District Accounting Procedures

Transcription

1 Administrative Procedure 510 Background District Accounting Procedures All funds received and expended by the District, including school-generated funds will be accounted for in a manner consistent with generally acceptable accounting practices of Alberta Education and the Districts external auditors. Guidelines 1. The Secretary Treasurer shall establish procedures for appropriate handling of money in the District. 2. Principals shall ensure that the established procedures are implemented at the school. The Secretary Treasurer will monitor to ensure understanding and compliance. 3. Internal audits shall be performed on an annual basis to ensure compliance with District administrative procedures. District finance staff will conduct random financial reviews throughout the school year to help ensure compliance with procedures. Procedures 1. Cash Receipts and Bank Deposits 1.1 The District approved software called SchoolCash.net is to be used to issue receipts for payments received. In the event a manual receipt book must be used, they shall be pre-numbered, dated and signed by an authorized school employee. 1.2 All cash received by the District or schools shall be receipted prior to being deposited in the bank account. 1.3 All receipts issued must be balanced to the specific deposit as recorded in the deposit book on a regular (monthly) basis. 1.4 Any receipts canceled must be noted on the receipt and retained in the receipt book. 1.5 Cash receipts shall be posted to the appropriate account on a regular (weekly) basis. 1.6 Cash receipts must provide the following details: Total amount received and from which person or group Purpose for which the cash was received Numbered, dated and signed by the School Secretary, Principal or designate Cash in excess of $1,000 must be deposited to the bank account as soon as possible (ideally the same day, but at least once per week.)

2 2. School Fees School fees must be accounted for as follows: 2.1 Charged to students in accordance with District administrative procedures. 2.2 Fees charged must balance with total number of students in each program for which fees are charged. 2.3 Fees must only be waived in accordance with AP503 General School Resource Fees. 2.4 A recording of fees paid and by whom, refunds issued and to whom and fees outstanding must be kept and updated monthly. 2.5 Vending machines must be emptied at least weekly and cash counted immediately and inventory taken. Discrepancies, if any, between items sold and cash collected must be noted with specific reasons given (i.e. breakage, spoilage, etc.). 3. Disbursements All cheques issued must be accounted for as follows: 3.1 A. An authorized supplier s invoice or receipt attached. Current year records are to be maintained in a cabinet and folders in an alphabetical or numeric records management system. The records are to be kept organized in a neat and orderly manner. Prior year records shall be inventoried and kept in a secure location. B. A cheque requisition form (510A) shall be used when circumstances do not allow for a supplier receipt or invoice to be attached. Form must be approved by the Supervisor prior to processing and an invoice attached when available C. The preferred method of payment to Vendors is through EFT Remittance (Form 510B) 3.2 Appropriately classified as to which account(s) are to be charged. 3.3 G.S.T. properly accounted for (refund determined, if any). 3.4 Two signatures (Principal or Vice-Principal or alternate as approved by the Secretary Treasurer). 3.5 Cheques numbered and cross-referenced to invoice. 3.6 Voided cheques must be noted and kept for review. 3.7 Cheques reconciled monthly as per bank reconciliation procedure. 4. Bank Reconciliation All bank accounts must be reconciled monthly as follows: 4.1 Follow-up on outstanding fees must be completed on a timely basis and appropriate records kept on file (i.e. invoices, letters, etc.). 4.2 Document Bank Policies list of signing authorities, bank charges, interest earnings and investment terms. 4.3 Canceled cheques must be checked with the bank statement to ensure all cheques have been recorded by the bank. Cheques are no longer returned to the schools. A

3 scanned copy of the cheques are provided to the school by bank in the order in which they are processed. 4.4 Outstanding cheques (those issued but not cashed) shall be determined and listed. 4.5 Adjustments to the bank balance must be recorded on the bank reconciliation form and balanced to the general ledger. 4.6 Principal must review, approve and sign-off the bank reconciliation. 4.7 Stale dated cheques shall be removed in the month the cheque becomes stale dated. 5.0 Journal Entries All journal entry requests will be processed as follows: 5.1 A journal entry request form (Form 510C) shall be completed by the requestor with appropriate details/description including general ledger account codes. Appropriate backup should be attached when applicable to support the request. 5.2 Form must clearly indicate the reason for the adjustment and be signed and dated by both the requestor and the approver. Approver must have authority over the expenditures for the department to which the amount is being coded, or the request will not be processed. 5.3 Completed forms must then be forwarded to the District finance department at CEC for final approval & processing of the journal entry in the accounting system. 6.0 Monthly Reporting Package The monthly financial reporting package is due to the Principal by the 10 th of each month and shall include the following, as applicable to each school: 6.1 Prior month completed bank reconciliation, including appropriate bank statements, cancelled cheques, and outstanding cheque list. 6.2 Monthly financial summary report, (Reconciliation Overview Summary and Trial Balance) 6.3 Petty cash recap sheet for Principal approval 6.4 ATM Reconciliation 6.5 Program financial summaries to be signed by Principal and forwarded to person(s) with designated responsibility for team financial management. 6.6 Any other reports as requested by the Principal 7.0 ATM Handling Procedures 7.1 The addition of an ATM machine to a school shall be done in consultation with, and the approval of, the Secretary Treasurer. 7.2 A separate bank account shall be set up for the recording of the ATM transactions.

4 7.3 The ATM shall be reconciled monthly and submitted to the Principal for approval by the 10th of each month. 7.4 Two people are required to verify the contents of the ATM every time the machine is opened. A printout shall be obtained of the contents and both people shall sign to confirm the amount agrees with the cash counted. This printout shall be filed for review consistent with other banking documents. 7.5 A copy of the access code to the ATM shall be kept on file in a secure location at the CEC. 7.6 The District finance staff shall be provided with on-line access to the ATM transactions by the outside provider. 7.7 When cash is required to replenish the ATM, a cheque requisition form shall be presented to the Principal or designate (someone with signing authority) prior to the funds being obtained from the bank. Once approval has been obtained, the funds may then be picked up from the bank and returned to the school, where the the funds are to be deposited into the ATM as required Cosmetology/School Canteen/Store/Cafeteria All schools shall appoint one person to be responsible for cosmetology, school canteen, store or cafeteria business operations. This person shall ensure that the following procedures are followed: 8.1 All cash sales to be recorded as to item sold and amount of sale 8.2 Cash to be secured in a locked cash box or cash register 8.3 Cash counts to be completed at least daily and duly recorded and deposited as required. 8.4 Sales record sheets must be reconciled with inventory sold at least daily. 8.5 Cash to be turned over to the School Secretary and receipted accordingly for deposit. 8.6 Cash must be counted in a secure area and under adequate supervision. 8.7 Overages and shortages must be recorded daily. 8.8 Credit sales must be avoided. 8.9 Mark-ups on products sold must be approved by the Principal A monthly financial statement shall be provided to the Principal for his/her signature and approval Product donations to the school or given to students in lieu of wages must be recorded Supervision of students working must be provided at all times Merchandise must be stored in secure areas when unattended Inventory count sheets must be kept on file for review.

5 8.15 Any wages paid to students must be done through a cheque issued from the school with appropriate documentation and approvals. 9.0 Any situations that are not specifically covered under these procedures must receive the approval of the Superintendent or designate for the appropriate handling procedures. Reference: Section 145, 149, School Act