Fiscal Accounting & Reporting. Crook County School District #1. Activity Funds. Procedures Manual

Transcription

1 Fiscal Accounting & Reporting DI-R Crook County School District #1 Activity Funds Procedures Manual

2 CROOK COUNTY SCHOOL DISTRICT #1 ACTIVITY FUNDS PROCEDURES MANUAL This procedures manual is designed to provide a set of standardized accounting guidelines and procedures for the administration of the Crook County School District #1 Activity Funds. Principals, administrative assistants, sponsors and other personnel involved in the handling of Activity Funds are responsible for following the guidelines and procedures prescribed in this manual. Table of Contents Section I. GENERAL INFORMATION PURPOSE OF ACTIVITY FUNDS RESPONSIBILITY FOR ACTIVITY FUNDS AUDIT OF ACTIVITY FUNDS RETENTION OF RECORDS... 4 Section II. BASIC RECORDS ACTIVITY FUND CASH RECEIPTS BANK DEPOSIT SLIPS MONTHLY BANK STATEMENTS GENERAL LEDGER- RECORDS PREPARATION OF RECORDS... 5 Section III. BANKING PRACTICES AND PROCEDURES BANK ACCOUNTS... 5 Section IV. ISSUING RECEIPTS GENERAL RECEIPTING PROCEUDRES RECEIPT OF MONEY BY PERSONS OTHER THAN THE ADMINISTRATIVE ASSISTANT... 6 Section V. DEPOSIT OF FUNDS GENERAL OPERATING PROCEDURES PROCEDURES FOR PREPARATION OF BANK DEPOSITS CASHING OF CHECKS... 7 Section VI. RETURNED (NSF) CHECK PROCEDURES RETURNED CHECKS... 8 Section VII. DISBURSEMENTS

3 7.01 GENERAL POLICIES PAYMENTS TO NON-EMPLOYEES FOR CONTRACTED SERVICES... 8 Section VIII. TAX EXEMPT PURCHASING TAXABLE STATUS OF PURCHASSES... 8 Section IX. TRANSFER OF FUNDS BETWEEN ACTIVITY ACCOUNTS GENERAL POLICIES DOCUMENTATION OF TRANSFERS... 9 APPENDICES Appendix A. Request for Fundraising Activity Appendix B. Record of Receipts & Disbursements Forms Appendix C. Activity Funds Transfer Form Appendix D. Charter for New Activity Account 3

4 Section I. GENERAL INFORMATION 1.01 PURPOSE OF ACTIVITY FUNDS The Activity Fund is designed to account for funds held by a school in a trustee capacity or as an agent for students, club organizations of the campus, teachers and the general administration of the school. These funds are used to promote the general welfare of each school and the educational development and morale of all students. Each new activity or group must complete a charter (Appendix D) for a new student activity account for approval. These will be updated as necessary, to reflect current sponsors, and/or principals. The charter must, as a minimum, stipulate the purpose of the club/organization; its organization, and the purpose of funds to be raised (e.g.: support the goals and activities of the club/organization). Any expenditures of the activity or group must be in line with the identified goals and activities of the organization RESPONSIBILITY FOR ACTIVITY FUNDS A. At the school level, the school principal is responsible for the proper collection, disbursement and control of all activity fund monies. This responsibility includes: a. Providing for the safekeeping of monies. b. Proper accounting and administration of fund transactions. c. Expenditure of funds in compliance with applicable state laws, and local policy and administrative guidelines. d. Adequate training and supervision of all personnel designated by the principal to administer activity funds. e. Provide an updated listing of Activity groups and sponsors annually to the Business Manager. f. Designate Administrative Assistant as cash receipt clerk. The cash receipt clerk will be a single point of contact at the school, designated to receive collections from activity sponsors, and prepare and make deposits. The principal is not responsible for funds collected, disbursed and controlled by parent or booster organizations or non-school district sanctioned clubs, if funds are raised off school premises. These parent and booster organizations funds are not to be accounted for in the school's Activity Fund, unless funds are raised on school premises AUDIT OF ACTIVITY FUNDS Activity Funds are audited periodically by the district's business office and or by the district s CPA. In addition, an audit may be performed whenever there is a change in principal, Administrative Assistant or sponsor. The principal may request a special audit, in writing, if a situation or event warrants it. The items that must be maintained and turned in to Central Office at the end of the school year for auditing purposes include the following: Activity Receipt Books Activity Deposits Record of Receipts and Disbursements for Activity Organization Fundraisers (See Appendix B) Activity Funds Transfer Forms (See Appendix C) 1.04 RETENTION OF RECORDS All records should be kept current and in good order, in the manner prescribed by the Business Manager, for a period of five years and available for audit any time. 4

5 Section II. BASIC RECORDS 2.01 ACTIVITY FUND CASH RECEIPTS Activity Fund Cash Receipts are the means of accurately recording cash received and provide support for each bank deposit. The school will provide cash receipt books BANK DEPOSIT SLIPS Deposit tickets, check listing, copies of corresponding receipts issued, and a bank deposit receipt, once validated by the bank, serve as a record for the specific date that receipts were credited for the bank account. Copies of all deposit tickets, bank deposit receipts along with copies of all corresponding receipts issued by the school for the deposit must be submitted to Central Office each time a deposit is made. Deposit slips are obtained from the banks, as needed MONTHLY BANK STATEMENTS The bank statement is the official bank record reflecting all transactions affecting the cash balance on deposit during the preceding month. When properly reconciled, the statement serves as official support for the cash balance indicated in the Activity Fund records. Central Office is responsible for receiving bank statements and reconciling all accounts GENERAL LEDGER- RECORDS The General Ledger for Activity Funds is maintained in the district's central accounting system. The General Ledger summarizes all transactions of the Activity Fund during the month. Monthly reports are generated and are maintained for audit purposes PREPARATION OF RECORDS All records must be completed in ink. Section III. BANKING PRACTICES AND PROCEDURES 3.01 BANK ACCOUNTS A. The school district shall maintain a checking account for activity funds, as prescribed by the Business Manager. All monies received will be deposited into this account, and all disbursements will be made by a check drawn on these accounts. B. Only activity fund transactions may be directed through the Activity Fund. Transactions controlled by outside organizations such as the PTA, booster clubs, or non-school sanctioned clubs must be handled through these groups' own bank account. Section IV. ISSUING RECEIPTS 4.01 GENERAL RECEIPTING PROCEDURES A. All cash and check collections must be recorded (in duplicate) by the Administrative Assistant receiving the money: a. Original (white) to person submitting the money. b. Permanent copy (yellow) retained in the receipt book. B. The receipt must be completed in its entirety, including: a. Date, organization, purpose, amount, and account number. 5

6 b. The individual or firm submitting the money. The receipt may not be issued to more than one person. c. An explanation of the purpose for which the money was received, e.g.: 2014 yearbook or choir trip. d. The signature of the person receiving the money. The signature must be manual; signature stamps are forbidden. C. An actual cash count should be made by the Administrative Assistant signing the receipt in the presence of the person turning in the money, whenever possible. D. Post dated checks cannot be accepted from any source. E. Under no circumstances shall a cash receipt be altered. If an error occurs, VOID the original receipt and all duplicates and issue a new receipt; or minor errors can be corrected and initialed by the Administrative Assistant. If voided, the receipt must be attached to the copies and retained for audit purposes RECEIPT OF MONEY BY PERSONS OTHER THAN THE ADMINISTRATIVE ASSISTANT A. The Administrative Assistant is responsible for obtaining Cash Receipt Books, as needed. B. A Record of Receipts and Disbursements form (see Appendix B) must be completed for any revenues raised during fund-raising events and any disbursements at the completion of fund-raising event. The form must be turned into the Administrative Assistant. Amounts receipted on Record of Receipts form must reconcile with amounts deposited for the Activity Organization. C. Money may be collected by an authorized individual other than the Administrative Assistant (teachers, librarian, clerks, etc., but only as approved by the principal) for such items as books, student fees, fund raising activities, etc. In such instances, the individual collecting the monies must account for the monies collected as follows: a. Record of Receipts and Disbursements form must be completed with all information provided. (see Appendix B) b. If requested, the authorized individual may issue Cash Receipts to payers for monies collected. c. Collections shall be submitted to the Administrative Assistant daily, or whenever the aggregate amount of such collections exceeds $ d. Record of Receipts form, along with revenues/monies collected must be turned into Administrative Assistant who will count the funds in the presence of the depositor, whenever possible, and prepare an Activity Fund Cash Receipt once the deposit total is verified. e. All Cash Receipt books will be turned into Central Office, once all forms are used, and will be kept on file for five years for audit purposes. f. Any checks received should be made payable to the school and not to individual employees. School employees are prohibited from cashing checks issued to the school. Checks should be deposited in the appropriate school activity account. 6

7 Section V. DEPOSIT OF FUNDS 5.01 GENERAL OPERATING PROCEDURES A. Deposits must be made whenever cash collections exceed $500 for secondary schools and $300 for elementary schools. B. High School deposits should always be made on Friday even though the cash on hand does not exceed the maximum allowable. C. Elementary School deposits should always be made on Friday if cash on hand exceeds $50. D. All checks held for deposit shall be endorsed as follows: For Deposit Only Activity Fund name or number Account Number It is recommended that all checks be endorsed at the time they are receipted or accepted. E. All cash receipts supporting cash deposits shall be deposited in numerical/date sequence. F. Re-deposits (of returned checks) must be deposited separate from other funds collected. G. All monies on hand at the end of the school year should be deposited prior to closing the books for the year PROCEDURES FOR PREPARATION OF BANK DEPOSITS A. A bank deposit slip shall be prepared in duplicate and shall include the following: a. The date and amount of the deposit. b. A listing of each check in the deposit along with the amount of cash and coin. B. The bank retains the original copy of the deposit slip. The duplicate copy is validated by the bank and returned at the time of the deposit. The Administrative Assistant should also obtain a bank deposit receipt. C. The Administrative Assistant will prepare the following items to submit to Central Office: a. Copy of the bank deposit receipt. b. Copy of deposit slip check listing and/or copy of the deposit slip coin/currency. c. Copies of the corresponding receipts issued for that deposit. d. Copies of the Record of Receipts. D. The sum of the amounts of the supporting cash receipts must agree with the amount of the deposit slip. E. Substituting personal checks for cash deposits is forbidden For procedures on handling returned checks, redeposit and deposit corrections, see Section 6 of this manual CASHING OF CHECKS The practice of cashing personal and/or payroll checks is prohibited. 7

8 Section VI. RETURNED (NSF) CHECK PROCEDURES 6.01 RETURNED CHECKS A. Upon receipt of a notice from the bank indicating a check has been returned, Central Office staff will attempt to redeposit the item for credit. This procedure can be repeated up to the maximum times allowed by the bank. B. If item does not clear within an acceptable amount of time, the item will be charged back to the activity account in which it was originally credited. C. Original bank return notice will be returned to the Administrative Assistant for an opportunity for the school sponsor/advisor to contact payer and attempt to collect and redeposit funds D. If any check writer passes more than 2 bad checks with the district in a given school year, we reserve the right to place that person on a cash or money order basis. With the second occurrence, the standard letter is sent, by the Business Manager, with a sentence at the bottom stating: Crook County School District #1 s cash handling procedures dictate that after the second NSF/Account Closed occurrence by a payer in a given school year, the payer is to be placed on a cash or money order basis. At this time, if you should need to make payments to the school, it must either be with cash or money order. Section VII. DISBURSEMENTS 7.01 GENERAL POLICIES A. Income received from a specific group (student and faculty) should be expended for that group. The principal shall ensure that expenditures from these accounts are for the intended purpose of the group and should not divert for other uses. B. The principal shall approve no expenditure of funds unless sufficient funds are available in the appropriate activity account. Thus, purchase order shall not be approved on any account with a negative balance unless sufficient funds are available for deposit to the appropriate activity fund account, or unless funds are anticipated at a later date in the appropriate activity fund account. (Must receive pre-approval from Business Manager in this situation) PAYMENTS TO NON-EMPLOYEES FOR CONTRACTED SERVICES A. Payments for services performed by individuals not employed by the District may be made through accounts payable process from the Activity Fund. B. A W-9 form must be completed prior to payment and submitted to Central Office. Section VIII. TAX EXEMPT PURCHASING 8.01 TAXABLE STATUS OF PURCHASSES A. TAX FREE PURCHASES All items purchased by a public school district for the schools own use qualify for an exemption from sales tax if the items purchased relate to the educational process. The school district or authorized agent should provide the seller with a Wyoming Sales Tax Exemption Certificate. To be valid the certificate must state that the merchandise being purchased is for the organization's own use for educational purposes 8

9 and is being made in the name of the organization, and that payment shall be made from the organization's own funds. Purchases for their own use by individuals, even though connected with a school or school organization, are not exempt from the tax. For example: band members purchasing their own instruments or athletic teams purchasing their own jackets. B. ACCOUNTING FOR FUND-RAISING ACTIVITES a. Revenue Collections and Cash Disbursements: i. All revenue collections must be receipted and all payments must be made through district accounts payable process. ii. All collections and disbursements associated with any fund-raising activity coordinated by the school or an approved student group shall be transacted through the Activity Fund. iii. Absolutely no cash payments can be made for any reason. The club sponsor/advisor is responsible for keeping accurate records for all fund raising activities including original cash receipts received for money turned in to the Administrative Assistant. Section IX. TRANSFER OF FUNDS BETWEEN ACTIVITY ACCOUNTS 9.01 GENERAL POLICIES Transfers between activity accounts require the approval in writing of the principal and club sponsors. Transfer requests may be on the Activity Funds Transfer Form (Appendix C), or completed through the accounts payable process and deposited to receiving activity fund account DOCUMENTATION OF TRANSFERS A. When using activity funds transfer process: a. After all required approvals have been obtained; the business manager may proceed with the necessary journal entries b. All copies of the Activity Funds Transfer Form, along with Journal Entry showing detail of fund transfer, shall be maintained with the activity account records at Central Office. B. When using the accounts payable process: a. Purchase order is entered payable to activity account being charged. b. After the purchase order has been approved and check is written, it is deposited to the activity account owed. 9

10 Appendix A. REQUEST FOR FUNDRAISING ACTIVITY Instructions for this form 1. Fill out Part 1 and submit to the Principal for approval. You MUST receive Principal approval on all fundraising activity prior to starting the fundraiser. 2. Complete the necessary cash receipt forms during the activity. 3. At the end of the fundraiser, fill out Part 2 of this form and submit to the Administrative Assistant along with Parts 3 and 4, as applicable. Part 1- Complete this section and submit to Principal for approval BEFORE event Name of club or activity Advisor Name Vendor (if selling products) Purpose of Fundraiser (provide detail on how the money will be spent) Description of Fundraising Activity (what are you selling/doing?) Dates of Fundraiser Begin: End: Estimated Amount to be Raised Estimated Expenses I, have requested permission to conduct a fund-raising activity, and I will be responsible for the preparation of the Operating Report. I will also be responsible for the accountability of all monies collected at the conclusion of the fund-raising activity, and I will turn in all records to the principal or administrative assistant. Date Sponsor/Person Requesting Permission Principal s authorization: This request is Approved Denied Reason for denial Principal s Signature Part 2- Complete this section at completion of fundraiser Operating Report 1. Total Actual Revenue Received (per Part 3) + $ 2. Total Expenditures (per Part 4) - $ 3. Net Profit (Loss) = $ 10 (line 1 less line 2)

11 Part 3- See Attached Form Part 4- See Attached Form Part 5- Final Approval of Reconciliation I hereby certify that the above accounting information is complete and accurate. Team/Club Leader: Date: (Student) Coach/ Club Sponsor: Date: (Staff) I hereby verify the accuracy of the above accounting information, and have reported any discrepancies that I have found. Administrative Assistant: Date: Final Approval: (Principal) Date: 11

12 Fundraising Tally Sheet Cash Box Organization: Date: Event: Sponsor(s): BEGINNING CASH AVAILABLE # = Amount $20 = $10 = $5 = $1 = $0.25 = $0.10 = $0.05 = $0.01 = TOTAL Cash Available* $ CASH RECEIVED # = Amount $100 = $50 = $20 = $10 = $5 = $1 = $0.50 = $0.25 = $0.10 = $0.05 = $0.01 = Checks = Other = TOTAL Cash Received $ LESS Beginning Cash* ADJUSTED Deposit Amount $ I certify that the information provided above on the cash count is true and correct. Sponsor signature: Date: Sponsor signature: Date: 12

13 Appendix B. Part 3- Record of Receipts Crook County School District #1 Record of Receipts for Student Activity Organization Fundraisers, etc. Organization: Sponsor Name: Fundraising Event: Date(s): Name Description Cash Amt. Check Amt. Check # Total Cash & Checks $ $ - TOTAL REVENUE $ Transfer to Part 2- Line 1 Record of revenue received from each individual must be maintained on this form. Forms must be turned in to Administrative Assistant upon completion of fundraising event. Amounts on form must reconcile with amounts turned in for deposit. 13

14 Part 4- Record of Disbursements Crook County School District #1 Record of Disbursements for Student Activity Organization Fundraisers, etc. Organization: Sponsor Name: Fundraising Event: Date(s): Vendor Description Date PO Amt. PO # TOTAL EXPENDITURES $ Transfer to Part 2- Line 2 Record of disbursements (expenses) must be maintained on this form. Forms must be turned in to Administrative Assistant upon completion of event. 14

15 APPENDIX C. ACTIVITY FUNDS TRANSFER FORM TRANSFER FROM Account Name Account Number Amount $ Sponsor s Name (printed) Signature of Sponsor Date TRANSFER TO Account Name Account Number Amount $ Sponsor s Name (printed) Signature of Sponsor Date Description or Reason for Transfer: Principal s signature Date: CENTRAL OFFICE USE ONLY: APPROVAL: DATE: JE 15

16 Appendix D. Crook County School District #1 Request for New Student Activity Account School: Today s Date: Account # and Title: Person Requesting Account: 1. What is the proposed purpose of the new account? 2. What will be your source(s) of revenue? (Please list how the income will be generated.) 3. Will students be involved in generating revenue? Yes No If Yes, How? 4. Who will decide how these funds are spent? 5. Who will be the School District contact sponsor or person for this account? Sponsor s Signature Principal s Signature Return to Central Office for Account Set-up and Processing Account #: Business Manager Approval: Official Description of Account: 16

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