SCHOOL ACTIVITY FUND ACCOUNTING HANDBOOK

Transcription

1 SCHOOL ACTIVITY FUND ACCOUNTING HANDBOOK

2 TA BL E OF C ONT E NTS General Information...4 Definition and Management of Student Groups...4 Responsibility of Activity Fund... 5 PRINCIPAL/DESIGNEES...5 INDIVIDUAL ACTIVITY FUND SPONSORS...5 Money Handling... 5 RECEIPTING CASH & CHECKS... 5 Tabulation Sheet...6 SPONSOR S MONEY HANDLING GUIDELINES... 6 PRINCIPAL/DESIGNEE MONEY HANDLING GUIDELINES...6 Depositing Responsibilities...7 SPONSOR DEPOSIT RESPONSIBILITIES...7 PRINCIPAL/DESIGNEE DEPOSITING RESPONSIBILITIES...7 Principal/Designee Deposit Control Sheet... 8 Principal/Designee Deposit Slip...8 Principal/Designee Complete Deposit Package... 8 DONATIONS...8 FUND RAISING: POLICY AND PROCEDURES... 8 GENERAL GUIDELINES...9 Tax Exempt Sale Guidelines...9 Tax Exempt Sales...9 Taxable Sales... 9 One - Day Tax Free Sales...10 ACCOUNTING FOR ONE-DAY TAX-FREE SALES

3 Sponsor s Third Product Sale Fund Raiser in the Same Calendar Year...11 Sponsor/Booster Club Fund Raiser Restrictions...11 Checks...11 RETURNED CHECK PROCESS...11 CHECK ACCEPTANCE POLICY...11 CASHING OF CHECKS...11 Purchases from Activity Funds...12 TRANSFER OF FUNDS BETWEEN ACTIVITY FUND ACCOUNTS...12 ABANDONED ACCOUNTS...13 End of Year Record Collection Procedures...13 SPONSOR RESPONSIBILITIES:...13 PRINCIPAL/DESIGNEE RESPONSIBILITIES:...13 Elementary & Middle Schools...14 High Schools...14 ALLOWABLE / NON-ALLOWABLE EXPENSES

4 G E N E R A L I N F O R M A T I ON The primary difference between a Campus Fund (461) and a Student/Faculty Fund (865 or 895) is who controls the funds. Fund 865 is used for club accounts. The funds are generally controlled by the student group itself. Fund 895 is used as a Faculty Fund ( Sunshine ). It is controlled by the principal or other administrators. Funds are collected from the faculty for a specific purpose (flowers, birthday cards/cakes, showers, etc.). Fund 461 is used when the control and decision making rests with the principal, other administrators, or teachers. Fund 461 is a budgeted fund that has both revenue and expenditures. The cash remaining in the fund account at the end of the year will carry forward to a new fiscal year. A new budget is developed for each fiscal year based on the ending cash balance from the prior year. The 865 and 895 funds are money held on behalf of a group or club and is expended as the group directs. These funds are not budgeted. When money is deposited into the bank, it is still your money; the bank is just holding it until you need it. Any cash remaining in the fund at year-end will carry forward to the New Year. D E F I N I T I O N A N D M A N A G E M E N T O F S T U D E N T G R O U P S A student group can be best defined as a formal, organized, responsible group made up of and governed by students. The group must have student elected officers, bylaws and/or a constitution, hold meetings and conduct business. A charter for each student group must be approved by the Principal annually. Student groups should have a sponsor who is a school staff member and may or may not be affiliated with a state or national organization. By contrast, it is not a non-structured group of students, an institutional class or group, nor a teacher-run group of students who do not have control or authority over the group. An example of a student group would be a student council and an example of a group that is not a student group would be an athletic team. There are three important elements to the management of student groups: recognition, organization and a plan of activities. Recognition of the student groups should be by the school and the district. The purpose of recognition is to ensure that no unauthorized groups are in operation, to standardize the organizations within the district and to ensure that the groups are properly classified as a student run group. Organized student groups should have a set of by-laws and/or constitution and must have a charter approved by the principal annually. These documents are required to be on file with the finance office. A current list of officers should also be on file as well as the sponsor s name. This will allow communication with these groups to be easier and timely. The existence of the student group implies that the group has a purpose, which will be stated in the group s charter. Beyond this, the group should have a plan that outlines its activities for the year. This will ensure that the group is fulfilling its stated purpose as well as allowing administration to eliminate conflicts and duplication of efforts by different groups. 4

5 R E S P O N S I B I L I T Y O F A C T I V I T Y F U N D P R I N C I P A L / D E S I G N E E S Has the primary responsibility for the proper control, supervision, and safekeeping of activity funds on their respective campus. The Principal must ensure all appropriate staff members have reviewed the policies and procedures of the Activity Fund Manual. D epending on the seriousness of the findings, the Principal shall confer with appropriate administrative personnel to determine possible disciplinary action against the employee. I N D I V I D U A L A C T I V I T Y F U N D S P O N S O R S Is a district employee who is responsible for managing the daily collections, receipting and submission of all funds received from students to the school secretary/finance clerk. This includes the following: Accurate and updated activity fund ledger, developing fund raising plans, monitoring the financial position of the activity, issuing a receipt to a teacher, sponsor, student or parent, timely deposit of activity fund cash receipts, safeguarding activity fund cash receipts until deposited, preparing a purchase order request, and other fiduciary responsibilities. M O N E Y H A N D L I N G R E C E I P T I N G C A S H & C H E C K S The Application for Collection of Fund / Sales Tax Record must be approved before collecting any funds. A GPISD Activity Fund receipt book should be used to document the physical receipt of cash or check. Activity Fund Receipt book should not be used by outside organizations (i.e., PTA, athletic and band boosters clubs, etc.). Cash receipt guidelines are as follows: Only GPISD pre-numbered, five-part activity fund cash receipt books should be used. Each five-part receipt should be distributed as follows: 1st - Customer copy 2nd - Finance copy 3rd - Principal/Designee copy 5

6 4th - Sponsor s copy th - Control copy (Control Copy must remain in receipt book and not discarded.) The District can no longer accept temporary checks. Checks must have the name and physical address of the check writer pre-printed on the check. The District can no longer accept checks for collection without a valid Driver s License number. The check writer s valid telephone number must be either pre-printed or written on the check. Before the physical transfer of cash and/or checks can occur, an official receipt should be completed fully. Next, the completed receipt should be exchanged for the cash and or checks. Receipts should only be completed in pen. Under no circumstances should the receipt amount or signature be altered. If either of these errors occurs in the preparation of a receipt, void the receipt and issue a new receipt. All copies of the voided receipt should be stapled together and kept in the receipt book. A receipt must be written for all monies collected. When receiving checks by mail, a receipt must be written and Received by Mail should be indicated in the FOR portion of the receipt. White copy will remain in receipt book. T A B U L A T I O N S H E E T This form shall be used in the individual school for miscellaneous collections under $ This form shall list contributors (no tally marks) and their contributions and be filed with the finance secretary. The finance secretary shall issue a receipt to the sponsor for the total amount collected. Tabulation form must be turned in as a full page. Do not cut the form. S P O N S O R S M O N E Y H A N D L I N G G U I D E L I N E S All cash and checks must be turned in to the Principal/Designee within two business days of their physical receipt date. Money on hand at the end of a school day should be locked in a secure location. P R I N C I P A L / D E S I G N E E M O N E Y H A N D L I N G G U I D E L I N E S Principal/Designee must ensure that every physical transaction of cash and/or checks is properly documented and physically secured until it is picked up by the Armored Car Service and delivered to the bank. The Designee should complete the following steps when physically receiving cash and/or checks from Sponsors: 6

7 Only accept the Sponsor s deposit if it is accompanied by a properly completed Sponsor Deposit Report. Should recount the cash to ensure that their cash count matches the total entered by the Sponsor on the Sponsor Deposit Report. The Designee should also re-add the check amounts to ensure that their check total matches the total entered by the Sponsor Deposit Report. If a change is necessary, the Designee and Sponsor should both initial the Sponsor Deposit Report. After the money and checks are counted and accepted, the Designee should provide a copy of the signed Sponsor Deposit Report to the Sponsor. Write a receipt if sponsor is using Tabulation Sheet. D E P O S I T I N G R E S P O N S I B I L I T I E S S P O N S O R D E P O S I T R E S P O N S I B I L I T I E S The Sponsor must complete a Sponsor Deposit Report to accompany every deposit submitted to the Principal/Designee as follows: Submit corresponding receipts or a Tabulation Sheet along with a Deposit Report. Write corresponding receipt numbers on Sponsor s Deposit Report. Provide written documentation of where the money came from (i.e. Car wash, Dues, Type of fundraiser, etc.). When depositing funds collected from a fundraiser provide a copy of the approved fundraiser application. Provide written documentation of the total amount of money being submitted to the Principal/Designee. After the money is counted and accepted, the Sponsor should request a copy of the signed Sponsor Deposit Report from the Principal/Designee. Have a written receipt from principal/designee if using Tabulation Sheet. Document on the Sponsor s Deposit Report if fund raiser deposit is Taxable P R I N C I P A L / D E S I G N E E D E P O S I T I N G R E S P O N S I B I L I T I E S The Designee s general deposit guidelines are as follows: All cash and checks must be sent to the bank within two business days of their physical receipt date. Cash and checks must not be sent to another campus or the administrative office. (Summer Deposits must be brought to Finance office, NOT the bank) Money on hand at the end of the school day should be locked in a secure location. The Designee s personal money should never be stored with student/campus activity fund money. 7

8 P R I N C I P A L / D E S I G N E E D E P O S I T C O N T R O L S H E E T At the start of the school year, the Business Office provides each Designee with a new Deposit Control Sheet for each main account. The Designee must complete a Deposit Control Sheet for every deposit. Once completed, the Deposit Control Sheet provides the Business Office with the necessary information to properly credit the deposit to the appropriate sub-account(s). P R I N C I P A L / D E S I G N E E D E P O S I T S L I P Next, deposit slip must be completed. General deposit slip guidelines are as follows: Each completed deposit slip total should exactly match the corresponding Deposit Control Sheet total. Designee should ensure that the correct deposit slip is used, so the funds are posted to the proper account. A copy of the Deposit Control Sheet, yellow copy of deposit slip, receipts, and approved fundraiser application should be forwarded to the Business Office. The Business Office will post the deposit to the appropriate budget/activity account once all proper documentation is received. Remember, missing information may delay the proper credit to the appropriate account. P R I N C I P A L / D E S I G N E E C O M P L E T E D EP O S I T P A C K A G E After all required deposit procedures are complete, the Designee should file and keep on campus each deposit package as follows (the following documents should be stapled together): Yellow Copy of the Bank Deposit Slip Deposit Control sheet signed by all parties. All Sponsor Deposit Reports All other documentation (i.e. check stubs) D O N A T I O N S Donations to the District may be either tangible items or money. Donations of cash should be accompanied by a letter with the donation specifying the amount and the intended purpose of the gift. Donated funds shall be used for the purposes set forth by the donor. When no purpose is specified, the principal may use them to benefit the largest possible number of students. F U N D R A I S I N G : P O L I C Y A N D P R O C E D U R E S Fundraisers are the primary source of revenue for most activity funds. In order to ensure that each fund raising event is conducted in accordance with District guidelines, the following policies and procedures should be strictly followed. An approved A p p l i cati o n f o r C o l l ection of Funds / Sales Tax Record (formerly fundraiser application) must be on file for all collection of funds and activities. Approval from the campus principal, Finance Office, Central Office and the Athletic/Fine Arts Director, if applicable, should be obtained. Information on tax free fundraising can be found on the Texas Comptroller website 8

9 G E N E R A L G U I D E L I N E S Money collected from the fundraiser must be submitted to the Principal/Designee as required, funds CANNOT be held until the fundraiser is complete. NO joint fundraisers between Activity Funds and outside organizations (i.e., PTA, athletic and band boosters clubs, etc.). No student shall solicit door-to-door. The fund raiser profit must be used to benefit the student group responsible for raising the money. Money and checks must NOT be stored at the Sponsor s home. Merchandise must be kept in a secure, locked location to avoid being lost or stolen. The Sponsor is responsible for the safekeeping of the merchandise. No person is permitted to cash personal checks with money being readied for a deposit. No person is permitted to pay vendors with cash from a fund raising activity. All expenditures will be made by purchase order. Most importantly, all campus-wide, student or teacher fund raising activities must be approved at least two weeks before a fund raising event can occur. T A X E X E M P T S A L E G U I D E L I N E S T A X E X E M P T S A L E S Some items are not subject to sales tax no matter who sells them. Sales tax is not due for nontaxable food items. (Ex. Cookie dough, pizza kits, mixes packaged for preparation at home). Magazine Subscriptions if sold for six months or more. Bakery products unless sold with plates or eating utensils. Coupon Passbooks Car Washes This list is not comprehensive. The Business Office can provide assistance with helping each Sponsor determine the taxable status of items purchased for a fund raiser. T A X A B L E S A L E S Unless the product was noted in the tax exempt section above, the school organization must collect sales tax on all fund raiser products sold; however, the sponsor can conduct a One-Day Tax-Free Sale and sell any taxable item as tax-free. The guidelines for One-Day Tax-Free Sales are reviewed in the following section. 9

10 O N E - D A Y T A X F R E E S A L E S Effective August 30, 1993, each school district, each school, and each bona fide chapter of each school is allowed to have (2) one-day tax-free sales each calendar year. During these tax-free sales, the organization may sell any taxable item tax-free when the price of the item is $5,000 or less. There is no limit on the number of bona fide groups at a school or school district. One-day tax-free sales mean that collection and remittance of state sales tax is not required on qualified sales on that day. While the sale of yearbooks can be selected as a one-day, tax-free sale, a book fair is usually not a qualified sales event because the school is not the seller, and the school is therefore acting as an agent for the vendor. The sale of items received from a vendor, in which the school and respective vendor have an agreement that the vendor will take back any unsold items, would also generally not qualify as a one-day tax-free sale. According to the State Comptroller s office a bona fide chapter is a group that must be organized for some business or activity other than instruction. Essentially, any student group that is recognized by the school and is organized by electing officers, holding meetings, and conducting business are bona fide chapters of the school and each group may have (2) one-day tax-free sales in a calendar year. Group meeting for classroom instruction or team sports are not categorized as bona fide chapters and do not qualify for tax-free sales. The following examples will help determine which groups are bona fide chapters: The school district qualifies for a tax-free day. The school-wide fundraiser qualifies for a tax-free day. The Basketball Club qualifies, but the basketball team does not. The Cheerleader Club qualifies, but the cheerleader team does not. The Debate Club qualifies, but the debate teams and classes do not. The French Club qualifies, but the French class does not. The Senior Class qualifies, but one particular class that has seniors in it does not. One-day means 24 consecutive hours; the delivery should be made on a single day. Generally, title passes to the purchaser when the item is given to the purchaser. In the case of pre-ordered and pre-paid sales, title can transfer as soon as the seller (school) received the order. Therefore, the date the items are delivered by the vendor to the seller is designated as the one-day for the purposes of the tax-free sales. However, persons buying from surplus stock on subsequent dates after the tax-free day owe tax on the items. When the school or school group receives a commission, the tax-free day sale provisions cannot apply because the sale is the vendor s sale not the school s sale. The school group would collect and remit tax to the vendor, and the vendor would report the sale and remit tax to the Comptroller s Office. A C C O U N T I N G F O R O N E - D A Y T A X - F R E E S A L E S The Principal/Designee has the responsibility of keeping track of the total number of One-Day Tax-Free Sales each organization has completed during the calendar year. The Sponsor has the responsibility of determining whether or not a product fund raiser qualifies as tax exempt before the fund raiser application is submitted to the principal. If a Sponsor needs clarification of how many tax exempt fund raisers a particular club or organization has performed in a calendar year, then the Designee can provide this information to the Sponsor. 10

11 S P O N S O R S T H I R D P R O D U C T S A L E F U N D R A I S E R I N T H E S A M E C A L E N DA R Y E A R The Sponsor s Third Product Sale Fund Raiser in the same calendar year is taxable, and every additional product sale fund raiser that occurs until the end of the calendar year is also taxable. It is the Sponsor s responsibility to clearly document on the Sponsor Deposit Report that the Fund Raiser Deposit is Taxable. It is the Principal/Designee s responsibility to clearly document on the Deposit Control Sheet that the Sponsor s fund raiser deposit is Taxable. S P O N S O R / B O O S T E R C L U B F U N D R A I S E R R E S T R I C T I O N S Sponsor Fund Raiser a Sponsor must deposit all cash/check collected from a Principal approved Fund Raiser. Booster Club Fund Raiser a Sponsor may assist with a Booster Club Fund Raiser. Once the fund raiser has concluded, any donation to the Sponsor/Club must be provided in the form of an official Booster Club check. C H E C K S R E T U R N E D C H E C K P R O C E SS The District will utilize Envision Payment Solutions. This will be coordinated through GPISD Business Office. The Envision permanent decals should be posted in a prominent location near the entrance of each school. This decal outlines GPISD s check acceptance policy. This policy is as follows: C H E C K A C C E P T A N C E P O L I C Y Checks must have the following preprinted information: Full Name Street Address (No PO Box) Home Phone # (w/area Code) Secondary Phone # (w/area Code) Driver s License # (w/state) If your check is dishonored by the bank, a service fee will be assessed in accordance to state law and federal guidelines. In providing a check as payment, you authorize electronic re-presentment if your check should return unpaid. Also, you authorize service charges and processing fees, as determined by law, to be debited (at our option) from the same account via paper draft or electronic funds transfer. Principals, Sponsors, and appropriate administrative personnel should ensure that check writers understand and accept this policy. C A S H I N G O F C H E C K S Under NO circumstances will personal and/or payroll checks be cashed. 11

12 P U R C H A S E S F R O M A C T I V I T Y F U N D S LAST DAY TO SUBMIT R EQUISITION U SING ACTIVITY FUNDS WILL BE DETERMINED IN MAY. When entering purchase order requisition from an Activity Fund (461/865) use the SBA Site Based Activity Purchasing Group. NOTE: The only exception is if dual (double) coding the Activity Fund (461/865) purchases with another fund (EX. 199, 211, etc.) Please use the purchasing group for your campus. Do not use the SBA if double coding. Beginning in the school year student groups will be required to submit a purchase authorization form along with student sign in sheet, and club minutes indicating a meeting was held and purchases were approved by students and officers. All forms must be attached to requisition. The policies and procedures which apply to the expenditure of General Funds also apply to the expenditure of Activity Funds. The following general guidelines apply to the purchasing process in relation to Activity Funds: Gift Cards are not allowable from any fund. IRS considers income. No expenditures will be made using non-deposited cash. All expenditures from Activity Funds must be made by Purchase Order. District approved Purchase Order must be obtained before any activity fund purchase can be made. No expenditures for the following will be made; individual professional dues, private club memberships, alcoholic beverages and other similar/related expenses. The Business Office will not reimburse employees for sales tax they paid for purchases on behalf of GPISD. No purchase shall be made unless sufficient funds are available in the proper Activity Fund Account. (EXCEPTION: An organization may submit a REQUEST FOR PURCHASE ORDER form to the Finance office for advancement of fund. Upon approval, a requisition/purchase order will be generated from the Finance office. The order may then be placed, once an approved PO is issued). No attempt to by-pass District procedures for expending budgeted District funds by using Activity Funds will be made. The district will not request payment for instructional field trips. T R A N S F E R O F F U N D S B E T W E E N A C T I V I T Y F U N D A C C O U N T S All transfer of funds between activity accounts must be properly documented and approved by the sponsors, campus principal and Business Office. An activity account transfer form must be completed and contain the following information: A clear explanation for the transfer. Approved signatures from the principal, sponsor and student representative (865 accounts). 12

13 A B A N D O N E D A C C O U N T S When a club or student group ceases to exist, the sponsor should obtain documentation as to disposition of remaining funds. If the account remains inactive for four years, funds may be transferred to the Campus Activity Fund 461. The reason for the transfer is to be properly documented and transfer form must be completed. Efforts should be made to contact sponsor of the organization to obtain their approval signature. If the sponsor cannot be contacted, this should be documented and the Principal may approve the transfer. E N D O F Y E A R R E C O R D C O L L E C T I O N P R O C E D UR E S S P O N S O R R E S P O N S I B I L I T I E S : COMPLETE AND TURN IN THE FOLLOWING TO THE CAMPUS SECRETARY/FIN ANCE CLERK. Sponsor s Ledger (2 copies) Receipts Books all clearly marked with: 1. Current School Year 2. Campus and Club/Activity Name (If you have any partially used receipt books, turn them in as well and they will be re-issued in August). Summary Sheet - Signed to ensure that it is a true and an accurate record of account for the activity/club. P R I N C I P A L / D E S I G N E E R E S P O N S I B I L I T I E S : COMPLETE AND TURN IN THE FOLLOWING TO THE BUSIN ESS OFFICE. Summary Sheet, Sponsor s Ledgers and Designee s Ledger (2 copies) 1. Copy 1 Stays on campus 2. Copy 2 Sent to the Business Office (*see below) (Summary sheets and ledgers must be sign and balanced with Skyward.) Supporting documentation/paperwork to back up all revenues GPISD Receipt books 13

14 E L E M E N T A R Y & M I D D L E S C H O O L S Due June with communication from the Finance Office. Deliver the labeled storage box with records and completed checklist, (Appendix D) to the Business Office. H I G H S C H O O L S DUE: June with communication from the Finance Office. Forward a copy of Ledgers & Summary Sheet to Business Office. Box and store the records and receipt books in Principals office during the summer months. 14

15 Campus Activity Funds (461) Principal Accounts Note: Please remember these funds are to be used to promote the general welfare of the school and the educational development and morale of all students. Allowable Expenses 1. Organization membership for the benefits of students. 2. School assemblies and field trips 3. Student body social functions 4. Awards such as plaques, caps, certificates, in recognition of students, staff or volunteers for services to the school. 5. Award presentation for student, volunteers, or district employees. Incentives for student involvement 6. Scholastic magazines and books 7. Supplement classroom instructional needs and general office supplies 8. Improvement of campus and site facilities such as plants bulletin boards, signs and flags. 9. Expenses and purchases related to fundraising activities 10. After hour security 11. Refreshments and snacks for teacher in-service and staff meetings 12. Retirement receptions costs such as refreshments, plates, napkins, utensils for retiring member of the school s staff. 13. Awards to employees should be a tangible item not to exceed $50.00 Non-Allowable Expenses 1. Raffles 2. Reimbursement of any GIFT for any person or organization; this includes gift certificates, retirement gifts, flowers, holiday gifts and food gifts. Gifts of public funds are prohibited under Article III, Section 52 of the Texas Constitution 3. Extravagant or high-priced awards such as watches or other jewelry 4. Payment of individual s personal bills. 5. Donations to individuals, organizations or scholarship funds. 6. Loans to employees, partners or student 7. Alcoholic beverages, tobacco products, controlled substances, firearms, and other weapons. 8. Spouses or other non-employee expenses 9. Gift cards to employees for any amount of reason. IRS considers this as income reported on W2 10. NO CASH allowed to students or employees as awards or part of a fundraiser 11. Replacement of an individual property that was lost stolen or damaged on the school or district s premises or while being used at a school or district function. Use of funds in this manner is prohibited by the Texas Tort Claims Act 12. Transfer of funds to the faculty accounts (unless the transfer is to correct a prior error). 13. Any other expenditure prohibited by federal or state law, or TEA guidelines 14. Meals for same day travel. IRS considers this income that must be reported on the form W-2 15