Donations from other groups such as PTA, Booster Clubs or private donors.

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2 Vending machine revenue Fundraising Club sponsored sales or fundraising Campus activities such as carnivals, pictures, etc. Donations from other groups such as PTA, Booster Clubs or private donors. 2

3 Separation of Duties If possible, at least two persons should be involved in cash handling & deposits High Risk Area Flow of money must be supported by receipt books and bank deposits 3

4 The following funds must be kept separate at all times: Activity funds Petty cash Change accounts 4

5 Procedures should include: An official receipt book with pre-numbered, bound receipts in triplicate Both the sponsor and secretary/bookkeeper should be present when the money is counted & receipted A copy of the receipt must be given to the person paying (sponsor) A copy of the receipt must remain in the receipt book And, a copy of the receipt should be attached to the deposit documentation 5

6 Procedures should include: Receipts should not be altered Voided receipts must be re-attached to the receipt book Receipts are not to be pre-dated or pre-signed Receipt numbers must be used consecutively Receipt numbers should be written on the deposit slip for documentation 6

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8 We should think of every receipt issued as a link in the money chain From the original receipt of money (cash or checks), a receipt should exist to document the money received Every time that the money changes hands, a receipt should be issued to document the movement of the money The last link in the chain should be the bank deposit The amount of money receipted should remain the same throughout the chain The dates of the receipts should be the same or close

9 Who broke the money chain? $20 9/1/11 Secretary $20 10/2 $20 10/1 Teacher $20 10/2 Bank Students $20 9/1/11 District Office

10 Procedures should include: All funds collected must be deposited Cash collected should not be disbursed by cashing personal checks Deposits should match the amount collected and should be supported by bank validated receipts 10

11 Procedures should include: Deposits to district office or bank should be timely Daily if possible Funds kept overnight should be locked in a safe Secure courier services should be used if possible 11

12 Excess funds should be identified and invested in district-approved investments Board Policy CDA (Legal and Local) Investments should be coordinated with the district s Investment Officer Investment pools yield a good rate of return and provide for daily liquidity (access) Ensure that adequate funds exist in the checking account before disbursing checks Checking account balance should not exceed $100K 12

13 According to the FASRG, the bank statement is the official bank record of all transactions affecting the cash balance on deposit for the preceding month. All accounts must be reconciled on a monthly basis Banks allow for days for discovery of errors Bank statements should be routed to someone other than the person who deposits funds SEALED! 13

14 All returned checks shall be deducted from account balance until the outstanding amounts have been collected from the payee Two methods are typically used for collections: District and/or campus initiated collections A collection agency contracted by the district to collect outstanding amounts and penalties (MISD currently uses CheckSmart) To minimize returned checks all checks accepted must have proper identification 14

15 Proper identification includes: Name and address must preprinted on the check No temporary checks Home phone number on check Driver s license number written on check, not pre-printed Date of birth If any one or more are missing from the check a collection agency may not seek outstanding amounts 15

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17 To limit irregularities, all expenditures should be paid by pre-numbered check from the activity fund checking account. In addition checks made out to "cash" or to the paying school should never be issued. Many school districts require two signatures on the checks to further limit the possibility of irregularities. (FASRG) 17

18 Original invoices should be attached to each check Prepayments should not be issued prior to receipt of goods and/or services The original documentation should be stamped paid to avoid duplicate payments A check issuance schedule should be established Emergency checks shall be kept to a minimum due to chance of errors 18

19 Checks are issued at the district level Requests for checks should be submitted according to timelines Sufficient funds must exist in the appropriate account(s) 19

20 District s depository bank should be used A check issuance schedule should be established & communicated to campus staff Disbursement records must be maintained for five (5) years 20

21 Travel advances, if authorized from Activity Funds, shall comply with IRS rules Advance checks within 30 days of travel Settlement and receipts required after travel No payments for services should be made to district employees via an Activity Fund check All payments should be made by the Payroll Department Overtime, if appropriate, may be charged to the Activity Account, too 21

22 Payments for contracted services: A SSN or TIN is required W-9 Form 1099 issues if > $600 per calendar year (exception: $20 for Royalties) Other requirements may exist consult with your business office Fingerprinting of contractor if working directly with students Certificate of Insurance Felony Conviction Notice Conflict of Interest Questionnaire 22

23 Donations Donations may require Board approval Equipment purchases Assets over $500 may require a fixed asset tag Insurance coverage for theft, fraud and dishonest acts is recommended 23

24 Transfers between Activity Accounts Campus Activity Funds as approved by the Principal Student Activity Funds as approved by the student officer(s), sponsor, and Principal When transfers as loans occur, the school district should ensure that appropriate approvals have been received and that the loans are repaid by the end of the school year in which the loan was granted. (FASRG) 24

25 All receipt books, deposit slips, and checks must be maintained for audit 5 years Supporting documentation for Fund Raisers: Fund Raiser authorization form Fund Raiser Profit/Loss Statement (Recap) Fund Raiser Collections Record Fund Raiser Merchandise Distribution Log 25

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27 A petty cash fund may be established at the discretion of the principal for the purchase of small, miscellaneous items. Disbursements from petty cash funds should not exceed the school district's preset limit for petty cash purchases, and employee and other checks should not be cashed from petty cash funds. (FASRG) 27

28 Petty Cash must always be in balance Example: $200 petty cash fund $80 Cash $120 Receipts $200 Petty Cash Fund 28

29 If Petty Cash payments are authorized with Activity Funds, the following procedures should be adhered to: Use for small, miscellaneous purchases only Do not exceed spending limit set by district, if any Obtain appropriate prior approvals Ensure that funds exist in the appropriate account prior to the expense Collect and retain original receipts Replenish the petty cash account as needed 29

30 When the receipt total is insufficient to operate the petty cash fund, or at the preset limit, a Petty Cash Reimbursement form should be submitted to convert the receipts to more cash. The appropriate account codes should be expensed for the petty cash receipts. 30

31 Petty Cash Voucher Records the transaction Petty Cash Reimbursement Form Replenishes cash & posts expenses to appropriate budget codes 31

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