CHAPTER 13-16
SCHOOL DISTRICT FUNDS AND ACCOUNTS
13-16-1 Sources of school district funds.
13-16-2 Funds to comport with generally accepted accounting principles.
13-16-3 General fund defined.
13-16-4 Lease payments from general fund in federally affected areas--Purchase on option made from capital outlay fund.
13-16-5 13-16-5. Repealed by SL 1975, ch 128, § 377
13-16-6 Capital outlay fund--Definition--Uses--Levy.
13-16-6.1 Bidders on installment purchases or lease-purchase agreement to state interest rate and installment schedule.
13-16-6.2 Capital outlay certificates authorized--Issuance--Sale--Election--Maturity.
13-16-6.3 Hearing on installment purchase, lease-purchase or capital outlay certificates--Approval or reference to voters.
13-16-6.4 Referendum petition and election on installment purchase or capital outlay certificates.
13-16-7 Additional tax levy for certain funds or obligations--Pledge of taxes--Limitations.
13-16-7.1 13-16-7.1. Repealed by SL 2016, ch 83, § 14.
13-16-7.2 Maximum taxes--Pledge of taxes.
13-16-7.3 Maximum pledge of taxes--Limitations.
13-16-7.4 Maximum pledge of taxes--Transition.
13-16-8 Bond and certificate proceeds placed in capital outlay fund.
13-16-9 Expenditure of money from capital outlay fund.
13-16-9.1 Validation of prior school district contracts.
13-16-9.2 Five-year plan required when fund used to construct new facilities or additions.
13-16-9.3 Public hearing for use of capital outlay fund--Notice.
13-16-10 Annual levy to pay school district bonds--Irrepealable--Exclusive of maximum levy.
13-16-11 Levy of annual tax for school district bonds--Reduction on accumulation of surplus in bond redemption fund.
13-16-12 Refunding bond proceeds placed in bond redemption fund--Reduction of annual tax levy.
13-16-13 Tax proceeds paid into bond redemption fund--Purposes for which used.
13-16-14 Restriction on transfers from bond redemption fund.
13-16-15 Designation of depositories for school district--Resolution.
13-16-15.1 Domestic savings and loan associations as official depositories--Restrictions.
13-16-16 13-16-16, 13-16-17. Repealed by SL 1975, ch 128, § 377
13-16-18 Deposit and investment of fund accumulations--Crediting of interest--Maturity of bond redemption fund investments--Filing of resolutions.
13-16-18.1 Domestic federal credit union as public depository--Requirement.
13-16-19 Custodial funds--Stewardship--Designation of employee--Surety bond.
13-16-20 Disbursements--Records--Receipts--Payment of claims--Serially numbered ticket sales--Destruction of records.
13-16-21 Custodial funds--Monthly and annual reports--Audits.
13-16-22 13-16-22, 13-16-23. Repealed by SL 1982, ch 86, §§ 133, 134
13-16-24 Unlawful contracts and warrants void.
13-16-25 13-16-25. Repealed by SL 1975, ch 128, § 377
13-16-26 Transfers between school district funds.
13-16-26.1 13-16-26.1. Repealed by SL 1999, ch 79, § 2
13-16-26.2 Transfers from general fund--Prohibitions--Exceptions.
13-16-26.3 Transfer of moneys between funds in newly consolidated districts--Restrictions--Reversion of funds--Promulgation of rules.
13-16-26.4 Transfer of certain special education funds to carry out activities under Elementary and Secondary Education Act.
13-16-27 13-16-27. Repealed by SL 1976, ch 53, § 2
13-16-28 Audit of school district books called by state, school board, or voters.
13-16-29 School district repayment fund created--Pledge of revenues--Creation of sub-funds or accounts.
13-16-30 Title VIII of the Elementary and Secondary Education Act fund.
13-16-31 Transfers from Title VIII fund.
13-16-32 Special education fund--Legal costs allowable expenditures.
13-16-33 School annual financial reports.
13-16-35 Use of admission fees for interscholastic activities by local organization--Approved purposes--Report to school board.
13-16-1. Sources of school district funds.
School district funds are all moneys received by the school district or schools within said district or as a result of an activity carried on by the said school. Said funds come from the following sources: taxes, income from school property; school district borrowing through bonds or promissory notes; funds received from federal, state, or other political subdivisions; funds received from individuals or organizations through paid admission, payments for materials or services, gifts, or trusts; funds received from fines and penalties; and any other funds received by the school district or schools from any other source.
Source: SL 1955, ch 41, ch 10, § 1; SDC Supp 1960, § 15.2201.
13-16-2. Funds to comport with generally accepted accounting principles.
All school district funds shall be placed in funds as defined in § 4-4-4.
Source: SL 1955, ch 41, ch 10, §§ 1, 2, 4; SDC Supp 1960, §§ 15.2201, 15.2202, 15.2204; SL 1963, ch 74, § 2; SL 1963, ch 75, § 1; SL 1964, ch 40; SL 1965, ch 47; SL 1975, ch 128, § 100; SL 1991, ch 138, § 1; SL 2012, ch 88, § 9.
13-16-3. General fund defined.
The general fund of the school district is a fund provided by law to meet all the operational costs of the school district, excluding capital outlay fund and special education fund expenditures pursuant to § 13-13-37, and to redeem all outstanding warrants against the general fund. Notwithstanding the provisions of § 13-16-6, the general fund may be used to purchase or lease computer hardware and software. The general fund may be used to support a technical college and other career and technical education purposes.
Source: SL 1955, ch 41, ch 10, § 2; SDC Supp. 1960, § 15.2202; SL 1963, ch 74, § 2; SL 1964, ch 40; SL 1975, ch 128, § 101; SL 1987, ch 135, § 3; SL 1989, ch 146, § 2; SL 2003, ch 96, § 2; SL 2008, ch 80, § 1; SL 2014, ch 93, § 3, eff. Mar. 28, 2014; SL 2020, ch 61, § 39.
13-16-4. Lease payments from general fund in federally affected areas--Purchase on option made from capital outlay fund.
The general fund in any school district authorized to receive funds from the federal government under Public Law 874 may be utilized for lease payments on equipment, teacherages, buildings, and other real estate, subject to the limitation that no more than ten percent of the general fund budget may be expended for lease payments during any school fiscal year. If the lease agreement provides for an option to purchase the leased property at the end of the lease period upon payment of a stipulated amount, the final payment at the end of the lease which shall result in acquisition of the property and title thereto, shall be made from the capital outlay fund subject to the provisions of §§ 13-16-6 to 13-16-9, inclusive.
Source: SDC Supp 1960, § 15.2202 as added by SL 1963, ch 74, § 2; SL 1964, ch 40.
13-16-6. Capital outlay fund--Definition--Uses--Levy.
The capital outlay fund of the school district is a fund provided by law to meet expenditures which result in the acquisition or lease of or additions to real property, plant, or equipment. Such an expenditure shall be for land, existing facilities, improvement of grounds, construction of facilities, additions to facilities, remodeling of facilities, or for the purchase or lease of equipment. It may also be used for installment or lease-purchase payments for the purchase of real property, plant, or equipment, which have a contracted terminal date not exceeding twenty years from the date of the installment contract or lease-purchase and for the payment of the principal of and interest on capital outlay certificates issued pursuant to § 13-16-6.2.
Any purchase of one thousand dollars or less may be paid out of the general fund. The total accumulated unpaid principal balances of such installment contracts and lease-purchase and the outstanding principal amounts of such capital outlay certificates may not exceed three percent of the taxable valuation. The school district shall provide a sufficient levy each year under the provisions of § 13-16-7 to meet the annual installment contract, lease-purchase, and capital outlay certificate payments, including interest.
A school district which contracts its student transportation may expend from the capital outlay fund an amount not to exceed fifteen percent of the contract amount. In addition, a school district which reimburses for mileage instead of providing transportation pursuant to § 13-30-3, may use the capital outlay fund to pay for fifteen percent of its mileage reimbursement costs.
The capital outlay fund may be used to purchase textbooks and to purchase or renew instructional software.
The capital outlay fund may be used to purchase warranties on capital assets if the warranties do not include supplies.
A school district may transfer from its capital outlay fund to its general fund an amount not to exceed forty-five percent of the total tax revenues deposited in that fund during the current school fiscal year.
Source: SL 1947, ch 80; SL 1953, ch 56; SL 1955, ch 41, ch 10, § 3; SDC Supp 1960, § 15.2203; SL 1970, ch 100, § 1; SL 1973, ch 91, § 1; SL 1975, ch 128, § 102; SL 1978, ch 109, § 1; SL 1988, ch 138, § 1; SL 1989, ch 146, § 3; SL 1996, ch 111; SL 1997, ch 91, § 1; SL 2001, ch 72, § 1; SL 2001, ch 80, § 1; SL 2002, ch 85, § 1; SL 2006, ch 79, § 1; SL 2009, ch 82, § 1; SL 2011, ch 93, § 1; SL 2013, ch 75, § 1; SL 2016, ch 83, § 15; SL 2020, ch 54, § 1.
13-16-6.1. Bidders on installment purchases or lease-purchase agreement to state interest rate and installment schedule.
Notwithstanding the provisions of chapters 5-18A and 13-20, if any proposed installment purchase contract or lease-purchase agreement authorized under chapter 13-16, is to be entered into by a school district, the notice for bidders shall require the bidders to state the rate of interest and the installment payment or lease-purchase schedule that would have to be made by the school district in fulfillment of the contract. However, the requirement of this section does not apply to any installment purchase or lease-purchase to be entered into between a school district and the health and educational facilities authority.
Source: SL 1973, ch 91, § 3; SL 1978, ch 109, § 2; SL 1989, ch 146, § 4; SL 2011, ch 2, § 122.
13-16-6.2. Capital outlay certificates authorized--Issuance--Sale--Election--Maturity.
The school board of any school district may issue capital outlay certificates to acquire or construct real property, plant, or equipment. All capital outlay certificates shall be authorized, issued, and sold in accordance with the provisions of chapter 6-8B. However, no election other than as provided in §§ 13-16-6.3 and 13-16-6.4 may be held, and the certificates may not have a maturity date in excess of twenty years from the date of issuance.
Source: SDCL, §§ 13-16-6, 13-16-6.1, as enacted by SL 1978, ch 109, §§ 1, 2; SL 1984, ch 43, § 102B; SL 1988, ch 140, § 4.
13-16-6.3. Hearing on installment purchase, lease-purchase or capital outlay certificates--Approval or reference to voters.
Any proposed installment purchase contract, lease-purchase, or issue of capital outlay certificates authorized pursuant to § 13-16-6 or 13-16-6.2 which will obligate the school district for future payments on the principal, the total of which will exceed one and one-half percent of the taxable valuation of taxable property within the district, may not be entered into, or certificates issued, unless prior thereto the school board conducts a public hearing thereon after having given notice by publication at least twice in its official newspaper at least ten days before the hearing. Upon the hearing the board may approve the action or may refer the matter to the voters of the district.
Source: SL 1973, ch 91, § 2; SDCL, § 13-16-6.2; SL 1978, ch 109, § 3; SL 1989, ch 146, § 5.
13-16-6.4. Referendum petition and election on installment purchase or capital outlay certificates.
Approval to enter into an agreement or issue capital outlay certificates to which § 13-16-6.3 applies is subject to a referendum if five percent of the registered voters, based upon the total number of registered voters at the last preceding general election, petition, within twenty days thereafter, to have the question of approval or disapproval of the agreement or issue of capital outlay certificates or the lease-purchase agreement placed upon the ballot at the next regular election or at a special election called for that purpose. The business manager shall give notice of the fact that the question will be on the ballot at a regular or special election as provided by law for school elections and prepare official ballots therefor according to the provisions of this title relating to elections and the issue shall be decided by sixty percent of those voting thereon.
Source: SL 1973, ch 91, § 2; SDCL, § 13-16-6.3; SL 1978, ch 109, § 4; SL 1986, ch 124, § 6; SL 1987, ch 67, § 11; SL 1989, ch 146, § 6; SL 2000, ch 75, § 7.
13-16-7. Additional tax levy for certain funds or obligations--Pledge of taxes--Limitations.
The school board of any school district of this state may at the board's discretion authorize an annual levy of a tax not to exceed three dollars per thousand dollars of taxable valuation on the taxable valuation of the district for the capital outlay fund for assets as defined by § 13-16-6 or for the district's obligations under a resolution, lease-purchase agreement, capital outlay certificate, or other arrangement with the Health and Educational Facilities Authority. Taxes collected pursuant to the levy may be irrevocably pledged by the school board to the payment of principal of and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangement with the Health and Educational Facilities Authority and, so long as any capital outlay certificates are outstanding, installment agreement payments, lease-purchase agreements, or other arrangements are unpaid, the school board of any district may be compelled by mandamus or other appropriate remedy to levy an annual tax sufficient to pay principal and interest thereon, but not to exceed the three dollars per thousand dollars of taxable valuation in any year authorized to be levied hereby.
The total amount of revenue payable from the levy provided in this section may notincrease annually by more than the lesser ofthree percent or the index factor, as defined in § 10-13-38, over the maximum amount of revenue that could have been generated from the taxes payable in 2016. Starting with taxes payable in 2021, the total amount of revenue payable from the levy provided in this section may not increase annually by more than three percent over the amount of revenue that could have been raised in the prior year. After applying three percent, a school district may increase the revenue payable from taxes on real property above the limitations provided by this section by the percentage increase of value resulting from any improvements or change in use of real property, annexation, minor boundary changes, and any adjustments in taxation of real property separately classified and subject to statutory adjustments and reductions under chapters 10-4, 10-6, 10-6A, and 10-6B, except § 10-6-113, only if assessed the same as property of equal value. A school district may increase the revenue the district receives from taxes on real property above the limit provided by this section for taxes levied to pay the principal, interest, and redemption charges on any bonds issued after January 1, 2009, which are subject to referendum, scheduled payment increases on bonds and for a levy directed by the order of a court for the purpose of paying a judgment against the school district. Any school district created or reorganized after January 1, 2016, is exempt from the limitation provided by this section for a period of two years immediately following the district's creation.
In no year may the annual tax levy provided in this section exceed three dollars per thousand dollars of taxable valuation of the school district for the current year.
Source: SL 1947, ch 80; SL 1953, ch 56; SL 1955, ch 41, ch 10, § 3; SDC Supp 1960, § 15.2203; SL 1970, ch 100, §§ 2, 3; SL 1975, ch 128, § 103; SL 1978, ch 109, § 5; SL 1986, ch 124, § 7; SL 1989, ch 87, § 15K; SL 1999, ch 84, § 3; SL 2008, ch 78, § 3; SL 2016, ch 83, § 13; SL 2018, ch 94, § 1; SL 2020, ch 55, § 4; SL 2021, ch 44, § 44.
13-16-7.2. Maximum taxes--Pledge of taxes.
Starting with taxes payable in 2021, a school district is limited to the maximum taxes allowed pursuant to § 13-16-7 or three thousand four hundred dollars for each enrolled student as determined in the fall enrollment count set forth in § 13-13-10.1 for the prior school year, whichever is less. For 2022 and subsequent years, the maximum amount for each enrolled student shall increase by the lesser of three percent or the index factor, as defined in § 10-13-38.
If a school district has irrevocably pledged taxes collected to the payment of principal and interest on installment purchase contracts or capital outlay certificates entered into or issued pursuant to § 13-16-6 or 13-16-6.2 or lease-purchase agreements or other arrangements with the Health and Educational Facilities Authority prior to July 1, 2016, that school district may raise taxes allowed pursuant to § 13-16-7 and this section in an amount necessary to fund those payments and obligations and to provide additional funding of up to three thousand four hundred dollars for each enrolled student as determined in the fall enrollment count set forth in § 13-13-10.1. In no year may the annual tax levy provided in this section exceed the levy authorized under § 13-16-7.
Source: SL 2018, ch 94, § 2; SL 2020, ch 55, § 1.
13-16-7.3 . Maximum pledge of taxes--Limitations.
Notwithstanding the provisions of § 13-16-7, a school board that, in calendar year 2020 was limited to a maximum capital outlay revenue of one thousand four hundred dollars or less per student is eligible, starting with taxes payable in 2021, to authorize the levy of a tax not to exceed three dollars per thousand of taxable valuation for the capital outlay fund for assets as defined by § 13-16-6 or for the district's obligations under a resolution, lease-purchase agreement, capital outlay certificate, or other arrangement with the Health and Educational Facilities Authority.
Any district that exceeds the limits provided in § 13-16-7 may not collect more than one thousand four hundred dollars for each enrolled student for capital outlay in taxes payable in 2021. For 2022 and subsequent years, the maximum amount for each enrolled student shall increase by the lesser of three percent or the index factor, as defined in § 10-13-38 .
Source: SL 2020, ch 55, § 3.
13-16-7.4 . Maximum pledge of taxes--Transition.
Any school district impacted by the three thousand four hundred dollar tax limitation as provided in § 13-16-7.2 during calendar years 2021, 2022, and 2023 may transfer to the general fund the actual total dollar amount the school district transferred in fiscal year 2020. Beginning in calendar year 2024, any impacted school district is limited to the transfer amount provided for in § 13-16-6 .
Source: SL 2020, ch 55, § 5.
13-16-8. Bond and certificate proceeds placed in capital outlay fund.
Money received from the sale of capital outlay bonds and capital outlay certificates shall be placed in the capital outlay fund.
Source: SL 1955, ch 41, ch 10, § 3; SDC Supp 1960, § 15.2203; SL 1978, ch 109, § 6.
13-16-9. Expenditure of money from capital outlay fund.
Money can be expended from the capital outlay fund only for the purposes defined in § 13-16-6 and for the redemption of outstanding warrants against this fund.
Source: SL 1955, ch 41, ch 10, § 3; SDC Supp 1960, § 15.2203.
13-16-9.1. Validation of prior school district contracts.
All contracts and agreements entered into prior to January 1, 1988, by any school district under the provisions of § 13-16-6, that have resulted in the acquisition of fixed assets or addition to fixed assets, provided the amounts involved do not result in the creation of indebtedness in excess of constitutional or statutory debt limits, are hereby legalized and validated notwithstanding any irregularity or defect in the proceedings resulting in the contracts and agreement; and all of the contracts and agreements are hereby declared to exist as valid obligations of the school districts, payable from their capital outlay funds.
Source: SL 1973, ch 90; SL 1983, ch 128, § 1; SL 1988, ch 139, § 1.
13-16-9.2. Five-year plan required when fund used to construct new facilities or additions.
Any school district using the capital outlay fund for payment of construction of new facilities or construction of additions to facilities must develop and maintain a five-year plan on the annual projected revenues and the annual projected expenditures for the capital outlay fund and such projected expenditures shall itemize the projected costs for new or additional facilities.
Source: SL 1977, ch 126, § 1.
13-16-9.3. Public hearing for use of capital outlay fund--Notice.
Any school district using the capital outlay fund for payment of construction of new facilities or construction of additions to facilities, the total of which requires advertising for bids under chapter 5-18A, shall have a public hearing at least ten days prior to the advertisement of any contract specifications. The public hearing shall be advertised in the legal newspaper of the school district. Following the public hearing, and approval of the school board, the school district may use the capital outlay fund as provided in § 13-16-6. No school district may change the originally advertised use of the fund without holding another public hearing.
Source: SL 1977, ch 126, § 2; SL 2011, ch 2, § 123.
13-16-10. Annual levy to pay school district bonds--Irrepealable--Exclusive of maximum levy.
At or before the issuing of any bonds the school board shall provide for the collection of an annual tax sufficient to pay the interest and principal thereof when due, for the entire term of years for which said bonds are to run, by proper resolution, copy of which shall be filed with the county auditor. All such levies when legally made shall be irrepealable until such debt shall be paid or sufficient moneys have been accumulated to pay such debt, and shall be exclusive of the maximum levy provided for other school district funds.
Source: SDC 1939, § 15.2208; SL 1955, ch 41, ch 10, § 4; SDC Supp 1960, § 15.2204; SL 1963, ch 75, § 1; SL 1965, ch 47.
13-16-11. Levy of annual tax for school district bonds--Reduction on accumulation of surplus in bond redemption fund.
The county auditor shall have the power and the duty to levy a tax from year to year against the property of the district in accordance with such resolution to meet said bond redemption fund payments when due without further notice or demand from such school district, provided, however, that if a surplus in the bond redemption fund exceeds the principal and interest requirements for one year in addition to such requirements for the current year, the school board may by resolution, determine the amount of such surplus and certify said amount to the county auditor on or before September first and the county auditor shall thereupon be authorized to reduce the required levy for the bond redemption fund to be spread upon the tax list for collection in the following year by the amount so certified.
Source: SDC 1939, § 15.2208; SL 1955, ch 41, ch 10, § 4; SDC Supp 1960, § 15.2204; SL 1963, ch 75, § 1; SL 1965, ch 47.
13-16-12. Refunding bond proceeds placed in bond redemption fund--Reduction of annual tax levy.
Money received from the sale of refunding bonds shall be placed in the bond redemption fund to be held, or invested, and applied to the payment of the bonds to be refunded. The school board shall cause to be certified to the county auditor the amount of money so received and placed in the bond redemption fund each school fiscal year and the county auditor shall reduce by such amount the taxes to be levied to meet payments on the refunded bonds.
Source: SDC Supp 1960, § 15.2204 as added by SL 1963, ch 75, § 1; SL 1965, ch 47.
13-16-13. Tax proceeds paid into bond redemption fund--Purposes for which used.
When the tax levied under § 13-16-11 shall be collected the business manager shall enter the same into the bond redemption fund and the same shall not be used for any other purpose and shall be applied to the payment of bonds when due and for the payment of interest thereon.
Source: SL 1955, ch 41, ch 10, § 4; SDC Supp 1960, § 15.2204; SL 1963, ch 75, § 1; SL 1965, ch 47; SL 1975, ch 128, § 104.
13-16-14. Restriction on transfers from bond redemption fund.
No money in the bond redemption fund may be transferred to any other fund unless a sufficient amount of money is retained in this fund to retire all outstanding bonds together with such interest as will accrue on such bonds. If any money is transferred from the bond redemption fund, the money shall be transferred to the general fund or the capital outlay fund.
Source: SL 1955, ch 41, ch 10, § 4; SDC Supp 1960, § 15.2204; SL 1963, ch 75, § 1; SL 1965, ch 47; SL 2005, ch 99, § 1.
13-16-15. Designation of depositories for school district--Resolution.
The school board of every school district shall by resolution duly adopted at any annual, regular, or special meeting designate any bank or banks within the state as depositories for the funds or any part or parts of the funds of the district.
Source: SDC 1939, § 15.2524; SL 1955, ch 41, ch 10, § 7; SL 1957, ch 69; SDC Supp 1960, § 15.2207; SL 1975, ch 128, § 105; SL 1992, ch 124.
13-16-15.1. Domestic savings and loan associations as official depositories--Restrictions.
Domestic savings and loan associations whether chartered by this state or by the United States are official depositories for school district funds; provided such funds are invested only in the accounts of such associations which are insured by the federal Savings and Loan Insurance Corporation. The amount so invested in any one association may not exceed the amount which is covered by such insurance unless such association qualifies as a savings and loan depository as provided by chapter 4-6A.
Source: SL 1974, ch 303; SL 1982, ch 45, § 4.
13-16-18. Deposit and investment of fund accumulations--Crediting of interest--Maturity of bond redemption fund investments--Filing of resolutions.
All accumulations in all school district funds shall be deposited in lawful depositories in checking accounts, savings accounts, or time deposits, or invested, except as hereinafter limited, in:
(1) Bonds, registered warrants, or promissory notes of the school district making the investment, or securities issued and guaranteed by the United States government; or
(2) Investments authorized by §4-5-6.2.
The interest accruing on the investment or deposit shall be credited to the respective fund or the general fund. Other than permanent, trust, retirement, building, and depreciation reserve funds, such securities shall mature within eighteen months from the date of purchase or be redeemable at par at the option of the holder within eighteen months from the date of purchase.
Moneys in any bond redemption fund may be invested only in the types of investments listed in subdivision (1). The investments shall be due and payable on or before the date when the bonds for the payment of which the bond redemption fund was created become due and payable, except bonds of the United States redeemable at par.
In carrying out the provisions of this section, all transactions shall be by resolutions of the board, which resolutions shall be regularly filed and recorded with the business manager as a public record.
Source: SDC 1939, § 15.2209; SL 1955, ch 41, ch 10, § 6; SDC Supp 1960, § 15.2206; SL 1976, ch 114; SL 1978, ch 108; SL 1985, ch 126; SL 2011, ch 26, § 2.
13-16-18.1. Domestic federal credit union as public depository--Requirement.
Any domestic federal credit union chartered by the United States is a qualified public depository for school district funds if such funds are invested in accounts which are insured by the National Credit Union Administration.
Source: SL 1987, ch 71, § 3; SL 1988, ch 27, § 2.
13-16-19. Custodial funds--Stewardship--Designation of employee--Surety bond.
The school board shall prescribe policies and procedures governing the stewardship of custodial funds consistent with provisions of this title. The school board may designate an employee of the school district to be in charge of each custodial fund. The employee designated, if other than the business manager, shall be placed under surety bond in the amount estimated to be in the hands of the employee at any one time during the school fiscal year. The school district shall pay the premium on the surety bond.
Source: SL 1955, ch 41, ch 10, § 11; SDC Supp 1960, § 15.2211; SL 1976, ch 115, § 3; SL 2012, ch 88, § 10; SL 2020, ch 53, § 1.
13-16-20. Disbursements--Records--Receipts--Payment of claims--Serially numbered ticket sales--Destruction of records.
The employee in charge of a custodial fund may issue checks for disbursements from the fund. Unless required by the school board, the disbursements do not require prior approval by the board nor signature of the presiding officer of the board or the business manager. The employee designated shall keep accurate records of all receipts, expenditures, and balances of the custodial fund; issue receipts in duplicate for all money received, except money received from the sale of printed serial number admission tickets; approve the expenditures, and pay all claims upon the presentation of an itemized verified claim. A memorandum record shall be kept on file for the sale of all serially numbered tickets by events, and the record shall be signed by the person selling the tickets. The employee may destroy any record that the records destruction board, acting pursuant to § 1-27-19, declares to have no further administrative, legal, fiscal, research, or historical value.
Source: SL 1955, ch 41, ch 10, § 11; SDC Supp 1960, § 15.2211; SL 1976, ch 115, § 4; SL 1981, ch 45, § 15; SL 2012, ch 88, § 11; SL 2020, ch 53, § 2.
13-16-21. Custodial funds--Monthly and annual reports--Audits.
The employee of the school district designated by the board to be in charge of a custodial fund shall monthly and annually submit reports to the school board. The fund shall be audited as part of the regular audit of the school district.
Source: SL 1955, ch 41, ch 10, § 11; SDC Supp 1960, § 15.2211; SL 1976, ch 115, § 5; SL 1996, ch 112; SL 2012, ch 88, § 12; SL 2020, ch 53, § 3.
13-16-24. Unlawful contracts and warrants void.
Every contract made or check or registered warrant issued in excess of the issuing capacity of the district as restricted in this title is void and is not an obligation of the district.
Source: SL 1955, ch 41, ch 10, § 14; SDC Supp 1960, § 15.2214; SL 1975, ch 128, § 106; SL 1982, ch 86, § 134A; SL 1982, ch 139, § 3; SL 2012, ch 94, § 1.
13-16-26. Transfers between school district funds.
All or any part of a surplus of any school district fund, except the capital outlay fund provided by §§ 13-16-6 to 13-16-9, inclusive, and the special education fund provided by § 13-37-16 may be transferred to any other school district fund. Only a school district with a plan for reorganization that has been approved by the voters pursuant to § 13-6-47 after July 1, 2007 may transfer within twelve months before the effective date of the reorganization all or any part of a surplus in the capital outlay fund to the general fund. Any unused portion of money that has been transferred into the special education fund may be transferred from the special education fund within the current fiscal year to the fund from which it originated. All or any part of any school district fund may be loaned to any other school district fund for a term not to exceed twenty-four months.
The restriction on a transfer from the capital outlay fund in this section does not apply to any transfer from the capital outlay fund to the general fund as authorized in § 13-16-6.
Source: SL 1955, ch 41, ch 10, § 5; SDC Supp 1960, § 15.2205; SL 1964, ch 41; SL 1971, ch 110; SL 1992, ch 125; SL 1998, ch 91, § 1; SL 2007, ch 93, § 22; SL 2012, ch 88, § 13; SL 2016, ch 83, § 16.
13-16-26.2. Transfers from general fund--Prohibitions--Exceptions.
Notwithstanding § 13-16-26, no school district may transfer any funds, exclusive of federal funds and wind energy tax revenue that is defined in § 13-13-10.1 and apportioned pursuant to § 10-35-21, from the general fund to the capital outlay fund, bond redemption fund, or the capital projects fund.
The authority provided by this section for the transfer of wind energy tax revenue is conditioned annually upon the district obtaining, from the Department of Education, verification that the school district is in compliance with §§ 13-13-73.6 and 13-13-73.8.
The transfer of wind energy tax revenue must be made within the ten-year timeframe identified in § 13-13-10.1 for each new wind farm. The maximum amount a school district may transfer on an annual basis is the amount of wind energy tax revenue that is able to be retained by the district and not counted as local effort.
Notwithstanding § 13-16-6, wind energy tax revenue transferred to the capital outlay fund under the authority of this section must remain separately identified and may not thereafter be returned to the general fund.
Source: SL 2000, ch 77, § 1; SL 2001, ch 77, § 6; SL 2021, ch 74, § 2; SL 2024, ch 53, § 6.
13-16-26.3. Transfer of moneys between funds in newly consolidated districts--Restrictions--Reversion of funds--Promulgation of rules.
Notwithstanding any other provision of this chapter, if two or more school districts consolidate, for one year after the effective date of the consolidation pursuant to § 13-6-61, the newly formed school district may transfer any money from its general fund to its capital outlay fund. However, any funds transferred pursuant to this section may only be spent for one-time costs related to the consolidation. Any funds transferred to the capital outlay fund, but not lawfully obligated within one year of the date of the consolidation, shall revert to the school district's general fund. The Department of Education shall promulgate rules pursuant to chapter 1-26 to require the necessary information and establish procedures necessary to implement this section.
Source: SL 2002, ch 86, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 63; SL 2012, ch 88, § 14.
13-16-26.4. Transfer of certain special education funds to carry out activities under Elementary and Secondary Education Act.
Notwithstanding the provisions of § 13-16-26, as provided by 20 U.S.C. § 1413 as amended through July 1, 2005, in any fiscal year in which a school district is allocated federal IDEA funds greater than the allocation received in the prior fiscal year, the school district may transfer local special education funds in an amount not greater than fifty percent of the annual increase in the federal IDEA allocation to any other fund to carry out activities that could be supported with funds under the Elementary and Secondary Education Act of 1965.
Source: SL 2010, ch 86, § 1, eff. Feb. 8, 2010.
13-16-28. Audit of school district books called by state, school board, or voters.
For any necessary reason an audit of the books of any school district may be called at any time by the auditor-general of the state, the school district board, or the voters of the school district by petition signed by twenty percent of the resident taxpayers of such district as shown by the assessment roll of the preceding year and presented to the school board or the auditor-general of the state.
Source: SL 1955, ch 41, ch 10, § 30; SDC Supp 1960, § 15.2230; SL 1971, ch 111, § 2.
13-16-29. School district repayment fund created--Pledge of revenues--Creation of sub-funds or accounts.
There is created a separate trust fund designated the school district repayment fund consisting of all revenues with respect to school district lease, resolution, certificate, or other arrangement, or any bond, note, or certificate issued to or in connection with a program sponsored by the Health and Educational Facilities Authority for school districts and entered into under §§ 13-13-39, 13-16-6.4, 13-16-7, and 13-19-27 to 13-19-29, inclusive. The Health and Educational Facilities Authority may pledge revenues received or to be received by the fund to secure bonds, notes or other obligations issued under §§ 13-13-39, 13-16-6.4, 13-16-7, and § 13-19-27 to 13-19-29, inclusive. The authority may create sub-funds or accounts within the repayment fund created under this section as the authority considers necessary.
Source: SL 1986, ch 124, § 8; SL 1988, ch 140, § 3; SL 1999, ch 84, § 4.
13-16-30. Title VIII of the Elementary and Secondary Education Act fund.
Any funds received from the federal government under the provisions of Title VIII of the Elementary and Secondary Education Act for basic support may be deposited into the Title VIII of the Elementary and Secondary Education Act fund.
Source: SL 1991, ch 138, § 2; SL 1997, ch 89, § 2; repealed by SL 2012, ch 87, § 13; reinstated by SL 2013, ch 73, § 2.
13-16-31. Transfers from Title VIII fund.
The Title VIII of the Elementary and Secondary Education Act fund shall serve as a fund from which transfers shall be made to the funds enumerated in § 13-16-2. A school district may not make expenditures out of its Title VIII of the Elementary and Secondary Education Act fund. Transfers out of the Title VIII of the Elementary and Secondary Education Act fund shall be made at the discretion of the school board.
Source: SL 1991, ch 138, § 3; SL 1997, ch 89, § 3; repealed by SL 2012, ch 87, § 14; reinstated by SL 2013, ch 73, § 3.
13-16-32. Special education fund--Legal costs allowable expenditures.
The South Dakota Board of Education Standards may promulgate rules pursuant to chapter 1-26 to identify allowable expenditures from the special education fund. Legal costs incurred by a school district as a direct result of providing special education or special education and related services to a child for whom the district is financially responsible are allowable expenditures. The allowable expenditures may include any legal costs incurred by the school district in the referral, evaluation, and placement processes as well as any other legal expenses for which the district is determined to be legally responsible to pay as a result of due process hearings.
Source: SL 1998, ch 98, § 13; SL 2005, ch 100, § 1; SL 2017, ch 81, § 57.
13-16-33. School annual financial reports.
Each school district shall file the annual financial report pursuant to § 13-8-47 using the uniform accounting system as defined in the accounting manual developed pursuant to § 4-11-6. Reports not filed prior to August thirtieth are considered past due and are subject to the past-due provisions of § 13-13-38.
Source: SL 1998, ch 98, § 14; SL 2011, ch 86, § 3.
13-16-35. Use of admission fees for interscholastic activities by local organization--Approved purposes--Report to school board.
Any member school of an association provided for in § 13-36-4 to which control, supervision, and regulation of high school interscholastic activities has been delegated, may, during each school year, allow any portion of the admissions fees collected at a single event in each activity recognized by the association to be used by a local organization that supports local interscholastic activities. The portion of the admissions fees provided to the local organization shall be used for a purpose that is approved in advance by the local school board, and may be used for a local endowment fund that is dedicated to assisting the local school district with its educational needs. The local organization shall maintain complete records of the admissions fees it receives, and shall provide a report to the local school board detailing the specific use of the admissions fees.
Source: SL 2007, ch 97, § 1.
