OVERTON ISD FUNDRAISER/ACTIVITY FUND & PROCEDURE MANUAL

Transcription

1 OVERTON ISD FUNDRAISER/ACTIVITY FUND & PROCEDURE MANUAL

2 INTRODUCTION In view of the large amount of monies received from and expended for student/campus activities, the demand has developed for efficient, thorough and safe management of these funds. Therefore, this manual is designed to provide a set of standardized controls, rules, regulations, procedures, and forms for administration of the Overton Independent School District Activity Funds. One such rule is: NO deficit balances may be maintained in activity funds without approval by the Business Manager. Principals, record-keepers, and sponsors are responsible for following the controls and procedures prescribed in this handbook. The term record-keeper will be used throughout this manual to indicate whoever handles the transactions and maintains the records of the activity funds and/or petty cash fund on their campus. This manual supersedes all prior publications regulating the administration of Activity Funds. RESPONSIBILITY FOR ACTIVITY FUNDS The school Principal is responsible for the proper collection, disbursement and control of all activity fund monies. This responsibility includes: 1. Providing for the safekeeping of monies. 2. Proper accounting and administration of fund transactions. 3. Expenditure of funds in compliance with applicable state laws, and local board policy administrative guidelines. 4. Adequate training and supervision of all personnel designated by the Principal to administer activity funds. Student organization sponsors are responsible for making sure the students participate in the decisions about how the funds they raise are spent. This can be documented in the minutes of the organization. The Principal is not responsible for funds collected, disbursed and controlled by parent or booster organizations. These parent and booster organizations funds are not to be accounted for in the school s activity fund. SECTION 1 AUDITS SPECIAL AUDITS An audit is to be performed whenever there is a change in principal or record keeper. A principal may request in writing a special audit of his activity funds and /or petty cash if a situation or event warrants it. In addition to being subject to audit at any given time by the Business Office or the Internal Auditor, activity funds are also subject to audits by the external auditors on a test basis. RETENTION OF RECORDS

3 All records should be kept current and in good order, for a period of three years after the conclusion of the fiscal year in which the transaction occurred, and available for audit at any time. SECTION 2- BASIC RECORDS All records must be completed in ink. A copy of all records submitted to accounting must be retained for audit purposes. CASH RECEIPTS Cash receipts are the means of accurately recording cash received and providing support for each bank deposit. Only pre-numbered cash receipts are to be used and will be issued from the business office. BANK DEPOSIT SLIPS Deposit slips, once validated by the bank, serve as a record for the specific date that receipts were credited for the bank account. Deposit slips are obtained from the bank as needed. REQUEST FOR CHECK Must be done through the Requisition system SECTION 3- ISSUING CASH RECEIPTS GENERAL RECEIPTING PROCEDURES A. All cash and check collections must be receipted using a OISD receipt book (or prenumbered Activity Fund Deposit Records) immediately and an in ink by the person receiving the money: 1. Original (white) to person submitting the money. 2. Permanent copy (yellow) retained in receipt book in the Business Office. B. The OISD cash receipt must have the following to be considered properly completed. 1. Date, campus and amount 2. The individual or firm submitting the money. A receipt may not be issued to more than one person. If a check is received, the maker of the check (if different than the person turning in the money) must be indicated on the receipt. 3. An explanation of the purpose for which the money was received. 4. The correct Activity Fund account code. 5. The signature of the person receiving the money. The signature must be manual; signature stamps are forbidden. C. It is required that the sponsor properly complete the activity fund deposit record prior to leaving any monies with the record keeper. In addition, it is preferable that all monies are counted in the presence of the person turning in the money. Uncounted monies should never be left with the record keeper. D. Receipts are not to be pre-signed or predated. E. Postdated checks cannot be accepted from any source.

4 F. Under no circumstance should a cash receipt be altered. If an error occurs, VIOD the original receipt and all duplicates, then issue a new receipt. The original of the voided receipt must be attached to the copies and retained for audit purposes. SECTION 4- PROCEDURES GENERAL OPERATING PROCEDURES Deposits must be made daily. All checks held for deposit must be endorsed as follows: All checks must be endorsed at the time they are receipted or accepted. It is helpful if the reason for the payment is on the memo line on the check. A. Deposit slips should include receipt numbers to allow for an audit trail. All cash receipts must be deposited in numerical sequence. The practice of cashing personal and /or payroll checks is prohibited. PAYMENTS TO NON-EMPLYEES FOR CONTRACTED SERVICES A. Payments for services performed by individuals not employed by the district may not be made directly from the Activity fund checking account or a petty cash fund. These must be paid through Financial Services in order to comply with IRS 1099 reporting requirements. B. For employment of non-district personnel as a consultant/instructor the Contract for Consultant Services should be completed prior to the services being rendered. The social security number and mailing address of the individual rendering services must be obtained in order to issue and IRS Form 1099MISC. Club sponsors must not pay a non-employee using either their personal check or cash, and then seek reimbursement from the activity fund. MEMBERSHIP FEES Activity Fund monies (school accounts) may not be used for individual membership dues. Membership dues in the name of OISD or the campus are allowable expenditures from Activity Funds. LOANS Transfers as loans between activity funds are prohibited. PROFESSIONAL CONFERENCE EXPENSES Advance payments are not allowed for district employees traveling without students. Activity fund monies may be used for professional conference expenses only in accordance with the District s procedures for out-of-district travel. Upon return, the employee should submit a completed OISD Travel Voucher form, along with any appropriate receipts, to the campus Principal for approval. Once the voucher is signed and coded properly, the record keeper will enter a requisition into the system. The

5 Business Office will process a reimbursement check. All travel reimbursements must be processed by the Business Office. SECTION 5- FIXED & TAGGED NON-CAPITAL ITEMS DEFINITION Fixed assets are purchased or donated items that are tangible in nature, have a life longer than one year, have a unit value of $5000 or more, and/or may be reasonably identified and controlled through a physical inventory system. Tagged non-capital items are $500 minimum limit include: video cameras, musical instruments, PDAs, hand-held radios, and any other highly accessible items placed on campuses. DONATIONS Acceptance of donated fixed assets, as well as all other donations, must be approved by the appropriate administrator. See instructions for donations on the District Donations form on OISD s website. A. Approved and accepted donated fixed assets and tagged non-capital items must be tagged and added to campus inventory records. The Coordinator of Fixed Assets must be notified of the acquisition. TAX STATUS OF PURCHASES SCHOOL TRIPS: MEALS & LODGING: School employees and students traveling on official business should take a Hotel Tax Exemption Certificate to the hotel/motel so that state hotel occupancy tax will not be charged. The district employees and students are not exempt from local hotel/motel occupancy tax. Sales tax is not due on meals purchased by a school for an athletic team, band, debating club or similar school-supervised organization on a school-approved trip. OUT OF STATE VENDORS: A. When items are purchased for resale from an out of state vendor, the district is not subject to sales tax from other states. Should an out of state vendor include sales tax on an invoice for items purchased for resale, the school should proceed as follows: 1. Deduct the sales tax from the invoice total and make check for the amount of goods and any shipping and handling fees only. 2. Complete a Texas Sales Tax and Resale Certificate and send the certificate along with the check to the vendor. TAX EXEMPT PURCHASES B. All items purchased by a public school or school district for the school s own use qualify for an exemption from sales tax. The school, school district or authorized agent should provide the seller with a Texas Sales Tax Exemption Certificate. To be valid, the certificate must

6 state that the merchandise being purchased is for the organizations own use. The school district should not reimburse employees for sales tax they paid on purchases made on behalf of the school district. Purchases by individuals for their own use, even though connected with a school or school organization are not tax exempt. (EX. Cheerleaders purchasing their own uniforms, Athletic teams purchasing their own jackets.) The State does not issue Tax Exempt numbers. TAX EXEMPTION CERTIFICATES do not require numbers. However, most retailers require some type of identification, so it s a good idea for the employee to take his/her OISD ID badge when making a district purchase. TAX EXEMPT SALES Public schools and school-related organizations need not collect sales tax on the following: Fees and admission tickets, including football and drama tickets Club memberships Deposits Sales of food and soft drinks sold during a regular school day, subject to an agreement with the proper school authorities Sale of whole cakes or pies Food and drinks sold at PTA carnivals EXEMPT FOOD SALES The sales tax is not collected on meals and food products, including candy and soft drinks served in an elementary or secondary school during the regular school day by a school, student organization or PTO. SECTION 6-FUND RAISING ACTIVITIES DEFINITION OF FUND RAISING ACTIVITES A fund raising activity may be defined as any activity involving participation of a student body or a school recognized student group undertaken for the purpose of raising funds for a school or a school sponsored group. FUND RAISING ACTIVITIES A. REQUIREMENT 1. A sponsor must receive formal instruction on the contents of the Activity Fund Policies and Procedures Manual prior to any fund raising activities. B. GENERAL 1. Fund raising activities are not confined to regular school hours but are considered an extension of the school program. When fund raising activities are in the name of the school, all funds raised become school funds belonging to the school-sponsored group responsible for raising the money.

7 2. Projects for the raising of activity fund monies shall not conflict with, but shall add to the instructional program. 3. Door-to-door fund raising by students in activities sponsored by the school or school related organization is prohibited. 4. All contracts, installment contracts, lease agreements and letters of agreement must be signed and approved by the school principal. This requirement includes commitment and obligations to disc jockeys, bands fund raising companies, rental agreements, reservations for ballrooms and restaurants. No contract agreement may extend over one (1) year from the date of the contract or agreement without a specific authorization in writing by the Business Manager. 5. To request permission to conduct a fund raising activity, the club sponsor should complete the application portion of the Fund Raising Application and Financial Recap Form. At least three weeks in advance of the planned fund raiser; all fund raising requests must be submitted to the campus Principal or designee for approval. 6. Each organization is limited to a maximum of two fund raising activities annually. However, one fund raising activity may take place several times. For example, if a group sells football programs as a fundraiser that activity counts as one fundraising activity even though they may sell programs at several football games. 7. No raffles are permitted. C. ACCOUNTING FOR FUND RAISING ACTIVITIES 1. All collections and disbursements associated with any fund raising activity coordinated by the school or a school recognized student group shall be accounted for through the activity fund. 2. The club sponsor or activity chairperson is responsible for keeping accurate records for all fund raising activities. Such records should include at minimum: a. Distribution lists b. Collection reports c. Tabulations of sales tax collections 3. Upon completion of fund raising activities, the Financial Recap Section of the Fund Raising Application and Financial Recap Form should be completed by the sponsor. Approval for future fund raising requests will be based on the proper completion and timely submission of this report.

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