Activity Fund Accounting Procedures Manual Birdville Independent School District FY13-14

Transcription

1 Activity Fund Accounting Procedures Manual Birdville Independent School District FY13-14

2 Table of Contents Introduction 1 General Information 2 Section I: Cash Receipts 4 Section II: Deposits 7 Section III: Cash Disbursements 8 Section IV: Returned Checks 11 Section V: Bank Reconciliations & Monthly Reports 12 Section VI: Annual Reporting 14 Section VII: Donations 15 Section VIII: Fundraising 16 Section IX: Sales Tax 18 Section X: Petty Cash 21 Section XI: Purchasing 22 Section XII: Use of Funds Guidance Campus Activity Funds Student Activity Funds Faculty Funds 25 Section XIII: Acknowledgement Form 26 Appendix: Forms 27 ii

3 Introduction This manual is designed to provide a set of standardized accounting guidelines and procedures for the administration of the Birdville Independent School District Activity Funds. Appropriate accounting of activity funds and accuracy of financial information depends on proper recording of individual transactions. The accounting function for the Activity Funds is delegated to each campus. Principals are ultimately responsible for activity fund monies and transactions while following the guidelines and procedures prescribed in this manual. This handbook is provided to ensure that generally accepted accounting principles are followed and that sound internal controls are in place to provide protection of student and campus activity funds. The procedures and guidelines provide both administrative and accounting controls to safeguard assets and ensure reliability of the financial records. Adhering to these guidelines and procedures will help to prevent the misappropriation or abuse of funds as well as protect individuals who work with activity funds. This manual supersedes all prior publications regulating the administration of Activity Funds. This handbook will be continually updated and improved with more detailed guidelines and information. Please contact the Accounting Department with any questions and/or recommendations. 1

4 General Information 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, faculty and the general administration of the school. These funds are generally from the collection of student fees, vending commissions, fundraising activities, and various other sources. Activity funds are to be used to promote the general welfare, educational development and morale of all students. Responsibility for Activity Funds The Principal at each campus is ultimately responsible for the proper administration of campus activity funds. This responsibility includes: 1. Providing for the safekeeping of monies 2. Proper accounting and administration of transactions 3. Expenditure of funds in compliance with applicable state laws and administrative guidelines 4. Adequate training and supervision of all personnel designated by the Principal to administer activity funds The Principal and campus personnel are not responsible for funds collected, disbursed and controlled by parent or booster organizations. These parent and booster organizations funds should be handled by the officers of the respective group, not by campus personnel. Type of Activity Funds There are two main categories of activity funds: Campus Activity Funds (CAF) Consist of funds generated locally at the school or donated to the school. These funds include school office and departmental accounts such as vending, fundraising, etc. These funds are accounted for in Fund 461 and are considered District funds. Campus activity funds are considered by TEA to be district general funds. The expenditure of these funds must comply with state and board policy and with district regulations and purchasing policies. Student Activity Funds (SAF) Consist of funds generated by specific student groups, not by the District or campus. These funds include student groups such as band, class funds, student council, clubs, etc. These funds are accounted for as fiduciary trust funds in Fund 865 and are not owned by the District. Decisions about the expenditure of these funds are generally controlled by the student group with the assistance and supervision of a school district employee/sponsor. Sponsors of these organizations have fiscal responsibility to ensure proper collection and expenditure of funds. 2

5 Retention of Records The campus records should be maintained for five years after the conclusion of the fiscal year and remain available for audit at any time. Audit of Activity Funds The Staff Accountant performs audit procedures on activity funds annually. In addition, an audit will be performed whenever there is a change of Principal or financial Secretary. The Principal may also request a special audit if a situation or event warrants it. 3

6 Section I: Cash Receipts A. General Policy Guidelines 1. A receipt should be issued for all money collected. The only exception is returned checks. See Returned Checks section of this manual. 2. All money (cash and checks) collected must be deposited to the activity fund bank account in the same form as collected. Cash collected may not be used to make purchases or payments of any kind. Personal checks may not be cashed from funds collected. 3. Do not co-mingle personal funds and District funds for any reason. 4. All checks received should be restrictively endorsed at the time they are received (stamp or write on the lines on the back of the check: for deposit only or name of checking and bank account check is to be deposited). 5. Cash receipts are not to be pre-signed or pre-dated. 6. The receipt number of the applicable activity fund checks received should be noted on all checks. This enables them to be accounted for properly in the event they are returned for nonpayment. 7. Checks should always include a name, address, phone number and driver s license number when possible. Postdated checks shall not be accepted from any source. 8. All SAF will have a sponsor who is a District employee (not the Secretary). Sponsors are responsible for submitting funds collected to the Secretary. Sponsors should not keep money unsecured in the classrooms, take money home, or co-mingle money with personal funds. Large collections should be submitted to the Secretary daily; small amounts (less than $50) may be maintained in a secured, locked location for no more than one day and submitted to the Secretary by the next available day. Please note that money should never be held over the weekend. B. Purpose of Receipts There are several purposes of a receipt: 1. Provides the payee with evidence of the amount of money delivered. 2. Provides a complete record of all cash received. 3. Provides an audit trail of the cash receipt process to protect against misappropriation of funds as well as proper accounting for the transaction. 4

7 C. Receipt Issuance All funds collected should be documented on a receipt by the person collecting the funds whether collected by student, teacher, secretary, etc. There are several receipt forms which may be used including: 1. Sponsor/Teacher/Student: Tabulation Form: This form may be utilized for receipts from many individuals for the same purpose. The form lists each payee, amount, whether paid by cash or check and is initialed by the person/student submitting the funds when possible. Before submission to the Secretary, the person receiving funds totals the amounts on the sheet and agrees to actual cash and checks. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted. See Activity Fund Forms for Sample Tabulation Form. As an alternate to the Tabulation Form, it is allowable to use a class roster and document the amount received by each student s name along with their initials when possible. The roster should also indicate whether the amount received was cash or check and the check number. If a roster is used, a Deposit Form should be attached to the roster before submission to the Secretary. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted. See Activity Fund Forms for Sample Deposit Form. Product/Ticket Receipt Form: This form may be used when collecting money for activities where it is not feasible or possible to list each individual payee and in which product or tickets are issued to the payee. These events may include sales of items such as food, T-shirts, tickets for dances or events, etc. Before delivery to the Secretary, the sponsor will list the item description, beginning and ending quantities, price of items sold, calculate the sale amounts and verify that the actual cash and checks received total the amount listed on the form. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted. See Activity Fund Forms for Sample Product and Ticket Receipt Forms. Individual Receipts: This form may be issued for funds collected individually. The receipt should be filled out completely including: date, received from, amount, purpose, cash/check/coin, and received by. The original is issued to the person submitting the funds. After all receipts have been issued, a Deposit Form should be completed and carbon copies of the receipts should be attached. The Deposit Form indicates the date, receipt number range and total amount by type (cash/check/coin). The person completing the Deposit Form should verify the amount submitted agrees to the total per the receipts. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted. See Activity Fund Forms for Sample Deposit Form. Note: Sample forms are provided in the Activity Fund Forms. Each school may choose to use a customized form. This is allowable as long as all information captured on the sample form is included in the school s customized form. 5

8 2. Secretary: Funds received from individuals: The Secretary counts the funds received in the presence of the individual submitting the funds unless received in a sealed bank bag. Upon verification that the funds received agree to the submitted form, the Secretary should enter a receipt into Munis and give a copy to the teacher/sponsor. Note: Refer to the School Activity Bookkeeping Guide for instructions on entering a receipt in Munis. Note: In cases where the Secretary is unable to count funds at the time submitted, the funds should be placed in a sealed bag and placed in the safe until such time that both parties are available to open the sealed bag, count the funds and issue a receipt. Funds received in the mail: Receipts issued for funds received in the mail should be issued in the name of the company the funds were received from (i.e. Coca-Cola, ABC Company, etc.) and attached to the receipt. 6

9 Section II: Deposits 1. General Policy Guidelines A. Deposits should be made daily. In the event money is received after the daily deposit, it should be stored in the campus safe/vault and deposited the following day. As a general rule, funds in the safe/vault should not exceed the following amounts: I. Elementary $500 II. Middle School $500 III. High School $750 B. The range of receipt numbers should be noted on all deposit slips. The total of the receipts should agree to the amount of the deposit slip. C. Funds must be deposited in the same form the funds were collected. Checks cannot be cashed from the daily deposit. D. All checks should be restrictively endorsed at the time received. E. The validated deposit slip and supporting documentation for the deposit (receipts, forms, etc.) should be filed and maintained in an organized manner. We suggest supporting documentation for deposits be attached to the validated deposit slip and be filed together. 2. Deposit Preparation To assist in the preparation of the deposit slip, the Secretary completes the deposit slip (should use duplicate deposit slips), documents the range of receipt numbers included in the deposit on the deposit slip and take the deposit to the bank. The deposit should at all times agree to the total of the receipt numbers listed on the deposit slip. The validated deposit slip and any supporting documentation for the deposit should be filed and maintained in an organized manner. Note: Refer to the Munis Activity Bookkeeping Guide for further examples and instructions. 7

10 Section III: Cash Disbursements 1. General Policy Guidelines A. All payments should be made by check. The only exception is petty cash. See Petty Cash section of this manual for policies and procedures for maintaining petty cash. B. All checks must be supported by an original, itemized invoice or receipt; copies are not acceptable forms of documentation. Payment will not be made without invoices/receipts. C. All invoices/receipts should be submitted to the Secretary in a timely manner. Late payments to vendors reflect on the entire school district, and could result in late payment fees or interest charged to the account. Texas Government Code Chapter requires the district to pay vendors within 45 days of the later of: the date the goods are received; the date of the performance of the service; or the date we receive the invoice. D. All checks shall be approved on a Check Request Form by the Principal (and Club Sponsor where applicable). Except for student activity fund disbursements, checks over the following amounts shall also be approved by the Finance Committee: I. Elementary $500 II. Middle School $500 III. High School $750 IV. See Activity Fund Forms for Sample Check Request Form. E. Individuals making purchases to be reimbursed by activity funds should have verbal permission before making the purchase. Verbal permission for a purchase should not be given unless adequate funds are available for the purchase. F. No checks should be written unless sufficient funds are available in the appropriate activity fund. G. Checks should not be issued to the person signing the check. H. All accounts should have an approved signer. The Secretary should never be an approved signer on the account. I. At no time should blank checks be signed and maintained. J. Blank check stock should be properly safeguarded with only authorized personnel having access. K. Voided checks should be properly retained and defaced. 8

11 L. Payments should never be made to employees from the activity fund for services rendered, extra-duty or overtime; these payments must be made through the Payroll Department. M. People or companies who are paid for services must be identified as independent contractors. Payments to contractors will be reported to the IRS and a Form 1099 will be issued to the contractor for any amounts paid. Contact Human Resources to ensure the proper forms are obtained for any contractors working with students. Payments to individual contractors should be supported by an invoice for services. 2. Overview of Use of Funds Activity funds shall, to the extent possible, be expended to benefit those students currently in school who are associated with the group that accumulated such money. The Principal shall use reasonable discretion in expending funds in harmony with the stated basic purpose of the various funds. The collecting and expending of activity funds such as student vending, pictures, etc., should have as its basic purpose the promotion of the general welfare of the school and the education, development and morale of all students of the campus. The collecting and expending of student activity accounts such as band, student council, French Club, etc., should be in accordance with the stated purpose of the particular group. Funds from student activity accounts belong to the students. Accordingly, student funds may not be diverted to a faculty controlled account for the purpose of spending the funds on the faculty (i.e. funds from a student account may not be deposited/transferred to a faculty account). Individual student accounts are not allowed in any case. Student activity funds must be expended such that all members affiliated with the group receive an approximately equal amount of benefit. In general, expenditure of activity funds should be able to pass the public scrutiny test. If you have to ask for permission, it is likely an inappropriate expenditure. Note: See Use of Funds Guidance section of this manual for more detailed discussion topics on allowable and unallowable use of funds. 3. Check Processing The Principal reviews the Check Request Forms and supporting documentation to ensure the request is an allowable and appropriate disbursement. In addition, the Form is approved by the Sponsor and Finance Committee where applicable. After the Principal documents approval by signing the Form, the Secretary may print the checks. The checks are signed by the authorized signer on the activity fund account. The Secretary documents the check number, date and amount on the Check Request Form. Attach the Check Request Form to supporting invoices/receipts to be filed and maintained in an organized manner. 9

12 Note: The alternate, authorized check signer may approve Check Request Forms in the Principal s absence. All approved signers should be familiar with the policies and procedures in this manual. 4. Finance Committee Each campus will elect a Finance Committee annually. The Committee should have a minimum of two teachers, elected by their co-workers, for each administrator on the Committee. The Committee should meet at a minimum three times per school year. The Finance Committee Report should be reviewed at each meeting and signed by the members. An Activity Account Finance Committee Form should be completed and submitted to the Director of Business by August 31 of the school year. See Activity Fund Forms for the Activity Account Finance Committee Form. 10

13 Section IV: Returned Checks 1. General Policy Guidelines A. All campuses will utilize CheckSmart for the collection of returned checks in order to relieve the campus from attempting to collect on the checks. B. Returned checks should be credited back to the account to which they were originally deposited. C. When payment is collected on a returned check, a receipt is not issued. Give the person the returned check as a receipt for the money. D. The decision to refuse to accept payment by check from a habitual bad-check writer should be made at the campus level. The Principal has the authority to determine if it is prudent to continue accepting an individual s checks. Note: Refer to the Munis Activity Bookkeeping Guide for further examples and instructions. 11

14 Section V: Bank Reconciliations & Monthly Reports 1. General Policy Guidelines A. The Secretary should perform timely reconciliation of the bank account on a monthly basis. B. The Principal should perform timely review and approval of the bank reconciliation each month. Document performance of the review and approval by completing the Bank Reconciliation Review Checklist and attaching to bank reconciliation. See Activity Fund Forms for Bank Reconciliation Review Checklist. C. The Principal should perform a timely review and approval of the School Activity Account Monthly Report as well as the Munis Cash Balances Report. Document performance of the review and approval by signing the School Activity Account Monthly Report. D. The Secretary should prepare reports on a monthly basis and submit the appropriate copies to the Accounting Office by the 15th of the month following the reporting period. 2. Bank Reconciliations Please note that the review of the bank reconciliation is a key internal control and if performed properly is very effective in detecting any misappropriation of funds from the account. Following are key items to look for during your review: A. Ensure the bank balance on the reconciliation agrees to the ending bank balance per the statement from the bank. B. Ensure the reconciled cash balance on the reconciliation agrees to the closing cash balance per the Cash Balances report from Munis. C. Review the outstanding deposit and check detail and ensure the totals per the detail agree to the amounts on the reconciliation. D. Inquire about old outstanding checks and deposits in transit. These should be clearing the bank on a regular basis. E. Review cancelled checks to see if there are checks written to inappropriate parties, unusual erasures or endorsements. F. Review the bank statement for unusual withdrawals or debits from non-check transactions (other than expected bank fees/returned checks). 12

15 G. Review the bank statement for recurring corrections to deposits. Errors do happen occasionally but this should not be a recurring theme. If deposit corrections are occurring frequently, it could be an indication that policies and procedures are not being followed. The above procedures appear lengthy but can actually be performed in a small amount of time and are highly effective in detecting inappropriate activity as well as protecting the individuals involved in the administration of activity funds. 3. Monthly Reports The Secretary should create the following reports on a monthly basis: A. Cash Balances Report from Munis B. Outstanding Check listing (if applicable) C. Outstanding Deposit listing (if applicable) D. Bank Reconciliation Form Submit a copy of the Cash Balances Report, Outstanding Check list, Outstanding Deposit list, and Bank Reconciliation form (back page on bank statement) to the Accounting Office by the 15th of the month following the reporting period. A copy of the Club Balances Account Report should be submitted to each Club sponsor on a monthly basis. Note: Refer to the Munis Activity Bookkeeping Guide for further examples and instructions. 13

16 Section VI: Annual Reporting The Secretary should submit the following information to the Accounting Office as soon as possible after the close of the school year: 1. Cash Balances Reports for each month 2. Bank Statements for each month 3. Check stubs /Check Request Forms with supporting invoices/receipts 4. Deposit slips with supporting tabulation sheets/receipts 5. Completed Activity Fund Audit Form 6. List of bank accounts and account numbers 7. Fundraiser Approval and Recap Form 14

17 Section VII: Donations Donations to the school in the form of cash or otherwise should be approved by the Board of Trustees. A recommendation is submitted to the Board of Trustees for acceptance, and the donation is not official until the Board has taken action on the recommendation. A Donation Acceptance Recommendation Form should be completed and submitted to the Associate Superintendent for Finance office for processing. See Activity Fund Forms for Donation Acceptance Form and Instructions. Once the Board of Trustees approves the Acceptance of the Donated Funds, the school must utilize the funds in compliance with the provisions of the grant. For example, if the donors specify funds are to be used for office supplies, the funds used for that purpose. Retain a copy of the check from the donor and letter or other documentation submitted with the check and attached to the receipt. 15

18 Section VIII: Fundraising 1. General Policy Guidelines A. Principal approval is required prior to beginning any fundraiser. B. Principal review of fundraiser results is required after completion of any fundraiser. C. The Principal has the discretion to limit the number of fundraisers. D. All cash collection policies and procedures as previously discussed in this manual must be followed relevant to any fundraiser. See Cash Receipts section. E. All cash disbursement policies and procedures as previously discussed in this manual must be followed relevant to any fundraiser. See Cash Disbursements section. Note: Principal is used throughout the following; however, the Principal has the discretion to designate an Assistant Principal to perform these duties. 2. Fundraiser Procedures Prior to obligating the campus or club to a fundraiser, the sponsor must complete a Fundraiser Approval and Recap Form. The sponsor should fully complete the top and lower left portions of the Form and submit to the Principal for approval. The Principal should consider the following before approving the fundraiser: A. Has the sponsor properly and completely planned the fundraiser? B. Is the reason for the fundraiser valid and appropriate? C. Has the sponsor and/or club conducted fundraisers appropriately in the past? D. Is the fundraiser expected to make a reasonable profit? E. Has the club conducted too many fundraisers this year? F. Is the fundraiser a raffle (an exchange of value for a chance to win)? According to the Attorney General s Opinion No. JM-1176, school districts are not authorized to conduct charitable raffles. Once the Principal has approved the fundraiser, the sponsor may proceed. The sponsor is responsible for following District policies and procedures related to cash receipts and disbursements for the fundraiser. All cash receipts must be documented on an individual receipt, tabulation form or product/ticket receipt form. Cash receipts should be submitted to the office on a daily basis unless the amount is under $50. Purchases related to the fundraiser may not be made at anytime 16

19 from the fundraiser collections. Upon completion of the fundraiser, the sponsor should complete the lower right portion of the Form indicating the actual receipts, costs and net profit of the fundraiser and submit to the Principal for review. Fundraiser forms should be kept on file by the Secretary and submitted with annual audit documents to the Staff Accountant. See Activity Fund Forms for Fundraiser Approval and Recap Form. 3. Faculty Fundraisers Principals may approve fundraisers for the campus faculty fund; however, all promotional materials should clearly indicate the fundraiser proceeds will be spent on faculty incentives and not the students. 4. Sponsor Training All sponsors for organizations that engage in fundraising activity must complete required training and submit a Sponsor Acknowledgement Form to the Principal. A presentation may be requested by the Principal for teachers at his/her campus. Contact the Staff Accountant to request a live training. In addition, the training is accessible electronically from the District website. See Activity Fund Forms for Sponsor Acknowledgement Form. 17

20 Section IX: Sales Tax 1. General Policy Guidelines A. Campuses should prepare and submit a Sales Tax Form to the Director of Business Office by the 7th of each month along with a check for any amounts owed. B. Campuses should not pay sales tax or reimburse individuals for sales tax paid because the District is generally exempt from paying sales tax. Exceptions to payment of sales tax include instances when it is not practical for the individual to take a tax exempt certificate i.e. emergencies, unexpected circumstances, etc. and purchases made from the faculty account. 2. Purchases School Districts are exempt from paying state sales taxes when purchasing, leasing or renting taxable items that are necessary to the District s exempt function of educating students. When traveling for business, only in-state hotel charges are exempt from sales taxes. The District s exemption from sales tax cannot be used for the personal benefit of an individual. 3. Sales/Fundraisers Sales of the following items are exempt from sales tax: A. Meals and food products as long as sold by school or student organization during the regular school day or as part of a student organization s fundraising as long as all net proceeds go to the organization for its exclusive use. These items may include: cokes, candy, concession stand sales, cookie dough, meat sticks, jelly, salsa, etc. B. Magazine subscriptions for at least six months C. Bakery items such as pies and cakes unless sold on a plate with utensils D. Gift certificates or coupon books E. Car washes F. Amusement services such as admission tickets to dances, carnivals, and other school events G. Rental of real property such as gym, auditorium, cafeteria, etc. H. Agricultural products (plants, seeds), the products of which ordinarily constitute food for human consumption I. Cosmetology services such as haircuts, shampoo, manicures and pedicures J. Parking permits for public school students, faculty and staff 18

21 K. Farm animals such as pigs, cows, chickens, etc. L. Advertising space in athletic programs yearbooks, newspapers, etc. (as long as no graphic design services are provided) M. Automobile repair (lump-sum charge for parts and labor) Sales of the following items are taxable and not exempt from sales tax unless using as a tax-free sales day: A. Yearbooks and other printed materials such as sports programs B. Rental of tangible personal property such as locks, musical instruments, calculators and computers C. Horticultural products such as flower arrangements, roses, carnations, etc. D. Cosmetology products such as shampoo, conditioner, nail polish, etc. E. Parking permits for the general public F. Animals that do not ordinarily constitute food or product sales such as hamsters, mice, cats and dogs G. Automobile repair parts (separately stated charge for parts is taxable; separately stated charge for labor is not taxable) Each organization may hold two tax-free sales days per calendar (January December) year. Please keep in mind the following in relation to these tax-free sales days: A. The organization must be a bona fide student organization with officers and regular meetings (i.e. not Mrs. Smith s 5 th period math class). B. The day must be a consecutive 24 hour period which may either be the day the items are delivered by the vendor to the school or the day the items are delivered to the customers. NOTE: When an organization is acting as a sales representative or commissioned sales agent for a for-profit retailer, the for-profit retailer is responsible for collecting and remitting sales tax. As such, the sale cannot qualify for a tax-free sales day. This means that catalog and brochure sales cannot be tax free unless it is for the sale of a non-taxable item (i.e. cookie dough, fruit, etc.). When imposing sales tax, the school has the option of: A. Adding the tax to the item s selling price: If the selling price of an item is $5.00, and the tax rate is 8.25%, the school would collect $5.41 ($5.00 X ) from the buyer for each item sold. 19

22 B. Absorbing the tax in the item s selling price: If the item sold for $5.00 including tax, the school would collect $5.00. The school would retain $4.62 ($5.00 / ) and remit $0.38 for sales tax. 4. Sales Tax Reports Sales tax reports should be submitted to the Director of Business Office by the 3rd of the month following the reporting period. All campuses must submit a sales tax report even if no taxable sales are made during the reporting period. All sales tax due should be paid by check. See Activity Fund Forms for Sales Tax Form. 20

23 Section X: Petty Cash 1. General Policy Guidelines A. A petty cash account may be established/maintained at the campus at the discretion of the Principal for the purchase of small items. Approval must be obtained from the Director of Business for a petty cash account. See Activity Fund Forms for Petty Cash Approval Form. B. Campuses that wish to maintain a small petty cash fund must adhere to these guidelines. It is the responsibility of the Principal to ensure these guidelines are followed. C. Establish a dollar level at which the fund will be maintained that is appropriate for the campus. In no cases should this level exceed $200. D. At all times the sum of cash, records, invoices/receipts maintained in the petty cash fund should equal the established dollar level. E. Petty cash should be secured in a locked area when unattended with only appropriate personnel having access to the cash. F. The petty cash fund should be reconciled on a weekly basis by someone who does not manage the petty cash funds. The reconciliation consists of counting all cash, records, invoices/receipts in the fund to ensure it totals to the established petty cash amount. G. The petty cash may be used to make change for faculty members and students. The petty cash may not be used at any time to cash checks for faculty members or students and never to make loans. 2. Petty Cash Procedures A. If cash is disbursed to individuals, a record should be prepared indicating to whom the cash was issued, the purpose, be signed by the person receiving the cash and be placed in the cash box to replace the cash paid out. B. After the individual makes the purchase, the record prepared above is replaced by cash and/or invoices/receipts. The invoice/receipt should appropriately document the purpose of the purchase. C. If cash is disbursed for purchases, it should be replaced by an invoice or receipt which appropriately documents the purpose. D. When cash in the fund is low, a check should be written to Petty Cash in the amount of the invoices/receipts in the fund. The invoices/receipts must be attached to the check request and recorded in the appropriate activity accounts for the purposes of those purchases. 21

24 Section XI: Purchasing 1. General Policy Guidelines A. Expenditures for $25,000 or greater require Board approval. B. Cumulative expenditures during the fiscal year $50,000 or greater must go through District bid procedures. C. Expenditures for $10,000 to $25,000 require quotes from three vendors by telephone or in writing. D. The Purchasing Department is available as a resource at any time the campus needs assistance in making a purchase. Many times the Purchasing can save the campus money by using certain approved vendors. Please be aware of this resource and utilize it. 2. Purchase Orders At times, the campuses will want to make purchases with activity funds from vendors that require either a purchase order or prepayment. All campuses now have four accounts set up in Fund 461 for this situation as well as for processing student transportation. The accounts are: XXX 0 99 XXX Contracted Services XXX 0 99 XXX Supplies XXX 0 99 XXX Student Transportation XXX 0 99 XXX Miscellaneous Expense The XXX represents the campus organization code. The campus will write a check to the District, code the deposit to the appropriate account in Fund 461 and forward to the Business Office Secretary. Once the funds are deposited into the account, the purchase order may be processed per District procedures. 22

25 Section XII: Use of Funds Guidance 1. Campus Activity Funds Allowable A. School assemblies, student body social functions and field trips. B. Awards/recognitions such as plaques, caps, certificates, etc. for students, staff or volunteers. C. Incentives for student involvement. D. Professional learning for staff including related travel (subject to District travel policies). E. Supplemental classroom instructional needs and general office supplies. F. Campus security. G. Staff appreciation lunches. H. Retirement receptions. I. Refreshments and snacks for teacher in-service and staff meetings. Unallowable A. Purchase of any gift for any person or organization except as allowed for recognition/awards, recruiting and retaining of qualified employees and enhancing employee morale as defined in CFD LOCAL board policy. B. Extravagant or high-priced award/recognitions or staff appreciation lunches. C. Payment of an individual s personal bills. D. Loans to employees, parents or students for any reason. E. Payment of expenses of spouses and other non-employees. F. Donations to individuals, organizations or scholarship funds. This is considered a gift of public funds which are prohibited under Article III, Section 52 of the Texas Constitution. These items would be allowable from student and faculty funds. G. Alcoholic beverages, tobacco products, controlled substances, firearms and other weapons. 23

26 H. Extra compensation or bonuses to employees whether in the form of cash or gifts. I. Replacement of an individual s property that was lost, stolen or damaged on District premises or at a District function. Use of funds in this manner is prohibited by the Texas Tort Claims Act. J. Meals for day travel. IRS considers this income that must be reported on the Form W-2. K. Transfer of funds to the faculty accounts. L. Any other expenditure prohibited by federal or state law, TEA or Board policy. NOTE: Please remember these funds are to be used to promote the general welfare of the school and the educational development and morale of all students. 2. Student Activity Fund As a sponsor of a student group, the employee s responsibility is to provide professional stewardship and guidance in operational and financial matters. These matters will include collection and disbursement of funds. All sponsors should be familiar with policies and procedures in this Manual. The basic purpose of collecting, raising and expending funds for a particular student group must be for the direct benefit of all students belonging to that group and/or the benefit of the entire school. The sponsor and student group should adhere to the following guidelines: A. Student activity funds are to be used to finance a program of non-curricular school activities augmenting, but not replacing, the activities provided by the District. B. Projects for raising student activity funds shall in general contribute to the educational experience of students and shall add to the instructional program. C. Student activity funds shall, to the extent possible, be expended to benefit those students currently in school who are associated with the group that accumulated such money. NOTE: INDIVIDUAL STUDENT ACCOUNTS ARE NOT ALLOWED IN ANY CASE. STUDENT GROUP FUNDS MUST BE EXPENDED SUCH THAT ALL MEMBERS AFFILIATED WITH THE GROUP RECEIVE AN APPROXIMATELY EQUAL AMOUNT OF BENEFIT. D. Before purchase or requisition of goods and services, the expenditure must be approved on the Check Request Form by both: I. The organization s sponsor (and) II. The campus Principal 24

27 E. As trustees, Principals and/or sponsors who are associated with student activity funds could be responsible for replacement of money lost or improperly spent. 3. Faculty Funds Faculty Funds are defined as funds generated solely by and for the use of the school faculty, to be utilized and expended at their own discretion. All expenditures for hospitality, condolence, or other purpose which is for the sole benefit of the faculty should be paid out of Faculty Funds. These funds may also be contributed by the school faculty and other staff members to be utilized and expended at the staff's own discretion. The revenues in the account shall be obtained voluntarily. All regulations governing the receipt and disbursement of Activity Fund moneys are applicable to Faculty Fund transactions. However, control of these monies rests primarily with the staff. Faculty Funds must be accounted for in a separate SAF account established specifically for that purpose. The Faculty Fund is to be administered by a committee chosen by the faculty. The chairperson of the committee is the Fund's sponsor, who shall have approval authority for expenses and disbursements requested by the Faculty Fund. The sales tax exemption cannot be claimed for purchases from the Faculty Fund for gifts, condolences, or other such items of a personal nature. 25

28 Section XIII: Acknowledgment Form I have reviewed and understand the Activity Fund Manual. Principal Secretary Campus Date 26

29 Appendix: Forms FY13-14