2007 Minnesota Statutes

123B.79 PERMANENT FUND TRANSFERS.
    Subdivision 1. Limitations. Except as provided in this subdivision, sections 123B.51,
123B.80, 475.61, and 475.65, a district may not permanently transfer money from (1) an operating
fund to a nonoperating fund; (2) a nonoperating fund to another nonoperating fund; or (3) a
nonoperating fund to an operating fund. Permanent transfers may be made from any fund to any
other fund to correct for prior fiscal years' errors discovered after the books have been closed for
that year. Permanent transfers may be made from the general fund to any other operating funds
according to section 121A.19 or if the resources of the other fund are not adequate to finance
approved expenditures from that other fund. Permanent transfers may also be made from the
general fund to eliminate deficits in another fund when that other fund is being discontinued.
When a district discontinues operation of a district-owned bus fleet or a substantial portion of
a fleet, the balance shall cancel to the district's general fund.
    Subd. 2. Technical colleges. Money must not be transferred from the postsecondary general
fund to any other operating or nonoperating fund.
    Subd. 3. TRA and FICA transfer. (a) Notwithstanding subdivision 1, a district may transfer
money from the general fund to the community service fund for the employer contributions for
teacher retirement and FICA for employees who are members of a teacher retirement association
and who are paid from the community service fund.
(b) A district must not transfer money under paragraph (a) for employees who are paid with
money other than normal operating funds, as defined in section 354.05, subdivision 27.
    Subd. 4. Operating fund; nonoperating fund; defined. As used in this section, "operating
fund" and "nonoperating fund" have the meanings specified in the uniform financial accounting
and reporting standards for Minnesota school districts. Any transfer for a period in excess of one
year shall be deemed to be a permanent transfer.
    Subd. 5. Deficits; exception. For the purposes of this section, a permanent transfer includes
creating a deficit in a nonoperating fund for a period past the end of the current fiscal year which
is covered by moneys in an operating fund. However, a deficit in the capital expenditure fund
pursuant to section 123B.78, subdivision 5, does not constitute a permanent transfer.
    Subd. 6. Account transfer for statutory operating debt. On June 30 of each year, a district
may make a permanent transfer from the general fund account entitled "net unreserved general
fund balance since statutory operating debt" to the account entitled "reserved fund balance reserve
account for purposes of statutory operating debt reduction." The amount of the transfer is limited
to the net unreserved general fund balance. If the net unreserved general fund balance is less
than zero, the district may not make a transfer.
    Subd. 7. Account transfer for certain severance pay. A district may maintain in a reserve
for certain severance pay account not more than 50 percent of the amount necessary to meet the
obligations for the portion of severance pay that constitutes compensation for accumulated sick
leave to be used for payment of premiums for group insurance provided for former employees
by the district. The amount necessary must be calculated according to standards established by
the department.
    Subd. 8. Account transfer for reorganizing districts. A district that has reorganized
according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has conducted a successful
referendum on the question of combination under section 123A.37, subdivision 2, or consolidation
under section 123A.48, subdivision 15, or has been assigned an identification number by the
commissioner under section 123A.48, subdivision 16, may make permanent transfers between
any of the funds or accounts in the newly created or enlarged district with the exception of the
debt redemption fund, food service fund, and health and safety account of the capital expenditure
fund. Fund transfers under this section may be made for up to one year prior to the effective
date of combination or consolidation by the consolidating boards and during the year following
the effective date of reorganization by the consolidated board. The newly formed board of the
combined district may adopt a resolution on or before August 30 of the year of the reorganization
authorizing a transfer among accounts or funds of the previous independent school districts which
transfer or transfers shall be reported in the affected districts' audited financial statements for the
year immediately preceding the consolidation.
    Subd. 9. Elimination of reserve accounts. A school board shall eliminate all reserve
accounts established in the school district's general fund under Minnesota Statutes before July
1, 2006, for which no specific authority remains in statute as of June 30, 2007. Any balance in
the district's reserved for bus purchases account as of June 30, 2007, shall be transferred to the
reserved account for operating capital in the school district's general fund. Any balance in other
reserved accounts established in the school district's general fund under Minnesota Statutes before
July 1, 2006, for which no specific authority remains in statute as of June 30, 2007, shall be
transferred to the school district's unreserved general fund balance. A school board may, upon
adoption of a resolution by the school board, establish a designated account for any program for
which a reserved account has been eliminated.
History: 1977 c 447 art 7 s 8; 1978 c 764 s 14; 1979 c 334 art 5 s 2; 1980 c 609 art 6 s 7,8;
art 7 s 6; 1981 c 358 art 7 s 10; 1982 c 548 art 5 s 1; 1983 c 314 art 5 s 1; art 6 s 3; 1984 c 463
art 7 s 4; 1Sp1985 c 12 art 7 s 7; 1Sp1985 c 16 art 2 s 29; 1987 c 143 s 2; 1987 c 258 s 12; 1987
c 398 art 7 s 13,42; 1988 c 486 s 10; 1988 c 718 art 8 s 3; 1989 c 222 s 7; 1989 c 246 s 2; 1989 c
329 art 4 s 4; 1990 c 562 art 4 s 2; art 8 s 7; 1991 c 130 s 37; 1991 c 265 art 6 s 2; art 8 s 2; 1992
c 499 art 7 s 1; art 12 s 29; 1993 c 224 art 5 s 1; art 6 s 2; 1994 c 465 art 2 s 1; 1994 c 647 art 8 s
3; 1Sp1995 c 3 art 2 s 1; art 4 s 15; art 6 s 1; 1997 c 7 art 1 s 48; 1998 c 397 art 6 s 20-26,124;
art 11 s 3; 2000 c 489 art 6 s 10; 1Sp2005 c 5 art 1 s 5; 2007 c 146 art 5 s 3,4; art 11 s 3