Red Book Training. Jessica Darnell, Director of Business Christian County Board of Education

Transcription

1 Red Book Training Jessica Darnell, Director of Business Christian County Board of Education

2 Receipts: Collecting Money Multiple Receipt Form: District provides this form in a 2-part carbon in order to provide copy for teacher/sponsor when turning in money Teachers/Sponsors to complete when collecting money from students Teacher/Sponsor name should be at the top of the form, along with grade level of the classroom 3 rd grade and up must sign their name Bookkeeper does not collect money from students/parents All funds come to Bookkeeper already on Multiple Receipt Form and signed by teacher/sponsor Person who opens mail list checks received on Multiple Receipt Form and then give to Bookkeeper FSA-17 Sales Form: Commonly used for Book Fairs or school stores District office made this a 2-part carbon form and will send out to Bookkeepers if needed

3 Receipts: Collecting Money Ticket Sales Form: Any/all events that charge an admission sports events, dances, homecoming, prom, etc. Tickets must be pre-printed and different colors for consecutive events Ticket Taker and Ticket Seller must be two different people and must be at every gate entrance If you aren t selling tickets at a gate entrance lock it and don t allow people in that door Choose trustworthy people to run the gates. Some schools pay them, but that is your choice. School employees extra pay must go through payroll at board office Recommended that you have designated people to be Ticket Taker/Seller for entire season or school year. This allows people to become more familiar with the process. Money and completed Ticket Sales Form shall be turned into Bookkeeper on the first business day following the event. EXAMPLE #1

4 Receipts: Collecting Money Donations: Donation Acceptance Form must be completed on any/all donations (monetary or physical) along with purpose of the donation. A report of all donations received by schools should be presented to the Board on an annual basis. When you receipt in a donation, be sure to use the word donation in your note so that you can use it to pull reports. Any donation of $1,000 or more must be sent to Central Office and deposited in DAF still complete Donation Acceptance Form and send a copy to Central Office Deposits: No grant, tuition or daycare fees can be deposited into Activity Accounts must go to Central Office Collect over $100 deposits should be made daily Less than $100 deposit when reach $100 or at least weekly Bookkeeper prepares deposit slip, listing all checks or making copies of checks. Receipt numbers shall be noted on the deposit slip.

5 Receipts: Collecting Money Returned Checks: Fee of $45 per returned check. Must be posted in a visible location to the public, usually in the front office of the school Bookkeepers are to turn over Returned Check information to the Finance Department and we will handle collection through the County Attorney s office. Please do not discuss with the person or make exceptions. Student Fees: ANY fee charged to a student must be on the Board approved list of fees. Fees must be used for the specified purpose of the fee.

6 Expenditures: How to Spend Money Purchase Order: ALL expenditures require an approved PO BEFORE the purchase is made/ordered. Most schools use the Red Book Purchase Order form as a Purchase Request Teacher/Sponsor completes the Purchase Request Principal signs the Purchase Request (MUST be original signature, no stamps, no copies of signed forms) Purchase Request is given to the Bookkeeper to create the PO from EPES software to assign PO number. Principal also signs the EPES printed PO. PO is given back to teacher/sponsor for the order to be placed Once items are received, packing slip should be signed by teacher/sponsor and submitted to Bookkeeper When invoice is received by Bookkeeper, they will verify that all ordered items have been received Bookkeeper will write check to pay the invoice. Bookkeeper shall note check number and date paid on all invoices Principal and Bookkeeper sign all checks Principals should be relatively familiar with all purchases because you have previously signed off on the Purchase Request and Purchase Order. Best Practice also have an Assistant Principal listed as check signer on the bank account for emergencies

7 Expenditures: How to Spend Money All expenditures must follow purchasing procedures for approved vendors: Kentucky Purchasing Cooperative AEPA Local Vendors State Contracts If not on one of these lists, you must obtain quotes from two vendors off one of the lists to compare to the unapproved vendor. There must be substantial savings to the district in using the unapproved vendor Written documentation of the quotes is required (online print out, quote from company, etc.) and completion of the Quote Form is required when the PO is submitted to Bookkeeper. All information listed above can be found in the District s Purchasing Manual. Copies have been provided to Principals and Bookkeepers and on the District s Finance webpage.

8 Expenditures: How to Spend Money No checks should be made to cash or bank If start up money is needed, check is written to the person responsible School should have their own tax exemption number and NOT share this number with PTO/Booster Clubs If a teacher/sponsor makes a purchase and you choose to reimburse them, you cannot reimburse them for any sales tax paid on the purchase Principal shall not be a vendor on a Purchase Order only exception is for travel reimbursement (which must be approved and have students on trip)

9 Expenditures: How to Spend Money DISALLOWED EXPENDITURES: Cash awards, gift cards, prepaid credit cards Renovation or maintenance of school facilities or buildings Attendance incentives for compulsory instructional day, unless the incentives are instructional (instructional field trip, book, magazine) Gifts, services or donations to district employees or external organization unless using staff generated funds Any purchase that benefits adult sponsor or district personnel and not the student organization (coach attire) Furniture for administrative offices Structural improvements or additions to buildings/grounds Professional development expenditures

10 Fundraisers Approval Form: Board approves all school-wide fundraisers and those that are off-campus. = When/where are you doing it? Board approves all PTO/Booster Clubs = Who is doing it? Must list specific purpose on the form and funds must be used for that purpose. = Why are you doing it? Also provide a description of items to be sold or what activity is occurring to raise the funds. = What are you doing? Be aware of board meeting dates/timelines for approval Example: board meeting date August 18 must be to Ms. Edwards a week prior to that date; even earlier is preferred so that I can review/initial prior to adding to agenda I will make notes on Approval Forms if necessary and I will use blue ink If your dates don t meet guidelines for approval, I ll either change the start date to match with Board approval or I will suggest Emergency Approval

11 Fundraisers Fundraisers cannot be tracked by student All funds go into one account to be used for all students on team/club This rule applies to PTO/Booster Clubs as well because it is an IRS ruling Cannot fundraise for operations operations include instructional items because that s our operation Cannot fundraise for teachers/staff Fundraiser Worksheet to be completed at end of fundraiser to determine profit/loss EXAMPLE #2 Fundraiser Worksheet EXAMPLE #3 Inventory Control Worksheet

12 Charitable Gaming Definition: Fundraisers that involve games of chance for a charitable purpose Regulated by the Department of Charitable Gaming Three Types: No License or Exemption Required: Three or less raffles per calendar year with none of the raffles having gross receipts over $150 each Exemption License: Combined gross receipts cannot exceed $25,000 per calendar year (separate bank account) Bingo, raffle, split the pot, wheel games, cow-pie bingo, ker-plunk, pre-recorded horse races, horse race bingo, golf ball drop, any other game of chance Annual report required (no fee) License: Combined gross receipts exceed $25,000 per calendar year Bingo, raffles, pull-tabs, wheel games Annual report and percent of profits as license fee

13 Charitable Gaming Rules apply to schools and PTO/Booster Clubs Only non-profit organizations can receive licenses from Charitable Gaming PTO/Booster Clubs are most likely not a non-profit organization through the IRS and CANNOT participate in gaming activities If a PTO/Booster Club is a non-profit (501c3) organization, there are reporting requirements through the IRS in order for them to maintain their status. A PTO/Booster Club organized as a 501c3 organization is the ONLY type that can receive tax deductible donations.

14 Title IX Federal law prohibiting sex discrimination in education programs Prevalent in high schools, includes activity accounts, district funds, and PTO/Booster Club funds Be aware that this is a federal law regarding entities who receive federal dollars Violations of Title IX could endanger ALL federal funds received by the district: Title I, IDEA B, SIG, National School Lunch Program, etc.

15 Monthly Reports Principal receives bank statement (either online or in mail) Review statement: Look at deposits made: when school is in session, daily deposits for MS & HS; probably every other day for ES (depending on fundraisers/field trips) All cleared checks should be familiar since you signed them Be sure that no alterations have been made to vendors and be sure it is your signature on the check Sign and date first page of bank statement Give to Bookkeeper for reconciliation

16 Monthly Reports Reports should be completed and sent to District Finance by the 10 th of each month. Please adhere to this deadline unless there are extenuating circumstances. List of required reports in Red Book: Monthly Report reconciliation page and general ledger Accounts Receivable/Accounts Payable list Sequential List of Checks Sequential List of Receipts Journal Adjustments Transfers List of Outstanding Checks

17 Monthly Reports Principal signs all reports before sending to District Finance Fraud Prevention Tips: Randomly ask questions about the monthly reports (maybe ask to see invoices for a particular canceled check) Look for trends are you using a certain vendor more now than in the past? Are you signing more checks? Is your bank balance going down? Culture of school comes from the top if you demonstrate ethical behavior and place importance on financial matters, others will reflect your attitude

18 Monthly Reports Fraud Prevention Red Flags: Late monthly reports Bookkeeper that wants or has total control Sponsors of clubs that don t turn money in or don t want to turn in the money with supporting documentation Receipts not given back to the person turning the monies in Deposits not being made timely Major change in behavior or personal situation School Administrators not familiar with financial requirements Inventory control worksheets are not being completed for sales that required the form Parents may call and ask why their check they wrote last month has not cleared the bank?

19 PTO/Booster Clubs External accounts Any new PTO/Booster Club MUST be Board approved PRIOR to obtaining officers or Federal ID number. Items to be Submitted Annually within first 30 days of school year or first 30 days of first transaction of the group: Federal ID Number List of Officers Insurance Certificate ($1 million coverage) Budget Annual Financial Report (due by July 15 each year) NO fundraising should be allowed to occur until ALL above information is received. PTO/Booster Club Handbook on District Finance website Agreement within the handbook should be completed ANNUALLY

20 PTO/Booster Clubs Must have their own sales tax exemption cannot use District s or School s Donations made to PTO/Booster Clubs are NOT tax deductible to the donor unless the PTO/Booster Club has obtained 501c3 status from the IRS School district employees shall not serve as treasurer or any other office with check signing authority School district employees shall not have a management role of a PTO/Booster Club no employees shall collect or handle funds of a PTO/Booster Club

21 PTO/Booster Clubs PTO/Booster Clubs shall not pay for referees or officials PTO/Booster Clubs shall not enhance salaries or pay stipends for any district employees IRS prohibits tax-exempt organizations from requiring participation in fundraisers. Likewise, PTO/Booster Clubs shall not require an amount be donated in lieu of participating in a fundraiser Individuals choosing not to participate in a fundraiser shall not be excluded from benefitting from the fundraiser and shall not be penalized in any way. PTO/Booster Club fundraising must benefit the members of the group as a whole; no fundraising monies shall be applied to individual student accounts

22 PTO/Booster Clubs Red Flags for Fraud Prevention Not meeting Red Book requirements (turning in ID number, list of officers, etc) Not willing to work with school/group to purchase items needed. There should be a relationship with Principal on decisions regarding how to spend PTO funds. Principal cannot dictate but can suggest ways to use money for items that the school cannot purchase. Vendors or other groups contacting the school because of unpaid invoices for items ordered by the PTO/Booster Club Do not make payments to vendor/groups for a PTO/Booster Club, we are not here to bail them out. They are to be self-sufficient and separate from the school. They are here to support the school, not vice-versa.

23 Segregation of Duties Example for Receipts: Person #1 (teacher/sponsor/school staff) Opens mail (except bank statement) Records any checks received on Multiple Receipt Form Receives cash/checks from students on Multiple Receipt Form Bookkeeper (person #2) Photocopies checks Records receipts on deposit ticket/form Records revenue in EPES Principal (person #3) Reconciles log produced by Person #1 to deposit ticket Deposits checks and cash

24 Segregation of Duties Example for Expenditures: Purchase Request completed by teacher/sponsor, signed by Principal Purchase Order printed from EPES by Bookkeeper, signed by Principal Packing Slip signed by teacher/sponsor submitted to Bookkeeper Clerk #1 opens mail; gives invoices to Bookkeeper Bookkeeper enters invoices for payment and prints checks Principal signs checks Clerk #1 matches invoices to checks and mail checks ALL Expenditures have Purchase Request, Purchase Order, Invoice (or Standard Invoice), Packing Slip, and Check Stub.

25 SBDM Funds March 1: Tentative Allocation Budget to be approved by SBDM Council and submitted back to finance September: 2 nd Month Adjusted Allocation Updated allocation for actual enrollment numbers Budget to be revised and submitted back to Finance This budget will also include any carry over funds, which will need to be budgeted Recommendations on Budgeting: Finance asks that PO s be completed at the beginning of the year for the entire year s worth of copier lease payments and postage meter rental payments. These can be estimates doesn t have to be exact. You have the monthly contracted amounts for lease payments, and you can estimate the charge for any overage/extra copies. This will give a more accurate balance of available funds. Also, if there are other activities that you know occur every year, work on a budget plan with SBDM Council and/or Bookkeeper to show the plan for the funds and to ensure that you do not overspend.

26 District Activity Funds Funds that are not raised by students can be sent to District Activity Funds. Definition of Operating Expense: expenses which are related to the operation of a business or to the operation of a device, component, or a piece of equipment or facility. They are the cost or resources used by an organization jus to maintain its existence. (FAQ dated 8/1/15) Textbooks, library books, technology supplies, instructional supplies, classroom supplies, office supplies, school forms, postage, copy paper, furniture, playground equipment, software, safety related equipment and supplies, repairs and maintenance to building and groups, gym floor or fields, structural improvements or additions to buildings and grounds, professional development/staff development MUST Be Sent to DAF: Locker/parking fees, class fees, textbook rental fees, lab fee, technology fee, or any other fee that is collected for general instruction. Lost textbook and library book fees Donations for instructional or operational expenses Bookfair profits if they are going to be used for library books, technology or supplies for library

27 District Activity Funds Could Be Sent to DAF: School store or concession profits Gate receipts Picture profits Disability determination checks Any other funds not generated by students MUST stay at School: All student fundraisers Field trip, class trip, athletic trip money Club dues or money designated for a student group/team/class or club to support their activity Hospitality funds staff accounts

28 Competitive Foods and Wellness Policy Board Policy No school may sell competitive foods or beverages, whether from vending machines, school stores or canteens, classrooms, teacher or parent groups that fail to conform with nutritional standards specified by federal and state regulations, from midnight before until thirty (30) minutes after the end of the school day. Commercially prepared/restaurant meals shall not be delivered to nor brought into the school cafeteria during designated meal serving periods. 702 KAR 6:090: During the period beginning thirty (30) minutes after the last lunch period until the end of the last instructional period, a food item offered for sale through a vending machine, school store, canteen, or fundraiser on school property shall meet the requirements established in 7 CFR Smart Snacks (nutritional guidelines per 7CFR ) can be found at this website or by using the Snack Calculator on KDE s website Board Policy 09.2 When possible, rewards given to students shall be other than food/beverage items. When food/beverage items are used as rewards, such items shall comply with nutritional guidelines set out in Kentucky Administrative Regulation. Rewards given to students are at the Principal s discretion. To ensure that foods provided to students are safe and sanitary, all foods and snacks served to students must be purchase and pre-package rather than homemade, and include an ingredient label.

29 Competitive Foods & Wellness Policy Violations by schools fall under KRS and is regulated by KRS st Violation: results in a fine no less than one week s revenue from the sale of competitive foods Subsequent Violations: results in a fine no less than one month s revenue from the sale of competitive foods Habitual Violations: results in a six month ban from competitive food sales All revenue collected as a result of fines shall be transferred to the Food Service Fund of the District.

30 QUESTIONS?