FINANCIAL GUIDELINES MANUAL 8/2/2010

Transcription

1 FINANCIAL GUIDELINES MANUAL 8/2/2010

2 Financial Guideline Manual PURPOSE The Financial Guidelines Manual (FGM) provides the standard operating procedures for school activity funds. The procedures and guidelines are intended to provide a reasonable and systematic means for administering and operating school activity funds including: administrative procedures; an effective system of management, delineation of responsibilities; appropriate internal controls, accounting, reporting and record keeping. This manual incorporates, but remains subject to applicable federal laws, the Code of Virginia, State Department of Education regulations, School Board Policies and Division Regulations. SCOPE The Financial Guidelines Manual applies to all schools and school division employees operating school activity funds. AUTHORITY The Authority for the Prince William County Public School Board to establish and operate school activity funds is provided for in the Bylaws and Regulations of the Board of Education of the Commonwealth of Virginia pursuant to the Code of Virginia. The School Board adopted Policies #352 and #354, which authorize the establishment of the Financial Guidelines Manual and the establishment and operation of school activity funds. The principal is directly responsible for the conduct of student financial activities subject to state law, Prince William County School Board policies, regulations, and the Financial Guidelines Manual. 2

3 REGULATIONS GOVERNING SCHOOL ACTIVITY FUNDS INTERNAL ACCOUNTS (per the Virginia Board of Education) 1. Classification, responsibility for administration of regulations, exclusion of specific funds: All funds derived from extracurricular school activities, such as entertainment, athletic contest, club dues, etc., and from any and all activities of the school involving personnel, students, or property are classified as school activity funds (internal accounts). The local school boards shall be responsible for the administration of these regulations in the schools under their control and may determine which funds in any school may be excluded from those subject to these regulations. 2. Records, school finance officer, bonds. Each school shall keep an accurate record of all receipts and disbursements so that a clear and concise statement of the condition of each fund may be determined at all times. It shall be the duty of each principal to see that such records are maintained in accordance with these regulations and rules promulgated by the local school board. The principal or person designated by him shall perform the duties of school finance officer or central treasurer. The school finance officer shall be bonded, and the local school board shall prescribe rules governing such bonds for employees who are responsible for these funds. 3. Forms: The use of forms prescribed by the Board of Education is not mandatory but the basic information required by the uniform system must be incorporated in any system substituted for that designed by the Board of Education. 3

4 REGULATIONS GOVERNING SCHOOL ACTIVITY FUNDS INTERNAL ACCOUNTS - Continued 4. Audits; monthly and annual reports: School activity funds (internal accounts) shall be audited at least once a year by a duly qualified accountant or accounting firm approved by the local school board and a copy of the audit report shall be filed in the office of the division superintendent and the Department of Financial Services. Monthly reports of such funds shall be prepared and filed in the principal s office, and annual reports shall be filed in the office of the principal or division superintendent. The cost of such an audit is a proper charge against the school operating fund or school activity funds. 5. Interpretation of regulations and forms: Nothing in these regulations or suggested forms shall be construed as superseding or modifying the federal-state plan for operation of cafeterias under the National School Lunch Act. 4

5 BASIC PRINCIPLES OF SCHOOL ACTIVITY FUNDS The establishment and operation of school activity funds shall be in accordance with the following principles: 1. School activity funds shall be used solely in accordance with the purpose for which such funds are collected. 2. Projects for raising school activity funds shall contribute to the educational experience of pupils and shall not conflict with the instructional program. 3. Funds derived from the student body as a whole shall be used to benefit the student body as a whole. 4. Generally, school activity funds should be spent in such a way as to benefit those pupils who are in school and who have contributed to the accumulation of such funds. 5. Student representation is encouraged in the management of funds raised by the student body and spent for its benefit, subject to faculty supervision. 6. School activity funds shall be managed in accordance with the best business practices, including sound budgetary and accounting procedures. 7. Student body business shall be conducted in such a manner as to offer maximum competition with commercial concerns. 8. Principals, through their representatives, shall participate in the preparation, modification, and interpretation of the policies, regulations and procedures affecting student body affairs. 5

6 FUND MANAGEMENT Responsibility for School Activity Funds The responsibility for safeguarding accounting and managing the school activity funds rests solely with the principal. To that end, these duties must be performed in such a manner as to preclude any possible questioning of school officials trustworthiness and fiduciary accountability from any inquiries by the public. The duties that must be performed in providing proper management and security of funds will be delegated to the school finance officer by the principal, but the responsibility remains with the principal. The following information outlines the duties, which must be performed by the principal and/or school finance officer in order to achieve proper management and security of funds. Other measures should be taken as necessary to carry out these responsibilities. 1. Principals A. Will be familiar with and enforce the provisions of this manual. B. Ensure that the school finance officer is properly instructed as to duties to be performed, instructed in proper methods and procedures, and given adequate supervision and guidance. C. Obtain accurate and timely reports from the school finance officer covering the results of operations and status of school activity funds. D. Review and analyze the status and operations of the school activity funds monthly. The review process should involve the school finance officer. Department heads and fund sponsors should be involved if necessary. The review should include but not necessarily be limited to areas such as: 1. Questioning of inactive accounts and deficit account balances. 2. Noting the cash position, considering reserved funds and outstanding obligations. 6

7 FUND MANAGEMENT Continued 3. Ensuring the accuracy of reported receipts and disbursements, by account and in total, to include comparison with prior period. 4. Assessing the adequacy of and compliance with cash control provisions. 5. Review purchase orders and checks presented for signature to ensure that purchases and expenditures are properly authorized and supported. 6. Ensure that secure facilities are available and are used for protection of cash and other assets. E. The principal is responsible for designating a fund sponsor for each school activity account. The principal may deem that it is appropriate for him/her to be the fund sponsor for accounts in category D (School Operating) and E (Prince William Clearing Accounts). An individual may be appointed as a fund sponsor to more than one account. F. Monitor the operation of C (Major Activity Accounts) with a view to (1.) generating revenue, (2.) have responsible management, (3.) accurately maintain inventory and (4.) avoid losses. G. Monitor the implementation of approved audit recommendations and management decisions of the principal or higher authority 2. ASSISTANT PRINCIPALS Assistant Principals will perform duties as delegated by the Principal. All Assistant Principals will be familiar with the provisions of this manual even if no duties have been delegated. 7

8 FUND MANAGEMENT Continued 3. SCHOOL FINANCE OFFICER A. Will be familiar with and enforce the provisions of this manual. B. Under supervision of the principal or designee, the school finance officer will receive, receipt, deposit, account for, and disburse all funds flowing through the school activity fund accounts, except as otherwise directed by the principal. For example, the principal may direct that persons other than the school finance officer make some deposits such as gate receipts. The school finance officer, under the supervision of the principal, will comply with all pertinent provisions of this manual. C. Maintain all required records and furnish accurate monthly reports (ref. Student Activity Funds (SAF) manual). D. Review and analyze the status and operations of the school activity funds monthly. Department heads and fund sponsors should be involved if necessary. The review should include but not be limited to areas such as: 1. Questioning of inactive accounts and deficit account balances. 2. Noting the cash position, considering reserved funds and outstanding obligations. 3. Ensuring the accuracy of reported receipts and disbursement, by account and in total, to include comparison with prior period. 4. Assessing the adequacy of compliance with cash control provisions 5. Review purchase orders and checks presented for signature to ensure that expenditures are properly authorized and supported. 6. Ensure that secure facilities are available and are used for protection of cash and other assets. 8

9 FUND MANAGEMENT Continued E. Will monitor the operation of C (Major Activity Accounts) to ensure the accounts (1.) generating revenue, (2.) have responsible management, (3.) accurately maintain inventory and (4.) avoid losses. F. Monitor the implementation of approved audit recommendations. 4. FUND SPONSORS AND OTHER SCHOOL PERSONNEL The principal is responsible for designating a fund sponsor for each school activity account. The principal and/or school finance officer will be the fund sponsor for accounts in category D (School Operating) and E (Prince William Clearing accounts). An individual may be appointed as a fund sponsor to more than one account. Fund sponsors, department heads, and other individuals with duties affecting school activity funds will become familiar and comply with the portions of this manual, which are pertinent to their duties. Such individuals must cooperate with the school finance officer in order to perform their functions in a complete, accurate, and timely manner. Those sponsors for activities that have a school activity fund account are responsible for the integrity of the account. A. Fund Sponsor: The fund sponsor will be an employee of the Prince William County School Board, designated by the principal for the duration of the school term unless relieved of these duties in writing by the principal. The assignment as a fund sponsor may or may not be a supplemental pay position. (Refer to Regulation ). 9

10 FUND MANAGEMENT CONTINUED B. Duties of a Fund Sponsor: 1. Submitting purchase requests to the school s finance officer. 2. Certifying that the billings pertinent to the account are correct prior to payment. 3. Ensuring that the school s finance officer has on file copies of contracts, purchase orders, etc which are applicable to the account. 4. Collecting and receipting of funds received from the students. 5. Depositing such funds daily with the school s finance officer. 6. Ensure that everyone (i.e. co-sponsors, students, etc.) affiliated with his/her account conduct themselves according to good business practices and in compliance with this manual. 7. Will be familiar with contents of this manual. 8. Responsible for the solvency of the account and the propriety of the school activity. 10

11 FUND MANAGEMENT Continued CASH CONTROL The amount of cash and checks flowing through the school activity fund necessitates stringent safeguards in the control of receipts and disbursements. Proper control of the funds includes but not limited to: A. All expenditures shall be made by check or PCard except those authorized to be made from properly established petty cash funds. B. Check signing and savings withdrawal authority is limited to the principal, his designee, and the school s finance officer. Dual signatures are required on all checks. C. Depositing funds collected on a daily basis or when the cash balance is greater than $ If the cash is less than $25.00, schools may hold the funds in a secure place. All funds must be deposited on Fridays of each week regardless of the amount of cash. D. Computerized receipts will be issued for all school activity funds. E. Ticket sales shall be reported with the relationship established between revenue and serially numbered tickets sold. F. Strict account controls shall be used for petty cash funds and in the use of change funds. Appropriate secure containers, i.e. locked file cabinet, shall be used for petty cash funds and change funds. Funds shall not be left unattended or accessible to unauthorized personnel. G. The school finance officer shall reconcile bank statements on a monthly basis. H. Appropriate secure containers, i.e. locked file cabinet, shall be used for petty cash funds and change funds. Funds shall not be left unattended or accessible to unauthorized personnel. 11

12 FUND MANAGEMENT Continued I. The principal and appropriate staff members connected with school activity fund on at least a monthly basis. As a part of the review of operations and status required, the principal or designated representative will evaluate the reasonableness of the reported cash position. Documents needed for this review are: 1. Monthly financial statement(s) for the month(s) being reviewed. 2. Documentation pertaining to expenditures for the month(s) being reviewed. 3. Bank statement(s) and bank statement reconciliation(s) for the month(s) being reviewed, to include saving account balances. The review should affirm the reasonableness of data presented and ensure the following: 1. The total school activity funds listed on the monthly report for the month(s) of review should agree with the cash balance as reconciled with the bank statements. 2. The total shown by savings account documentation (statement) should agree with the amount shown on the monthly financial report. 3. The petty cash figure must be included on the monthly report and should agree with the amount authorized by the principal. 4. The outstanding check total should be reasonable and most checks appearing on the previous month s reconciliation should not appear on the reconciliation for the subsequent month of review. Checks for large amount which continue to appear should be questioned. 5. Amounts listed as deposits in transit at the end of a month should appear on the bank statement on the first business day of the following month. 6. All items involved in the bank reconciliation should be logically explained and understood. 12

13 FUND MANAGEMENT Continued Loss of Cash Any loss of money, including checks, will be promptly reported by telephone to the Office of Risk Management and Security Services and to the appropriate law enforcement authorities if theft is involved or suspected. The principal will then complete the required incident report form. Indebtedness No school may incur an indebtedness, which will cause a projected year end deficit without the approval of the respective Area Associate Superintendent and the Director of Finance. 13

14 Purpose REVENUE School activities are established as an addition to, and in support of, the educational program. It is intended that school activities be selfsupporting, hence, revenue is necessary to establish and maintain the various activities. Revenue Producing Activities The principal shall ensure that all funds raising activities are approved in advance and the requirements of Regulation are met. Approval of fund raising activities should consider the impact of such an activity upon local businesses, parents, students, and other school and school division functions. In accordance with the basic principles of school activity funds, no school activity will be conducted for the sole purpose of generating revenue. Revenue Classification Revenue is classified for school activity fund purposes as either General or Specific. A. General Revenue: Revenue derived from a continuing or recurring activity or service-performing operation, i.e. school store, pop corn, pictures, annual fund raising event, etc. General revenue may be applied beneficially for the entire student body. B. Specific Revenue: Revenue obtained from a one-time project or event which has been approved by the principal and the area associate to be conducted by and for a specific purpose or a specified group of students, e.g. car wash, candy sales, dues etc. Specific revenue should be applied beneficially only for the student organizations concerned or for the specific purpose for which the revenue was generated. Revenue Receipts All general and specific revenue classified as school activity funds will be receipted into the school activity fund records daily. There will be no disbursements made from the cash collected. 14

15 REVENUE DERIVED FROM COOPERATIVE ACTIVITIES Cooperative Activities Extracurricular school activities which involve the students, faculty and school facility and which are conducted with the participation or support of an outside organization (PTA, Booster Clubs, etc.) are classified as cooperative activities. Funds derived from such activities are school activity funds and are to be managed and accounted for accordingly except as provided below. By action on September 16, 1981, the Prince William County School Board excluded funds of certain organizations from the requirements of cooperative activities provided the following conditions are met to the satisfaction of the school principal: 1. The cooperating organization is a bona fide recognized school support group, such as PTA or booster club and, 2. The majority of the fund raising effort is conducted by the cooperating organization (students and staff may work as members of the organization during non-school hours) and, 3. The amount of profits deposited to the school activity accounts is determined by the amount of effort required from staff and students (Co-Op Activities Form 1 or 2). 4. The cooperating organization submits an annual financial statement for inclusion in the financial records of the school containing at least the information specified on Co-Op Activities Form 3. The dividing line between school activity funds and the organization s funds is determined by the principal and agreed to by the organization. Once determined, school activity funds remain subject to this manual while the organization s funds remain the responsibility of that organization. 15

16 Cooperative Activities- Continued The principal shall: 1. Ensure that the four points above are met to his/her satisfaction, 2. Ensure the filing of an agreement form for each cooperative fund raising activity (Co-Op Activities Form 1 or 2) and, 3. Ensure the filing of the organization s Income Statement at least annually (Co-Op Activities Form 3). Revenue Controls for Cooperative Activities If the cooperative activity involves the payment of an admission fee, such fees will be controlled with serial numbered tickets obtained through and controlled by the principal or his designee. (see Ticket Management). 16

17 PURCHASING AND EXPENDITURE CONTROLS GENERAL To effectively manage the school activity fund, the principal must have some knowledge of future obligations prior to billings or disbursement. The absence of such a system could involve the over- obligation of available school activity funds. All purchasing of goods or services made from school activity funds is to be done in accordance with the Purchasing Procedures Manual (see Section 4) for the Prince William County School Board. All purchases of goods or services made from school activity funds must be related to student activities or cooperative activities. 17

18 TICKET MANAGEMENT General All school activities which involve the students, faculty and the school facility and for which an admission fee of two dollars ($2.00) or more is charged, will be controlled by the use of serial numbered and color coded tickets supplied from an inventory of tickets under the control and supervision of the principal. Tickets will be issued on an event-to-event basis, except for athletics, which may have tickets issued on a seasonal basis. Accountability of serial numbered tickets in sequential order is absolutely required for all athletic events. Other events will be required to account for tickets in sequential order, except when they are sold by more than five (5) individuals. When non-athletic events use more than five (5) ticket sellers, the Activity/Funds Sponsor to whom the tickets were issued by the Ticket Manager will be held accountable for the total number of tickets issued, but not necessarily in sequential order. Accounting for Serial Numbered Tickets Tickets used for control of admission revenue have monetary value and are only slightly less sensitive than cash with regard to fraud, theft and abuse. School authorities must be able to ensure proper control of admission revenue. To that end, the principal will designate in writing a staff member as the Ticket Manager. The Ticket Manager will procure, control and dispense tickets used in the school. Along with the principal, this person will exercise general supervision of ticket use in the school. The principal is encouraged to appoint the school finance officer as the Ticket Manager. In the event the principal elects to appoint some other staff member, that person will be responsible for seeing that the ticket documentation and records are available to the school finance officer at the time of the annual audit. All schools will account for tickets and ticket sales in accordance with the instructions outlined in this manual. Records will be kept which provide for ready determination of the following information. 18

19 TICKET MANAGEMENT- Continued 1. The Ticket Manager will maintain a Ticket Inventory Log in each school. The log will include the quantity of tickets contained in inventory at the beginning of the school year, the quantity purchased during the school year and the remainder of tickets on hand at the end of the school year. 2. Sale of tickets by numbers, event, date of event and price 3. The number of tickets: a. Issued free b. Destroyed c. Lost or stolen d. Season tickets sold and/or given free Duties of the Ticket Manager 1. To maintain the Ticket Inventory Log Form, this will include the distribution of season tickets. 2. To obtain the necessary quantity and color of pre-numbered tickets. 3. To immediately notify the principal of any accountability discrepancies. 4. To work directly with the Activity/Funds Sponsor in relation to ticket sales. 5. To issue the required quantity and appropriate color of tickets to the Activity/Fund Sponsor. 6. To ensure that the Activity/Fund Sponsor properly completes the Report of Ticket Sales Form. 7. Other duties as assigned by the principal in relation to proper management and security of ticket sales. 19

20 TICKET MANAGEMENT- Continued Duties of the Activity/Fund Sponsor in Relation to Ticket Sales 1. To provide for proper supervision of the ticket sellers/takes at the school event. 2. To deposit all monies collected from ticket sales with the bank or the school s financial officer. 3. To ensure that the Report of Ticket Sales Form is properly completed immediately after the event. 4. To maintain and balance the Report of Ticket Sales Form for all presale tickets if applicable. 5. To ensure that the unused tickets are returned to the Ticket Manager. 6. Other duties as assigned by the Ticket Manager in relation to proper management and security of ticket sales. Duties of the Ticket Sellers/Takers 1. To sell and/or take tickets under the direct supervision of the Activity/Fund Sponsor. 2. To properly complete the required portion of the Report of Ticket Sales Form and return the unused tickets to the Activity/Fund Sponsor/ 3. To adhere to the following general procedures unless directed otherwise by the Activity/Funds Sponsor: a. Ticket seller will sell a ticket for each person entering the event except for those individuals holding a valid ticket issued prior to the event. b. The ticket taker will collect the ticket as the person enters the gate and place it in a ticket box. c. The ticket takers will turn in the ticket stubs to the Activity/Fund Sponsor, who will retain them until the Report of Ticket Sales Form is reconciled. 4. Other duties as assigned by the Activity/Fund Sponsor in relation to selling and taking tickets at a school event. 20

21 General TICKET MANAGEMENT & CASH CONTROLS FOR ATHLETIC EVENTS Strict ticket accountability is to be maintained at all high school athletic events for which an admission fee is charged. However, ticket accountability is only required at middle school athletic events for which an admission fee of two dollars ($2.00) or more is charged. The procedures and duties per the Ticket Management section of this manual will apply to athletic events. Additional Ticket Management Procedures for Athletic Events 1. A minimum of one ticket seller and one ticket taker is required for high school varsity football, boy s varsity basketball, and for district, regional and state events. One individual; may perform the duties of both ticket seller and ticket taker for all other athletic events but should be avoided whenever possible. Additional help may be provided based on the needs of the individual school. 2. Ticket seller and ticket takers may be paid for services rendered. Remuneration will be on a per game basis in accordance with the Procedures for Payment of Wages section of this manual. 3. All pre-game sales of tickets and all gate receipts must be deposited with either the school finance officer during the day or in a night depository until the next working day. Each Activity Director will have his own night deposit key and bank bags in order to deposit gate receipts in the required timely fashion. NO MONEY WILL BE KEPT ON THE SCHOOL PREMISES OVERNIGHT OR UNTIL THE NEXT WORKING DAY. (School Board Policy #303.) 4. After the ticket seller has counted the money and the appropriate areas on the Report of Ticket Sales Form have been completed, the money and the finance officer s copy of the Report of Ticket Sales Forms are placed in the bank bag. 5. The bank bag will then be taken to the bank night depository and deposited the next working day. 21

22 TICKET MANAGEMENT & CASH CONTROLS FOR ATHLETIC EVENTS- Continued 6. On the next working day, the bank bag will picked up and returned to the school. The Activity Sponsor will count the money and verify the amount to the Report of Ticket Sales form. The money then will be re-verified by the school finance officer. When both the Activity Sponsor and the school finance officer agree on the amount of money, a receipt will be rendered and the money will be processed for depositing. NOTE: Bills and security services will not be paid out of gate receipts, but paid by check from the school account. Gate receipts are to be kept intact prior to receipting and depositing. 22

23 FIDELITY BOND Fidelity Bond The School Board provides a blanket position bond that covers all employees dishonest acts arising out of their employment. It does not protect the employee against a subsequent claim by the bonding company for any loss sustained through settlement of a claim due to any dishonesty on the part of an employee. The bond protects the assets (money) of the fund but not the individuals charged with the responsibility for such assets. The responsibility for safeguarding school activity funds lies directly with the principal and the school finance officer. Their actions and authority should be governed and respected accordingly. 23

24 CHECKING ACCOUNT General Only one checking account will be established for the school activity funds for each school. The account will be titled in the name of the Prince William County School Board followed by the school s name and address. The checking account is to be established and maintained with DUAL SIGNATURES being required on all checks drawn against the account. The school s principal, school finance officer and other persons designated by the principal may be co-signers on checks. Interest Bearing Checking Account The principal, at his discretion, may choose to convert the school s checking account to one that pays interest on the account balance. In cases where the school s bank will convert the checking account to an interest bearing account with no other changes, the principal is encouraged to consider converting the account. Careful attention must be given to ensure that the anticipated interest will exceed any service charges the bank may impose on this type of account. A principal who wishes to convert, but whose bank requires an account number or other change may do so, but the local school must pay any added cost including the cost of new checks. Interest earned will be shown on the school activity books in an account called Interest Revenue (Cat. D). This will be posted on whatever basis the bank reports to the school. Service charges will be applied against the interest earned. Principals will transfer the interest earned in excess of service charges to other appropriate accounts for expenditures. These transfers may be made at the discretion of the principal, but are limited to 25% of the net interest earned, when used as revenue for faculty accounts. Stop Payment on a Check If a school activity fund check has been issued and is then reported lost or stolen, a stop payment action may be necessary. The circumstances surrounding this situation should be carefully evaluated prior to incurring the expense of a stop payment request. 24

25 General Cash Management Bank Account Schools with adequate balances are encouraged to take advantage of the banking laws and related interest bearing accounts. This type of account allows for a few two party transactions, unlimited one party transactions and pays an interest rate that is tied to the current money market rate. By utilizing this type of account, a school will be able to keep the majority of its funds on deposit in an interest bearing account and then transfer funds to the regular checking account to cover routine expenditures. Details of Operation 1. Only one money market account per school 2. Transfers from the money market account to the checking account will be done in $500 increments. 3. Interest earned will be shown on the school activity books in an account entitled Cash Management Revenue which is a Category D account. This will be posted on whatever basis the bank reports to the school. Service charges, if any, will be applied against the interest earned. Principals will transfer the interest earned in excess of service charges to other appropriate accounts for expenditure. These transfers may be made at the discretion of the principal, but are limited to 25% of the net interest earned, when used as revenue for faculty accounts. General Saving Accounts Savings accounts are justified only for accumulating funds to cover planned or anticipated future capital outlay expenditures or to increase revenue through the deposit of temporarily idle funds to interest bearing accounts. Funds in savings accounts will be classified as designated funds or temporarily idle funds. The most favorable interest rate should be obtained, in keeping with prudent management. Savings deposits may take the form of certificates of deposit or passbook accounts. Accounts will be titled in the name of the Prince William County School Board followed by the school s name and address. Withdrawals will be accomplished with the signature of the principal and one other designated agent. 25

26 Conflict of Interest To avoid the appearance of a conflict of interest, school activity funds will not be deposited in any bank, credit union or other financial institution in which the principal or any other official of the school holds a position of trust or authority. Idle Funds The identification and availability of idle funds will be determined through a recurring comparison of the balances shown on the ledgers and the bank statement against which the anticipated cash flow will be applied. Such funds should be placed in a savings account to take advantage of interest earnings. The earnings from the use of such funds are to be applied to the benefit of that particular account(s). The interest income will be prorated if more than one account is involved. Designated Funds An organization or activity may designate all or a portion of its funds (subject to the limitation set forth below) to a savings account. If funds are designated to a savings account, the appropriate fund account is entitled to the interest earned on the funds and is to be designated in multiples of $ PROCUREMENT CARDS A credit card shall be issued by a financial institution for the purpose of enabling Prince William County Schools and offices to acquire needed materials in a timely and efficient manner. The procurement card shall be issued in the name of the school. The procurement card shall be used in accordance with established procurement regulations (Reg ). If items are purchased that exceed the single quote threshold set by Purchasing, competition must still be obtained in the same manner as purchases done by purchase order. While there is no requirement to obtain competition for purchases less than the competitive threshold, price quotes are encouraged whenever possible. 26

27 DEPOSITING OF DAILY RECEIPTS General All funds collected by any staff member must be remitted to the school s finance officer on the day collected. These funds and any funds collected directly by the school s finance officer are to be deposited on a daily basis. If the school has obtained a safe (see School Board Policy # 303) and the aggregate total is less than $25.00, the funds may be held in a secure place from one day to the next; however, all funds must be deposited on Fridays of each week. Caution- Under no conditions will funds from one month be co-mingled with funds from the next month on the same deposit slip. Properly established petty cash funds and change funds may be retained in the school building from day to day. All change funds not necessary for the summer months are to be remitted to the school s finance officer prior to June 30 of each year. These change funds will be closed out and reissued in the fall. Receipt Forms Used by Collectors Receipt forms used by collectors other than the school finance officer are used to record various types of collections before the money is turned over to the school finance officer. The receipt should be made out in duplicate showing from whom the money was received, the account to be credited, dated and the signature of the person collecting monies. The original should be given to the payers and the copies turned into the school finance officer along with the money collected in exchange for a receipt from the school finance officer. The school may issue a small receipt book to persons collecting monies and the book must be returned to the school finance officer when it is filled or the activity for collecting monies stops. The school finance officer should write the receipt number and date on the last receipt of the collector s book when monies are turned into the school finance officer to support receipts written. In some cases the collectors may list the payers (if payers do not demand a receipt) and amounts on a sheet of paper. The collectors will take the list of payers and monies to the school finance officer and receive a dated/signed receipt. The school finance officer will place the receipt number and date on the list and file for support of collections. This will help verify revenue collected by the school finance officer. 27

28 PERSONAL ACCOMMODATIONS General School activity funds will not be used for any purpose, which represents an accommodation, loan, advance of pay or other direct benefit to an individual. Since school activity funds are derived from the student body as a whole or a select club/group, they are to be expended in a manner that benefits the student body as a whole or the select club/group. Pay Advances Pay advances are not allowed. Personal Check Cashing No checks will be cashed. MEMORIAL GIFTS OR BEQUESTS Memorial gifts should be accepted with a written record designating the purpose or intended use of the gift. If such a record if not received, or if the donor declines to provide one, the gift will be used as determined by the principal. Regardless of the nature, cash, or equipment, the guidelines found in Regulation will apply. When funds are involved, they will be accounted for in accordance with this manual s established accounting categories. 28

29 CHARITY DRIVES School-wide charity drives will be limited to those approved by the Superintendent, i.e., those for which material is distributed from the central office. Donations for such drives will be accepted from the pupils, parents, and staff but not from the general public. Such donations will be purely voluntary and the establishment of a quota or other scheme suggesting achievement in obtaining donations will be avoided. Any funds solicited to help a needy family may be forwarded to a local non-profit organization or gift cards for final resolution. Checks are not to be written directly to the individual(s) involved. 29

30 ACCOUNT INFORMATION General All activities associated with and funds flowing through school activity funds shall be categorized into the account structure defined herein. Specific school needs or exceptions should be addressed to the Director of Financial Services. Management The purpose of the accounting structure is to provide a system of accounts for the principal and school staff to manage the financial affairs of the school activities fund. The account structure is divided into two basic parts. First, all accounts are divided into categories which are primary accounts used to define major school activities or groups. Second, the numbering of accounts within categories provides for accounting of specific activities or groups. Account Integrity This concept refers to the various transactions that should be properly recognized in the appropriate account(s). The major sales activities as defined in Category C are the accounts in which the account integrity will have to be properly maintained in order to allow for the comparison of revenue with the associated costs. Specifically, only revenue generated from the sales activity and the costs associated with purchasing the merchandise will be reflected. The proceeds will be transferred to the appropriate account(s) for expenditure. An exception to the concept of account integrity is allowable when a commission check is received or the sales activity spans only one accounting period (month). The principal may choose one of the following methods of accounting for the revenue received: 1. Receipt to the account, pay the associated costs and transfer the proceeds to other accounts for expenditure. 2. Receipt directly to an account for expenditure. 3. Receipt to the account, pay the associated costs, and expend directly from the account if he/she chooses to track expenditures. 30

31 New Accounts ACCOUNT INFORMATION- Continued All school activity funds will be accounted for within the set of accounts established in this manual. No school activity account will be established without the approval of the Director of Financial Services or designee. Account Categories and Numbering The accounting structure divides the accounts into six major categories with a corresponding numbering system for each category. Within each category, accounts are to be maintained in alphabetic order. The category and numbering sequence is: Category Category Description Numbering Series A Club/Organization Accounts 1000 s B Instructional Accounts 2000 s C Major Activity Accounts 3000 s D School Operating Accounts 4000 s E PWCS Clearing Accounts 5000s F Faculty Accounts 6000 s Account Titles The account title should reflect the purpose for which the account is to be established. Account titles are to be drawn from the listing provided within each category. If a title does not appear to suit a school s particular need, with the approval of the Director of Financial Services, you may place the account in the proper category (i.e. A, B, C, D, E, F) and use the number assigned by Finance. 31

32 ACCOUNT INFORMATION- Continued ACCOUNT CATEGORIES AND INFORMATION Category A - Club/Organization Accounts Definition These accounts contain funds dedicated to the beneficial use of a distinct group of students, enrolled in the Prince William County Public Schools, who have formed themselves into an organized entity with student officials who have been either elected or appointed from among the group. The activity is planned to occupy the attention and interest of the group/club concerned as opposed to the interest and concern of the entire student body. Revenue Revenue is derived from the students themselves via dues, or fund raising projects that have been approved by the principal and level associate. Expenditure/Transfer Authority Expenditure/transfer authority requires the concurrence of the student members through their officials, the fund sponsor, and the principal. Account Balance The account must hold a positive or zero balance at the end of the school year. Funds not expended in one school year will be carried forward to the next school year for the benefit of the club/organization. Termination of an Account If a club is inactive for two school years the balance of the account may be transferred to another account designated by the principal. The current year s senior class account must be closed out in a timely manner. This will be done via a written statement from the sponsor and class president to the principal designating the use and/or transfer of the remaining funds. 32

33 ACCOUNT CATEGORIES AND INFORMATION- Continued Chart of Accounts for Category A Accounts 1000 African American Awareness 1003 America s Club (Support Our Troops) 1005 Art Club 1010 Art Honor Society 1015 Builders Club Joe 15 club 1020 Cheerleaders High School 1025 Cheerleaders Middle School 1030 Chess Club 1035 Class Class Class Class Class Class Computer Club 1070 Dance Team 1071 Dance Team Break Dance 1075 Debate/ Forensics Club 1080 Distributive Education Club of America DECA 1085 Drama Club 1090 DREAMS 1095 Drill Team 1100 Drug Free Fun Club 1105 Ecology/Science Club 1110 Fashion Merchandising 1115 Fellowship Christian Athletics FCA 1120 Foreign Language Club 1122 Forensics 1125 French Club 1130 French Honor Society 1135 Future Business Leaders of America FBLA 1140 Future Business Leaders of America - middle schools 1145 Future Consumers of America 1147 Future Educators of America Club (FEA) 1150 Future Farmers of America FFA 1155 Future Homemakers of America FHA 1160 German Club 33

34 ACCOUNT CATEGORIES AND INFORMATION- Continued A Accounts continued 1165 German Honor Society 1170 Golf Club Middle School 1175 Gymnastics Team Middle School 1180 Health Occupations Student Association HOSA 1185 Hero Club 1190 Hispanic Student Union 1195 Historical Gamers Club 1200 Its Academic 1205 Junior Civitan Club 1210 Just Say No Club 1215 Key Club 1220 Latin Club 1222 Latin Honor Society 1225 Leo Club 1230 Lionettes Empowering Girls 1235 Literary Circle Club 1240 Math Counts 1245 Math/ Computer Club 1250 Model United Nations 1253 Muslim Student Association 1255 Multicultural 1260 Multicultural Club Boys 1265 Multicultural Club Girls 1270 Music Club 1275 National Junior Honor Society 1280 National Honor Society 1285 Navy Club 1290 Newspaper Club 1293 Nippon 2000 (Japanese) Club 1295 Odyssey of the Mind 1300 Patrols 1303 Peer Diversity 1305 Pep Club 1310 Problem Solvers 1315 Quill & Scroll 1318 Robotics 1320 Save the Environment Club 1325 SCA Club (NOT Student Council) 34

35 ACCOUNT CATEGORIES AND INFORMATION- Continued A Accounts continued 1330 Science Club High School 1335 Science Club Middle School 1340 Science Fair 6 th grade 1345 Sign Language Club 1355 Spanish Club Honor Society 1360 Spartan Spectrum 1365 Stage Crew 1370 Step Team 1375 Student Activities 1380 Student Against Destructive Behavior 1385 Students Against Drunk Driving 1387 Team Nutrition 1390 Technology Education Club 1395 Tennis Club Middle School 1400 TV Club 1405 Varsity Club 1410 VICA 1415 VICA Car Show 1420 Work and Family Studies Club 1425 WWF Club 1430 Yearbook Club DREAMS A1090 This is a club for Dedicated, Responsible, Enthusiastic and Motivated Students. 35

36 ACCOUNT CATEGORIES AND INFORMATION Continued Category B - Instructional Accounts Definition These are accounts established for the benefit of specific instructional programs. Revenue Revenue is derived from: 1. Clientele fees for services provided in furtherance of instructional effort (e.g. cosmetology). 2. Sales projects undertaken to produce specific revenue. 3. Transfers of funds allocated from other accounts Expenditure/Transfer Authority Expenditure/transfer authority rests with (1) the chairman of the department concerned or (2) the fund sponsor, subject to the approval of the principal. Account Balance Individual accounts in this category may hold a deficit balance at times, but will not end the school year with a deficit balance. Funds in excess of instructional needs for the current school year will be carried forward to the next school year. Termination If the activity or purpose for which an account in this category was established ends, the balance will be disposed of by returning the funds to the original account, or to a comparable site based management account (S.B.M.). 36

37 ACCOUNT CATEGORIES AND INFORMATION- Continued Chart of Accounts for Category B Accounts 2000 ABC Class 2205 Accelerated Reader 2010 Advance Placement Testing 2015 Advisory 2020 After School Foreign Language 2030 Art Department 2035 Attendance Incentives 2040 Auto Mechanics 2045 Birthday Books/ Friends of the Library 2050 Book Store (Instructional Only) 2055 Business 2060 Child Care 2065 Computer Lab 2070 Construction 2075 Cosmetology 2080 EIAP Class Activities 2085 Electronics 2090 Employ Class 2095 English 2100 Enrichment 2105 ESL 2110 Field Trip 2115 Field Trip 2120 Field Trip 2125 Field Trip 2130 Field Trip 2135 Field Trip 2136 Field Trip 2140 Fit N Fun 2145 Foreign Language 2150 Foreign Language in Spanish (FLIS) 2155 Garden Project 2160 Gifted Ed 2165 Grade 1 Activities 2170 Grade 2 Activities 2175 Grade 3 Activities 2180 Grade 4 Activities 37

38 ACCOUNT CATEGORIES AND INFORMATION- Continued B Accounts- Continued 2185 Grade 5 Activities 2190 Grade Kindergarten Activities 2195 Grade Picnic End of Year 2200 Grade Preschool Snack 2203 Grade Special Ed Activities 2205 Grads Program 2210 Guidance 2215 Guidance How to talk Parenting 2220 Guidance Bully Program OLWEUS 2225 Guidance Siblings w/o Rivalry 2230 Health & PE 2235 Holiday Projects 2240 Instructional, General 2242 International Baccalaureate 2245 JNROTC 2250 JROTC 2255 King Arthurs Club 2260 Library 2265 Life Management Skills 2267 Literary Committee 2270 Literary Magazine 2275 LPN 2280 LPN- Pre-exam 2285 LPN/HOSA 2290 Mann Greenhouse 2295 Manufacturing 2300 Math 2305 Math Manipulative 2310 Multicultural 2315 Music 2320 Music Band 2325 Music Band All County 2330 Music Band All State 2335 Music Band Boosters 2340 Music Band District 2345 Music Band Festival 2350 Music Band Festival District IX 2355 Music Band Marching 2360 Music Band Solo Ensemble 38

39 ACCOUNT CATEGORIES AND INFORMATION- Continued B Accounts- Continued 2365 Music Choral 2370 Music Choral All County 2375 Music Choral All State 2380 Music Choral District 2385 Music Choral District IX Auditions 2390 Music Choral Festival 2395 Music Choral Festival District 2397 Music Gospel Choir 2400 Music Choral Honors 2405 Music Choral Tapes 2410 Music Drama 2415 Music General 2420 Music Jazz band 2425 Music Orchestra 2430 Music Orchestra All County 2435 Music Orchestra Festival 2440 Music Orchestra Regional 2445 Music Orchestra Solo & Ensemble 2450 Music Regional 2455 Music Uniforms 2460 Panther Sound Machine 2465 Parenting Class 2467 PE Skates 2470 Physical Education 2475 Physical Education Equipment 2480 Playground 2485 Popcorn (Instructional Only) 2490 Power and Transportation 2495 Printing 2500 PSAT Test 2505 Publications 2510 Reading Incentive 2515 Recorders 2520 Recycle 2525 S & P Swimming 2530 Sat Prep 2535 SAT Testing 2540 Save the Manatee Club 2545 School Store (Instructional Only) 39

40 ACCOUNT CATEGORIES AND INFORMATION- Continued B Accounts- Continued 2550 Science 2555 Science Fair 2560 Science Lab 2565 Skydome Planetarium 2570 Social Studies 2575 Special Education 2580 Special Ed Café 2585 Special Ed ED 2590 Special Ed TMR 2595 Team 6A 2600 Team 6B 2605 Team 6C 2610 Team 6D 2615 Team 6E 2620 Team 6F 2625 Team 7A 2630 Team 7B 2635 Team 7C 2640 Team 7D 2645 Team 7E 2650 Team 8A 2655 Team 8B 2660 Team 8C 2665 Team 8D 2670 Team 8E 2675 Technology Education 2680 Tutoring After School 2685 TV Production 2690 Vocational Education 2695 Work & Family Studies 2700 Workbooks 2705 Young Americans Performance 2710 Youth Leadership Conference 40