INTERNAL ACCOUNTS STANDARD PROCEDURE BULLETIN. Proper Accounting and Control of Change Funds and Petty Cash Funds

Transcription

1 Seminole County Public Schools, Florida INTERNAL ACCOUNTS STANDARD PROCEDURE BULLETIN August 2017 IA010 Proper Accounting and Control of Change Funds and Petty Cash Funds The purpose of this bulletin is to establish better accounting and control over new or existing change funds and petty cash funds held at our schools through Internal Accounts. The Principal shall authorize each change fund or petty cash fund for their school. I. Change Funds We are creating two standard change fund accounts in the SchoolFunds system which all schools will be required to use when a change fund is requested for a school event. This would include the following examples of change funds: Athlete Gate Sales Concession Sales Scholastic Book Fair Sales School Store Sales School Bake Sales Prom/Homecoming Ticket Sales Club Fundraiser Sales Drama Ticket Sales PE Uniform Sales Planner Sales And any other school event where you would be collecting Internal Account funds which would require the need for a change fund. High schools and middle schools will be required to use the two new accounts in SchoolFunds: Athletic Change Fund Miscellaneous Change Fund Elementary schools will be required to use the one new account in SchoolFunds: Miscellaneous Change Fund Bookkeepers are responsible for the control and accounting of all outstanding change funds and petty cash funds. The amount of change funds outstanding should be a reasonable amount. Excessive amounts of change should never be outstanding. Periodic counts should be conducted together by the bookkeeper and another designated staff member throughout the school year when change funds are outstanding for a length of time. It is recommended that these counts be made at least once a month. See new form attached, Change Fund Verification Sheet, to document these periodic counts. July 26, 2017 Page 1 of 4 IA010

2 During Football season it may require a larger amount of change. After the season is over, determine how much athletic change will be needed for the rest of the year, then redeposit the excess change. All change funds should be redeposited at the end of an event or no later than the end of the athletic season. Redeposit change funds on a separate Official Receipt with the description of Redeposit of XXXX Change Fund. Do not mix with collection dollars. When change funds are released to a custodian, document the transfer on the newly created Change Fund Transfer Log (see attached). The custodian and bookkeeper will sign and date the log when the change fund is released, then sign and date the log again when the change fund is returned. This log should be kept with the yearly Internal Account records for audit review. Establishing New Change Funds When there is a request for a new change fund, the disbursement of these funds would be made from one of the newly established accounts as follows: Used for an Athletic Change Fund (high schools and middle schools only) OR Used for any other Change Fund (all schools) These accounts will not have any funds. The disbursement will create a negative balance in the account. This negative balance will remain in the account until the change fund is redeposited. Existing Change Funds Outstanding At this time we are requiring all schools that currently have existing change funds outstanding, with cash available at the school for the use of giving change, to account for this cash in the newly established accounts in SchoolFunds. If you have not yet created a change fund for the new school year, you will not have to do the procedure below. A. High schools and middle schools will use the following newly created Internal Account number in SchoolFunds and follow the procedures below to account for any existing athletic change funds currently open: Account Athletic Change Fund Complete a FUND TRANSFER JOURNAL ENTRY to move the total dollar amount of the existing change fund from the newly created Athletic Change Fund account to the athletic account that originally disbursed the funds to be used for athletic change. EXAMPLE: Lyman High School currently is holding $2,500 in athletic change in the school safe to be used at athletic events. A check was issued to the Bookkeeper as custodian of this change fund in August, and the check was disbursed out of the General Athletic Account # Create a FUND TRANSFER JOURNAL ENTRY at this time to account for the outstanding $2,500 in athletic change. The journal entry would look like this: Date JE Number xx/xx/20xx XXXX July 26, 2017 Page 2 of 4 IA010

3 Transfer Amount $2, From Account Athletic Change Fund To Account Athletics General Reference Create Athletic Change Fund Record Additional Comments Create a separate account for outstanding athletic change held for the school year. This journal entry will create a negative balance in the new Athletic Change Fund account, and increase the balance in the Athletics General account by the $2,500. When the change fund is no longer needed at the end of the event/season, funds should be redeposited back into this Athletic Change Fund account on a separate Report of Monies Collected with a reference of Redeposit of Athletic Change Fund. If you are only redepositing a portion of the change fund back for a specific sport, indicate that sport on the Official Receipt. All change funds should be redeposited back into Internal Accounts prior to the end of the school year, unless your school has a valid reason to hold a change fund over the summer. No change fund should have a negative balance at year end. B. All schools will use the following newly created Internal Account number in SchoolFunds to account for any new disbursement needed to establish a miscellaneous change fund. Account # Miscellaneous Change Fund If your school has an existing change fund or funds outstanding which is/are used for miscellaneous change for various fundraisers, ticket sales, the school store, etc. a FUND TRANSFER JOURNAL ENTRY should be created to move the total dollar amount of that existing change fund from the newly created Miscellaneous Change Fund account to the general account or the account in which the funds were originally disbursed from. EXAMPLE: Sabal Point Elementary School will be having a Scholastic Book Fair next week. The Media Director has requested $200 in change to be used for the two cash register drawers. The Bookkeeper has already issued a check to herself for $200 to obtain the needed change from the bank. The check was disbursed from the Media Account # Create a FUND TRANSFER JOURNAL ENTRY at this time to account for the outstanding $200 in miscellaneous change. The journal entry would look like this: Date JE Number xx/xx/20xx XXXX Transfer Amount $ From Account Miscellaneous Change Fund To Account Media Reference Fall Scholastic Book Fair Change Fund Additional Comments Create a separate account for outstanding miscellaneous change held for use at the fall Scholastic Book Fair. This journal entry will create a negative balance in the new Miscellaneous Change Fund Account, and increase the balance in the Media account by the $200. When the change fund is no longer needed at the end of the book fair, funds should be redeposited back into this July 26, 2017 Page 3 of 4 IA010

4 Miscellaneous Change Fund account on a separate Report of Monies Collected with a reference of Redeposit of Book Fair Change Fund. All change funds should be redeposited back into Internal Accounts prior to the end of the school year, unless your school has a valid reason to hold a change fund over the summer. No change fund should have a negative balance at year end. II. Petty Cash Fund There are established procedures in the School Internal Accounts Procedures Handbook, Section XI, which should be followed when establishing and using an Internal Accounts Petty Cash Fund. At this time we are requiring all schools that currently have an existing Internal Accounts petty cash fund, with cash used to make small purchases of $25 and under, to account for this cash in a separate SchoolFunds account. If your school currently has an Internal Accounts Petty Cash Fund, a new account number has been created in SchoolFunds entitled Petty Cash Fund A FUND TRANSFER JOURNAL ENTRY should be created to move the total dollar amount of that existing petty cash fund from the newly created Petty Cash Fund account to the general account or the account in which the funds were originally disbursed from. EXAMPLE: Altamonte Elementary School has an existing petty cash fund in the amount of $300 ($300 is the maximum allowable amount for a petty cash fund). As funds are disbursed to staff members for allowable Internal Account expenditures of $25 or less, the Internal Accounts petty cash voucher is completed and signed by the person receiving the petty cash. A documented receipt is attached to the petty cash voucher. The current petty cash count is $196, and the documented petty cash vouchers total $104. At this time the Bookkeeper should create a FUND TRANSFER JOURNAL ENTRY to account for the outstanding $300 in petty cash. The journal entry would look like this: Date 08/1/2017 JE Number XXXX Transfer Amount $ From Account Petty Cash Fund To Account General Reference Create Petty Cash Fund Additional Comments Create a separate account to document the existence of an authorized petty cash fund. This journal entry will create a negative balance in the new Petty Cash Fund account, and increase the balance in the General account by the $300. This negative balance would remain in this account as long as the $300 petty cash fund remains open at the school. When the petty cash fund is periodically replenished, this account would not be used to record the expenditures. You would replenish the fund by charging the allowable account numbers funding each disbursement. The Petty Cash Fund must be reconciled and replenished prior to the closing of the records at each year end so that expenditures can be accounted for in the yearend reports. If the petty cash fund is no longer needed, funds should be redeposited back into the account on a separate Report of Monies Collected with a reference of Redeposit of Petty Cash Fund, bringing this account to a zero balance. Contact Darryl Johnson if you have any questions on this Bulletin. July 26, 2017 Page 4 of 4 IA010

5 Currency Count Total Coin Count Total $1 $ Penny $ $5 $ Nickel $ $10 $ Dime $ $20 $ Quarter $ $50 $ Other $ $100 $ Other $ Seminole County Public Schools, Florida Change Fund Verification Sheet Purpose of Change Fund: q Athletic Change Fund q Other Total Currency $ Total Coin $ Total Change Fund $ Date: Signature 1: Signature 2: Title: Title: Currency Count Total Coin Count Total $1 $ Penny $ $5 $ Nickel $ $10 $ Dime $ $20 $ Quarter $ $50 $ Other $ $100 $ Other $ Change Fund Verification Sheet Purpose of Change Fund: q Athletic Change Fund q Other Total Currency $ Total Coin $ Total Change Fund $ Date: Signature 1: Signature 2: Title: Title: SCPS SB

6 Bookkeeper Initials Seminole County Public Schools, Florida Change Fund Transfer Log Date Released to Custodian Amount Purpose Custodian Signature Bookkeeper Initials Date Returned Amount Custodian Signature SCPS SB