/22/2024Amended by IAB October 2, 2024/Volume XLVII, Number 6, effective 11/6/2024