Student Activity Fund (SAF) Training/Policy Guide

Transcription

1 Student Activity Fund (SAF) Training/Policy Guide Contents Office of the Controller Student Activity Fund (SAF) Staff Directory 3 Student Activity Fund Policies 4 What is an ACTIVITY FUND? 4 ACTIVITY TYPE 4 SAF ACCOUNTS 5 AUDIT SELECTION CRITERIA 6 COLLECTIONS (cash, checks, credit card payments) 7 RECEIPTS 7 DEPOSITS 7 PURCHASES and DISBURSEMENTS 8 REIMBURSEMENTS 9 ACCOUNTING 9 DEFICIT BALANCES 9 FUND TRANSFERS 9 ADJUSTMENTS 9 SHORT CHECK PROCEDURES 10 CANCELLATION (VOIDING) of OUTSTANDING CHECKS 10 SAF REPORTS BANK RECONCILIATIONS 10 GIFTS, DONATIONS, GRANTS 11 SCHOLARSHIP & MEMORIAL ACCOUNTS 12 SCHOOL DISTRICT ACCOUNTS (SAF) 12 MISCELLANEOUS / RESTRICTED PURCHASES 12 PAYROLL (DPS Employees or Students) 12 INDEPENDENT CONTRACTORS 12 PETTY CASH (CASH BOX, LOCK BOX, etc.) 13 ADMISSION TICKETS 13 1

2 DPS IDENTIFICATION NUMBER (EIN#) 13 GIFT CARDS 13 TECHNOLOGY & CURRICULUM 14 INDEPENDENT CONTRACT AGREEMENT (ICAs) 14 SCHOOL STORE 14 PTA/PTO FUNDS 14 RETENTION OF SAF ACCOUNTING RECORDS 14 SECURITY OF SAF FUNDS 15 DOCUMENTED SAF POLICIES AT YOUR LOCATION 15 COMBINATION CHANGE to the SCHOOL SAFE 15 THEFT REIMBURSEMENT 15 THIRD PARTY FUNDRAISING COMPANIES (Software) or PAYPAL 15 SCHOOLBOOKS TRAINING and SUPPORT 16 2

3 Office of the Controller Student Activity Fund (SAF) Staff Directory Linda DeRose - Accountant - (720) Linda_DeRose@dpsk12.org Send monthly reports, questions, and technical issues to: General Accounting SAF Mailbox: General Acct SAF Mailbox Rather than type all that in, you can do the following. In the Outlook Address Book, Global, type in General. It will bring back your choices. Select General Acct SAF Mailbox: 3

4 Student Activity Fund Policies What is an ACTIVITY FUND? Activity funds are established to direct and account for monies used to support co-curricular and extra-curricular student activities. They are managed remotely at the school/department site. Student Activity Funds are student-owned property, in the nature of a trust for educational purposes. There are also private funds, which are funds given by students for a special purpose to a school official acting as their agent. Activity Funds are used to finance a program of activities not part of the regular curriculum; however, the activities operate only for purposes that are related to the school educational program. Student Activity Funds may augment but not replace funds provided by the School District. The Principal/Department Head is to approve the establishment or termination of each and every activity. The Principal/Department Head directs the collection and disbursement of the Student Activity Funds. The Principal/Department Head involves in the decision making process those student groups and faculty members who are responsible for generating revenue for approved projects involved. Student Activity Funds shall as much as possible be spent in such a way as to benefit those pupils currently in school who have contributed to the accumulation of such funds. ACTIVITY TYPE Co-curricular activities: - School-related activities outside the regular classroom that directly add value to the formal or stated curriculum. - Involve a wide range of student clubs and organizations. Extra-curricular activities: - Can be a wide variety of other district-directed activities, typified by organized sports and other non-academic interscholastic competitions. 4

5 SAF ACCOUNTS SAF accounting structure should take into consideration: A system of classification for purposes of program cost accumulation and reporting is necessary. Refer to the SAF Chart of Accounts located in the RESOURCES section of the SAF Website. This document explains the three levels of SAF accounts used at DPS. Two common classifications: - Student activity funds belong to the students and used to support Student organizations and clubs. - District activity funds belong to the school district and are used to support district programs. The distinction is based on the purpose of the funds, that is, the programs supported by the funds. Student activity funds - Support activities that are based in student organizations - Students not only participate in the activities of the organization, but also are involved in managing and directing the organization s activities. - Disbursing monies from the student activity fund is subject to approval by the student organization and its sponsor (keeping the Principal/Dept Head informed as well). Examples: Art Club, Chess Club, Cheerleaders Club, Class of 2019, Yearbook, Student Council, etc. District activity funds - Belong to the district, are used to support its co-curricular and extracurricular activities and are administered by the school district. - Approval for disbursing district activity fund monies, however, rests only with the schoolboard. In other words, the district determines how district activity fund monies are spent and the district programs that receive support. Examples: Athletics, Art Fees, etc. Student activity funds remain under the control of the Principal/Dept Head and are accounted for at the school site. 5

6 - District activity funds should be included with all other district funds and are reimbursed to the District on a monthly basis so they can be deposited in the District s accounts. At each School/Dept, the Principal/Dept Head and the classified office personnel (Bookkeeper/Secretary) who are assigned to work with the Student Activity Fund (SAF) should be familiar with the Student Activity Fund Policies & Procedures. The Student Activity Fund Training Guide/Policies & Procedures and other helpful quick reference guides and forms can be accessed on the SAF Website (off of the Financial Services/Office of the Controller). The following paths can be utilized: LINK: SAF Guidelines and Quick Reference Guides LINK: Student Activity Fund Forms AUDIT SELECTION CRITERIA The following are the Department s summary of the policies and procedures for maintaining the Student Activity Fund. Student Activity Funds will be audited by Internal Audit on a sample basis. A risk analysis is performed to determine the schools to be audited. The analysis is based on total dollar activity, change in personnel, past audit issues, issues noted in reviewing monthly Financial Reports and Ledgers, as well as other factors. Student Activity Fund report submissions (or lack of timely and current report submissions) are reviewed by the Office of the Controller each month. The review will include examining the bank reconciliation, determining that District funds are remitted timely, comparing current year s activity to prior year s activity (any significant fluctuations will be investigated), and other items as deemed necessary. 6

7 COLLECTIONS (cash, checks, credit card payments) RECEIPTS ANY and ALL funds received by the School/Department AND determined to be eligible for deposit into SAF (refer to Gifts, Donations, Grants page 11 if questions) MUST BE receipted. The receipt must be from a Treasurer Receipt Book (TRB) or a computer generated receipt from SchoolBooks. Treasurer Receipts must be issued in numeric order. TRB books are to be used in order as well. Multiple TRB books are not to be used at the same time. The SAF Treasurer/Bookkeeper/Secretary is the one who should be issuing the Treasurer Receipts. A classroom receipt can be issued in lieu of a TRB receipt; however it must then be attached singly or grouped together with other classroom receipts of a similar purpose (i.e. all for school uniforms 8/22/16) and attached to one Treasurer Receipt. Receipt(s) serve as documentation (proof) that the School/Department received the money. This becomes important in keeping accurate SAF records, checkbook reconciliation, and in the filing of claims with insurance companies and/or Risk Management in case of disaster recovery or theft. All cash and checks received must be submitted to the SAF Bookkeeper/Secretary and be deposited without deductions. Checks may be accepted only in payment of an obligation; none may be cashed as a service to an employee, patron, or student. Money collected by staff, activity groups, or organizations must be remitted timely to the Bookkeeper/Secretary. All cash collections must be turned in to the school Bookkeeper/Secretary by each Friday and the last day preceding a holiday or vacation period. All funds collected shall be supported by proper original receipts, indicating the purpose, and shall be deposited intact. Any interest gained on any SAF cash account is to be recorded timely. DEPOSITS Incoming funds (cash, checks) should be deposited weekly. If cash and checks exceed $500.00, a deposit should be made the same day. ALL cash and checks should be deposited before leaving on any school break or intermission. Money should never be held by the School/Department for more than two weeks without making a deposit. All deposit slips shall be made in duplicate and all checks shall be listed individually by maker and amount on both copies of the deposit slip. 7

8 For the Excel SAF Ledger, all CASH ON HAND (receipted in one month but deposited in the following month) should be appropriately tracked on the Financial Report (FR) tab. PURCHASES and DISBURSEMENTS Original invoices must be submitted timely to the Bookkeeper/Secretary for payment to a vendor. In secondary schools, the Principal or Designee and Organization Sponsor for the Activity (if there is one) must approve the vendor payment prior to issuing a check. A check amount limit for the number of signatures required on a check is designated by the Principal/Dept Head. Examples: 1) $ requires two (2) signatures, with one being an administrator. 2) Checks $ or more require two (2) signatures, one being an administrator. Checks should have the amount limit statement imprinted on the face of the check: Two signatures required for amount over. A School/Department may have up to four signers. At least three (3) authorized check signers are recommended because a person cannot be both a payee and a signer on a check. Disbursements from the SAF Checking account are to be made via check. On-line purchases, telephone purchases, or the use of a debit/credit card associated with the SAF checking account are prohibitive. ACH, wire transfer payments, and counter checks are also not allowed through the Student Activity Fund. As per the District s legal counsel, Student Activity Fund purchases are not subject to tax. 8

9 REIMBURSEMENTS Reimbursements to DPS Employees must go through the DPS Payroll System Employee Reimbursement and not through SAF. Employees should not spend their own money for classroom supplies and activities. They should be using a District P-Card or Purchase Order for this purpose. The Student Activity Fund may not be reimbursed from the District General Fund or a grant. 'Request for Payment' forms sent to DPS Payment Services for this purpose will be declined. Any exceptions to this policy must be approved by the Office of the Controller in advance. ACCOUNTING SAF Accounts should be kept current and accurate, and generally not in a deficit (negative balance). The checkbook should at all times clearly indicate the checking account balance. Each Bank Account (Cash Account) must be reconciled monthly and reconciling items/issues should be resolved. Checkbooks must be kept in the school safe or another securely locked location. DEFICIT BALANCES Any deficit (negative balance) in a SAF account at the end of the school year must be eliminated prior to the close of the school year. Expenditures should be monitored during the school year to prevent ending the year with a deficit balance in any SAF account. FUND TRANSFERS The transfer of funds (Fund Transfer) between SAF accounts should be at the direction and approval of the Principal/Department Head, and properly documented. A copy of the Principal approved memo, or SAF Account Maintenance form documenting these account changes/transfers should accompany the monthly SAF report for the month in which it takes effect. ADJUSTMENTS An Adjustment is used to properly account for: posting errors, interest earned, or bank fees/charges (like service fees for statement copies, or the printing of deposit slips or cashed check copies). An Adjustment can also be used for deposit corrections after researching the reason for the discrepancy and working with the bank as needed. An Adjustment is generally not used for correcting a check. 9

10 SHORT CHECK PROCEDURES The collection (replacement) of a short check (which depending on the bank can also be called a chargeback, a returned check, or a non-sufficient funds (NSF) check) should be redeposited on a separate deposit slip but should not be rereceipted. If uncollectible, an adjustment should be made decreasing the checking account and the activity account. An adjustment should be made for bank fees charged for the check return. It is up to the School/Department to follow-up with the issuer of the check for reimbursement of the bank fee(s). The collection of a short check in a different month (or after a significant time has passed) from when issued will need a new receipt. If collection is made within the same month, then a new receipt is not necessary. The point being that a single income transaction is not double receipted. CANCELLATION (VOIDING) of OUTSTANDING CHECKS A Check issued that is still outstanding (not been cashed) for more than six months after issuance should be voided and written off. SAF REPORTS BANK RECONCILIATIONS Bank reconciliations (tying each cash account s bank statement to the school/department s books) are required each month. The timely submission of accurate monthly SAF Reports indicates: o o o The Principal/Department Head has reviewed, agrees with, and has approved the spending of the activity funding. School/Department SAF records agree with (are reconciled to) the Financial Institution (Bank) records with regard to the available amount (balance) of activity funds. Incoming and Outgoing funds are all accounted for and reflect the integrity and purpose for supporting DPS Student activities. Signed and Approved Financial Reports are due by the 15 th of each month, providing reconciliation of the previous month (i.e. the September Bank Reconciliation is due by October 15). The originals are to be retained at the School/Department in the SAF records. Note: a stamp of the principal/dept head s signature on the SAF financial report is not allowed, for internal control. 10

11 Reports are to be scanned to the Office of the Controller through the General Acct SAF Mailbox. Depending on the SAF tracking tool you use, your monthly reconciliation report should include: SchoolBooks Excel Bank Reconciliation (all pages) Bank Statement (all pages) Trial Balance Memo/Form with SAF account changes (If applicable) Financial Report (FR Tab) Bank Statement (all pages) Ledger (SAF excel ledger file) Memo/Form with SAF account changes (If applicable) GIFTS, DONATIONS, GRANTS A Grant is a sum of money awarded to the School/Department: o for a specific purpose o has required reporting on how it is spent o has a timeframe for spending. o The word GRANT is stated in the Award Letter. All federal grants and other grants of any amount must be sent to the Grants Administration and Federal Programs Office with a completed Grant Award Notification (GAN). Checks should be sent to the Grants Administration Office directly and not deposited into the Student Activity Fund account. If not sure, can contact the Grants Administration Office. LINK: Grants Administration Office A Gift or a Donation is a sum of money given to the School/Department: o o o o for any purpose determined by the Principal/Department Head no reporting requirement for how it is spent no timeframe for spending GRANT is not stated in the donation document Gifts and donations exceeding $ in value need Board of Education approval. The gift approval form should consist of the donor s name, donor s address, the amount donated, and the intended use of the donation. This information should be sent in an to the Board Secretary, currently Ramona Lewis. A gift or donation of $1,000 or more and/or the spending needs to be monitored more closely, distributed in stages, or will be used for multiple purposes or the purpose is yet to be determined, then it can be held in its own SAF Organization Account. 11

12 Or it can be deposited into a Lawson Company 13 Misc Revenue/Donation account. A budget can be set up if the expense accounts are known. SCHOLARSHIP & MEMORIAL ACCOUNTS Each scholarship and memorial must be accounted for in individual SAF accounts. Restrictions must be documented. The School will communicate to the parents the requirements/guidelines for qualifying for this scholarship. SCHOOL DISTRICT ACCOUNTS (SAF) Collections from fees or fines fixed and imposed by the Board of Education of any school district shall be paid over to the treasurer of such board as received, or in no event later than the tenth day of the month following that in which collected, and shall be credited and deposited in the same manner as other funds belonging to the district. A remittance form or memo should be attached to the check and remitted to the Office of the Controller. The remittance should include the appropriate Lawson account number(s) to be credited. MISCELLANEOUS / RESTRICTED PURCHASES PAYROLL (DPS Employees or Students) Any payment made to a Denver Public Schools employee MUST be paid through the DPS payroll system. This includes employee reimbursements (refer to page 8). Students should not be paid through the Student Activity Fund. INDEPENDENT CONTRACTORS Any non-dps individual/company paid for services rendered must be paid through an Independent Contract Agreement (ICA). This must be set up through the Strategic Sourcing (Purchasing) Department PRIOR TO the provision of the service. The ICA forms can be found on their website. A service is defined as a purchase where no goods or merchandise was received. Examples: training, counseling, repair, instrument tuning, DJ. It does not include entrance fees, field trips, food. 12

13 PETTY CASH (CASH BOX, LOCK BOX, etc.) In elementary schools, a petty cash fund of not more than $ may be established for making change. In secondary schools the petty cash fund may be $ The startup of a Petty Cash account requires an (memo) from the Principal. At the close of the school year, the Petty Cash account should be reconciled like any other SAF cash account (in SchoolBooks) and the funds deposited back into the bank. It can then be replenished at the start of the new school year. The money should not be left in the school over the summer. Petty Cash will have its own SAF account in SchoolBooks, and will be assigned a Bank Account code. The Petty Cash account will always have the same balance (until redeposited at the end of the school year) because disbursements are not made from it. It is only used for making change. There should not be more than one Petty Cash account established at a school. The Petty Cash is not the same as a lock box which can be used at fundraising events, functions, or possibly at registration. ADMISSION TICKETS Tickets must be used when $1.00 or more is charged for an admission and numbers for all used and unused tickets must be accounted for, both before and after the event. DPS IDENTIFICATION NUMBER (EIN#) The DPS tax id number is not to be used at the school by any person or organization outside of the Student Activity Fund. It cannot be used for multiple checking accounts at the same school/department. This number is to be used with companies giving commissions, grants and donations. GIFT CARDS CANNOT BE PURCHASED through Student Activity Funds. This policy applies to staff and students. 13

14 TECHNOLOGY & CURRICULUM Technology (computers and peripherals, ipods, ipads, tablets, etc.) CANNOT BE PURCHASED through Student Activity Funds. Curriculum (textbooks) CANNOT BE PURCHASED through Student Activity Funds. These types of purchases must go through Strategic Sourcing (Purchasing) and follow the District purchasing guidelines. INDEPENDENT CONTRACT AGREEMENT (ICAs) Services cannot be purchased through the Student Activity Fund. A service must be set up through Strategic Sourcing with and Independent Contract Agreement (ICA). This is due to IRS implications and the District could be fined if not reported properly. SCHOOL STORE A School Store can be established to sell school spirit items (water bottles, shirts, hoodies, hats, etc.). Food items should not be sold through a School Store. If the sale of other food/beverage items is desired, a formal plan should be submitted to the Office of the Controller outlining the intent and the educational value of this activity. PTA/PTO FUNDS PTO/PTA funds are to be kept separate, and not deposited into the Student Activity Fund. The PTA/PTO will have their own checking account and manage their own funds separate from Student Activity Funds. They should not use the District EIN number. They are their own entity and are not reported in the District s Financials. Here is an external link that can help answer some questions regarding PTA/PTO: RETENTION OF SAF ACCOUNTING RECORDS The schedule for retention of accounting records pertaining to the Student Activity Fund is seven (7) years + current. 14

15 SECURITY OF SAF FUNDS The SAF responsibility should be performed in a secure area, away from traffic and other activities that present an opportunity for incorrect tracking, mismanagement or misappropriation of funds, theft, and fraud. Funds collected by activity sponsors should be promptly handed over to the bookkeeper/secretary, and accounted for via a classroom receipt record or other form recording the intake of event funds. DOCUMENTED SAF POLICIES AT YOUR LOCATION Each school/department must have written policies regarding the Student Activity Fund provided to all administrators, staff, teachers and students responsible for school money. It should include the school/department guidelines for purchasing and collecting cash, and what the secretary/bookkeeper needs to successfully report and protect the student funds for activities. A handbook should also be provided to parents that explains SAF policies at the school s location. COMBINATION CHANGE to the SCHOOL SAFE The combination to the school safe should be changed with each new Principal and/or SAF secretary. The change of the safe combination should be coordinated through the Treasury Department. The school pays for this combination change with a change in bookkeeper/secretary. The district will pay for the combination change with a new Principal. Discretion should be exercised with who is given the safe combination, to not only allow for funds accessibility but also for risk control. THEFT REIMBURSEMENT The theft of another student s property (phone, eyeglasses, ipod, etc) either in the possession of the student or of a staff member should be reported to Risk Management first to see how the District prefers the reimbursement of the theft to be handled. The purchase of a replacement item should not be purchased from SAF. This applies to theft on the school property, and not off-site. Theft of SAF money at any time should be reported to Risk Management. Supporting documents, such as receipts, will be requested to support the school s claim of possession of those funds. THIRD PARTY FUNDRAISING COMPANIES (Software) or PAYPAL The use of a third party fundraising company (software) or PayPal should not be used to preserve the integrity of the checking account number. 15

16 SCHOOLBOOKS TRAINING and SUPPORT SchoolBooks (Blue Bear) training/certification is an available online course. It can be found on the Commons under the department of Financial Services, Training Library/Student Activity Fund, and SchoolBooks Certification Course. LINK: Training Courses and Labs The Office of the Controller is currently responsible for the functional support of SchoolBooks, and is the first line of contact to report problems. The first report of a problem with SchoolBooks will be to the General Acct SAF box. A determination will then be made if a Heat Ticket should be opened. All detail about the problem and screen prints will lead to a faster resolution. 16