JACKSON COUNTY BOARD OF EDUCATION FINANCIAL GUIDELINES FOR SCHOOL ACTIVITY FUNDS AND SCHOOL SYSTEM ACCOUNTS

Transcription

1 JACKSON COUNTY BOARD OF EDUCATION FINANCIAL GUIDELINES FOR SCHOOL ACTIVITY FUNDS AND SCHOOL SYSTEM ACCOUNTS Updated: June 2015

2 2 JACKSON COUNTY BOARD OF EDUCATION FINANCIAL GUIDELINES TABLE OF CONTENTS SCHOOL ACTIVITY FUNDS PAGE INTRODUCTION... 4 SECTION 1: SECTION 2: SECTION 3: SECTION 4: GENERAL INFORMATION 1.1 Activity Funds - Definition and Purpose Legal Requirements Basis of Accounting Accounting System Annual Audits Records Retention... 6 BANKING 2.1 Bank Accounts Authorized Signatures... 7 BOOKKEEPING PROCEDURES 3.1 General Comments Fund Types Receipts Deposit of Funds Purchasing System Purchasing Guidelines Disbursements Reimbursements to System Funds Adult vs. Student Funds Transfer of Funds Budget Amendments Bank Statement Reconciliation Closing Procedures Grants Financial Management SPECIAL GUIDELINES 4.1 Admissions/Ticket Sales Hospitality/Sunshine Funds Change Funds Charity/Family Support Funds Donations to the School Field Trips Fund Raising/Enterprise Funds... 15

3 3 JACKSON COUNTY BOARD OF EDUCATION FINANCIAL GUIDELINES TABLE OF CONTENTS (Continued) SCHOOL ACTIVITY FUNDS (Continued) PAGE SECTION 4: SPECIAL GUIDELINES (Continued) 4.8 Gratuities/Discounts Inactive Funds Lost or Damaged Books Negative Fund Balances PTO/Booster Clubs Refunds Salary Supplements/Bonuses/Loans/Gifts Sales Tax Travel Vandalism Vending Machines Wages/Casual Labor Additional Safeguards Opening New Schools SCHOOL SYSTEM ACCOUNTS SECTION 5: SECTION 6: SECTION 7: GENERAL INFORMATION 5.1 School Allotments Basis of Accounting Chart of Accounts ACCOUNTING GUIDELINES 6.1 Purchase Order Procedures Invoices without Purchase Orders Check Requests Utilities PURCHASING GUIDELINES 7.1 Purchasing Overview Basic Methods of Purchasing... 28

4 4 Introduction This manual has been developed by the Jackson County School System (JCSS) Finance and Accounting Department and is designed to assist bookkeepers, secretaries, principals, and accounting personnel in administering an efficient and effective accounting system at the local school level. It incorporates state laws, board policies, rules, and regulations pertaining to local school funds. Following these guidelines will provide an audit trail that will properly account for the receipt and disbursement of funds. Questions arise from time to time regarding the necessity of some of the procedures outlined in this document. In a school system, the area most susceptible to fraud and misappropriation is the individual school. School personnel handle relatively large amounts of cash each day. We must therefore take appropriate measures to insure that school resources and personnel are protected. Our best means of accomplishing this is through clear and understandable guidelines regarding the handling of school funds. By standardizing procedures and practices, all schools will be able to maintain and report their financial activities accurately and uniformly. Please recognize and understand that each and every aspect of accounting and record keeping for student activity funds and school system funds has not been covered in this manual. Effort has been made to include the most pertinent information in areas with which the schools must comply. Through continued use and communication, this manual will evolve. This manual will be reviewed and updated on a continual basis. All procedures are subject to change. If you have recommended changes, let us know. Above all, we want this manual to be helpful. Once changes are approved, the manual will be updated accordingly. Any changes will be distributed to and discussed with all appropriate personnel. Any questions with regard to interpretation should be directed to the Director of Finance.

5 5 SECTION 1: GENERAL INFORMATION 1.1 Activity Funds - Definition and Purpose School (student) activity funds have been defined as agency funds consisting of resources received and held by each school to be expended in accordance with conditions of the fund. Specifically, they are all monies accumulated from student activity programs and various school board-approved fund raising activities. Student activities have become a part of the regular school program because of their value in supplementing academics with leadership training. Each school will maintain student activity funds. These funds will embody those activities and functions relating to student and faculty programs. The basic policy for student activity funds is that income received for a specific purpose shall be disbursed only for that purpose. If unusual circumstances occur or the activity fund becomes inactive, the school principal should contact the Director of Finance for further clarification of reallocation of funds. Some funds have restricted uses, and some have discretionary uses. Monies generated by and for students are to be expended for the benefit of students only and for educational purposes only ( Opinion of the Attorney General P. 269). Monies generated for the benefit of faculty and staff, are to be recorded in separate funds. Activity funds safeguard the assets of the public schools and provide reliable information for interested persons. These funds maintain internal accountability through a uniform financial accounting system to meet legal requirements and standards set by the Local and State Boards of Education. 1.2 Legal Requirements The school principal is personally responsible for the proper collection, disbursement, and control of all school activity monies relative to the funds in his/her trust. Each principal shall maintain adequate records and make financial reports to the District Office for all receipts and expenditures of school funds, at least monthly. Monthly and quarterly financial reports are to be submitted to the Director of Finance. Each school fund-raising activity shall be approved in accordance with procedures in the Administrative Handbook. All monies raised or collected on the behalf of or for the benefit of students and under the authority of the principal shall be deposited into the general operating bank account. Within the accounting records, an individual account, or fund, shall be established for the student club, organization, or school activity for which the money has been deposited. Proper record keeping procedures shall be maintained, and reports shall be made on at least a monthly/quarterly basis. All disbursement of funds shall be by check. 1.3 Basis of Accounting Student activity funds will use the cash basis of accounting. This method recognizes revenues when they are received, and expenses when they are paid. No accruals are used or recognized. This is the same basis that most people use with their checkbooks at home.

6 6 1.4 Accounting System Each school should establish accounts or funds within their accounting system to track the various activities within the school. As funds are added or edited, the Director of Finance will provide an updated fund list to each Principal/Bookkeeper. 1.5 Annual Audits The financial records of each Jackson County school will be audited by an independent Auditor, selected by the board, at least annually. Said auditor will furnish the following individuals a written audit report: Board members, Superintendent, Assistant Superintendent for Budget and Operations, Director of Finance and all Principals. This report will detail the results of the audit and identify areas where improvements are needed. In addition, the State Department of Audits will select specific schools for additional review during the District s annual audit. Audits are a control to assure principals that their procedures for handling the funds entrusted to them appear to be adequate for the protection of themselves, their personnel, and the school s assets. All schools are subject to a random review of their records at any reasonable time during any workday by the Director of Finance. Records needed for an audit include, but are not limited to, the following: 1. Reconciled bank statements 2. Check stubs (if available) or duplicate checks 3. Invoices paid with all approved supporting documentation 4. Receipt books and deposit tickets 5. Year-end financial statement and transaction reports or ledgers showing all transactions for the year by fund (July 1- June 30). 6. Monthly financial statements and transactions reports or ledgers, showing all transactions for the month both chronologically and individually by fund. 7. Current Separation of Duties Plan and internal controls for purchasing cards. 1.6 Records Retention The principal is responsible for the maintenance and security of school financial records. All records need to be maintained in accordance with the Retention Schedules for Local Government Records provided by the Georgia Department of Archives and History. The Director of Finance maintains a copy of the full schedule and can also provide a summary of information for areas applicable to school accounting. Questions regarding records retention should be directed to the Director of Finance. SECTION 2: BANKING 1. Bank Accounts Each school is authorized to maintain one checking account and one investment account (if desired) for its student activity funds. If an investment account is used, be sure that it is reflected in the financial statements. Contact the Director of Finance for specific accounting guidelines for investment accounts.

7 7 Interest-bearing checking accounts are authorized. Every account should be in a Jackson County federally insured financial institution and identified under the District s tax ID number. If any account or combination of accounts exceeds $250,000, the bank must furnish proof of pledge of securities in the name of the school for the amounts in excess of FDIC or FSLIC guarantees. Opening a checking or an investment account, or changing any account to another financial institution, is the prerogative of the principal. You must notify the Director of Finance prior to the change in banks or account numbers. Changing banks must be effective on July 1. The Accounting Department will keep a record of all school bank account numbers and monthly and quarterly balances. 2.2 Authorized Signatures The principal shall be authorized to sign checks withdrawing money from the bank account. The principal s personal signature is required. In the event the Principal has an extended absence provisions can be made by the Finance Direct to set up an alternate signer. Use of a signature stamp or other facsimile signature is prohibited. The bank account title, account number, and authorized signature should be on record in the District Accounting Department. SECTION 3: BOOKKEEPING PROCEDURES 3.1 General Comments 4.1 Fund is defined as a self-balancing set of accounts. It is an individual set of books. If each fund balances within itself, then the total of all funds will balance, and this total will agree with the bank balance. Each fund and all funds must be balanced at least monthly. Each new month and fiscal year must begin with the same figures that ended the prior accounting period for each fund. Each fiscal year s financial records must be kept separate. If an error is found in a prior fiscal year after the books are closed for that year, the error must be corrected through a journal entry adjustment to fund balance in the current fiscal year. Journal entries must be made by the Director of Finance. A current Separation of Duty Plan must be on file at each school. This plan should be updated with changes in administration or personnel who perform accounting duties. Questions asked and answered before posting transactions will pay many dividends in time, effort, and aggravation saved. Call the Director of Finance if any doubts exist. Fund Types There are two main types of funds: restricted and discretionary.

8 8 Restricted funds are those whose expenditures must be limited to the educational purpose for which the monies were collected. Transfers out from these funds should have the prior approval of the fund sponsor and principal. Examples are athletic, clubs, field trips, yearbooks, student council, instructional area organizations (vocational, band, math, etc.), and donations for specific purposes, etc. Normally these funds will carry over from year to year. An inactive restricted fund may be closed to the General Fund on authorization of the principal, if the activity is no longer active or viable. (See paragraph 4.9) Discretionary or non-restricted funds are those whose monies may be transferred at the principal s discretion to other funds which are used for the benefit of students and are expended for educational purposes. Examples are concession, school store, fund raising/money-making donations with no restrictions, etc Receipts Written receipts are necessary to accurately record all cash received, and to substantiate virtually all bank deposits. Receipt books should be used for each deposit. All funds collected must be receipted. Money collected for different purposes must be kept separate and identified separately by the bookkeeper. All collections should be turned into the principal s designee, intact on a daily basis. The principal s designee should be the employee designated in the separation of duty plan. Money should never be left unattended. Teachers will obtain a system-generated prenumbered receipt when the money is entered into the accounting system. School volunteers are not authorized to make collections or to issue receipts. Only employees may do this. If booster club accounts are maintained in the school books, collections and receipts must be issued by an employee. Exception: Individual receipts do not have to be issued for book fair sales if the media center uses a cash register that generates individual receipts and daily sales can be totaled at the end of each day. If using such a cash register, the register tape total and total money collected must equal. Any discrepancies must be noted on the tape and the tape signed and dated by the teacher in charge of the book fair. Tape and money collected should be turned over to the bookkeeper who will issue a receipt for the day s total to the teacher. The principal s designee will verify receipt amounts and, if the money and the reported amount agree, a receipt will be issued to the person turning in the money by using a system-generated pre-numbered receipt. One copy is given to the remitter and the second copy will serve as a source document. Receipts should not be altered. Errors should be voided. Receipts will always show: The date the money is received. The name of the person submitting money (remitter). The amount of money received. The purpose of money collection. The name of the account to be credited. The signature or initials of the bookkeeper.

9 Cash receipts should always equal the sum of money for deposit. Money collected is NOT to be used as petty cash or to cash checks. It is to be deposited intact. If possible, vending money should be collected and counted by two employees (excluding the bookkeeper). Vending money will be receipted to the school employee(s) submitting the money. All checks must be endorsed restrictively FOR DEPOSIT ONLY. A stamp with the school s name, bank account number and For Deposit Only can be used. 3.2 Deposit of Funds Principals are responsible for the timely deposit of money into the bank. This responsibility may be delegated, but it is not negated. Daily deposits are required when TOTAL cash collections equal $50. No substantial amount of cash money (more than $50), other than change funds should be held in the school overnight. Night deposits should be made to avoid this situation. Any money kept overnight should be secured in a locked cabinet or vault. If the above procedures are not followed and funds are lost or stolen, it is the sole responsibility of the employee in possession of the funds. Principals are advised to inform all employees of these procedures at the beginning of every school year. The school office will deposit, intact, all monies collected. The last receipt on all bank deposits should include all receipt numbers contained in the deposit, the total amount of the deposit, and the date of the deposit. The deposit ticket itself should show all the receipt numbers that make up the deposit. Occasionally, a mistake is made on a deposit. If the bank teller finds an error, the teller should process the deposit as it is written and then correct the amount by issuing either a credit or a debit memo for the difference. Under no circumstances should the bank teller change the deposit slip, request additional cash, or return an overage to the school in cash. Periodically, the bank will return a check that has been deposited to the school with an explanation as to why the check has not cleared (insufficient funds, account closed, etc.) When this happens, deduct the amount from the fund/distribution code into which it was initially deposited/recorded. The person who issued the check should be contacted to explain the situation. The individual should pay the amount of the check in cash. 3.2 Purchasing School principals are responsible for all purchases that use student activity fund monies, and for ensuring that these purchases are used for the benefit of students. They also are responsible for expending funds only for the purpose for which the funds were collected. Monies collected for restricted account funds must be expended for the restricted purpose. The principal, prior to purchasing, must approve all purchases made in the name of the school. Purchasing items from school system employees is prohibited. Paying for services from a school system employee is prohibited unless payments are made to a licensed business. Payments made directly to employees for services rendered are considered wages and must run through payroll. Each principal shall establish written purchasing procedures to be used by school staff. Purchasing procedures shall include procedures for making requests for purchases, obtaining authorization to purchase, and submitting documentation of purchase (invoices, receipts). Purchases should not be made unless funds are available in that particular fund. 9

10 Equipment or furniture purchased with school funds becomes the property of the Jackson County Board of Education. If the purchase price or donated value of a piece of equipment or furniture equals or exceeds $5,000, this information must be provided to the Director of Finance. Obligations should not be made beyond the end of the fiscal year (example: multi-year lease-purchase agreements) without the approval of the Assistant Superintendent for Budget and Operations. School level administrators are not authorized to enter into contracts. Any contract negotiation should be discussed with the Assistant Superintendent of Budget and Operations. Prepayment of purchases and/or services is prohibited. 3.6 System Purchasing Guidelines All purchases should originate with an approved purchase order. Purchase orders created after the purchase has been made should not occur. The purchases exempt from this guideline are: travel expenses, repairs, and postage. The school system is exempt from State sales tax for purchases specifically for the classroom or instruction. Reimbursement requests related to purchases made by an employee or school that includes sales tax will not have the sales tax reimbursed. Sales tax exempt information can be obtained from the Accounting Department. See Section 6.4 for specific system purchase order guidelines. 3.7 Disbursements All disbursements must be made by school check. A check should not be written unless approved by the principal with adequate supporting documentation. Documentation should be an itemized invoice. (A statement may accompany an invoice, but it is not adequate by itself.) Itemized cash purchase ticket, or a written, itemized explanation signed by the purchaser and approved by the principal should be maintained for all disbursements. Every effort should be made to secure an original invoice as proof of purchase. No check should be written for any documentation marked Miscellaneous. No check shall be made to Cash, but shall be made to the person or persons (individuals), institution, organization, or company to which the money is to be paid. Individuals should account for the money to the bookkeeper with receipts and/or cash returned totaling the amount of the check. Check Request forms should be prepared and signed by the person requesting reimbursement. Adequate sales receipts/cash register tapes should be attached to the request. Invoices from vendors should be reviewed by personnel initiating the purchase for accuracy. That person should sign the invoice indicating all items were received and approving payment. Packing slips should be attached to the invoice. 10

11 11 Invoices/check requests should be entered in the system by the bookkeeper and an accounts payable edit produced. The principal should review and approve the invoices for payment by signing the posted edit prior to generation of checks by the bookkeeper. The bookkeeper will produce the checks, affix the system copy of the check stub to the voucher package, and give the checks and voucher package to the Principal for review and signing. No checks should be signed without adequate documentation. Signed checks should be given to a third party for immediate mailing and the approved invoice/check request vouchers returned to the bookkeeper to be filed in numerical order. The principal should assign responsibility for check stock custody. There should be limited access to check stock. Auditors examine paid invoices for adequacy of documentation, proper reviews and approvals, cancellation of used checks, and correctness in recording disbursement transactions. 3.8 Reimbursements to System Funds Individual schools collect funds from students and parents that should be routinely submitted to the Accounting Department to reimburse the system for expenditures already made. The reimbursements for lost and damages books are due prior to June 30 of each fiscal year. Schools having after school programs will remit on a monthly basis any payroll and other expenditures paid for by the school system. The payment of these invoices should be submitted to the Accounting Department. 3.9 Adult vs. Student Generated Funds Expenditures for faculty related activities shall be paid from funds generated by faculty and staff or from donations specified for use for faculty/staff. Principals should recognize that the law provides that student-generated funds may only be used for the benefit of students Transfer of Funds Transfers do not add to or subtract from the bank balance. They merely move money from one fund to another. All transfers of money from one fund to another fund must be approved by the principal. Transfers from a restricted fund also must have the approval of the fund sponsor and the principal. Transfers from restricted funds are rare. Student generated funds or funds designated for instructional purposes should not be transferred to unrestricted faculty/staff accounts System Account Budget Transfers or Amendments The Assistant Superintendent of Finance and Operations must be notified of all budget amendments or transfers within System accounts prior to the initiation of the purchase.

12 Budget amendments or transfer requests should be requested via to either the Director of Finance (Grants) or Assistant Superintendent for Finance and Operations (QBE related). Acknowledgement of change will be made via Bank Statement Reconciliation The bank account must be reconciled every month. Allowing a backlog to develop with the bank statement reconciliation process is unacceptable. All paid checks and any other items returned by the bank shall be filed with the bank statement on which they appear. The principal should receive the bank statement, directly and unopened, each month and should review, sign, and date the statement before forwarding to the principal s designee (someone other than the bookkeeper) for reconciliation with the school books. The reconciled bank balance must agree each month with the month-end general ledger cash balance. A review and follow up of checks outstanding for more than 60 days should be performed on a monthly basis Closing Procedures MONTHLY Follow the current year s month-end close procedures and send all required reports along with the completed and signed check list to the Director of Finance. QUARTERLY - Each school is required to submit their activity funds report for the appropriate quarter. These reports should be signed and dated by the Principal and a copy forwarded to the Director of Finance. Quarters are July September; October December; January March; April June. YEARLY - A year-to-date General Ledger must be run as of June 30 and held for reference during the independent audit process Grants Financial Management Financial questions, budget amendments, completion reports and other financial matters dealing with ANY grants should be coordinated with the Director of Finance. Copies of any and all grants received should be forwarded to the Director of Finance. Principals and grant coordinators should forward copies of approved grant budgets to the Director of Finance for entry into the accounting software. 12 SECTION 4: SPECIAL GUIDELINES 4.1 Admissions/Ticket Sales Persons in charge of admissions and/or ticket sales shall complete a Report of Admissions or Tickets Sold Form for each activity for which tickets are sold for admission. Examples are athletic events, dances, drama productions. Admission tickets shall be pre-numbered. A ticket must be given to each person entering an event. If it is necessary to sell tickets at more than one location (such as two or more gates at a football game), a form

13 shall be completed for each location, and a record maintained of the ticket numbers issued to each seller or gatekeeper. Proceeds from a night performance or activity shall be deposited in a night depository. The collections should be retrieved from the bank the next working day and verified. If a night depository is unavailable, the proceeds MUST be secured in a locked safe. The bookkeeper shall issue an official receipt acknowledging collection. This receipt shall be securely attached to the Report of Admissions or Tickets Sold. Cash receipts should NEVER be taken home for safekeeping. It is recognized that errors may occur in making change and that the actual cash turned in may not agree always with the number of tickets sold. For this reason, any difference in the potential cash and the actual cash in the cash box shall be shown on the report and explained IF POSSIBLE. This form shall be signed by the ticket seller, reviewed and initialed by the principal, and verified by the bookkeeper before a receipt is issued. All monies received for each performance shall be deposited intact and no payments shall be made in cash to officials, security personnel, workers, or other employees. Employees will be paid through payroll and non-employees will be paid by school check for contracted services. When employees are paid through payroll, a school check for the total salary and FICA/Medicare should be forwarded to the Payroll Department to cover the payroll expense. Employer FICA/Medicare costs for employees should be calculated at 7.65% above their gross pay. Contracted workers should be flagged in Vendor Maintenance (School Based Accounting system) for 1099 receipt. ATHLETIC EVENTS. Since large amounts of money are collected at football and basketball games, the following procedures are strongly recommended: Assign two people to each gate. One person will sell tickets and collect money; the other person will collect the tickets at the gate. Only one person needs to be at a pass gate or other gate where tickets are not sold. Appropriate security measures should be established for the collection of cash and should be followed by the ticket sellers. Bank deposits should be made using regular deposit procedures on the day of the event or, if a night event, dropped in the night depository and retrieved for regular deposit the following working or banking day. It is a good idea to have a security person accompany the deposit, if possible. NEVER TAKE GATE RECEIPTS HOME FOR SAFEKEEPING. DO NOT cash checks from the gate receipts. Also, do not pay workers or security personnel in cash. A Report of Admissions or Tickets Sold Form must be completed and signed by the person responsible for collecting money. 4.2 Hospitality/Sunshine Funds Hospitality/Sunshine Fund revenues are collections from adults and can be used for flowers, gifts, etc. Cash or gift cards are unallowable expenditures. A Hospitality/Sunshine committee should be appointed to oversee and approve expenditures. Hospitality/Sunshine Funds MAY be transferred to student funds, but student funds must NEVER be transferred to Hospitality/Sunshine accounts. 13

14 4.3 Change Funds 14 In order to have the necessary cash needed to sell tickets or make change at school-sponsored events, a Change Fund should be established. Checks should be made payable to the Principal, not to an event, the bank itself, or to cash. Change funds should be stored in the night deposit drop or in a locked school vault between events. The Principal will be responsible for ensuring that funds equal to the amount of the check are returned and receipted separately by the bookkeeper at the end of the year. The check issued for change will be posted to the Change Fund (Function 1004), thereby generating a negative balance in that fund until the money is re-deposited at year end to zero the fund. 4.4 Charity/Family Support Funds CHARITABLE ORGANIZATIONS -- When money is collected from students/faculty for a specific outside charitable organization, it should be receipted separately, kept intact, and deposited into a separate fund set up in the charity s name. When remittance is made to the organization, the fund should zero. FAMILY SUPPORT FUNDS -- A separate fund may be established for collecting money for a student or a student s family that may need financial aid. The need(s) should be documented by the local school administrators. The fund must be approved by the principal in writing. The purpose of the fund and a statement of how the money will be expended must be kept in the local school records. Monies from the fund may be used for medical services, food, clothing, or any number of other support needs. Expenditures should follow the guidelines in the statement. Ideally, the fund should zero by year-end. Profits generated by and for students should not be contributed to charities. These funds are for educational purposes only. Club or organization monies may be donated if so directed by the membership. Example -- The Beta Club may vote to give $50 of its money to the United Way. 4.5 Donations to the School Cash donations to the school for a specific purpose should be set up in a separate restricted fund and expended as indicated by the donor. School records should reflect that expenditures meet the donor s specific purpose. Cash donations not designated for a specific purpose are assumed to be used for students unless designated specifically for the benefit of faculty and staff. These funds may be deposited in the General Fund or set up in a separate fund. Donations of equipment or other property to the school will remain at the school, but will become the property of the Jackson County Board of Education. If applicable, the principal must ensure that donated property, valued at $5,000 or more, is added to the Fixed Asset Inventory of the school system. 4.6 Field Trips

15 15 Requests for fund-raising projects must originate with the club sponsor and must be approved by the building principal and submitted to the Superintendent s Office for Board of Education Approval. Fundraising activities will be presented to the BOE for approval at the August and December BOE meetings. Money collected for field trips should be deposited into a separate fund. Sometimes, due to some students inability to pay, this fund will show a negative balance after all expenses are paid. This may be zeroed at year-end by transferring money from the General Fund. Occasionally, a field trip must be cancelled, and the money collected must be refunded to a number of students at one time. When this happens, a check must be issued to each student from whom fees were collected. Cash refunds are NOT allowed. Field trip funds should not carry substantial balances from year to year. Costs should be budgeted accurately so that after fees are collected and expenses paid, the fieldtrip fund is as close to zero as possible. If a large balance accumulates, the principal can use discretion in transferring the funds to the General Fund for instructional use. 4.7 Fund-Raising/Enterprise Funds Requests for fund-raising projects must originate with the club sponsor and must be approved by the building principal and the superintendent or his/her designee. PTO or booster club projects are not covered by this requirement. Fund raisers should be listed on the appropriate form and submitted to the Assistant Superintendent for Human Resources and Support Services. Receipts and disbursements pertaining to school-wide fund-raising/enterprise projects should be recorded in the appropriate fund. This allows the school to determine the amount of profit (or loss) realized from the activity. Profits from a school-wide fund-raiser or on-going enterprise activity may be transferred to the General Fund at any time during the school year. Club or class fund-raisers may be handled within that club or class s fund (car washes, etc.). 4.8 Gratuities/Discounts All Jackson County Board of Education employees are strictly forbidden from accepting gratuities or discounts for personal gain. These include but are not limited to those arising from purchases made for the school or for the school system. By accepting gratuities or discounts for personal gain, a conflict of interest is created. Incentives/bonus items awarded by a vendor are considered sole property of the Jackson County Board of Education. Refer to the Georgia Code of Ethics for Educators. 4.9 Inactive Funds A fund will be considered inactive if there has been little or no activity during the preceding 12 months and the school administrators do not anticipate further activity.

16 In the case of a disbanded club, a discontinued subject, or a discontinued activity group, any remaining balance should be transferred to the General Fund within six months after the fund or the function becomes inactive. In the case of a graduated class, six months after the date of graduation, or when all obligations have been cleared, any remaining balance may either be transferred to the General Fund or be transferred to the current graduating class fund. The principal will decide which option to follow Lost or Damaged Books Monies collected for lost or damaged textbooks during the year must be receipted into a separate fund established for this purpose. The monies in this fund must be paid to the Jackson County Board of Education for the replacement textbooks on a semi-annual basis. Money for lost or damaged library books purchased by the System should also be paid to the Jackson County Board of Education on or before June Negative Fund Balances All funds should have positive balances. If funds go in-the-hole, the bookkeeper should advise the principal who will determine if the negative balance should be investigated. As a general rule, negative balances should be resolved on a regular basis but no later than June 30. Should the General Fund incur a negative balance, the principal has the option to transfer a portion of the profits from enterprise funds to the General Fund PTO/Booster Clubs Organizations such as PTOs or Booster Clubs, although they are school-related, are separate entities. They should raise their own funds, keep their own books, and be accountable to their respective memberships. It is strongly recommended that these organizations follow similar procedures as described in this manual and their books be examined annually by an independent accountant. Schools should cooperate with them as much as practical. When these organizations give money or property to schools, the money or property should be treated as outlined in Section 4.5, Donations to the School. These organizations are not authorized to use the school system tax ID number or sales tax exemption Refunds The Check Request Form for a single refund should have the original receipt attached, if the receipt is obtainable. Occasionally, it may be necessary to make refunds to a number of students; for example, when a field trip is cancelled. A check should be written to each student due a refund. To reduce paperwork, instead of an individual Check Request Form for each student, a Multiple Refund Checks Request Form (created by the school) may be submitted. The teacher/activity sponsor will complete the form except for the check Number column which will be used by the bookkeeper as the checks are written. Cash refunds are NOT allowed Salary Supplements/Bonuses/Loans/Gifts 16

17 17 The following payments from local school activity funds to any Jackson County Board of Education employee (or student) are strictly prohibited: Supplemental pay. All compensation to employees must be paid through the Payroll Department. Salary advances. Bonuses. Personal loans (to anyone). Loans to any organization, such as a PTO, a Booster club, etc., are also prohibited. Cash or gift cards Gifts, flowers, or any other personal contributions except from Hospitality/Sunshine Activities) or from donations for which these monies were specifically received, or from clubs which have voted to make such donations Sales Tax School activities are generally exempt from sales tax. Exceptions: purchases of non-educational items such as flowers, gifts, etc. are subject to sales tax (See Hospitality/Sunshine Funds). GA Code (8) Miscellaneous Sales. Where public schools hold doughnut sales, candy sales, carnivals, etc. and such purchases for resale are made from public funds, the tax must be paid to vendors at the time of purchase at the purchase price thereof. Proceeds from the resale of such property, which go directly into School Revolving Funds or Unappropriated School Funds, are not taxable. Contact the Accounting Department if you have specific questions regarding sales tax Travel Reimbursement for travel expenses for Jackson County Board of Education employees should not be reimbursed from local school activity funds. These reimbursements must be approved and generated at the district office. The Finance Department will publish limits on spending or reimbursement for staff travel. Principals should be cognizant of current State and local guidelines. (See Administrative Handbook) 4.17 Vandalism Each school will be responsible for attempting to recover the cost of vandalism from the individuals involved. When vandalism occurs, the monies recovered by the school will be receipted and deposited and forwarded to the Jackson County Board of Education Vending Machines Principals should give serious consideration to vendor-operated machines. The vendors stock the machines, collect and count the money, and then issue the school a check for its share of the profits. This frees school personnel of any vending machine duties and responsibilities. This process is recommended by the Finance Department Wages/Casual Labor

18 These procedures (along with those shown below for payments to non-employees) are necessary for the school system to comply with federal and state laws relating to payments to individuals. The school system could incur severe financial penalties for failure to comply with these laws. An individual will be considered an employee of the School Board if any of the following conditions are met: (1) The individual receives a payroll check from the Jackson County Board of Education. (2) The individual reports to work at a set time. (3) The individual may be terminated or demoted. All other individuals who do not meet any of the conditions of a School Board employee may be paid through the school by completing the Contracted Services Form, using the parameters listed in the preceding paragraph. Common examples of a non-school Board employee are: (1) Police officers hired to provide security at a specific event. (2) Game officials. (3) Consultants hired to perform a specific task. A record must be kept for any compensation payments. Before payments are made for services, each individual should complete a Contracted Services Form, an Immigration Verification Form (e-verify), an IRS Form W-9, and a worker s compensation questionnaire. The following information must be included: Exact legal name of payee. Address of payee. Social Security Number or Employer Identification Number (EIN) of payee. e-verify Number Phone number. Budget number required. Date the services were performed. Type of services performed. The amount paid to the individual. Contractor s signature. The signature of the principal. The original of this contract should be filed as documentation with the properly executed Check Request From. A copy shall be furnished to the payee for his/her records. Non-employees who perform services must be flagged in their vendor maintenance screens. Those paid $600 or more within a calendar year will be issued a Additional Safeguards To be in compliance with the accounting procedures outlined in the manual, we have listed additional required and prohibited procedures: A. Required procedures 18

19 Take advantage of all trade discounts when available. Report immediately to the Director of Finance any errors that cannot be traced to the source or corrected. Maintain current cash balances in the accounting software with timely transaction entries. 19 o B. Prohibited Procedures Issuing a check without first securing an itemized invoice or receipt. Using a statement as the basis for payment. Making obligations for which funds are not available or making obligations beyond the end of the fiscal year without approval of the Assistant Superintendent or his designee. Volunteers writing receipts and handling school funds. Transfer of funds from a restricted account without the approval of both the fund sponsor and the principal Opening New Schools Initial funds to start a new school will be allocated from existing schools based on enrollment at the applicable schools. This applies to the General Fund and all student activity accounts. Financial Guidelines for School System Accounts SECTION 5: GENERAL INFORMATION 5.1 School Allotments State Quality Basic Education (QBE) and Local Funds Schools are provided a budget each year that reflects the school s earnings for enrollment and includes extra that has been added by the Board of Education through the annual budgetary process. Funds are accessed through the Purchase Order ordering process (see Section 3.6 & Section 6.4). 5.2 Basis of Accounting The system uses the modified accrual basis of accounting. This method recognizes revenues when they are earned and expenditures when they are incurred. Salaries, employer payroll costs, and certain revenues are accrued at year end. 5.3 Chart of Accounts The following expenditure account number segments should guide all financial coding on purchase orders and other financial documents: Fund Function Program Bldg. XXX X XXXX XXX XX XXXX XX X XXXXXX Year Object Sub-Object Facility Additional Codes Funds:

20 General Fund: used to account for all financial resources of the System except those grants that are required to be accounted for in another fund. QBE allotments and State funded grants are recorded in the general fund using designated program codes Title I Federal grants Special Education Federal grants 406 Vocational Federal grants Title II Federal grants 416 Race to the Top Title III Jr. ROTC Federal funding Pre-Kindergarten (Lottery) 600 Food Service 693 Food Service Catering Functions: 1000 Instruction Includes activities dealing directly with the interaction between teachers and students Pupil Services Activities designed to assess and improve the well-being of students and to supplement the teaching process including guidance, counseling, testing, attendance, social work, health services, athletics, etc Improvement of Instructional Services Activities designed to assist instructional staff in planning, developing and evaluating the process of providing challenging learning experiences for students Media Services Activities concerned with directing, managing and operating educational media centers General Administration Activities associated with establishing and administering policy for operating the school system as well as activities performed by the superintendent, administrative support personnel having overall administrative responsibilities School Administration Activities dealing with overall administrative responsibility for school operations including those of the principal, assistant principals, department chairpersons and clerical staff Support Services Business Activities concerned with the fiscal operation of the school system Maintenance and Operation of Plant Services - Activities concerned with keeping the physical plant open, comfortable, and safe for use, and keeping the grounds, buildings, and equipment in effective working condition and state of repair Student Transportation Service Activities concerned with transporting students to and from school and on trips to school activities including supervision of student transportation, vehicle operation, servicing and maintenance of buses Support Services Central Central Office activities other than general administration and business services Other Support Services All other support services.

21 3100 School Nutrition Program Activities concerned with providing food to students and staff in a school Community Service Operations Activities concerned with providing community services to students, staff or the community. Objects: Salaries 110 Teachers 112 Pre-kindergarten teachers and paraprofessionals 113 Substitutes for teachers 114 Substitutes for classified employees 115 Extended Day 116 Professional development stipends 117 Extended Year 118 Art, Music & PE teachers 119 Twenty-Extra Day Teachers 130 Principal 131 Assistant principal 140 Aides and paraprofessionals 142 Clerical 146 Athletic personnel 161 Technology specialists 165 Medial specialists 166 Young farmer teacher 172 Elementary counselor 173 Secondary counselor 174 School psychologist 176 School social worker 177 Family service coordinator 180 Bus drivers 181 Maintenance workers 184 School nutrition workers 186 Custodial workers 190 Management personnel 191 Other administrative personnel 195 Terminal leave payments 199 Other salaries and compensation Benefits Paid by the System 210 State Health 220 FICA 221 Medicare 230 Teacher Retirement 240 Employees Retirement 250 Unemployment Compensation 260 Workers Compensation 290 Dental Insurance 21

22 291 Life Insurance Purchased Professional & Technical Services 300 Contracted services that are performed by persons or firms with specialized skills and knowledge including architects, engineers, auditors, lawyers, consultants, etc. Purchases Property Services 410 Water, sewer, cleaning services 430 Repair and maintenance 432 Repair and maintenance technology related 442 Rental of equipment and vehicles 443 Rental of computer equipment 444 Other rentals 490 Other purchased property services Other Purchased Services 511 Student transportation parents or other LUAs 519 Student transportation RESA or other agencies 520 Insurance 530 Communication including phone, fax, and postage services 580 Travel (Use this object for employees ONLY) 592 Services purchased from another school system 595 Other purchased services Supplies 610 Consumable supplies including office supplies, paper, cleaning supplies, printing cost. 611 Supplies technology related 612 Computer software 615 Expendable equipment with a per-unit cost of less than $5,000. Examples include calculators, chairs, tables, projectors, video-cassette recorders, etc. 616 Expendable computer equipment with a per-unit cost of less than $5, Energy includes fuel and propane 641 Textbooks 642 Books and periodicals other than textbooks. Includes the cost of purchasing general books, reference books, and periodicals as well as the cost of binding and repairing reference books. Property 730 Equipment with a per-unit cost greater than $5, Purchase or lease-purchase of computers with a per-unit cost greater than $5, Capitalized software with a cost greater than $5,000 Other 810 Dues and fees. Registration fees are recorded here. 890 Other expenditures such as reimbursement for college courses, software licenses Sub-objects: The two-digit number that follows the three-digit object code is a local number assigned by our accounting department. Payroll accounts 10 All payroll objects Contracted Services Object

23 Attorney Consultant Physician Student Interns Other Fees 3 rd Party Consultant Translation Fraud & Investigative Services Mediation Expense Temporary Services Mowing Auditors take a sample of expenditures and check to see that expenditures are charged to the correct object codes. To avoid an audit finding, expenditures must be charged correctly. Example: money has been budgeted in consumable supplies (610) nothing has been budgeted in books and periodicals (642). If the media center needs to replenish books, request an amendment to move the money from supplies to books/periodicals. DO NOT charge the expenditure for books/periodicals to supplies. Programs: QBE Program numbers are used for instructional expenditures charged against state QBE revenue. These numbers will end in a 1 or a 3. The 1 signifies state QBE and the 3 signifies local effort Kindergarten Grades High School Grades Grades 1-3 EIP Grades 4-5 EIP Middle School Grades Grades 4-5 EIP Vocational Extra Days 1210 Staff Development 1310 Media Centers 1320 Pupil Transportation ESOL Special Education Gifted Remedial Alternative Education 9990 Local Each grant will have its own specific program code assigned by the state. Facilities: 01 Benton Elementary 02 West Jackson Primary