Organizational Guidelines for an Extension District Board
Overview of the Extension District Budget Process
Cooperative Extension Service Extension District Board Annual Time Line
Constitutional Oath for Newly Appointed District Board Members
Quorums and Proxy Voting for Extension District Boards

Operational Recommendations for Extension District Boards


ORGANIZATIONAL GUIDELINES FOR AN EXTENSION DISTRICT BOARD
An Extension District whose boundaries shall co-exist with the county boundaries shall be authorized for each county. Each Extension District shall constitute a governmental subdivision of the Commonwealth. (KRS 164.620)

An Extension Council shall be established for each Extension District and shall be composed of not less than fifteen (15) citizens nor more than forty (40) citizens of the county in which the Extension District is located, subject to the provisions of subsection (2) of KRS 164.625.

Each Extension District Board member shall, by virtue of his/her membership on the board, become a member of the Extension Council. This membership on the Extension Council may be in addition to the maximum of forty (40) as stated above. (KRS 164.635, subsection 2)

An Extension District Board may be created by the fiscal court of the county in which the Extension District is located. The Board shall be composed of the county judge executive and six (6) other citizens residing within the Extension District. (KRS 164.635)

On or before November 1 of each year, the Extension Council shall submit to the county judge executive a list of two (2) nominees for each member to be appointed to the Extension District Board. (KRS 164.635, subsection 2)

On or before January 15, the county judge executive shall call all duly appointed Board members together for an organizational meeting for all newly formed boards. (KRS 164.640)

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OVERVIEW OF THE EXTENSION DISTRICT BUDGET PROCESS
The Extension District Board shall meet annually during the month of January for the election of officers and throughout the year for the transaction of other necessary business. KRS 164.645

With advisement and recommendations of the Extension Council, the District Board will prepare annually, not later than April 15, an Extension District budget. KRS 164.655(8)

The secretary shall keep the minutes of all meetings of the Extension Board which shall serve as official documents from which Board action is taken. KRS 164.650(3)

The treasurer, within ten (10) days after election as treasurer, shall execute to the Extension Board a corporate surety bond of 125% of the amount that shall be in the treasurer's hands at any one time. KRS 164.650(4).

Extension District Board funds shall be audited. In accordance with Chapter 65 and 424 of KRS 65.065 a legal notice of public inspection of the records of the Extension District Board operational procedures shall be published.

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COOPERATIVE EXTENSION SERVICE EXTENSION DISTRICT BOARD ANNUAL TIME LINE

January 

  • District Board holds a meeting. County Judge Executive administers oath of office to incoming board members.  County Judge conducts nomination and election of new board chair.  KRS 164.650 (see sample oath)
  • District Board members reported to Department for Local Government website. Update throughout the year whenever there is a change. 
  • Send addresses of members and officers of the district.
  • Bond treasurer of District Board within ten (10) days after his/her election. Bond shall be for one hundred twenty-five percent (125%) of the largest amount that shall be in the hands of the treasurer at any one time. KRS 164.650(4)

February 15

  • District Director send to County Budget Contact agents - budget development information.
  • Preliminary budget discussion with County Extension Council.  The Council should develop budget recommendations to be considered by the District Board.  KRS 164.655(8)
  • Complete the County Offset Voucher for the past year (10/1-9/30) and forward to District Director and Tina Ward by February 15.

March 15

March to April 15 

May 1

  • Complete the Uniform Financial Information Report online site Department for Local Government. 
  • District Board enters into annual Memorandum of Agreement with the Cooperative Extension Service.  KRS 164.655(2). Send three (3) copies to District Director and an electronic copy to Director for County Operations and Staff Support.
  • Send three (3) copies of Schedules of Disbursements to District Director and an electronic copy to Director for County Operations and Staff Support.
  • Secretary and Program Assistant Salary Adjustment Recommendation Forms submitted to the District Director.

Before June 30  

  • District Board meets and reviews past year’s budget and rectifies expenditure accounts.
  • Reports budget amendments online at Department for Local Government throughout year. Final by June 30.

July 15

  • Budget must be online at Department for Local Government by July 15.
  • Registration fee paid online through Department for Local Government portal by July 15.

July - August

  • District Board sets Tax Rates - Fiscal Court approves. Send tax rates to District Director and copy to Director for County Operations.

August

  • Annual Financial Statement - District Board must publish location where budget, financial statement and most recent audit/attestation reports may be examined. Must be held in Courthouse. Deadline September 1.

September

  • End of year actual expenses must be posted online with Department for Local Government.
  • Audits - send a copy to District Director after completion. Post to Department for Local Government as PDF. Deadline one year after close of fiscal year beginning 2016.

October 1

November 1

  • County Extension Council submits to the County Judge/Executive a list of two (2) nominees for each member to be appointed to the Extension District Board.

December 1 

  • County Judge/Executive shall appoint required board members. KRS 164.635(2).  By Law must be appointed by December 15.         

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CONSTITUTIONAL OATH FOR NEWLY APPOINTED DISTRICT BOARD MEMBERS (Sample)

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QUORUMS AND PROXY VOTING FOR EXTENSION DISTRICT BOARDS

QUORUMS
Following are guidelines per Robert’s Rules of Order Revised:

"In any deliberate group or board with an enrolled or specified membership whose by-laws do not specify a quorum, the quorum is a majority of all the members, by common parliamentary law."

"If a quorum fails to appear at a regular or properly called meeting, the inability to transact business does not detract from the fact that the rules requiring the meeting to be held were complied with and the meeting was convened and adjourned."

"The only action that can legally be taken in absence of a quorum is to fix the time which to adjourn, recess, or take measures to obtain a quorum."

This simply means we must have four (4) of our seven (7) Extension board members present to constitute a legal quorum unless specified otherwise in their own by-laws.

PROXY VOTING
"Proxy voting is not permitted in ordinary deliberate assemblies unless the chapter or by-laws of the organization provide for it. Ordinarily it should neither be allowed nor required because proxy voting is incompatible with the essential characteristics of a deliberative assembly in which membership is individual, personal, and non-transferrable."

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OPERATIONAL RECOMMENDATIONS FOR EXTENSION DISTRICT BOARDS

  1. The Board should have a well defined clear mission statement to serve as a platform for policies, operational plans and resource allocations that further the interest of Extension in the county.
  2. The Board should have an annual orientation program and manual for new and returning Board members. The District Board Manual could be used. An explanation of the budget and accounting structure as well as revenue and investment information should be included. A county attorney and/ or consultant should be on hand to answer any legal question.
  3. Throughout the year the Board should request reports from individuals having responsibility for program areas (4-H, FCS, Horticulture, Fine Arts, and ANR)  and not just rely on the agent who has been identified as the Fiscal Coordinator for information.
  4. All Board meeting minutes should document the exact nature of the financial decisions and business conducted during meetings. Any issue which results from these actions and further actions taken should also be documented.
  5. Any session closed to the public should be entered into in accordance with KRS 61.810. Any conclusions or decisions reached during a session closed to the public must be documented in the Board meeting minutes as stated in KRS 61.815, clarified in OAG 81-387.
  6. The Board should adopt a code of ethics that includes standards of conduct for its Board members. The policy should include the requirement to sign a form stating that the individuals have received and understand the code of ethics. The code should include statements regarding moral and ethical standards, confidentiality, conflicts of interest, nepotism, gifts, honoraria, and assistance with applicable audits and investigations. Violations of the code of ethics should be reported to the Board or designated committee of the Board.
  7.  A policy should be developed requiring Board members to disclose any conflicts of interests. A conflict of interest form should be completed by a specified date and returned to the Board. Conflicts of interest may occur if advertising for any goods or services: contracting for labor or buildings, or hiring county support staff. Board members should carefully consider when there might be a conflict of interest and disclose this information and/or excuse themselves from decisions that might been viewed as a conflict of interest.
  8. The Board policy should include a transparent competitive selection process for procurement of goods and services. The policy should outline the circumstances under which quotes or competitive bids are required and the process to be followed. The Board should have policies that require a formal contract for r purchases over a specified amount and that all contracts over a specified dollar amount require Board approval.
  9. A review of the budget to actual expenditures should be performed regularly by the Board or a designated Board Committee to monitor costs in each account. The name and number of budget categories or line items should provide transparency and sufficient detail to allow Board members to accurately identify the types of expenses being attributed to each category. If expenditures occur at an unexpected rate, additional detail should be requested to ensure that incurred expenditures are reasonable and necessary.
  10. At least quarterly, the Board should receive and review a listing of payments that includes, at a minimum, the payee, dollar amount, and date of each expenditure. This review would assist in identifying inappropriate, unusual, or excessive expenditures.
  11. If the use of credit cards have been approved and is needed, the Board should be assigned to review, at a minimum, credit card statements of Extension staff prior to payment; credit card charges should be supported by detailed receipts and documented business purpose.
  12.  Monthly vehicle allowances are preferred. However if a Board chooses to purchase vehicles, a policy should be developed to address the authorization process to purchase vehicles and the method used to dispose of vehicles. The use and assignment of vehicles owned by the organization should be addressed within this policy. In addition, the practice of providing a vehicle should be reviewed. The policy should include following the IRS guidelines for personal use of a vehicle.
  13. The personal use of business equipment should be addressed within Board policy to determine when appropriate. The policy should require that equipment being used inappropriately or that is missing should be reported directly to the Board.
  14. The Board should establish a policy detailing the process to report lost or missing financial information or records. To avoid lost or stolen financial information, electronic images of financial records should be created and retained.

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