2005-10 KIB & KIBSD In Kind Services MOUKODIAK ISLAND BOROUGH
RESOLUTION NO. FY 2005 -10
KODIAK ISLAND BOROUGH SCHOOL DISTRICT
RESOLUTION NO. 045 -002
Introduced by: KIB & KIBSD In -Kind
Commitee
Requested by: KIB Assembly & KIB
School Board
Drafted by: KIB & KIBSD In -Kind
Commitee
Introduced: December 16, 2004
Adopted: December 16, 2004
A JOINT RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY AND
THE KODIAK ISLAND BOROUGH SCHOOL DISTRICT BOARD ADOPTING
A MEMORANDUM OF UNDERSTANDING THAT WILL
ESTABLISH A PROCEDURE FOR GOVERNING THE ACCOUNTING AND
APPLICATION OF IN -KIND SERVICES
WHEREAS, during the summer of 2003, the Kodiak Island Borough (KIB) and Kodiak
Island Borough School District (KIBSD) commissioned an ad hoc committee of four
members to jointly review and formulate draft policy concerning the in -kind contributions
that are part of the annual local component of the funding of public education; and
WHEREAS, the committee was made up of Kodiak Island Borough Assembly members
Robin Heinrichs and Pat Branson, and Kodiak Board of Education members Norm Wooten
and Jeff Stephan. Support staff from the Kodiak Island Borough (KIB) and the Kodiak
Island Borough School District (KIBSD) assisted with research and materials; and
WHEREAS, the goal was to establish common rules to govern the application of and
accounting for the value associated with these in -kind services; and
WHEREAS, the committee has done its best to address many of the chronic disputes
relating to the accounting for in -kind services that have existed between the Kodiak Island
Borough and the KIB School district for many years. The committee not only reached
consensus on these issues, but also established a mechanism to deal with future
disagreements; and
WHEREAS, the committee was always mindful of the impact these deliberations might
have upon the welfare of the Borough's public education program. This is especially
important in light of the fact that the Borough has reached the State "cap" on local funding
of education;
NOW, THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH ASSEMBLY
AND THE KODIAK ISLAND BOROUGH SCHOOL DISTRICT BOARD THAT the following
Memorandum of Understanding is hereby adopted to establish a procedure for governing
the accounting and application of in -kind services.
Kodiak Island Borough, Alaska KIB Resolution No. FY 2005 -05 & KIBSD Resolution No. 045 -002
Page 1 of 4
ATTEST:
Judith Nielsen, CM9, Borough CI k
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SIXTEENTH DAY OF DECEMBER, 2004
ADOPTED BY THE MB SCHOOL DISTRICT BOARD
THIS 10th DAY OF January , 2001415
Sheila Roberts, Administrative Assistant
KODIAK ISLAND BOROUGH
Jerrtt e Selby, Borough Mty
KODIAK ISLAND BOROUGH
SCHOOL DISTRICT
Scott Williams, Board President
Kodiak Island Borough, Alaska KIB Resolution No. FY 2005 -05 & KIBSD Resolution No. 045 -002
Page 2 of 4
The purpose of this document is to clarify the application of AS 14.17.99016) to the
Kodiak Island Borough School District and the Kodiak Island Borough. The Kodiak Island
Borough provides a number of services to the Kodiak Island Borough School District but
accounts for these services in the Kodiak Island Borough budget and expenditure reports.
This document defines those services and the common rules to govern the application of
and accounting for the value associated with these in -kind services.
In -kind services include:
KODIAK ISLAND BOROUGH
AND
KODIAK ISLAND BOROUGH SCHOOL DISTRICT
MEMORANDUM OF UNDERSTANDING
IN -KIND SERVICES
November 30, 2004
• Insurance Premiums:
The actual cost of the insurance premiums is the amount of property and liability insurance
the Borough pays for KIBSD buildings, vessel, vehicles and general liability. All of these
expenses should be accounted as an in -kind contribution.
• Mental Health Services:
These services are provided by the Borough by contract to insure the access of high
quality licensed mental health services for the students. Historic areas of concern involved
the quality and cost of these services. There should be accountability provisions within the
contract, but the cost of the contract would be accounted as an in -kind contribution to
public education.
• Allocation of MIS Expenses:
These allocated costs to the KIBSD are for the provision of hardware, software,
operational costs and technical support based on the proportion of the total cost for the
Borough's MIS department. Based on past experience, the allocated cost for KIBSD will
be the actual costs of direct services, plus a proportional share of the common charges as
a percentage of system time, plus the loaded hourly rate for direct staff support.
• Audit Expenses:
This item is the actual cost of the KIBSD audit required by state statute. The borough
provides this as part of a master contract with an auditing firm as part of the duties of
running the central treasury. The KIBSD portion of this audit is to be fully applied as an in-
kind contribution.
• Allocated Costs of Grounds Mai_ntenanre•
Historically, this category has been limited to expenses associated with snow removal and
ice control within KIBSD parking lots. To insure cost efficiencies and safety, the Borough
has administered this service under a master contract with a local snow removal
contractor. The expenses associated with snow removal and ice control at KIBSD facilities
Kodiak Island Borough, Alaska KIB Resolution No. FY 2005 -05 & KIBSD Resolution No. 045 -002
Page 3 of 4
are accounted for separately under the master contract. The allocated contract expenses
for the KIBSD should be treated as an in -kind contribution.
• Minor Maintenance:
Minor maintenance has not been adequately defined by the State or by the local
government. Minor maintenance is defined as maintenance and /or repair work costing less
than $ 10,000 per occurrence per site. Painting of a classroom in a school would likely be
minor maintenance. Painting of the entire interior of a school, or of several schools, would
likely exceed the value limitation and be considered as a major repair. It is clear that minor
maintenance could quickly become major repair if not addressed in a timely fashion. This
would not be in the best interest of either the KIBSD or the KIB. The committee agreed
that an annual maintenance program be developed through collaboration between the KIB
Engineering and Facilities Department and the KIBSD Maintenance Department. The joint
list resulting from this effort would be prioritized and submitted to both KIB and KIBSD by
the end of April to become part of the annual budget process. Minor repairs that are taken
from the mutually agreed list of projects for the fiscal year and are funded by the Borough
would become part of the in -kind contribution.
• End of Year In -Kind Accounting Adjustment:
Before the end of May in each fiscal year, the KIB and KIBSD finance departments shall
determine the actual costs of in -kind services for the year to date. The actual in -kind
expenditures will be compared with the budgeted amounts, and any differences will be
corrected by adjusting the cash appropriation from KIB to KIBSD.
A standing committee is established comprised of members of both the Assembly and
School Board to review issues where the two parties might disagree that a provided
service should be included within the in -kind contribution as a component of the local
funding of public education. The committee would recommend a resolution to such
disagreements. The committee will also act as a forum to resolve other joint tasks or
disputes between the two parties.
Kodiak Island Borough, Alaska KIB Resolution No. FY 2005 -05 & KIBSD Resolution No. 045 -002
Page 4 of 4