I. PURPOSE

The purpose of this policy is to provide guidelines for the calculation of distributions of investment earnings for transfer to the General Operating Fund to sustain Programs of Significance.

II. GENERAL STATEMENT OF POLICY

At the end of every Fiscal Year upon initial closure of the Fiscal Year accounting records, the investment earnings on the corpus of the Perpetual Endowment Trust will be calculated for the purpose of determining a distribution to the General Operating Fund to sustain Programs of Significance for the benefit of students.

III. REQUIREMENT

1. To ensure sustaining Programs of Significance into the future, it is necessary for the corpus of the Perpetual Endowment Trust Fund to continue to grow on an annual basis to keep pace with the natural inflationary growth of the cost of Programs of Significance. To ensure the corpus of the Perpetual Endowment Trust Fund, at no time will 100% of investment earnings be transferred to the General Operating Fund in any year.

2. The School Board will set the annual percentage of investment earnings to be distributed to the General Operating Fund to sustain Programs of Significance.

3. Distributions of investment earnings shall take place in any year in which the investment earnings are $250,000 or greater.

IV. IMPLEMENTATION

This policy will be implemented upon School Board approval and modified from time to time as determined prudent by the School Board.

Legal References

• Minn. Stat. § 501C

Reviewed: August 20, 2026

Approved: September 10, 2026