Fauquier County Public Schools

School Activity Funds

Regulations

DEPARTMENT OF FINANCE

Fauquier County Government & Public Schools 320 Hospital Drive, Suite 32 Warrenton, VA 20186-3037

Telephone (540) 422-8336 Fax (540) 422-8326

TABLE OF CONTENTS

Page I. Purpose ...................................................................................................................................... 1 II. General Information ................................................................................................................... 1

A. School Activity Funds Defined ............................................................................................. 1 B. Accounting System for School Activity Fund ........................................................................ 1 C. Underlying Principles ........................................................................................................ 1-2

III. Duties and Responsibilities ........................................................................................................ 2 A. Principals ........................................................................................................................... 2-3 B. Assistant Principals .............................................................................................................. 3 C. School Activities Directors (such as Athletic or Band at the Middle & High

Schools) ............................................................................................................................... 3 D. Bookkeepers ........................................................................................................................ 3 E. Fund Sponsors and Other School Personnel .................................................................... 3-4 F. Fauquier County Government & Public Schools Finance Department ................................ 4

IV. School Activity Fund Account Management Regulations ........................................................... 5 A. Establishment of Accounts ................................................................................................... 5 B. Deficit Balances ................................................................................................................... 5 C. Account Documentation ....................................................................................................... 5 D. Account Transfers ................................................................................................................ 5

V. Control of Cash .......................................................................................................................... 5 A. Exclusions ......................................................................................................................... 5-6 B. Use of Approved Banks .................................................................................................... 6-7 C. Year End Balances .............................................................................................................. 7 D. Change Funds ................................................................................................................... 7-8 E. Scholarship Funds ............................................................................................................... 8 F. Loss of Cash ........................................................................................................................ 9 G. Principal Review and Authorization ...................................................................................... 9

VI. Revenue ..................................................................................................................................... 9 A. Revenue Defined ............................................................................................................ 9-10 B. Recording Revenue ...................................................................................................... 10-17 C. Revenue From Contracts for Goods or Services Ultimately Purchased by

Students ............................................................................................................................. 17 D. Parent Teacher Organizations ........................................................................................... 17 E. School Board Office Revenue ............................................................................................ 17 F. Interest ............................................................................................................................... 18 G. Electronic Scripts ............................................................................................................... 18 H. Grants ................................................................................................................................ 18

VII. Expenditures ............................................................................................................................ 18 A. Purchasing Procedures ................................................................................................. 18-20 B. Expenditure Documents ................................................................................................ 20-22 C. Reimbursement for Business Expenditure ......................................................................... 23 D. Field Trips .......................................................................................................................... 23 E. Exemption from Payment of Sales Tax .............................................................................. 23 F. Payment of Sales Tax ........................................................................................................ 24 G. Cash and Cash Equivalent Payments to Students and Employees ................................... 24

TABLE OF CONTENTS (Continued) Page

H. Gift Cards ........................................................................................................................... 24 I. Bank Charges and Fees .................................................................................................... 24 J. Payment for Services ......................................................................................................... 25 K. Prompt Payment of Obligations ......................................................................................... 25 L. Unclaimed Property ............................................................................................................ 25

VIII. Loans, Gifts, Donations, and Contributions ........................................................................... 26 A. Loans ................................................................................................................................. 26 B. Gifts ............................................................................................................................... 26-27 C. Donations and Contributions .............................................................................................. 27

IX. Saleable Inventories ................................................................................................................. 27 A. Accounting for Sales of Inventory ...................................................................................... 27 B. Inventory Valuation ............................................................................................................ 27 C. Sales Price of Inventoried Items ........................................................................................ 28 D. Non-saleable or Obsolete Items ......................................................................................... 28 E. Inventory Security .............................................................................................................. 28

X. School Activity Fund Operations .............................................................................................. 28 A. School Store ................................................................................................................ 28-29 B. Library Fees ...................................................................................................................... 29 C. Popcorn Sales .................................................................................................................. 29 D. Bake Sales ........................................................................................................................ 29 E. Concession Sales ............................................................................................................. 30 F. School Finance Office ....................................................................................................... 30

XI. School Activity Fund Reporting Requirements ......................................................................... 30 A. Bank Statement Reconciliation .......................................................................................... 31 B. Monthly Reporting Requirements .................................................................................. 31-32

XII. Data Security............................................................................................................................ 32 A. Authorized User ................................................................................................................. 32 B. Backup Data ....................................................................................................................... 32 C. Archive Data ....................................................................................................................... 32

XIII. Records Management ............................................................................................................ 33 XIV. School Closing ........................................................................................................................ 33

A. Disposition .......................................................................................................................... 33 B. Planning ............................................................................................................................. 33 C. Temporary Closing ............................................................................................................. 33 D. Permanent Closing ........................................................................................................ 33-34

XV. School Activity Funds for New Schools .................................................................................... 34 A. Philosophy .......................................................................................................................... 34 B. Regulations ........................................................................................................................ 34 C. Start Up Checklist for New Schools ................................................................................... 34

XVI. External Audit and Internal Review of School Activity Funds ................................................ 34 A. Annual External Audit .................................................................................................... 34-35 B. Annual Internal Review ...................................................................................................... 35 C. Interim Internal Review ...................................................................................................... 35 D. Transfer, Retirement or Termination of the Secretary/Bookkeeper.................................... 35

Appendices

Appendix A – State Department of Education Guidelines ................................................ 36-74 Appendix B – Virginia Administrative Code VAC20-240-10 through VAC20-240-40 ....... 75-76

Appendix C – List of Revenue ............................................................................................... 77

TABLE OF CONTENTS (Continued) Page

Appendix D – Activities and Forms Chart ............................................................................. 78 Appendix E – Items Requiring Sequential Numbers ............................................................. 79 Appendix F – Procurement Bid Chart ................................................................................... 80 Appendix G – Finance Department School Activity Fund Compliance Sheet ....................... 81 Appendix H – Library of Virginia Retention and Disposition Schedule (GS2) .................. 82-85 Appendix I – Code of Virginia Title 22.1-89.2 ........................................................................ 86 Appendix J – Start Up Checklist for New School ............................................................. 87-88 Appendix K – School Activity Fund Recommendations Chart ......................................... 89-90

Forms

Interfund Transfer Voucher ................................................................................................... 91 Change Fund Form ............................................................................................................... 92 Report of Ticket Sales ........................................................................................................... 93

Consolidated Box Office Report ............................................................................................ 94 Report of Inventory Sales ...................................................................................................... 95 Accountability Report ............................................................................................................ 96 Fundraising Request Form .................................................................................................... 97 Fundraising Summary Form .................................................................................................. 98 Charitable Fundraising Request Form .................................................................................. 99 Report of Late Submission of Funds and Receipts ............................................................. 100 Check Request Form .......................................................................................................... 101 Summary of Telephone Quotations .................................................................................... 102 Sales and Use Tax Certificate of Exemption (ST-12) ......................................................... 103 Gift Card Tracking Summary ............................................................................................... 104 AP1 Form for Report of Unclaimed Property ............................................................... 105-106 Report of Unclaimed Property (AP-2) .......................................................................... 107-110 Unclaimed Property Sample Due Diligence Letters ..................................................... 111-112

Policies

School Board Policy DGC- School Activity Funds ....................................................... 113-114

DEPARTMENT OF FINANCE

Fauquier County Government & Public Schools 320 Hospital Drive, Suite 32 Warrenton, VA 20186-3037

Telephone (540) 422-8336 Fax (540) 422-8326

School Activity Fund Regulations

I. Purpose

To provide regulations for the management of school activity funds.

II. General Information

A. School Activity Funds Defined

According to the regulations of the Virginia Board of Education, school activity funds are defined as, “All funds derived from extracurricular school activities, such as entertainment, athletic contests, cafeteria, club dues, etc., and from any and all activities of the school involving personnel, students, or property…” A school activity must be conducted for this purpose and not to produce revenues or unnecessary expenditures. Revenues necessary to make the activity self-supportive are essential and acceptable. For the purpose of these regulations, the term “student activity funds” is synonymous with the term “school activity funds.” See Appendix A for the guidelines issued by the State Department of Education. These School Activity Fund Regulations are in addition to the state issued guidelines. See Appendix B for Virginia Administrative Code VAC20-240-10 through VAC20-240-40.

B. Accounting System for School Activity Funds

Schools are required to use the automated accounting system for school activity fund accounting (School Ledger-Report System, Heritage) which has been approved by the Fauquier County Public Schools (FCPS). For more information go to http://www.surfsidesoftware.com.

C. Underlying Principles

1. School activity funds shall be used solely in accordance with the purpose for

which such funds are collected.

2. Projects for the raising of school activity funds shall, in general, 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 expended in ways that

benefit the student body as a whole and in ways that benefit those pupils

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currently in school who have contributed to the accumulation of such funds. Student body representation shall be involved to manage funds.

4. Management of school activity funds shall be in accordance with best business

practices. Principals, through their representatives, shall prepare, modify, and interpret policies, regulations, and procedures affecting student body affairs.

III. Duties and Responsibilities

The responsibility of safeguarding, accounting for, and managing the school activity funds rests solely with the principal. The duties that must be performed in providing proper management and security may be delegated to the degree desired by the principal, but the responsibility shall remain with the principal. The duties that must be performed by the principal or others in order to achieve proper security and management are specified as follows: A. Principals

Principals shall use, at a minimum, the following management practices:

1. Supervise the management of school activity funds in accordance with

prescribed regulations approved by the School Board.

2. Instruct the secretary/bookkeeper (thereafter referred to as bookkeeper) regarding the duties to be performed and provide adequate supervision and guidance.

3. Review and analyze, at least monthly, the status and operations of the school

activity funds. The review process should involve the bookkeeper, department heads, and fund sponsors to the extent considered appropriate. See section V.G. for Principal Review and Authorization. Compile necessary documentation to review and investigate any questionable items related to the school activity funds as reflected in the following:

a. Reconciliation Report b. Bank Statement c. Copies of cleared checks d. Checkbook Register e. Transaction Register f. Fund Detail Report g. Outstanding Checks Report

4. Provide instruction to all teachers and other staff members in the proper handling

of school activity funds to include all of the following:

a. Prior approval before committing school activity funds b. Need for receiving reports c. Ticket control (including reporting) d. Proper control of funds collected through use of receipts and daily submission

to the bookkeeper

5. Approve all write offs.

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6. Authorize all fundraising request and summary forms.

7. Review purchase orders or check requests, checks, and other supporting documentation to ensure purchases and expenditures are authorized and supported properly.

8. Ensure that adequate facilities and physical controls are available and are used

for protection of cash and other assets.

9. Monitor the operation of revenue-producing activities to avoid unanticipated losses.

10. Monitor implementation of approved external audit and internal review

recommendations and management decisions of the principal or higher authority.

B. Assistant Principals Assistant principals shall perform duties as delegated by the principal and shall have a full understanding of these regulations, even if no duties have been delegated.

C. School Activities Directors (such as Athletic or Band at the Middle & High Schools)

Directors of school activities shall perform duties as delegated by the principal and shall have a full understanding of these regulations, even if no duties have been delegated.

D. Bookkeepers

Under the supervision of the principal, or his or her designee, the bookkeeper shall 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 deposits, such as gate receipts, be made by someone other than the bookkeeper. The bookkeeper, and any person designated to perform the duties on behalf of the bookkeeper, under the supervision of the principal, shall comply with all pertinent provisions of these regulations and perform the following duties:

1. Deposit all funds promptly and intact 2. Maintain all required records on a current and accurate basis 3. Submit all required reports promptly and accurately 4. Keep the principal informed of all actual or potential problems 5. Perform other duties as specified by the principal

E. Fund Sponsors and Other School Personnel 1. Individuals responsible for activities with a fund account (fund sponsors,

department heads, etc.) shall review the financial operations and position of the accounts at least monthly. All school activity fund functions shall be supervised and guided by a fund sponsor appointed to that position by the school principal, or in the case of elementary schools, may be the principal. Fund sponsors may be responsible for more than one fund or activity.

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2. Fund sponsor responsibilities include:

a. Preparing and submitting purchase requests for the approval process to the bookkeeper prior to the purchase being made.

b. Ensuring that the billings pertinent to the fund, and received by the bookkeeper, are correct (including sales tax provisions) prior to final payment.

c. Providing the bookkeeper with copies of contract agreements, etc., that are

applicable to obligations of the fund account.

d. Collecting and receipting funds received from students.

e. Submitting funds daily to the bookkeeper for deposit.

f. Controlling inventories of saleable merchandise. This control includes accurate records of quantity and adequate measures for safeguarding assets.

g. Being aware of ticket control requirements when events requiring admission

are scheduled.

F. Fauquier County Government & Public Schools Finance Department The Fauquier County Government & Public Schools Finance Department is responsible for recommending rules, regulations, and procedures to the School Board for the management and operation of school activity funds in accordance with rules and regulations and generally accepted accounting principles (GAAP). Additionally, the Finance Department shall:

1. Provide training on regulations to all persons involved with school activity funds.

This includes orientation and training of new school principals and school finance personnel as soon as possible after appointment.

2. Provide guidance to assist superintendants and principals through manuals,

regulations, and notices. Ensure management of school activity funds, through the use of random internal reviews, is in compliance with state laws, rules and regulations and GAAP.

3. Provide guidance to assist superintendants and principals through manuals,

regulations, and notices. 4. Coordinate scheduling with the independent certified public accounting firm

providing the external audit. 5. Review and follow up on the principals’ responses to external audit reports to

determine the adequacy of responses and ensure a proposed action is satisfactory.

6. Develop procedures as recommended by the external auditing firm and submit to

the School Board for approval.

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IV. School Activity Fund Account Management Regulations A. Establishment of Accounts

1. All school activity funds shall be accounted for within one set of clearly identified,

segregated accounts, or subaccounts, under control and direction of the principal. School activity funds shall not be maintained in one general account.

2. A school activity account shall be established only with the approval of the principal.

3. The title of the account should reflect the purpose for which the fund account is

established. 4. For tracking purposes, staff funded accounts (e.g., Sunshine, Hospitality,

Teacher Vending, Jean Day, Social, Flower) may be recorded in the accounting system (Heritage). However, they are not school activity funds. Transfers from student funded accounts are not permitted. See section IV.D for Account Transfers.

B. Deficit Balances

1. School activity fund accounts may contain deficit or negative balances during the

year.

2. Negative balances are not permitted at year end in any accounts.

C. Account Documentation Cash receipts and disbursements shall be used for the purpose for which the account was established.

D. Account Transfers An Interfund Transfer Voucher must be completed and approved with signature and date of approval by the principal, and fund sponsor when necessary, prior to recording the transfer in Heritage. Elementary schools typically do not have a fund sponsor, however, an Interfund Transfer Voucher is still required to be completed and must be signed and dated by the principal prior to the transfer being recorded in Heritage. See Forms section for an Interfund Transfer Voucher. Transfers to staff funded accounts (e.g., Sunshine, Hospitality, Teacher Vending, Sunshine, Jean Day, Social, Flower) from non-staff funded accounts are not permitted.

V. Control of Cash A. Exclusions

1. Petty Cash Funds Petty cash funds cannot be established from school activity funds. If a school

has a petty cash fund that was created from school activity funds, the funds must

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be closed out. The funds must be deposited back into the account they were originally disbursed from to create the unauthorized petty cash fund. Any petty cash fund must be authorized in advance by the Director of Budget & Planning. If authorized, these funds will be taken from school operating funds and the school will be responsible for following the Finance Department Petty Cash Policy. Petty Cash Funds are not considered the same as Change Funds, please see Section V.D regarding Change Funds.

2. Parent Teacher Organizations Parent Teacher Organizations (PTOs) are separate organizations with separate

activities and individual financial records that are not school organizations. These organizations are prohibited from using the School’s Federal Tax ID number. Parent Teacher Organization finances are not recorded in school activity funds.

3. Staff Funded Accounts For tracking purposes, staff funded accounts (e.g., Sunshine, Hospitality,

Teacher Vending, Jean Day, Social, Flower) may be recorded in the accounting system (Heritage). However, they are not school activity funds. Transfers from student funded accounts are not permitted. See section IV.D for Account transfers.

B. Use of Approved Banks

All school activity funds shall be deposited with a banking facility that carries deposit insurance coverage with the Federal Deposit Insurance Corporation, or an equivalent agency, and is considered a qualified public depository by the state of Virginia. The employer identification number to be used by schools when opening bank accounts is 54-6001276 (individual Social Security numbers shall not be used). All bank accounts shall be monitored carefully to avoid having funds on deposit not covered by insurance for any significant length of time. Effective July 1, 2010, per the Commonwealth of Virginia, Department of Treasury, school activity funds meet the broad definition of public funds. 1. Regular Checking Accounts

a. Checking accounts shall be established for each school’s activity funds, and

titled in the name of the school.

b. Each school is required to have three authorized check signers.

c. Checks drawn on the account shall require two signatures. The primary signatory shall be the principal, who shall designate the alternate signatory.

d. The bookkeeper charged with maintaining the school activity fund records

may not be designated as an alternate signatory, but may be an authorized cosigner.

e. A signature stamp shall not be used in lieu of any signature.

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f. The principal, alternate signatories and cosigners shall not sign checks payable to themselves, “cash”, or to the name of the bank.

2. Certificates of Deposit

Separate bank accounts created for Certificates of Deposit (CDs) using the School’s Federal ID number are within the control of the school and must be maintained and reconciled to Heritage. Statements must be submitted to the Finance Department the month they are received (monthly, quarterly, or yearly) with that month’s school activity fund submission for review.

a. Certificates of deposit are justified only for the purpose of accumulating funds

to cover planned-for, or anticipated future major expenditures, or to increase revenue through depositing temporarily idle funds to interest-bearing accounts.

b. All transactions, including the creation of a CD, require two signatures. The primary signatory shall be the principal, who shall designate the alternate signatory.

c. The bookkeeper charged with maintaining the school activity fund records may not be designated as an alternate signatory, but may be an authorized cosigner.

C. Year End Balances

According to the School Board Policy, elementary and middle schools should not have a remaining balance in excess of $150,000 as of June 30th each fiscal year. All high schools should not have a June 30th remaining balance in excess of $300,000. These limits are contingent on the contents of the annual financial plan. Should a school determine that a multi-year fund raising campaign is needed to reach a stated goal, a request for an exception should be submitted to the Superintendent or his/her designee for review/approval. If a June 30th Activity Fund balance exceeds the above established limits and no exceptions have been granted, the Superintendent, or his/her official designee, will establish a committee to prepare action plans as to how these excess funds shall be expended. The committee should be comprised of members of the community who assisted in the raising of these funds (parents, teachers, PTO members, students, etc.). It should be this committee’s goal to expend these excess funds for the betterment of the students at the school prior to the next year end date.

D. Change Funds

Funds may be provided for change-making operations in connection with an activity (e.g. fees, library, school store). Change funds shall be limited to activities that have proven needs, and the amounts shall be limited to the minimum amounts that will serve the change-making needs. A Change Fund form must be completed in its entirety prior to issuance and upon the return of funds. See Forms section for a Change Fund form.

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1. Issuance Change funds shall be issued in the name of the individual responsible for the

proper safeguarding and timely return of the funds. Change funds checks are never issued for “Cash” or in the name of the bank. Change funds shall be documented in the memo section of the check.

2. Return of Funds Change funds shall be returned in full to the bookkeeper for redeposit to the

checking account. The transaction entries must provide positive identification of the funds returned (i.e., a cross-reference indicated between the issue and return of funds used for change). In some cases there may be a need that continues through most or all of the school year such as school store or library. In these cases the cash box containing the change fund is to be secured properly with the school store or library, or returned to the school finance office each day to be stored in the safe or vault for security purposes. There should be no change fund in existence at the end of the school year.

3. General Regulations The responsible individual shall be held financially liable for loss of or failure to

return money issued for change operations. Change funds shall not be used for making disbursements or advances for expenditures. Schools shall not provide change for the cafeteria.

E. Scholarship Funds

Regulations of the Virginia Board of Education specify that school activity funds are to be applied to the benefit of students who contributed to the accumulation of such funds. 1. Funds received by the school in recognition of scholarship achievement by

student groups (e.g. ‘It’s Academic”, or as a gift or bequest for general scholarship purposes) must be applied for scholarship awards. All scholarship awards shall normally be made to an institution on behalf of a student rather than directly to the student.

2. Contributions from school activity funds to scholarship funds established by

outside organizations and beyond purview of the principal are prohibited. Scholarship funds should remain within the school activity funds for application under the established guidance of the principal and school staff members.

3. Separate bank accounts created for scholarships using the School’s Federal ID

number are within control of the school and must be maintained and reconciled in Heritage. Statements shall be submitted to the Finance Department the month it is received (monthly, quarterly, or yearly) with that month’s School Activity Fund Submission for review. Scholarship accounts created by individuals or organizations are not permitted to use the School’s Federal ID number and hence should not be recorded in Heritage.

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F. Loss of Cash Any loss of cash, including checks or other items with monetary value, shall be promptly reported by telephone to the School Superintendent and the Fauquier County Government and Public Schools Finance Director. If the loss of the amount is significant or if theft is involved or suspected, and if the School Superintendent and the Fauquier County Government and Public Schools Finance Director so directs, a report shall be made to the appropriate law enforcement authorities. In the case of theft or suspected theft by an FCPS employee, the Fauquier County Government and Public Schools Human Resources Director shall also be notified. The telephonic report shall be followed up within 48 hours by a written report to the School Superintendent and the Fauquier County Government and Public Schools Finance Department. Data system and building security access shall be immediately removed. The employee’s name must be removed from bank accounts. All passwords must be re-established. In case of robbery, or attempted robbery, regulations indicated above for theft shall then be followed.

G. Principal Review and Authorization

The principal is responsible for the following: 1. Reviewing deficit accounts and accounts that have been inactive or have had

minimal activity to determine whether the accounts should be continued and to ensure that plans are made for elimination of deficits.

2. Assessing the reasonableness of reported receipts and disbursements, by

account and in total, to include comparison with prior periods and third party invoice for completeness. Any questionable items or discrepancies must be researched.

3. Bank Reconciliation

a. The ending checkbook balance as of the date on the Heritage Reconciliation

Report for the month of review should agree with the amount shown on the checkbook register.

b. The total shown on any savings account (CD) statements should agree with the ending balance on the Heritage reports.

c. The outstanding check total should be reasonable. Uncleared checks for

large amounts must be investigated. Checks that are outstanding 180 days must be voided, investigated, and submitted as unclaimed property as necessary.

VI. Revenue A. Revenue Defined

General revenue is obtained from continuing or recurring activities or from operations that provide services (e.g., school stores, athletic events, music and drama events). General revenue should be applied to the support of the activity generating the revenue as well as for the benefit of the entire student body.

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Specific revenue is obtained from a one-time approved project or event that is conducted by and for a specific purpose or a specified group of students (e.g., Red Cross donations, car wash, candy sale, dues, field trips). Specific revenue should be applied only for the benefit of the student groups or organizations concerned or for the specific purpose for which the revenue was obtained. See Appendix C for a List of Revenue.

See Appendix D for the Activities and Forms Chart.

B. Recording Revenue

All general and specific revenue classified as school activity funds shall be receipted into the school activity fund records promptly and intact, i.e., no disbursements of revenue received shall be made until such revenue has been receipted into the records and deposited in the checking account. 1. Forms of Receipts Documentation of cash receipts is an essential component of the recording of

revenue. There are various forms of receipts that may be used as documentation, and the form used is dependent on the individual circumstances. In all cases, one of the approved forms of documentation shall be provided to the bookkeeper by the individual collecting the funds. Retention of receipt documentation shall be the responsibility of the bookkeeper. In all cases, a relationship shall be established between the form of receipt used, the school finance office deposit slip, and the Heritage receipt number. Fund sponsors or teachers who submit receipt documentation to the school finance office are responsible for reviewing the receipts. Records are subject to external audit and internal review.

a. General Regulations

i. Collection of funds for any purpose or event shall be properly

documented with issuance of activity receipts, or use of tickets, rosters, or inventory forms to document the revenue collected.

ii. All revenue collected and associated receipts and/or forms shall be

delivered daily to the bookkeeper by a specified cut-off time each day to ensure security and timely deposit of the funds. Funds are never to be held overnight by the individual collecting them. Instances where funds are collected after school hours, and access to the safe in the main office is not available, funds must be either secured in a locked cabinet at the school or at the bank through the night drop.

iii. The bookkeeper shall match the activity receipts with the funds collected,

issue a Heritage receipt to the individual submitting the funds, prepare and submit the funds for deposit, and file the documents in the monthly accounts receivable folder.

iv. At the beginning of each year, a list of receipt books must be compiled

with the individual assigned, containing book details in sequential order, and updated as needed through the school year.

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See Appendix E for Items Requiring Sequential Numbers.

b. Activity Receipts

An activity receipt, (formerly referred to as a teacher receipt) may be used to collect funds within individual activities. The activity receipt is typically the primary receipt issued for funds received for deposit. Generally this form is used by a fund sponsor or teacher to record various types of collections before the money is delivered to the bookkeeper for deposit. i. All funds received in the classrooms, by clubs, or by any staff, must be

receipted.

ii. The receipt shall be prepared in a triplicate activity receipt book with the original given to the person from whom funds are being collected.

iii. The second copy shall be turned in to the bookkeeper along with money

collected.

iv. The third copy remains in the activity receipt book.

v. Activity receipts must be issued in numerical order within the activity receipt book.

vi. The activity receipt is written to the person or vendor.

vii. Activity receipts must be signed and dated by the person issuing the

receipt. viii. Any changes or corrections to the activity receipt after the receipt is

issued must be made to all copies, including the copy remaining in the activity receipt book. The change or correction must be initialed and dated by the person who initiated the receipt.

c. Collection Document, List of Payers, or Student Rosters

For collection of small fees of $1.00 or less, per student, the collector may prepare a list, or roster, showing payers’ names, date the funds are collected, and amounts collected (if individuals do not demand a receipt). The student roster replaces the activity receipt. As with the activity receipt, this list or roster is to be turned in daily to the bookkeeper along with the money collected. Total funds collected must agree with the sum of the cost per student participating in the event. Any discrepancies must be noted on the list or roster.

d. Other Fauquier County Public Schools Revenue Reports or Forms

i. Report of Ticket Sales

All activities that involve students, the faculty, and the school facilities, and for which an admission fee is charged, normally will be controlled by the use of sequentially numbered tickets, which will be surrendered at the door or gate at time of entry. Pre-numbered tickets must be used for events requiring an admission fee such as athletic events or dances.

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See Appendix E for Items Requiring Sequential Numbers. A Report of Ticket Sales must also be completed in its entirety by the ticket seller and the person designated as the box office manager to track the number of tickets sold and revenue earned. Any discrepancies must be documented on the Report of Ticket Sales. Funds collected from the event along with completed Report of Ticket Sales shall be submitted to the bookkeeper for verification, issuance of an office receipt, and depositing. The bookkeeper must sign and date the Report of Ticket Sales after verification. See Forms section for a Report of Ticket Sales.

(1) Exception to Use of Sequentially Numbered Tickets Some school activity events are conducted so that the admission

charge is an item of value (e.g., food for the homeless, clothes, and other material donations) other than cash. Good business practice requires proper inventory and documentation.

(2) Control and Management of Sequentially Numbered Tickets All sequentially numbered tickets shall be under the control and

management of a person or persons designated to be responsible for the accounting and disposition of the tickets.

ii. Consolidated Box Office Report

For schools that utilize multiple ticket sellers a Consolidated Box Office Report may be used by the person delegated as the Box Office Manager to summarize funds for all Reports of Ticket Sales prepared for a ticketed event prior to submission to the bookkeeper for deposit. See Forms section for a Consolidated Box Office Report.

iii. Report of Inventory Sales Funds collected for sales of concessions at games or events are not to be combined with ticket sales on the Report of Ticket Sales. A Report of Inventory Sales is to be used to record beginning and ending inventories of items for sale and to track the number of items sold and revenue earned. Any discrepancies must be documented. See Forms section for a Report of Inventory Sales.

iv. Accountability Report For funds collected from activities such as school store, concessions, popcorn sales, or bake sales, an Accountability Report may be used to record the revenue by type of coins and bills as backup to the total amount received. See Forms section for an Accountability Report.

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v. Fundraising Request and Fundraising Summary Forms

(1) All fundraising, regardless of whether it generates a profit or not, requires a Fundraising Request Form and Fundraising Summary Form to be completed. See Forms section for a Fundraising Request Form and Fundraising Summary Form.

(2) Fundraising requests shall be authorized by the school principal or his or her designee.

(3) The intended purpose of fundraising proceeds shall be clearly identified before the onset of fundraising activities.

(4) A Fundraising Request Form must be completed and approved with the signature and date of approval by the principal, or his or her designee, prior to the fundraising event.

(5) A Fundraising Summary Form must be completed and submitted to the principal for review and approval (with signature and date) upon completion of each fundraising event. The purpose of the summary form is to track profitability of fundraising events and identify any material discrepancies between projected profits and actual profits. A material discrepancy is considered to be 10% - 25%, or more, between estimated and actual profit amounts, depending on the total amount of the expected profit.

(6) A Fundraising Request form and Fundraising Summary form are also required for “pass through” fundraising events or charitable organization collections, to provide documentation of approval to collect the funds. A Charitable Fundraising Request form may be used in lieu of the Fundraising Request form. See Forms section for a Charitable Fundraising Request form.

2. Recording of Daily Receipts

All money turned in to the bookkeeper shall be receipted by the bookkeeper in Heritage on the day it is received in the school finance office.

a. Office receipts must be issued in Heritage to each individual or vendor

submitting funds, regardless of the amount (except for electronic scripts, such as escrip, and interest postings on the bank statement). A copy of the receipts is to be distributed to the individuals or vendors daily, or at the time of the receipt of funds.

b. Heritage receipts must be issued in numerical order. See Appendix E for Items Requiring Sequential Numbers.

c. All Heritage receipts (primary or secondary) must be signed by the

bookkeeper.

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d. Checks receipted with a primary Heritage receipt are required to be stamped with the received date on either the check stub or a copy of the check attached to the primary receipt.

e. Primary Heritage receipts issued by the bookkeeper are required to have

verification (initials and dates) by another individual. This applies only when a primary Heritage receipt is written by the bookkeeper for funds collected in the office.

f. Primary activity receipts prepared by the bookkeeper are required to have a

secondary receipt issued through Heritage and verification (initials and dates) by another individual. This applies only when a primary activity receipt is written by the bookkeeper for funds collected in the office. When possible, it is preferred the bookkeeper not issue any activity receipts in order to avoid situations where the primary (activity) and secondary (Heritage) receipt is issued by the same individual.

g. School staff is expected to verify the Heritage receipt issued by the

bookkeeper matches the amount and supporting documentation submitted to the school finance office. All Heritage receipts issued must match the total of the associated activity receipts or documentation.

h. School staff is required to deliver all funds collected and associated activity

receipts or forms to the office on a daily basis. A Report of Late Submission of Funds and Receipts should be completed, signed, and dated to document instances where funds were held by school staff and not delivered to the school finance office the same day collected. See Forms section for a Report of Late Submission of Funds and Receipts.

i. A cut-off time for staff to deliver funds to the office is to be established to

provide ample time for preparing Heritage receipts and depositing funds to the bank.

j. Funds that meet or exceed the school’s threshold and are received by the established cut-off time must be receipted and deposited the same day. Funds cannot be held for receipting and depositing the next business day.

3. Depositing of Daily Receipts

Funds received by the school finance office must be safeguarded, and the best safeguard is to deposit the funds in the checking account. Funds received should be deposited intact, and a relationship should be established between the funds deposited and the receipt forms used in the collection.

a. All deposits must be made in a timely manner. Deposits are made twice a

week or the same day the threshold is met ($300 for elementary and middle schools, $500 for high schools). If the threshold is met each day, then funds must be deposited daily.

b. All deposits must have the corresponding receipts and/or forms attached.

c. Deposits must be posted to the correct activity fund account.

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d. Deposits must be recorded in Heritage in the order in which they occur.

e. Deposit documentation files are to be maintained daily, or as deposits are made.

f. The deposit slip is completed by the bookkeeper.

4. Dishonored Checks

Checks accepted by the school and dishonored by the makers’ banks shall be reversed in the checking account and fund accounts immediately upon receipt of the debit memorandum or bank statement. This process is accomplished through the NSF Wizard function in Heritage. Whether to redeposit the original check, request a new check, or require cash from the maker to cover the dishonored check must be decided by the principal in light of the circumstances. The dishonoring of a check is sufficient grounds for refusal to accept check payment from makers of such checks. Any fees charged the school by the bank for the dishonored check may be passed on to the maker of the check. Any write-offs must be authorized by the principal. To reduce the burden of pursuing recovery of dishonored checks, recovery can be handled through Transmodus, a third-party vendor.

a. For schools preferring to handle collections of dishonored checks by the

bookkeeper rather than as a Transmodus participant, the following applies: i. Begin collection efforts immediately upon notification of dishonored check

and follow up on all outstanding items every 30 days

ii. Document all verbal, written, or telephonic collection efforts

iii. Evaluate all outstanding items at year end

b. Recovery Through Transmodus i. Transmodus Summary

Transmodus is a vendor that offers protection against bad checks returned/denied by the bank due to insufficient funds. Funds are verified through an online verification process. The Transmodus services do not require any special equipment or software. Online and downloadable reporting provides the backup to confirm the result of any transaction.

The Transmodus site provides real-time access to sort and view the results of every transaction processed. The results can be sorted by status and outcome and can be viewed online using the reports generator when downloaded or integrated into client’s back office systems. Schools are referred to as “stores” in Transmodus reports.

ii. Transmodus Reports

Transmodus provides complete access to transactions. Reports include all items, cleared items, returned items, submitted items, dead items, reversals, and paid items. Reports allow a view of each check in detail by clicking on the linked check number. Each check is marked with the

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current status according to the legend provided in the reports. Reports may be downloaded into a spreadsheet by clicking the “download” link located on the bottom right corner of each report.

iii. Transmodus Disclaimer Notice

Checks returned for insufficient funds will be electronically presented to the bank for the face value plus a $35.00 processing fee and any protest or bad check return fees.

iv. Transmodus Additional Fees If a check is returned within 21 days of the written date to Transmodus on the 1st attempt, a fee of $1.00 is charged to the using store. A 2nd submission of the returned check to Transmodus processed 21 days or more from the written date on the check will result in an additional $1.00 fee for a total of $2.00. If the check information is submitted to Transmodus and the transaction is cancelled by the bookkeeper for any reason, the store account will incur a $2.00 fee. If a check is processed in Transmodus and then cancelled, the store will incur a $2.00 fee. If the check issuer places a “Reverse Payment/Stop Payment” stating non-authorization for funds on their check then the account is credited for the face value of the check and collection fees. Transmodus will debit the store’s account for the credited amount until the issue is resolved.

v. Check Presentment/Additional Information Checks may only be presented three times per State law. For participants in Transmodus, a bank must only present the check in the initial deposit of the check. If the bank runs the check through a second time, the check will not be able to be submitted through Transmodus. The store must contact the bank to inform them that they participate in Transmodus to prevent the bank from resubmitting any checks. This grants Transmodus permission to submit the check the additional two times.

c. Redepositing Recovery from the maker shall be receipted separately and should be clearly identified as a replacement for the dishonored check.

5. Deposits to Checking Accounts

The following regulations and considerations apply to documentation of deposits to checking accounts:

a. Each deposit made to the checking account shall be evidenced by a copy of

a bank deposit slip kept on file.

b. Any debit or credit memorandums returned with the monthly bank statement shall be kept with the bank statement with which they were returned.

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6. Deposits to Certificates of Deposit

Movement of funds into, out of, or between Certificates of Deposits or any other accounts must be authorized by two authorized signatories. The primary signatory shall be the principal, who shall designate the alternate signatory. The bookkeeper may not be designated as an alternate signatory, but may be an authorized cosigner.

B. C. Revenue From Contracts for Goods or Services Ultimately Purchased by Students

Conflicts may arise from agreements that schools make with independent vendors whose goods and services will ultimately be purchased by pupils of the schools (e.g., photography services, class rings, caps and gowns, graduation announcements, and similar items). Regardless of the school’s objective in contracts (fundraising or non-fundraising) there shall be a conscious effort to avoid situations in which any FCPS employees receive free goods or services for personal use from the supplier in connection with that supplier’s performance for the school. It is important to adhere to the policies set forth by the Procurement Policy: 1. Solicitation or Acceptance of Gifts

No employee having official responsibility for a procurement transaction shall solicit, demand, accept, or agree to accept from a bidder, offeror, contractor or subcontractor any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is exchanged. The Fauquier County School Board may recover the value of anything conveyed in violation of this section.

2. Gifts by Bidders, Offerors, Contractors, or Subcontractors

No bidder, offeror, contractor, or subcontractor shall confer upon any employee having official responsibility for a procurement transaction any payment, loan, subscription, advance, deposit of money, services or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is exchanged.

D. Parent Teacher Organizations

Parent Teacher Organizations (PTOs) are separate organizations with separate activities and individual financial records that are not school organizations. These organizations are prohibited from using the School’s Federal Tax ID number. Parent Teacher Organization finances are not recorded in school activity funds. A school is permitted to accept a donation of funds from a PTO.

E. School Board Office Revenue Certain types of funds, such as parking fees, custodial fees, musical instrument rental fees, activity fees, and lost textbook fees, etc., are collected at the school to be submitted to the School Board Office as operating revenue. These fees are deposited in an associated school activity fund account then sent to the School Board Office through a corresponding school activity fund disbursement payable to FCPS.

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F. Interest Monthly interest received through the monthly bank statement is recorded in Heritage during the monthly reconciliation process using the Interest field and selecting the assigned account. A receipt (activity or Heritage) is not required to be issued for these deposits since they are directly reflected in the bank account.

G. Electronic Scripts Many schools receive automatic deposits from various vendors for fundraising, rebates, or refunds. This amount will appear on the bank statement and can be posted in Heritage when funds are received or during the monthly reconciliation process using the Interest field and selecting the assigned account. A receipt (activity or Heritage) is not required to be issued for these deposits since they are directly reflected in the bank account.

H. Grants

All State and Federal grants must be sent to the School Budget & Planning Office. A copy of the State or Federal grant documentation during the pre- and post-award stage(s) is to be sent to the Finance Department. Local grants in the amount of $2,000 or less may be administered through the school. Local grants over $2,000 must be sent to the School Budget & Planning Office.

VII. Expenditures To effectively manage school activity funds, the principal must have knowledge of future obligations prior to billings or disbursements. Effective management also requires a system to ensure that cash discounts are taken when available.

See Appendix D for the Activities and Forms Chart.

A. Purchasing Procedures 1. Using School Purchase Orders or Check Requests

a. Schools must use either a Heritage issued purchase order (PO) or a Check

Request Form for each disbursement. See Forms section for a Check Request Form.

b. Purchase orders must be issued sequentially. See Appendix E for Items Requiring Sequential Numbers.

c. Purchase orders or check requests may be initiated by persons authorized to

act for organizations that have accounts within the school activity fund structure.

d. Pre-authorization by the principal, or his or her designee, is required for all purchases orders or check requests. Pre-approval on a PO or check request must be dated prior to, or the same day as, and not after, the purchase.

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e. Verbal approvals, noted on the PO or check request, or copies of an email attached to the PO or check request verifying pre-approval are also acceptable. All purchases require a completed and authorized purchase order, or check request, prior to the purchase.

f. Blanket purchase orders are permitted for recurring purchases or in cases where a person is given an allotment to spend over a period of time.

g. Purchase, or commitment to purchase, is not to be made unless it is

authorized and funds are available.

h. Prices entered on the purchase order or check request shall be the actual price, if known, or the closest estimates possible, if prices are not known. Estimates are to be noted as such. Any changes, (including correcting estimates to actual payments amount) made to the PO or check request must be initialed and dated by the principal.

i. School purchase orders or check requests shall be signed by the appropriate

fund sponsor, or responsible person, and by the principal, or his or her designee.

j. After receiving evidence of the receipt of goods or services and payment is made, the purchase order or check request, the invoice, and other supporting documents shall be attached to the school copy of the check, or check stub, and filed in the appropriate monthly disbursement file.

2. Procurement Policy

All school activity funds must follow the Procurement Policy which include (See Appendix F for the Procurement Bid Chart):

a. Purchases where the estimated total cost of the goods or services are

$25,000 or greater but less than $50,000 may be made after soliciting a minimum of four (4) written quotations.

b. Purchases where the estimated total cost of the goods or services are $5,000 or greater but less than $25,000 may be made after soliciting a minimum of three (3) verbal or documented telephone quotations. Documentation may be recorded on the Summary of Telephone Quotations form. See Forms section for a Summary of Telephone Quotations form.

c. Purchases where the estimated total cost of the goods or services are less

than $5,000 may be made upon receipt of one fair and reasonable price.

d. Effective July 1, 2011 purchases of goods or services for operating, fundraising, etc., exceeding $5,000 that affect all schools (e.g., yearbooks or school photos) and/or multiple schools shall be made through the use of either the competitive bid or competitive negotiation process, either centrally through the Procurement Division or if done independently, following the procurement guidelines based on the appropriate dollar threshold. If done through the Procurement Division schools will utilize the resulting contract and have a selection of authorized vendors to choose from for a specified

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period of time. This process ensures that procurement requirements are met.

3. Credit Cards

Credit cards issued for use by the school must be issued in an individual’s name as the responsible party on the account. The credit card is never to be used for personal purchases. The user of the credit card is never to approve their own purchases made with the credit card. The user of the credit card is never to authorize or sign the disbursement for their own credit card payment. (i.e., The user of the credit card is never to sign a payment check to the credit card company if they made a purchase with the credit card.) For schools with existing cards in the school name, the school must develop a process to safeguard and monitor the use of the card. Schools that have a credit card are required to send a copy of the monthly credit card statement to the Finance Department, Accounts Payable Manager each month.

4. Other Purchasing Requirements

a. Sales tax is not to be paid, when applicable.

b. All disbursements must match the invoice or receipt amount.

c. Expenditures are required to be properly classified to the corresponding

school activity fund.

d. No goods may be purchased through the school for personal use.

e. Employee personal funds are never to be commingled with school activity funds and are never used to reimburse a portion of a disbursement through school activity funds.

B. Expenditure Documents

All expenditures must be supported by proof of purchase such as an original invoice, sales ticket, sales receipt, or cash register tape. All disbursements shall be made by checks drawn on the school activity fund checking account. Satisfactory receipt of goods or services and the correct amount to be paid are verified prior to disbursement. A copy of the check, the file copy of the purchase order or check request, and supporting documents such as invoices and sales receipts shall be assembled and filed together in the appropriate disbursement file as documentation of the disbursement.

1. Checks

Checks must be issued in sequential order. See Appendix E for Items Requiring Sequential Numbers.

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Checks that have cleared the bank and have been returned to the school finance office shall be kept with the monthly bank statement on which the clearance is recorded, and arranged in numerical sequence. Disbursement checks should be properly reviewed, authorized, and documented. They are also subject to the following requirements:

a. Reviewed

i. All purchase orders, or check requests, and other supporting

documentation must be reviewed by the principal, or his or her designee, to ensure purchases and expenditures are authorized and supported properly.

b. Authorized i. All expenditures must be made by check. No purchase or

reimbursements may be made with cash collected.

ii. Checks are signed only upon presentation of a proper invoice or receipt.

iii. Checks are required to have two authorized signatures regardless of the amount. Each check signer shall verify the payment against the invoice prior to signing the check. In instances where checks need to be pre-authorized, the check is not considered negotiable until a second authorized signature is obtained. Checks are required to have this statement printed on the front of the check. When necessary, the second signature may be obtained at the time of purchase. The receipt and backup documentation is to be returned to the bookkeeper by the next business day for verification and filing.

iv. An individual with signature authority to whom checks are written must not be a signer of the check.

v. Personal checks are prohibited from being cashed through school activity funds.

c. Documentation

i. Checks must not be made out to “Cash” or to the name of the bank.

ii. Checks must not be made payable to personnel for extra hours worked.

iii. Disbursements must be recorded in Heritage in the order in which they

occur.

iv. Disbursement documentation files are to be maintained daily, or as payments are made.

v. Issued check numbers and payees must always agree with Heritage (i.e., the printed check number and payee must match the posted check number and payee in Heritage).

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vi. During the day, when checks are not being used, they are to be kept in a locked drawer. After hours checks must be kept in a locked safe or other secure location. Blank check stock is never signed due to the risk of loss.

vii. Checks that are voided for misprinting or reissuance are to be mutilated by writing “void” across the face of the check and removing the signature block. The void check is to be filed in a void check folder, or in numerical order in the monthly disbursement folder. Void checks are not discarded.

viii. All outstanding checks (more than 180 days old) must be voided and transferred to the unclaimed property account. Checks are required to have a statement printed on the front stating: “Checks are void after 180 days”. See Section VII.L for additional information regarding unclaimed property.

2. Stop Payment Action on Checks

If a school activity fund check has been issued and is then reported lost or stolen, stop payment action may be taken. The circumstances surrounding this situation should be carefully evaluated. If the check is for a small sum and is made payable to a vendor who has constantly dealt with the school, it may not be wise to incur the stop payment charge of the bank. If the check is for a large sum of money, the stop payment may be appropriate.

3. Invoices for Payments

Prior to the disbursement of funds against an invoice (or other billing document) the bookkeeper shall cross check the billing against the applicable purchase order or check request. Discrepancies noted shall be brought to the attention of the fund sponsor who will write on the billing to indicate the correct payment amount to be paid. The principal shall sign and date any changes to indicate knowledge of the change to the payment. Fund sponsors are additionally charged with the responsibility of verifying their applicable billings with the bookkeeper prior to the disbursement of funds. These cross checks are necessary to ensure proper authorization, documentation, and completeness. The fund sponsor or responsible person shall document the invoice as “received”, followed by date of receipt and a signature.

4. Cash Advances

School activity funds are never to be used for cash or salary advances, or loans under any circumstances. Personal checks are prohibited from being cashed through school activity funds.

5. Certificate of Deposit Withdrawals or Transfers

Movement of funds into, out of, or between Certificates of Deposits or any other accounts must be authorized by two authorized signatories. The primary signatory shall be the principal, who shall designate the alternate signatory. The bookkeeper may not be designated as an alternate signatory, but may be an authorized cosigner.

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C. Reimbursement for Business Expenditures Purchases for school business submitted for reimbursement of personal funds shall receive prior approval from the principal and must be supported by a pre-approved purchase order or check request, along with original supporting billings, cash register tapes, etc. Credit card statements or cancelled checks are not acceptable forms of documentation in support of reimbursements unless accompanied by a proper pre-approval.

1. Requests for reimbursements must be pre-approved and submitted for payment

within 90 days of purchase.

2. Verbal approvals, noted on the PO or check request, or copies of an email attached to the PO or check request verifying pre-approval are also acceptable.

D. Field Trips

1. Any charge associated with a field trip may be passed on to the students if

approved by the principal and if the field trip is not a required activity. Charges may not exceed the cost of the field trip.

2. Funds collected for field trips must be properly receipted and funds must be

submitted to the bookkeeper daily. 3. Costs or fees associated with field trips shall not be charged to the students if the

field trip or event is covered by the school’s operating fund. If a field trip, for which fees were collected, is paid for by the operating fund, the school must either refund the fees to the students or submit payment from the field trip account for the field trip to the Transportation Department.

4. A spreadsheet may need to be maintained by the school to record and track field

trip costs incurred by students and those covered by the operating fund to determine payments to be made to the Transportation Department.

5. Generally, school activity funds, other than specific field trip collections, may not

be used to fund field trips unless it can be demonstrated that the field trip will benefit the student body.

6. Any decision to use school activity funds for a field trip shall be made by the

principal who should use extreme caution and good judgment. 7. Field trip accounts may be maintained by grade level or combined in one field trip

account on the chart of accounts, but are not to be combined with any other funds.

E. Exemption from Payment of Sales Tax

Most purchases from school activity funds are exempt from payment of state sales tax. Tax exempt orders shall be accompanied by a Sales and Use Tax Certificate of Exemption form (ST-12). See Forms section for a Sales and Use Tax Certificate of Exemption (ST-12).

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F. Payment of Sales Tax

The following purchases are subject to payment of sales tax: 1. For use of faculty - except for items intended as gifts to the school 2. Vending machines 3. Meals from restaurants, hotels, clubs, caterers, cafes, and other 4. Charges for rooms, lodging, or accommodations furnished by any hotel, motel,

inn, or similar place

G. Cash and Cash Equivalent Payments to Students and Employees 1. Per IRS Publication 15b, students who receive cash prizes or cash equivalents

awarded in excess of $600 are required to be issued a Form 1099. The total of the awards is based on a calendar year.

2. All scholarship awards shall normally be made to an institution on behalf of a

student rather than directly to the student which will counteract the need for issuance of a Form 1099.

3. Employees who receive cash prizes or cash equivalents, including fringe benefits

such as meals or gift cards, of any amount are required to be recorded on their W-2 as income, also per IRS Publication 15b.

H. Gift Cards

1. Under certain circumstances gift cards are permitted. 2. They shall be purchased from the account that relates to the purpose of the gift

card and shall follow IRS Publication 15b. 3. A Gift Card Tracking Summary must be completed in its entirety and maintained

for each fiscal year to account for the purchase, inventory, and distribution of each gift card.

4. Any undistributed gift cards remaining at year end must be carried over and

reported on a new Gift Card Tracking Summary for the current year.

See Forms section for Gift Card Tracking Summary.

I. Bank Charges and Fees Schools should not be incurring any bank charges or fees other than check printing costs. In the event a bank does generate a charge or fee, the charge or fee is to be posted in Heritage during the monthly reconciliation process using the Bank Charges field and recording the charge or fee into the assigned account. The bank is to be contacted to reverse and stop any additional charges or fees (with the exception of check printing costs).

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J. Payment for Services Any payment for services, provided by outside vendors, to non-incorporated vendors can be paid through the school’s operating budget through the Fauquier County Government & Public Schools Accounts Payable Division. This will allow a Form 1099 to be issued at calendar year end if the $600 threshold is met. A non-incorporated vendor is generally a sole proprietor but may also be a Limited Liability Company (LLC). Since each school uses the same School Federal ID number, expenses incurred by a vendor for services rendered, must be tracked through the Accounts Payable Division. If the school would like the activity fund to cover the expense, an activity fund check is to be submitted to the Accounting Division to be deposited to the budget line where the vendor is paid from. The checks are deposited and applied back to the school’s operating account. Contact the Accounts Payable Manager with questions regarding 1099 forms, or other accounts payable inquiries.

K. Prompt Payment of Obligations 1. Obligations are to be paid as soon as possible, but must be paid within 45 days

of the invoice date to be in compliance with the State Guidelines Prompt Payment Act. Any reasons for delay in payment should be documented on the invoice. When possible, a revised invoice, with a current date, should be requested.

2. Payment of obligations shall be timely in order to take advantage of discounts

offered and to avoid unwarranted late payment penalties.

L. Unclaimed Property Once a school activity fund payment is disbursed, the funds belong to that individual or entity. If the check is not cashed within 30 days, the bookkeeper should begin contacting the individual or entity by telephone to ascertain if the check should be reissued. If a payment remains un-cashed for an extended period of time it is considered abandoned. Any un-cashed payments that are 180 days or older are to be voided and transferred into an unclaimed property account set up in Heritage. Due diligence must be performed on all abandoned property (i.e. un-cashed checks) before it is submitted as unclaimed. Abandoned property payments shall be submitted to the State Treasury Department with an unclaimed property return. The dormancy period for checking accounts is 5 years; however, the State Treasury Department allows early submission on abandoned property. It is recommended that unclaimed property from each fiscal year be submitted at the end of the subsequent calendar year (i.e., FY13 un-cashed checks are to be submitted at the end of November 2014). Each school shall request participation individually to obtain a unique participation number, but under the same School Federal ID number. See Forms section for an AP1 Form for Report of Unclaimed Property, Report of Unclaimed Property (AP2), and sample due diligence letters. Additional unclaimed property forms and information are available at http://www.trs.virginia.gov.

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VIII. Loans, Gifts, Donations, and Contributions A. Loans

Schools are not permitted to take out loans to fund school activity funds. Schools shall not make loans to individuals, PTOs, booster clubs, or similar groups.

B. Gifts

No gifts shall be accepted or solicited without the approval of the principal. Gifts accepted shall be for the beneficial use of the school or student body, unless dedicated to a specific use by the donor and accepted with that limitation by the principal. The principal is not obligated to accept any offered gift.

i. Gifts and Bequests Received by Schools

1. Gifts of Equipment The donor shall be informed that all equipment located in a school facility is the property of the School Board and is subject to transfer or redistribution if need so dictates. Schools shall include donated equipment and materials in their school inventories.

2. Accounting for Cash Gifts or Donations

Gifts of cash accepted for a specific purpose shall be accounted for in the account concerned, or in an account established for the purpose. It is desirable that the purpose of cash gifts be specified in writing by the PTO, booster organizations, or other donors. If the donor intends that the cash gift be expended for a purpose for which other school activity funds are not authorized, it is mandatory that the donor’s intention be specified and available for audit review.

3. Memorial Gifts or Bequests Memorial gifts shall be accepted with a written record designating the purpose or intended use of the funds and accounted for accordingly. If such a record is not received, or if the donor declines to provide one, the funds shall be used as determined by the principal to benefit the student body.

ii. Gifts to Students or Faculty Members

The presentation of gifts to students or staff and faculty members is discouraged. Presentation of gifts is authorized only under exceptional circumstances. This does not prohibit gifts for the benefit of the school (e.g., senior class gifts to the school). Gifts may be presented under the following circumstances:

1. Social courtesies may dictate the presentation of gifts on occasions such as

retirement, transfer, extended illness, or death. Under these circumstances, gifts of a token nature may be appropriate. Such gifts may be purchased only from appropriate accounts (e.g., faculty or staff accounts for staff gifts).

2. Funds may be raised collectively by the students or faculty for a gift to honor a special achievement, to mark a special event, or to help someone who has

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experienced a serious loss or misfortune (e.g., a house fire). This type of gift should not be made routine, annual, or for ongoing events or achievements. When approved, funds collected and expended shall be accounted for in a clearing account established for the purpose. The purpose of the collection of the funds must be made clear to persons asked to contribute. Recipients of these types of gifts are expected to adhere to IRS reporting requirements related to their personal tax returns.

C. Donations and Contributions

i. Donations or contributions from school activity funds to any organization are

prohibited unless specifically collected for that purpose (see C.3 for “Pass through” funds).

ii. School activity funds may not be given to PTOs or other organizations for any

purpose including one that may ultimately benefit the school. Schools shall avoid any situation that may be construed as an attempt to circumvent FCPS policies or purchasing requirements.

iii. “Pass through” fundraising events or charitable organization collections are

permissible provided a Fundraising Request form (or Charitable Fundraising Request form) and Fundraising Summary Form are completed and authorized properly and the funds are deposited to and disbursed from an account created specifically for the event.

IX. Saleable Inventories

Inventories of school activity fund saleable merchandise represent, in the fullest sense, funds that are the property of the students and must be safeguarded and managed accordingly. One objective of sales operations shall be to generate a profit. Losses shall be avoided.

A. Accounting for Sales of Inventory

Sales that produce general revenue and involve inventoried merchandise such as athletic clothing, school store items, concession sales, etc., must be accounted for properly in Heritage. Only the revenue and expenses attributed to the sales activity shall be included in these accounts, except that profits may, of course, be transferred to appropriate accounts. Sales that produce minor specific revenue may be accounted for within the account of the sponsoring school activity.

B. Inventory Valuation

An inventory of saleable merchandise followed by a profit-loss calculation should be performed frequently during the school year to help control and safeguard the inventory. Inventory values shall be set at the last price of the item reflected on the latest vendor’s invoice (including delivery charges and sales tax, if applicable). When it becomes apparent that inventory cannot be sold for an amount at least equal to the invoice value, prices should be lowered, and a notation to that effect should be added to the year end inventory.

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C. Sales Price of Inventoried Items Each sales price shall be established at a level that will avoid losses or excessive profit rate. Pricing should take into consideration the need to make change (e.g., rounding prices) as well as prices charged by local vendors or stores.

D. Non-saleable or Obsolete Items

Inventory items that are deemed not saleable at the normal price due to age, damage, shopworn condition, suitability, etc., should be disposed of by returning them to the vendor for credit, by reducing sales prices, or by giving items away. A record shall be maintained of those items that were donated or sold at reduced prices, and a note to that effect shall be included on the annual report of inventory.

E. Inventory Security

Substantial losses can occur due to losses of saleable inventory. The following regulations shall be followed to minimize such losses:

i. Inventory security is obviously best when inventory is kept to a minimum

(particularly when school is closed) and when rapid turnover of merchandise occurs.

ii. Access to stored inventory should be limited to those personnel charged with the

responsibility for the merchandise. Merchandise should be secured with locks that are not on the master key system.

iii. End–of-year inventories should be verified at the beginning of the new school

year to determine whether there was loss over the summer and to establish responsibility if possible.

X. School Activity Fund Operations

A. School Store

i. Merchandise offerings should be limited in selection, and competition with local

business firms should be minimized. Items shall be sold directly to the purchaser, and no drawing accounts or minimum purchase limits shall be established that would suggest the payment of a fee for supplies. Merchandise should be purchased for sale only if it can reasonably be expected to be sold during the course of the school year.

ii. No state sales taxes shall be charged to the school store customers.

iii. A physical inventory of school store goods held for sale shall be performed at

least twice yearly to determine any profit or loss trend and to provide a learning opportunity for students operating the store. A final end-of-year inventory shall be taken, and the inventory report shall be filed with the bookkeeper.

iv. School store merchandise held in storage during the summer months shall be

checked against the end-of–year inventory report when the school store opens at the beginning of the school year. Positive steps shall be taken to fix responsibility for the loss. Any losses attributed to pilferage should result in steps being taken to further secure access to the inventory.

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v. Hours of operation shall be suitable to student needs as determined by the principal.

vi. Sales through the school store are to be recorded daily using a Report of

Inventory Sales form. The cash box containing the change fund is to be secured properly with the school store or returned to the school finance office each day to be stored in the safe or vault for security purposes. Funds collected from the sales are to be delivered to the school finance office for deposit either weekly or when $5.00 in sales has been collected. There should be no change fund in existence at the end of the school year.

vii. An Accountability Report may be used to record the revenue by type of coins and bills as backup to the total amount received.

viii. Cash from sales shall not be used in lieu of a change fund or to make cash

payments.

B. Library Fees The cash box containing the change fund is to be secured properly in the library or returned to the school finance office each day to be stored in the safe or vault for security purposes. Funds collected from library fees shall be delivered to the school finance office for deposit either weekly or when $5.00 in revenue has been collected. There should be no change fund in existence at the end of the school year.

C. Popcorn Sales

Sales of popcorn that are generated as a fundraising event require a Fundraising Request Form and Fundraising Summary Form to be completed. Rosters may be used in the classroom for recording popcorn sales. If an intermediary collects and counts the funds prior to submission to the bookkeeper for deposit, an activity receipt is to be issued by the intermediary to each classroom teacher from whom the funds were collected. If the funds are submitted directly to the bookkeeper a Heritage receipt is to be issued to each individual class teacher from whom the funds were collected. An Accountability Report may be used to record the revenue by type of coins and bills as backup to the total amount received. If sales are done in a central location (e.g. the cafeteria or lobby) and not in classrooms, a Report of Inventory Sales may be used in lieu of activity receipts to track the beginning and ending bags of popcorn and to report the number of bags sold and revenue collected. A Heritage receipt is issued by the bookkeeper to the individual responsible for collecting the funds from the popcorn sales. An Accountability Report may be used to record the revenue by type of coins and bills as backup to the total amount received.

D. Bake Sales Bake sales that are held for fundraising purposes require a Fundraising Request Form and Fundraising Summary Form to be completed.

A Report of Inventory Sales shall be used to record items sold and revenue generated from the bake sale. An Accountability Report may be used to record the revenue by type of coins and bills as backup to the total amount received.

29

E. Concession Sales If only selling one product, concession sales shall be recorded using pre-numbered tickets and a Report of Ticket Sales. If more than one product is being sold, a Report of Inventory Sales is used. Concession Sales for athletic events or dances shall not be recorded on the same Report of Ticket Sales as the sales of tickets for the event. The concession sales shall be recorded on a separate report. An Accountability Report may be used to record the revenue by type of coins and bills as backup to the total amount received.

F. School Finance Office The school finance office serves the needs of the principal, school staff members, students, parents, and vendors. As such, the office should be centrally located, convenient to most users, and arranged in a manner that ensures the safeguarding of funds, documents, and files.

i. Cash Control

Great care must be exercised in the control and safeguarding of cash and instruments convertible to cash such as blank checks. The following considerations are applicable:

1. Funds shall not be accessible to unauthorized persons and shall be protected

by lock when not being counted or otherwise processed. 2. Checks shall be stored in a secure location and protected by lock when not

being processed. 3. The principal and bookkeeper shall ensure all funds and documentation are

properly secured at all times. 4. In addition to the timeliness of deposits required elsewhere in the regulations,

deposits shall be made on an irregular time schedule so as to avoid a detectable habit concerning the time of day that deposits are made.

5. Checks must not be made payable to “Cash” or to the name of the bank. 6. Cash must not be sent through the mail or the interoffice mail system.

ii. School Finance Office Files

School finance office files shall contain all records pertinent to school activity funds as well as copies of reports reflecting or commenting on the status of funds or the fund activity.

XI. School Activity Fund Reporting Requirements

The Virginia Department of Education guidelines require that an annual report of school activity funds shall be prepared and a copy filed in the principal’s office. Interim financial reports should be prepared on a monthly basis.

30

A. Bank Statement Reconciliation Schools shall request their banks to issue monthly checking account statements with the cutoff date being the last business day of the month. The checking account balance is shown on the bank statement and the checking balance shown in the accounting records at the end of the month must be reconciled promptly upon receipt of the bank statement. Copies of the monthly reports and bank statement shall be submitted to the Finance Department, Accounting Division for review each month.

B. Monthly Reporting Requirements

i. Each school is responsible for preparing monthly financial reports and reconciling accounting records. The monthly financial reports include the individual school receipts and disbursements data. The principal is responsible for reviewing and approving the reports prior to submission to the Finance Department. Statements and reports shall be submitted for all accounts including Certificates of Deposit. The Finance Department is responsible for performing the oversight of the monthly school activity fund reports. Monthly Heritage reports and Finance Department Compliance sheets are to be maintained in a notebook or an electronic file.

ii. School Finance Office Review

The following shall be reviewed by the school finance office and principal each month:

1. Fund Balances (check for negative balances)

2. Beginning year balances agree with prior year ending balances

3. Monthly beginning balances are the same as the prior month ending

balances

4. Checkbook and transaction register balances agree

5. Signature and date of the preparer

6. Signature and date of review by principal

iii. Submission to the Accounts Payable Division

Each school is required to submit the monthly checkbook register to the Finance Department, Accounts Payable Manager.

iv. Submission to the Finance Department

Each school must also submit the monthly financial reports and supporting documents to the Finance Department no later than the 20th of each month. If the monthly reports are not received by the 30th of each month, the Finance Department, Accounting Manager will notify the school principal. If reports are not received within two months the School Superintendent and/or the Assistant Superintendent will be notified.

31

The following reports or documentation are required:

1. Reconciliation Report 2. Bank Statement 3. Copies of cleared checks 4. Checkbook Register 5. Transaction Register 6. Fund Summary Report

7. Outstanding Checks Report

v. Finance Department Review

The Finance Department, Finance Representative, reviews and reconciles the monthly Heritage reports. Upon reconciliation, the Representative prepares a School Activity Fund Compliance Sheet with discrepancies, recommendations, comments, and/or questions related to the financial reports. See Appendix G H for a Finance Department School Activity Compliance Sheet. The Finance representative submits the monthly reports and compliance sheet to the Accounting Manager no later than the 30th of each month. Upon review and approval, the Accounting Manager authorizes the compliance sheets to be sent electronically to the school.

XII. Data Security

A. Authorized User

Each authorized user of Heritage shall be assigned an individual user name and password.

B. Backup Data A backup of the Heritage database must be completed on a regular basis, preferably on a daily basis, but no less than on a weekly basis. To prevent irrecoverable loss of data, backup files for databases are to be stored in at least two locations, one of which may be the desktop and/or the network, and one of which must be an external form of media such as a flash drive or compact disc (CD).

C. Archive Data

An archived copy of each year’s database shall be stored on an external form of media such as a flash drive or compact disc (CD). A backup copy of each year’s database is to be made prior to closing and rolling into a new fiscal year.

32

XIII. Records Management In accordance with Bylaws and Regulations of the Board of Education of the Commonwealth of Virginia, records must be retained in accordance to established retention schedules. Records shall be retained as according to the guidelines issued by the State Department of Education (Appendix A) or the Library of Virginia (See Appendix H for the Records Retention and Disposition Schedule GS2), for whichever time frame is longest. See Appendix I for the Code of Virginia Title 22.1-89.2.

XIV. School Closing

A. Disposition

A school may be closed either permanently or temporarily (e.g., during renovation). The principal of the school being closed shall prepare a written proposal outlining the suggested disposition of funds.

B. Planning

School closings are generally known well in advance. Advance planning should:

i. Encourage sponsors of club-type activities to use existing fund balances and plan for disposition of expected residual funds.

ii. Restrict fundraising activities to short range needs.

iii. Curtail purchases and concentrate on depleting inventories.

iv. Determine who shall be responsible for maintaining records after the school is

closed and who will be the authorized signatory for bank accounts.

C. Temporary Closing As a general rule, school activity funds shall be retained in the name of the school being closed if the school is to be reopened with a student body within two years after closing. There must be an individual responsible for closing out funds and maintaining custody of residual funds. After liquidation of inventories and after all accounts receivable has been collected and all obligations paid, the checking account shall be closed and all funds placed in a savings account so as to obtain maximum available interest. To the extent feasible, inventories of items held for resale should be disposed of by sale to other schools. Inventory that is not subject to deterioration and is not readily disposable (e.g., notebooks with school name) may be boxed, labeled, and stored

D. Permanent Closing As a general rule, residual funds from closed schools shall be distributed on the basis of the number of students going to each receiving school. Inventories of items held for resale, to the extent feasible, shall be sold to other schools or returned to the vendor for credit. Items remaining may be given to other schools, or disposed of as

33

approved by the School Budget & Planning Office. After liquidation of inventories, all accounts receivable shall be collected and all obligations paid. All savings accounts shall be closed and balances deposited in the checking account. The checking account shall then be closed by drawing checks to dispose of residual funds. This will provide a clear audit trail for the aggregate (checking and savings) funds. When liquidation is complete, a final audit shall be requested.

XV. School Activity Funds for New Schools

A. Philosophy

Since student activity funds are the result of combined student efforts, if the school population moves, a portion of the funds raised by these students should move with them to the new school. A portion of the funds, based on a per student ratio, will be moved the new school. A check for these funds shall be forwarded to the principal of the new school between April 1 and June 30 of the fiscal year preceding the opening of the new school. The Director of School Budget & Planning shall coordinate this effort to ensure that funds are provided.

B. Regulations Schools sending pupils to new schools shall provide the new school with a percentage of the net worth per pupil for each student that the sending school will lose.

C. Start Up Checklist for New Schools

See Appendix J for the Startup Checklist for New School that may be used to determine actions to be taken when starting a new school’s activity funds.

XVI. External Audit and Internal Review of School Activity Funds

State regulations require that school activity funds be audited at least once a year. The audit should be conducted by a certified public accountant or accounting firm approved by the local school board.

A. Annual External Audit

Annual external audits shall be conducted as soon as possible after the close of the fiscal year but no later than the end of the following fiscal year.

i. Objectives

The primary objective of the annual external audit is to contribute to the effective administration and management of school activity funds, in accordance with sound business practices. Accordingly, the purpose of the audit is to advise principals on the overall condition and management of the school activity funds.

ii. Reports of Annual External Audits

Reports of annual audits shall be published as soon as possible after completion of the audit work. These reports shall set forth the financial condition of the school’s activity funds; include a narrative discussion of audit findings, and present recommendations in regard to exceptions taken. After completion of the

34

audit work, all items appearing in the report shall be discussed with the principal in an exit interview, if required. The audit report shall be forwarded to the Superintendent (or designee) or principal concerned and to others deemed appropriate. Within 30 days after receipt of an annual audit report, the Superintendent or designee (Principal) is required to respond to the findings and recommendations. The response must state concurrence or nonconcurrence with each audit finding and recommendation, outline action taken or contemplated, and provide target dates for completion of such action. Copies of the audit reports and the Superintendent’s response to the findings and recommendations shall be filed in the Superintendent’s office.

iii. Response to Reports

Within 30 days after receipt of an annual audit report, the Superintendent is required to respond to the findings and recommendations. The response must state concurrence or nonconcurrence with each audit finding and recommendation, outline action taken or contemplated, and provide target dates for completion of such action.

B. Annual Internal Review

The Finance Department selects the schools through a rotating schedule, and also selects schools with the most recurring issues for annual internal reviews. These reviews are intended to assist the school to prepare for the annual external audit and to determine if the school is in compliance with established school activity fund state and local practices. See Appendix K for the School Activity Fund Recommendations Chart.

C. Interim Internal Review

An interim internal review of a school activity fund shall be conducted when determined necessary by the Finance Department, Finance Director. Completion of an interim internal review does not relieve the bookkeeper of the responsibility of keeping all the records of the fiscal year intact and available for review during the external annual audit. The following are possible reasons for an interim internal review:

i. Change of principal during the academic year.

ii. Loss or suspected loss of funds (it is mandatory for the principal to request an interim internal review in these cases).

iii. Change of bookkeeper.

D. Transfer, Retirement or Termination of the Bookkeeper

It is the responsibility of the school principal to advise the Finance Director of the transfer or termination of the bookkeeper. An interim internal review of the school activity fund accounts shall be requested at this time. Data system and building security access shall be immediately removed. The employee’s name must be removed from bank accounts. All passwords must be re-established

35

GuideHncs Issued B)! StaH: Departmc'nt of Education

Rkhmond"A J\1an:h.1989

1-- _

Appendix A

36363636363636

We are pleased 'co send to you the Department of Education's Guidelines for School Activity Funds updated through 1989. This manual replaces the Manual on System of Account.ing for School }\,ctivity Funds (Internal Accounts) issued in August 1954. The new manual is a guide for school administrators and/or principals for the management of school activity funds and is not regula~ory. The Regulations of the Board of Education of the Co:m:rnomlsal th of Virginia are not altered, although the components of the regulations have been incorporated into this manual.

Sufficient copies of the manual have been furnished school divisions for distribution to every school wit.hin the division, plus additional copies for administration based on the following formula:

Accounting & Finance # of schools in Superintendent Office Division 10 %

1 .,.. 2 + N + .10(N)

Additional copies may be obtained from the ACCQUntlng and Finance Office, Department of Education.

The task of updating the 1954 manual was a year-long project. The manual was rewritten and comments were sought frem a representative sample of localities throughout the state. COITJ.1\ents received ,,'ere inccrpora·ted into the manual and it was reissued through supts. Memo. No. 256 (Informational), dated December 7, 1988, anJ. additional corn1!lents were solicited. In addition, comments were sought from the Auditor of Public Accounts and several independent cart.iiied Public Accountants familiar with school activity funds. All appropriate corr~ents were incorporated into this final product that we now send to you. We want to thank all the school divisions for their comments and interest in updating this manual.

S. John Davis Superintendent of Public Ins·tr~ction.

Appendix A

37373737373737

Table of Contents

Introduction and General Comments

Duties of the Board of Education and the Local School Board

Basic Principles of School Activity Funds

Bonding

Forms

Retention of Financial Reports

Internal Control

Classification of Accounts

Accounting System

Revenues

Disbursements

Fund Transfers

Purchasing

Budgetary

Inventories/Equipment

Financial Reporting

Audits

Responsibilities of Personnel in School Activity Fund Accounting

Decentralized Cafeteria Fund Accounting

Sales Tax

Forms

Attachment A

Appendix A

38383838383838

Ini.:roduc'cioTl cLnd General COIlunents

In recent years much p=ogress has been made in pUblic school. fiscal rnanage:nen::., d~('? primarily ':0 tbe advent of the compu~er. In additi~~. ~tudent~ engaJe in var~cus activitie~ to ralse funds for schoOl use; these funds are Known as schoOJ. 2.ct:vity funds.

According to the Regulations of the Board of Education, school acti·"it.y funds are defined as, HAll funds received from ~,xtracurricular school act.i.vities r such as entertair'JIlent I

at.hlstie contests, cafeteria, clu.b dues, etc., and frem any and all activities of the school involving personnel, students! or propert:y ... " The looal school boards are responsible for adminis:.ering these regulations in c:he schools under their control. Funds defined by law as pUblic funds are not subj ect to these regula.tions and are to be handled as provided by law.

Each school is permitted to have 5ch::)01 activity funds maintair.ed in accordance 'with regulaticns of the Board of Education. The purposes of the school activity funds resulations are to provide administrative control over the income and disbursement of monies for school activities and organizations and to provide an accurate record of all financial transactions of these activities and organizations. The inforrr,atlon in this manual is designed to assist school div 15ion5 ire the finane 121.1 rnanageJnent of school activity funds.

In adminis"tering school activity funds J lcJcal school boards are urged to adopt administrative rules and regulations ~o supplement those adopted by the Board of Education.

Infonnation in this manual is generic in nature and in::] i vidual school 0.1v is ions should adopt accoun·ting procedures to accomplish the intent of this manual. Al'chough the informat{oll included nerelD lS directed toward a manual accounting system, the basic accounting concepts can be converted to computer use. Care should be taken, if computer applications are developed, to ensure proper internal controls c:l:CO adhered to and are incorporated into the procedures developed by school divisions.

D'uties of thp Boa.rd of Edu.cat:ion arH5 :the Local ScJ}ool BOard 2:5 thc:Y :cel?-',t:e tc:~ tllG S~-~J'-/2~crl aY'1C~ ll.a.ndling of SCf:ool activity aCCCQnts ~~clu~e the fol~owing:

Appendix A

39393939393939

section 4 of Article VIII of the constitution of Virginia states that the general supervision of the public seteel system shall be vested in a Board of Education of nine members, tc be appointed by the Governor, sUbject to confinnation by the General Assembly.

section 22.1-16 of the Code of Virginia states that, liThe Board of Education may adopt byla'ws for its own government and promulgate sl1ch regulations as may be necessary to carry out its powers and duties and the provisions of this title."

Section 22.1-79 of the Code of virginia states that the local school board shall among other duties:

"See that the school law's are properly explained, enforced and observed, and care for, manage and control the property of the school division ... If

Basic Principles of School Activitv Funds

The principles that have been established to assist school divisions in administering school activity funds are:

1. School activity funds shall be used solely iri accordance with the purpose for which such funds are collected.

2. Projects for raising school activity funds shall contribut.e 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.

40 Generally] school activity fands should be spent in such a way as to benefit those pupils ',lho are in school and ~Tho have contributed to the accumulation of such funds.

5. Student representation is

Appendix A

40404040404040

encouraged in the management of funds ralsea the student body and spen~ for its benefit subj!=.:ct to fc:cul s'Uper\.!131.on"

C'''''l-QO~ -ir·"t'i·1r~+-y fU.rlds ~~·h,all bE~

;~;ag;d~In-~;~~rdancewith the best b'usiness practices, inr.::luding s;ound. 'blldgetary' and accounting procedures~

7, Student body business shall De conducted iI~ such a manner as to offer maximum competition wi tI: co:m.::merci.al concer':ns"

8~ Principals, ~hrough their representatives; shall participate in t~he preparat',ion, mod i fie a t ion , and interp:reta.-tion of t.he pol icies l' r{~,gulations, ana. l)roced.0.res affecting student body affairs~

The school finance officer shall be bonded and ·the local school board shall prescribe rules governing such bonds for employees who are responsible for school activi funds&

The us,s of school ac.Jci\'rity fun·ds forms pre,scribed by tetJ.e State Department of Education is not mandatory; however, the basic informat.ion required. rnu.st be incorporated int~o a systr~m

which may be substituted for the system designed by the state Department of Education~ Detaj.led descriptions and/or e,,-rplanation of the.se fO:cJns are provided in a later section of th.is r~1anual"

Financial records should be re~ained in accordance i_tl: regulations adopted by the Virgi.nia Beard of Education (see attachment A) ~ LocaJ. school boards may, at their discretion, retain SUCll records for lcr1ger periods

In'cer:naJ.. contl.·'c~1 ha.s the

Appendix A

41414141414141

"The corlSClC)US inclllsion In an aqencyls operations 01: a se.r:l8S at ac,~t:.1CI1;s'

dcnl2,re cer'ta iT) E;pf-2::c:i f i~:::,d OL::j e(~t.i \leS relating to control over assets aI1d over accounting and record keep practicesu Broadly' j the obj ec1:i·':,jf~S of .lrlt:.E:J:'~nE1J

cont~'r()l are to 1)ro--:;rice Inana.qe~rrlent ';.y'i·Clft~

reasonable, btlt not absolute, assurance that assets are safeguarded froIT unauthorized use or disposition arld that fi.n.an.cie.l records are r,'eliab18 t.O I) E:. r"Tn it: the preparation of financial state~ents

and make meaningful decisions regarding the allocation and use of financial resourCE~S .. n

Irlternal cont:co1 twec0nj.q'~es ar..e l~secl.. by all r::ctl·"j.agers to rr~.ak.e their cperation,s contor-Tn to a aeS:Lrea patt.errl to ac:nie,ve established objectives~ The most importarlt financial activities in handling school activity funds are the receipt and disbursement of cash. The sensiti'v'€; nattu:e of cast, demands strong internal control procedures~ However, some of the most desirable internal controls over ca,3h COln::mt bE'. fUlly implemen~ed in school activity fund procedures because of the shortage of personnel and the nature of the operation.

1~'~A an",~;~er~~~':i~e, i t,~~'~~,~: Dece~sa:cy ~l~ ~~,:,~ ~OD a r;~i.:~ o~ Ic",<o: ,.,... 10.8 Dy c..he P~~"'-J.J:-Jc.l anee a r , c.L'3. ... X-"_'.· of J..• ,t_tr,c._. Irepor·ts4 The basic standards of internal control are defined las follows:

pocumentation - ~n~ernal controls shall be clearly describe.d irl \-lrl tlng· f ,lrl an orde.rly manner f to include the selective use of flowcharts, and documentatioTI shall be re~~~_y available in a cerltral or 13.1ni·ted nu~rr..ber of' des°:Lgr\ati2~d loca.tionr-:: ~

Bec::crdina of Transactions - Transactions shall be recorded as and sba.ll properly classified.

Exe. C1J,!:J~.f.}.rL~__ 0 :._.~I~I.sIf S 2. ct._i o.1J;,,§. I 1.'16 evidence sl:all. be maintained that a~thorizations a:ce iSSUE.E;d

by persons acting ',,'·f i t.:Jl in the cf their aL:.tJ"10r ana thcLt tx'ansa.c:t_ icns conf'ol~m y./i.t.h t.I'l(-=

TL(::tJ<. J~ L 9 SllCh tl.-·ar~sE;~.c:t:

t: rc;~n Si:\C't. i.ons

be

Appendix A

42424242424242

J.duals to snaximi.ze the n~rol and to ~inimize

~ne risk of lossm 1 control d~pends largely ~jn, t,:r.-~:~ e:: iminattcn of OP:Pc)l~t;.lrlit. f2E: ·t' conce.a.1. erTGrS or irreg,·tllarities. St:J.CI1 control f in tu:cn I

depends on the assi of ~orJ{ i11 such a Ina.nner· that [10 one 15 responsible for 0.11

ses cf an activi or ransactJ c--;r€:at:inq r_~ s:l"clJat:ioY"l -t 'yl01J d ps;r1TtJ."t~

irregular'ities to go 11ndetected.

SlJPP~\li::: :~C~~l ..- Q·_alifi2(~ c)nd ccr~t_.;-.uou.~;; su_pe.r\rision shall be prov:i.ded to r"nsure tha.t crJp:coved p·rocedUY i2S bre fol.lc\tJed _' LinE:s of' resJ,:.iol1sibi15. and accountability shall be clearly defined~

Access to Resources _. Access to resources shall be limited to authorized personnelQ Access includes both direct phys leal i'l.ccess and indirect access through the preparation or processing of documents that cGthor ize ·the 1.,1;,;e and dispo,,,ition of resource.s. Periodic comr>arison sball be rnade of the resources used with the recorded accountability of the use to detect any discrepancy.

Co:mnetent. "J?erf&l1JJ..f~.l :Reason2ible ca.re shc<-ll bE:: taken to ensure that key personnel have high standards of integrity and are This assurance can be achieved educat training r and relevant experience.

liea sona~J::.§..._J~'§_1l..t~§_D.9_~ I n t ern (11 c ;)n t: r 0 1 s "w~ i.ll p:ro·vide reasona1.Jle" b\J.t [';0-:: 2tbsol ut(::;, assura11ce 'tb.a.t. t ..he. o:bj ecti'\lt2S wil1 be accorCipl isb.ed" rrl1is standard recognizes that the cost of internal controls shou~a not exceed the benefits to be derived from the controls. Tlle benefits consist of significant reductions in the risks of failing to achieve the stated objec·tiv-es&

B..?~_QXd~ -.. Procec1urss 21.1211 }~"e il:~ple:cI1E:n.t:'i:?,c. to 81'lSur-e that records, regardless of medium, be secure from unauthorized use, alteration or destruction, and be 1:'et.ained in acccJrdanc:e vl:it~11 t:.11,e polic.i.~2s of t.he state Archivist, and be readily audit2ble~

This secticl1 categorizes standard accounts that ma}ce up

t is madE to list 21.1 co of: c~ti.\/i The 2CCDunts can be classified

Appendix A

43434343434343

:"D t-vlO i(~s t a:t SC~'J.()oJ_ A.ct:.iv'itj' ?~cc:o;-tnts

Ccnt:ro1 ith su,bsectioDS 12nder these

ar School Acti ~

a) C ub Acco~nts - Club accounts are funds t:hat are to b'E~ llSE:-;d. fc;r t.f18 benefit~ cf a disJcirlc':: qroup of students enrolled in the local school division Wll0

[12V::~ fG~r-rnF.::d theulsel'vc::,:s irlto 0.11 organi:ZE.:d en.ti ~i.t)1 6fficials elected by the group~ The activity is planned to occupY· the attention and interest of the group concerned as opposed to the interest and cancerl') cf the entire student body~

ctla~a.cteristics of a club account include the

:f.Ji:,Jst De c:t·~;"an,i.zed, 'vi i t.rl student

Is of concern or interest to a limited group Is not involved in a competitive sense with cthE:c schools. Accumulates funds for its own use&

Examples of cl~b accounts include, but are no~ limited to, the f~llowing:

C:hess Club Bistor:l Cl.u:b Class of (year) }(ey' CJ.."(.:d) FU.tuX"r::: Farrners of l\rneric;a National Honor Society

b) Instructional Accounts Instructional accounts contain funds to be used for the benefit of specific instructional programs. Funds' available to each instructioTlal account are spent in suppor~ of~ the approI..)ri.a'ce i,nstruc"t:iorlCl.l pr:ol;:rcun to the extent deemed necessary by the principal.

Cl·~a.ra.cterist:ics OJ: an :irlst.rl)~ctional accou~j.t incl u"~1e 'crie foJ.lov/

Corltains fun,ds priJna.r.il~l cen.oted T~CJ supp()rt. il1st.ruct.ion ~

rE,~ceiv·.(:? 2 2r specific revenue anI}' ty authorit:y of the

cllairITlcll. of tlle J. n s·t: :r":"'LC 'C iona 1 ':)_(~pa.rtTnen T:

Appendix A

44444444444444

, ... iJ_ n ;:~, ·t. r:·U. c t: l 0 n a..1- eJC::C()\Jl,-:"'t:S includ(-:~{

limited to, the fol:D~ing:

Art Music Marketing Educati~n Physical Education Forej.gn Languages E")c5_;2nCE.~

c) Major Acti ~ty hCC011nts - Major activi accoun~s

conta i.n fu_nds tc; be us(::d for tYJ8 bene,fit of t.he entire student or school~ Most school activities which generate revanue from fees, admisslcns, fund-raising arlveS r grants: and dena t.ions ere .in t.il is category. Student::. involved :Ln these activities may serv·s as official repr~e.senta.t~i·ves of t.b,8 scl'1001 in, a,ct:i\.rities or competi tions with ether schools, fI.ut:.hority for expenditures rests jointly with student officers, ftlnd sponsors f arld the principal, or" lwith fund sponsors and ~he principal where student participation is net appropriate~

Characteristics of a major ac~ivity account include 1.:.118 fcllo\,ring:

May 1.15 E':d. by ·ttle to finance competiti.ve events Is denoted for ~he benefit of the entire st"~!.J.c:1ent. body Comprises most of major revenue producers

Examples of major activity accounts include, but are not limited to, the following:

Athletics ~Nev/S1?aper

Debat:e School store" DraIna~ Yearbook

C~earlng and Control Accounts

a) Clearing Accounts - Clearing aCCOuTlts are accounts i-C-l w>lich fl]nd~; flG~.·I in ~)_nd OIJ.t in E-(Il.1;~;.1 2}:rnOU.nts so tt1at a zero bal.ance is achieved over a period of -tirtle" 1..1Slldl1y t:he school year ~ In gene.ral I' thes~2

aCCO'L1Tlts f.lolcJ fl.lnd. balance~~ wl'"lic}:-1 will be for-tN'a'rdecl to dest<ination.s Couts id.e~ tI"l8 school (OT..~ in SOlTu~

cases inside the school)! and any deficit l)alances ~'1 clear'ed r'2iDbllrsement~ Cle~rirg

aCCCiunts a~e general]y dedicated Lor spe~ific

P·(L:CPC.:<:;t::::~·, ctnc,- c.re net. 2l.\,/Cii Table. :fc::: l.~:SE~ J_.n othe:.c

Appendix A

45454545454545

school activities.

Charact:erist"ic~; of a cle,ari:ng aCC,OUl, '._ J_TJC UC:l€': t:.lle foJ..lo\ding:

Is not available for school activities l:}crlnally h,as an er-l',:i~.. of-""ye3.r bala:nce 01: ZE~ro

tlnless a defic.it indica-tes a, reilTlb\.l:cserr\ent,

due"

Examples of 'clear'ing accounts include, but are not limited to, the followiT1g:

Instrument Rental Vandalism Bu.ilding Use

In addi·tioD r clearing accounts ,10uld incorporate. I if appl icable r funds obt.ained from activities solely for teachers and/or administrator·s, e~g~, drink machines, coffee Lunas) flower funds, etc. Funds obtained from these dctivit.ies should be. used fOT- t.he benefit of t:he teachers/administrators involved and there should be a zero balance at the end of the year~

bi Con1:rol accounts Control account.s an" records which account for cash assets not in the checking account, for example, savings accounts, petty cash fUIlds, and change funds.

ceding of Student Activities

Pr'udent and effecti-\le fU.nd :marlagenlE.~nt and ctCccu,ntir!g depend upon the account structure established for financial t~ansactions. A school activity account may be established only with the approval of the schocl principal. All school a.ct".i"'vi toY ftu;,ds y'f·ill be. aCCOllnt,ed for wi th.i.n C:Jlle, set of accounts under the control aI1d dj.rection of the principaln :A separate fend ledger should be set up for ea.cJ-: act.ivity fund and the receipts and disbursements of each fund should be recorded on t.h'2 proper fund li2d'jer. The acoount: title 51-ioule1 reflE::ct. tJ18 p1.J.x"pose for ~rhich the fund accou,nt vlo.S

est2J=::lis:h.cci. J>Tu:m!2rica1 acccu.J"I·); n\J.::LC~(~Y.·S ~;l"),c)u.ld fol.lofJl th~3

same s~ructure as tlle other accounts within the school; wi.th G.och actiiJi func! J.-~r::":1inr:;:T it.s or,/\ID a(~cou.·r;,t, fll.lnLoer ..

t,. ~ . :E ec~ yes simul·taDec~slYg

a c;cour~ t. i riC} exists to provide ete, accur2tE, a"nd ti;Tle1y ~fina.ncia.l i.r:.forrc:c.t.ion to persons respcflsible fo:c -tr..te

Appendix A

46464646464646

operation of ~he schoolR Deficit balances are not allowed i.n any school activity fund ~owevert at specific times during the school year there may b~ a deficit in an account, but it S110l11d be cleared by tr12 reiTilbursE~lnerYt of ftLnd.s. l\t the end of the SCllool y~E~a:r' no deficj~t~s cLL'E' pe:r.-rn.i.t''tf:.::·;j :Ln scb.ool. a c'c iv i ty funds.

School activity fund revenues may be generated from a n.l.unber of S01...1rces including athletics I concess lOT1S!

pUblicat.ions r club activit:ies, gifts, fund'-'rais drives, and other activities. Because most revenues are in the ferm of cash receipts, the Inaintenance of adE:q'-late cash cant.rel procedures is extremely important.

Internal controls over receipts should include, but not be limited to, the following areas:

All collections should be receipted by a pre­numbered receipt form, \rritten promptly upon receipt of funds.

All checks received should be made payable to the order of ttle school activity fllnd~

Checks should be rest:r ict i \lel'i end.orsed to be deposit.ed to t:h.e scb,ool s local bank inuned,iately upon receip-t ~

The reSIJonsibil i ty fer recei·V'ing fU11ds and IJ.lriti.ng receipts" preparing and making bank deposits and posting financial records should be segregated to the extent possible&

All funds should be turned in to the school off ice as soon ctS possible a.ftE~r they are :cEce.i \76(1 ~

All checks should be endorsed for deposit only irnrnedia tely upon reCeilJt. r.

Ba..n}:: pcs~.iiJl e '.

c:ollE2:cted fu.nds should deposited

-;T~ t:;:::?~ :;; \.1 r C': S r

.l -i~:.S; ~?hou1cJ

C~ al}. cash 2nd castl i.tem~.

Appendix A

47474747474747

Cctsh r c'h(-::(~ks :mC,n r2.y' ordel:"s t ()r C)thE::::r fu.:n',j,s "mus't: b(7:~i

2~-ecorded de.. j~l:{ in pr-E;nurn}:,ered receip"t:. [:J()C)zS a.}'~d d.eposi,ted .~ n

t11e SCllool l S loc:;j.,1 j')2r:}:-~ ~ H:oiw~eVE::r [ 't.r1,e use cif inciiv ic11.:ta 1 ;::ece.ip"t fOJ~rn~:; fo:r- m,.i.no~ t:;_l:~Ou.nt.s rnay r)e inf;:.ffic;,lf::;t""l.t. \J.rb.el1 t,b.e: ~o~ev C011ec~ed is for fund-raisinG activities, bake sales; :~ ~ ;, ;\ .~. ...'. ....' ' e',::,

__ l',' .. T.....' ~ :~ :. "'. " ....~:. ~_~,~ ,-.~,'. ,'.'-~ ..:~ i teacner/sponsor, I may.;,~~.~~..: '.-.:,.', I •...:

A _ ._~~ " J.. ­_~~'~~ ~ '..L': r"" '-:-:, ...... c .-.,.c:. cne

use a st.tldE-:nt: 1:"01J or at.her li.st~ ('lnd :C'2c()rd t.he an1()~~L:r1t

collected from individual studen-tsa The teacher/sponsor should be held responsible for the funds collected until ttle money is deliver~d to tt12 business cffice to be included in the daily deposit~

CaSfl receipts shalJ. be posted daily in the cash receipt record .. The journal should be totalled each day and reconciled to t.tle d_a.i.l·y der>osj.t of :morlE~Y lrJ t11e sen.Dol account.

All disbursements shoul.d be made check. Disbursements should be supported by ete documentation l regardl,,,:ss of the nature of ·the expenditu:ce, Suppor--cing accurfterrtati.on Tna~?' inclt:de J_l'1\lolCeS, ..rcucb"ers r ()r~ purchase<t

orders f all of ··~hich. Sl10U.ld be prope:cly approv'ed for payrnen.t. ~

Check signers ShOU'~4d !'"e'Vie\ll t1.1e sD,pportin.g d.ocument.atict'"i before sing the checks~ Disbursements should be posted in a cash disbursements record on a daily basis.

ieal internal control features fer cas}l disbursements ir1clude the following:

l~ All expenditures shou].d be made by checkb

2. Expenditures are properly classified as to activ fu:nd. a.nd. obj Bet,,,

J Ch.ecKs sl"1ould be sigll,ed or11=-l on "presentati.on satisfactory d,ocumentary evidence that t~b,e

disbursement lS prcper.

48 The function ot Ing and approv Y1g ses shou.l (1 be seco. ra.tE:c. 4: r r"~n .... [\.~...... ':-'1'='] a'~ .: ..~,-- 4- 0 "r"ece';·' 'ia.ncl stC):ing lterro.s PU~C;:'~'.3~d'-'\t;~ ·r.-~~-~:;;n:;it·:ilit:;\1;~~; check signing should be separ~ted from that invo ved in preparing ~JOUCherSD

Appendix A

48484848484848

ce ece3sary to tr2.DSfer 1~0ney

frc)m CYle fUT';(:t .leo (~r~ct.hj~ri 1 .. E:~~ rJict.\::..::-.c: f'~lnd prC::lf.it~3 a.rE transferred to the general fund. In order to transfer money from one fund to ~no~her! ~L is necEssary to ite a check cut of t}-;.'e Jt1·ra,n,;::fEJ."!..·'~:::t.J :F'T."C:-J. FU;'~c.l~ anc.3_ rf;;~c(:::ipt t~1'1.e

mcne.:l 1.n tLe llrrl-(j.n3fe:?:~'2:·t;:d 'To Fund ledger" tJse of t:t transfs"!t' voucher along ~ith the expendi.ture voucher are appropriate clocuI'rtenta ti. en for th r2 t:r,:lns f'e:r ~ T:nc= t":'l""a.ns fer -'>/cucber Tii.i..J.St

st·.:ow c',pp:re]v;:::ll ():f 1") 0 t.·0, tb.8 a.cti\lit":l funcl sr)()r:.~,~,Ci:r:' a.nd tlJ.E: px"incioaJ. ~ If ·th'2 opel:'"ations of ·tbe sch.ool d.i\r:l.sion a:ce ~mall ~o that al.l money is included in one fund, but separa'te ledger pages are maintained for each activity fund, then the t~cansfer '(/ouche.r i~r t.rle only doc:u,rnent,ation n:2c12':'S:lsary fer j cUJ:'"nal (;;rl'tries t:o ·bt:'.~ J)re·I)a.-red to rna,ke ':cb.l:?' t::carlsfG.:T" OnCE~

again, such a transfer must be approved by the activity fund sponsor and the principalu Transfers in and out of the fund InU,st. equal. zero ror t.he. schoel.. jlear~,

Ellrchas ing

N'o p~_1:rch':ls2 ~.a.y be lTJade fr"orn. SCllOC} aC'Cl,·''oT 'c·y· funds without the approval of a school official designated by the principal" ","L. p"lJ.rcha:3e recr.lisition ancl/c)r puY"cb,a.;se order system should bE: establ :~shed 1 and all p'urchases sl10uld be made only on the basis of properly approved purchase ordersw J.n e-ndi tion 1 ttJ.e internal ccrltrcls sl1Qulc. ens 'lJ.:r e t.o tIle greatest extent possibJ.e that:

l~ The purcnaslng! x·eceivi.ng; and accounting functiorlS are segregate.d"

Proper no~ificati.on of rece OF goods is made~

Dollar lirnits Df p,urcr.1C:lS ing adl-1Er.::,.d t.o ~

Pr()Ced\.lrE~S 2~!.-e ·t.O E;nsure thC:tt·~ 'purch.ase~~

clr0: accl.:.ra.t£:?ly p·.t'·oce~sse-::.:d. as tc q:Jant~it~y f r'rlce 2t:n.d \lt~ndor ,

The V i.r:ia Public Pr'ocllrem~nt Act i. (',,:3 ly t_c li.e 1:.ic)dyl~ i-:1 t,'r:.2 Ccnl.E~CY1Weal.';:h,,,, 'Tl1erefor~~~ :Lt can l:;;e

Ho~everf ~herG are dollar ~_irnits ~ha~ heL~ ~c facil tate the ~u~chas

Appendix A

49494949494949

',-I';'. 2.n k':C 0 C u.r Q ::n~:: n t~ Manllal l states, CDS+-":' cf tJ:,.e material.s I

.1S less tb.an $500 may be :reef? of 01)8 ~ritten telephone CIuot~lt.ion.,\~

The::. PrCCllreTI~ent: Act does not apply to the sale of s 1 '..J.!. otb.e.t' me:rcfl2:}:ndise sold t<~ a

··v'·e.ndor t.O class

Recent o?inions of the Attorney General st.ate ·tb",·t such a transaction is a "distinct.ly separate purchase agreement ~hich the vendor agrees to 5811 and the student agrees to

B1..~Ldqet.arv

Annual bUdgets for school activ funds should be prepared for revie'", by scbo01 adm~i.ni,.:;tra'cors. Budgets serve as a device for proper estimating revenues and controlling expendi tur-es. The 1'",::v·5.e·,,1 of all prcposed aci:ivi ties by school admi.:ni5i::rators bel :)$ r.:o € ':nsure tr-.1.at the ac·ti\ri ties benefit th.e sttvjer~ts t the sc:rlool ~ a:1d the corD.l1lunit.jr .. Preparat.ion of a budget aids in plal1nin9 a.nd organiz ing activities to provide an ong01ng, successful scbool activity fur:d proq'r'a~T~ for +':hE.~ scrJ,coJ.. ~l"~a:t" ~ It is tJ-.\.e du.ty of fllno spcnsors to ::-.;uJ.Jrni t.: 2.rrnual ~budgc~ts to school adlninistrators for re~l.ie~r .f-",s i"i rr:iniri1urn, th.e 1:n.:;d9t~t ShOl~ld include the folJ.owirlq:

1. Name af fund

2,. Purpose of fund

J. Proposed fund-raising activi.ties, incll1ding dates and estimate of revenues.

4. Proposed expenditures"

In o:cdertc iderlt:Lfy and saf'e(:1uaJ:.-d ce'rtain assets, O.n

ir1ve~tory control system shal] be rnai.ntair1ed to render c-,ccu,;ra.te. C"~,nd cu:-:'ren·c. ;jCC(Ju:nt:.5.~+~q fCi::- a.ll I:~er.'cl~lan(lisej

e(~[lJ1pm2r},'c l a.nd/cr .prop(~:ct_~;~ r·t if], essen·tial <to cont:rol ·the property and goods purchased through school activity funds.

te control ures include:

ete t2c(~~d of the

_ ,,'. 1.~ ,'",.L ;,::: \,_ ...1

.S~Pf:C t'J.c ite:ms~

Appendix A

50505050505050

3. Marking each plece of movab2.e eq~

Conduct periodi,c inverltoriesa

property~

records ..

6~. Enforcing acc:c\.lrlt.abil i ty of ~C}-le q'u.ardian"

Scboo:L act:ivi"c.y· fund ];>f=.-:rsonn,el. s:no\llci be discouraged from rnaintai.ning large inventories of resale items because of l.osses which could result fr·om theft or damage. Inventories s.[lou.ld be conduct,ed c,'t le2.st once each year 011 JUI1e 3. 0; ho~)'e~..rer f mere frequent in'··/entori.es en-harlce cont:rol o·ver the resale iterns arid eq;J.lpment.c ETJ.cl-of-year inve.ntcries shall be verified at the beginnj.ng of the new school year to determine r,l,(ri.e·ther:· or not losses },1c3.\re occurred clu.rinr;{ the su:mlT~er and to establish responsibility for SDctl losses, if possible.

It is imper~tive t~at th~ scho?l,establi.sh P?licies a?d -crOCE',cures to ade.qu.aJceJ.Y safeSJuarc1. J..n\Tent.or"y of resalabl.e l terns 2.nd eq-uipl"£lent. < InveT1t,ol-:'"~{ secu.:t'ity c:an. b\~ obtained by· rapid turnover of resalable items and by limiting inventory ~o minimal amounts while school is closed~ Access to stored inventor~:{ Sh.O\lld be J_iTniteQ to personne.l respans,ible. for resale it.eiT,s <>

Establishment of the preceding procedures should assist in ful filling the school board I 5 fiduciary responsibil i ty over 'chese assets and aid in maintaining proper insurance coveX·Z3.ge .in tIle, event. of a loss ~ Equ.ipIn,ent pu.rcb.a.sed with school act1\!it·y funds sr!culd be clearlJT identified. In addition, equ.ipment sr::,culd bE"~ a.d,jed. t.o trle scb,ool division ~ s inventory of fixed assets when the equipment is purchased.

One of the major cornpon,ents of geod internal controls is the analysis of financial reports r especially y,lhere school acti'\tities are sInall in rlature" In'teriTIl finan.cial reports ;3]-lOlJ.ld be prepared on a Tl:cnt.:.rl1y bas~,i.s ~ Yeari.y financial

fund and copies shculd be ~ on file in the principalts office~ A ~1eficit: ~ r'"' :;lr\"- financial report should be addressed immec::'iiatei';' '"d,Ct~: t,he fund s.consor for. correcti'/e action~

I!lterim financi,al (~ ·E3~J.a,ncE~ Shef:;t:. ar~d Cha093s in Funj

.b 1.2nce ~ ont.ai

Appendix A

51515151515151

be developed ana will follow shortly)

StatE.~ reg111ations require tl'lat: SCllcol a.c~ci..vi funds 1::e audited at least once a year. The audit should be conducted by a certified pUblj.c accountant or aCCOllnting firm approvEci by the local school board~ If' a certified pU~lic accountant lS not used the local school board should documerlt the ra.t~icnalE"~ for noi: 'using a CF·~?l. ~ l>h,e: CPA. or accounting fir~m

shou} d be independent of 'the employees "lho 01:';::: responsiblE: for the financial operations of the school~

t ' ,­cbjectives of the annual aUd].,t shouJ.d be ,-,

a) whet~er the financial statements of the school activit:y fund (s) arel;>resen'ted in confol-""1'nity ,",,~1.ith generally a.ccepted. a,::col1rlti.n(J pri.ncipl~?s~

, \D; ·~Jb.etl1e"t" scrlool f ir1ancial c'-ct5.. ..v.it~ies are. in

compliance wi.th appJ"icable laws and reg-uiations ,: a.nd

c) ~whether an adequate inter'nal con"trol. structure has been established to safeguard fund assets and to ensure co6pliance with school activi fund regulations.

The purpose of the audit is to enable the auditors to advise the local school board, superintendent, and principals of the overall condition and management of the school activity funds. The audits should be conducted using Generally Accepted Government AUditing Standards (GAO Yellow Book is~ued by the Comptroller General of the United states) . In addition, decentralized cafeteria funds may be SUbject to tile S e Audit Act of 1984 and OMB Circular 128 when audits c~re. condu.cted ..

Reports of annual audits, addressed to the local school board, must be pUblished as soen as possible after the

et,lon (~f t'he: 211CJ 1 -;: \Jo:r'}( a:nCi. tJE,l i.\reJ:..-;f-3d r_r) t.r:e local ~~ch()ol l:>oard 4 ~L'he ctudi t: repor"t BrlouJ.d b€:~~ fcr'\421:r"ded to tl1.8 superintender1t (or designee) and,lor pr'incipal concerned~

within thirty days after receipt of an anx1ual audit report, the sllperin"ce.nden,t. is re.c:rLlired tCl re to t.J:")_,=~ findi11gs b.rld

C)reCOITLm·erid.3. t: ions Tb.e re s pons F2 :m·lJ.st_ s -ta t~f~ cc,:nCUJ,':'rence C;Y'

t:.>-,'t:ct :':' ~'~ .~c:xlmenc:.3~'t:i::)T~

;'::1.n c1 I) :,:. .::~"\f i d. E~

da.tes fc:r compl£::t.5..c of' stl~:-;h act:j_on ~ Ccpies of th{~ 2l.ld.it:. repo~~s and the su~erintendentls r'esponse to the findi11gs and

i

Appendix A

52525252525252

r2CC1'D~:n;0nddt"iori.s :::~hal1 ':::.IE-~· fileij n the super-in"tende 1 S office.

Be S:J29n~J }:} i 1. i t~i,~~_$__ 0 f P ~_L~~_QIl n.s1~ :L n_....~?_~~h"o Q~l l:s~j:_-~iJ~.~l",_.1~lIl,c1 Jj:£~Q,ld..:.-J.~.i n 9~

TIle division slJ::;;eri.rlten(jent s:11c,11 haVE authority to irr~plernent all pc)licj_es 8,:00 rule,s .i,n -to t·.lM~e.

supel.v·ision ancl c.Q1TtinistJ:'c.ti.on of school. 2\ct.i\rit:y' fllnd,.~~ in. schools under his/her jurisdiction; in acco~dance with established policies and regulations of the Board of Education)

Princ:i.Dc 1

Th~~ responsibi.li.t-:l' for safE.:gtlard.in,9, c"ccou.rlt.ing·! and rnanaglng the school acLi.vity funds rest.s sclsly 'Nit~h the principal and shall include the conduct of stude~t financial activities in accordance with the pclicies, rUles, and procedures set forth by the state, the local division, and the supe:cintenderlt" ~Cb.e dutie~·: to be perfoJ::'TrlCd in p r." 0'1 iding proper management and security of the funds may be delegated to the degree desirE~d by tr~~e pr'incipal f r.'-ut the

~~~SO~~~b~;~t~~ipf:r. manaq schoel ac'civit:y funds t'emairls

j3ookkeepr-y

The bookkeeper (financial manager, aCCOtlntant p busiI1ess manager r or other descriptive. t.itle) under the sUfE;rvision of the principal will receive, receipt, deposit, account for and disburse all funds flowing through the set,Gol activity fund aCCQu.nts p except as otrler"""lise dir'2.cte.d t)y t.r}e principal" Ideally f t.he book~(eeper should f).ot. 1J8 arl aut:.h.orizEej c~he.ck

slgner. Where personnel is 1 imited,. the bookkeeper could sign checJ<s when a couDt.ersignatll:ce is required. Checks arE; prepared trL2 2.ppr(..)priate indi~~ri(3.u.a.l e.. nd c,.l:·~2 signed or countersigned by the pri 1 or ot~sr school adninistratoro

Class/Club Snonsors

The pt'in.ci.pal of ea"ci~J. SCllcol sb.(::~ll ;~:"i-;-l:)OI (} tea(~llel"

(~:PC:;'S(":T') to super·./is222Ch c~cti\li.t-':f f'tlnd ect.. E(?.c11 -. . ;.~' I":. 0 1~( 1. c:,:. t.- G~ ,.'.:. ~'>~n·~ f ::lolL i]. 5. ?:.:C '~,y i t: ~,'~ ':::~ ::-1 cl e. ~L s ''-.'} J'.' C: C 'Jl F 1 i 21. n c: e

or this ~anual pE~~alnll~g to hi respcnsibilitj.es a:L'(~ :::.;};)ons il'::;l,e for 2cti\litie:::, y/ith (3. (::""l.l.(::;\"" ·'t.he. tirl:::nc:idl

Appendix A

53535353535353

operati.ons and condit.~on of the 2CCOl1n~ periodical Such. individuals must deal. with the bookkeeper in a siIlcere spirit or ccopera·t.ion! P(=:t-fcJ:"Tnin(j thE;;ir functj,o:ns l.n -:;) (-)te, f

accurate, and, timely mallner.

A scheol board may, in its discretion establish a decentralized system fer management and COIltrol of cafeteria funds without incl~ding in its annual budget an esti.mate of the total amount of SUC11 funds or receiving an appropriation of these funds from the local governing body. The ~ode of Yil,~gJn.iA Dennits cent.raUzed and decentra.lized cafet.eria sys'cems! a~,d these g'.lidel ines are designed to provide unifonn procedures for decentralized systems in accordance with the Regulations of the Board of Education and Speci.fications for p...udi t~ Cotlnties i cities and Towns ~ Since t118 cafeteria involves activities of the school, incluQlng personnel, students! and property, the cafeteria fund is classified as a student activity fund.

The administration of the cafeteria fund must adhere to the rules a.nd regula'::ions as outl,ine::i. i~ the purchasing section of this ntanUale Local schoo~ dlvlslons that operate a decentrali:?;ed 5ys·tern should folJ,o'IJ the Virginia PUblic Procllrement Act in acquiring commodi·ties for the cafeterias

Because cafeteria funds are supported in part by federal fun.ds f Clu.di ts of t.h.ese funds may )::>e subj e.ct to the .s ingle Audit Act of 1984 and OMS Circular A-128~ Therefore, these funds must be audited an independent CPA.

Elementary and secondary schools are exempt from paying sales tax on tangible personal property purchased for use, consumption, or sale at retail at the schools, provided the net proceeds axe cont:xibut.ed to the school or arl2- used 'to purchase certified. schocl eql,.liprnent for: cont:cibut.::'on direct:ly to the schoele The Code of Virginia, Section 58.1-608, (63) f

,s't2\<~:es f'\)rt.}~.E~Y:' ~

the other prOV1Slons of ~his

Sllbsecticn, the tax shalJ. not app clc.. ss rings f scl.~}col 'pll,ci:oqraphs-~ f

raj.sing programs for which an {:::1 eJTIen."cc}ry' or --' . ,:p 1~' 0 r ~:". T', l"." c::7'":: r:!. ]~ v E. S

Appendix A

54545454545454

?herefor'2 t applicable to the sale of class rlngs, school s etc., to students vendors.

Appendix A

55555555555555

FO:CTIIS

Appendix A

56565656565656

The fol1o'l4:LDg parj'es i.nc:l,ude copie,s of school a.ctivj.t-:::rt f'l.lnds f01:11\5 -tl'lat a~l:'e av'a:i.l.able at the T)epartm-2:n't of Educati.on and a br ief descript~ion> Df tJIE: fCJ.:"lIiS, and ho'v.; 'the:{ sb.o·uld be cornpleted.. We are not suggesi:irlg tha"'c ·tb,eSf~ fOr1l'cS be used bll't

are including them for guidance. A school division may have de'velolJed its OvlTl fOJ':1ns" or ()tl1er school o.l.vision fonns ma"y' be substituted :for any part.icular fonn included herein. In addition t fonn:; may be customized for each particular fu.nd. Dr schOCil di"\lision., FOJ:-1TtS ha~v~.? been included, for div·is.1.ons that have decentralized cafeteria operations and treat the cafeteria as an acti.vity fund~

Appendix A

57575757575757

A separate sheet should be set up for each activity fundh Each transaction of a particular fund should be detailed on this ledger. The form is t:o be used for both n~ceipt.s and disbursement,s.

Cash Re.ceipts, Clnd 0 i 81)1J r:.?e~_. __P,ec_QJ:.g1....~-L£.9r:~t. ro1 A.ccol1r.ltl_ (t'orm S··51"·EO)

This is the control account over all funds I and t:h.e receipts and disbursements entered on the Fund Ledgers should also be detailed on this cont::t'ol. account.. The COlll''11.D headings are the same as the Fund Ledger with the exception of Column1

5. In this column should be entered the name of the fund to which the receipt was credit.ed or to which the disbursement was charged. The fund code number may be used if code numbers have been assigned to each activity fund. The total of the balances on each of the Fund Ledgers should agree with the balance on the Cash Receipts and Disbursements Record Control Account.

Race 1pt FOI.-ms:

T-VlO receipt farrns r1ave bef2n desigrled for use in tllis systern.. Forrn 5-52 ED is .leo ::be Llsed b"v 'te.acI"lers or stucle,nt collectors when money is collected fro~ students. f.o~ $-53 EQ .is to be used by the school t.:reasurer or other officer designated to receive and disburse activity funds.

(Optional) (Form 8--52 ED)

This receipt form l if used, should be prepa:rec1 each time money is collected by a teacber or stUdent collectcr (see excep·tion in cash receipts sect.lon of this mam:i,al). The activity or fund for which the collection is made should be indicated on the receipt as well as the date, the person from whom TI\oney was received, the amount, and the pur~ose for which collected~ The receipt ShOllld be prepared in duplicate; the original should be given to the and ·tbe duplicate remains in the book. As these race books are completed, they should be turned in to the sctlool finance officer for audit and reten·ticn~

Appendix A

58585858585858

J? \~ ~S'::.i D t~ F 0 r]0~?__£l~__JJ§.!:~d __.t~~(_ ,y rE~.~~.}J r~§';L._._.g~C_~.9J~ ..b..§:~.r~ Y_:Ln.?~.r.1~j~::J_~, .Qi.d~..i:.;~~.~C_~ (~[,_Q.rJE._ ..~:._~::J2_.l- EI)J_

Pecei.pt.. F01:""TJ S-S? ED 5s t:o bE:: l;::'l:epaJ~'ed e(~\c:,n ti.rne 1110r18:'1"­is collected by the schoo] finance officer~ Th s receipt is used in pasting cash collections to the Fund r and the Cash Receipts and Disbursements Record ContY'o1. Account~

Therefore! it is necessary that the name of the f~nd for which the collec·tion is made be written on the face of tl1e receipto The receipt should be prepared in triplicate~ l'ne origirlal is to be given to the paye=, the duplicate is to be used as a posting copy to the Fund er and to the Control Account, and th(~ tripl icat.p.: remai.ns i1'1 tk18 rec2J,.I.)t bC<..;J<:. for alldlt purposes,. erhe duplicate copies of t.he receipts should be filed in date order by funds. U\utoTIlatic register T-sceipt.s ma.y be 511bsti tuted for t11is fox-m t j, f' d(~s re,d>i')

The Report of Ticket SaJ.es should ce prepared in duplicate for each ticket seller by the box office manager \Vhene\ier tickets are sold for scl1001 f:.lncticns., 'rh.e first. and last numbers of each type of ticke·t issued t.O each t.icket seller should be noted in the columns provided on the respe.ctive report.s" .f~t tbe cor:r;;Jletion of ·trle t:icket sales for each event the ticket seller should list the first and last numbers of each 1.:ype of ticket unsold (ret~l.rned to box office manager). The number of tickets sold can be computed by SUbtracting the first number of the ti.ckets issued from the first number- of the t:ic:kets returned. The mrmber sold ," mul tiplied by 1:he price of.: ea.ch t:ype of ticket. I equals the total an~~ount. of sales," The SUln of tb.e HTotal A1r.OUllt u colurnn l plus t.he changE'; fund, if any f equals the amount for which t~he

ticket seller is accountable. Upon completion of the report, both copies should be certified by the ticket seller and the original should be turned in with the money to the box office manager. The box office manager should sign in the spaces provided on both the or inal and duplicate of the report to i.ndicC1t~e receipt of the Inoney" The ticket, selle].:- should retain the duplicate as evidence of remittance.

mv7hf311 tl-18 box: office TEaI1Elge'::~~ has l ecei,Jed c. F~eJ)ort of !Ticket Sale~.; (Fo1.~r["[ S~"54 ED) f'roIn ea.crl cr:f the "ti.ci-:et sellers :he/she prE-pa.res d. consoJid.a.ted. Box off.i.. CE: Ri?l)()rt:" O:n t~n.is

report should be transcribed the Dailies of each ticket seller and the total sales{ change fund, accounta.bility, and

c:2rtif 3-ed IE (~;;' 21 ~~ !;r E~ :c (:1 ~": 1.:5. s U.kJ '''n :j_ t:, ted .r: 0

t.~~~e f[l'=}.n(:.~/ z:-:-.:ncL t.:12 suppo'!:-t. Reports cf Ticket 32 es attacllE The f r1ance orrlcer should

Appendix A

59595959595959

s the Consolidated Box Offi.ce to sig:n :t>2;c,e of

the money and should iSS1J8 a rece (Fot":':n 5--53 ED) t.o the box office manager for the amount of the~ J:"f.?Tn tt.d.nce~.

The dail report of cash collections is to be prepared by the cashier in the sctlool cafeteria each day when the cash se.tt.lement is made, Columns are provided on t.he form for the separate settlernen~ of each ca~h ~~gister operato! a? we~l ~s t~he tot.al amount, The ferm SnOUi..C1 be prepared J.n cmpl1cate and cert.ified by the hez:'.d cashier. 'The original should be turned in to ~he school finance officer with the cash collected ~ Bo·tb. copl{:::s of tIle :LE::por't ShOll1d lJe signed and dc'ted in the space;: he.adt:;d nRecei'\tf~d'By: H the person to whom the money'" is paid l .... r'Eceipt (FOliTI S~"'S.3 ED) ShC'lll(j also beu

prepared by the finance officer for the a~ount of the cash received. and given_ to -t,rle caf'e·te:t-ia cash.1.e:c" -r.r'11E~ cash.i..er should attach a copy of the receipt (original) to the duplicate of the Da Report of Cash Collections and retain b()th in a file"

A Purchase Reqllis i t:ion and Ord(~r sb.Quld be. pr.neparf~,d in duplicate b'17 t,b,6 scrlocl firlartCe office,r'~~/her~ev€.r a request for purchase of articles is made by the authorized student officer or sponsors nf any school activities. A full d "".·c.... ~r'{ .,.,.' ~.~ 0-,- ~th d ~ .........,lp! r." ,,. 'l-r ~ c4.J"'!=,r~ _,,-,01Co,,,;-, ...~,l.Le.d'" ,,-,e'1,.". _i-" ....., y",-"c~·-'-P~lOll

.;; ....• 8 2.rCd-'.- .. '_ .. \p/ 1.(",:rue_"",.__.,-,- ::'HOW,. 0.1

the forrn a,s well 2:,5 'the ql.13.n1:ity, unit", 'unit price, and amount, if kno"m. (I f unknown the unit price and amount~

should be estimated as closely as possible.) After approval by the teacher sponsor and the principal has been indicated on both copies of the form, the orig:lnal sh.Quld be sent to t11e vendor trOut \·/11orH t.l'le. pu.rc~n.ase is to be rnade and t.he duplicat.e S[101.21d be rE::tained in a tempora.ry· file j.n t.:b.e busin.ess of fi.ce ..

When the ~rticles and the invoice, pr-operly c:ertified to shc~·'l rece of 111ercl~land.ise o::c ser-vice' j ax'e' r€~c·.eived an Expenditure Voucher" (see it\lre Voucher) should be prepareda Attached to the voucher should be the invoice and 1:1-18 dupl. ica:ce C()~p~Y' 0 f 'c~e P-urct1.B.S l2. H.E:qllis it ion aneI Order \lJhich nas been held 111 a

}«o r)C~'lt sr.oulcl bE. iTLade t..o t:h.e FU.nc. I:ec1ger (Fo:c~m S···'~:)]

':eo "CI"'.:.E:: C~on·trol }\.ccount. FO]~-Il1 .s~~·5 ED) frere, t~rless,

:LC O~cde:r)

Appendix A

60606060606060

1 invoices should be prcperiy r'2ceipted by the authorized student officer or teacher sponsor tc signify that t:hE~ merch2~nc3.:Ls~'3 or ser\J:iCE:S 11 E:l\re. l)een t'~:::c:ei'led. Upon proper certification of ~n lDVOIC8, a Expenditl1re Voucher (original

) should be the scheol finance officer from inforrnation :n"\loi.ce ,::lnd ·the Ex'p'2n,d i,t.1.:re \lou.cher ShOtlJ.d be Cll='ipro\,lecl for :LJaYTne.~nt the princi.pal :oefor>?3. paYJne.nt_ is Inade (' (One ~E>..lJen.di ture 'Vcuch\s:r rnay be prer)a:c'f.::d for several invoices to the same vendor~) When the voucher is paid, the dai::e of payTnerrt and chec}: rn,rmber sll.ould be iIidicated on the E)t~pendit:ure V'ol.J.cher and on ·trle stlPf>ort~ing PUl-cbasE~ R.eqll:Lsit~ion

and Order, if any~ The vendorls invoice(s) and the duplicate copy of the Purchase Requisit.ion a.nd Order should be att.ached to the Expenditure Voucher and filed in numerj.cal order by \r QU.cher nUrrLLj;2 r ~

Post:1.:~g sl-;,"olJ.ld }'.A rnac1e to t~he Fi...1n(J. Iled.g"e.r (Form S-50 ED) and to the CCI1trol );'c,cc<llnt (Form 5--51 ED) f.rorn "t:.he Expendi"tl1re Voucher~ It is essential; however, that corresponding check nurnbers be indicated 0:1 tJ""le vouchers before they are posted to provide proper cross-reference for the disbursements~

Fund ~~~~l,~Ir;~O{Z:t~~l)O~'=:t~l:lc~!~,~e~:rr~d~'a;~r~~~~~;t~e ·t;:f:~~r~~ each pay periodN The cafeteria director should list the name of the employee, the capacity in which the employee worked, the rJ.our~:, \,Jorked, and the ra"t:e o:E I;)C'l1'« From tl1is inforTnat.i.ol1 the director should oompute the gross amount earned by each employee4 The amounts to be deducted for withholding taxes, FICA taxes, etc~! should be shown in the columns irldicated and deduoted from the amount earned to arrive at the net amount for Wllich t:he empJ.. oyee t s chec}( is t,o be ~lr'i t.ten.. Before checks are prepared, the payroll should bear the c"~rt.i.fication

of the cafeteria director and the approval of the principal and should be audi t<.'3d by the school finance officer. l>. separate check should be prepared for each indivldual on the pay'roll in the aTflount d1")pearing in 'tIlE net. chec}{ COl1.11'71rl

opposite t.h,8 ei'Dployees 1 riarne ~ A 1:> a n.k. in ths localit~i 1s general designated as a itory for tax money withheld from school board employees! salaries, 2Tld at the end of each rnont11 onE; Cf.1 rs'ck, sbould be. dl-awn. t.o the barlk designated to recei've t.he J.. T:,COlne t(,i;( \.oJithJ·leld. frOJTi c~.. fe,t~el:" ,_,' e'mploy-ees ~

1'115.5 ChE~C}::, i \tli-th ·the of ta.xalJle ~"2;;,9ES r should be (1e1i"vered to 'tl'12 sc'tloc-l bO-3,ro. ~ }l.t t.h.8 end of f~!.:.,:~:h qUartE:r (;:.

be Qr~~n t the?r surer· O~ Vi~:·~i.rlia for the ~.otal of the FICA taxes \,,; i ·ttllle 1 c:t 21 S 'Y/~: 11. c. s t: L_ e ei:fip 1. 0";/ 21~' r S

This check and a r of cGvered wages should be deli."-lered. to t.be scb.ool t·:o:3,rc. for i:ncltl:3ion t.h.e Soci.al

Appendix A

61616161616161

SE.:cur~:' :t' e. I-J () :C 'ct. "

~~·,eClUE3nc;e c-.:.'J CJt.hE::C .i.\;,';.~n a \/c'Uc:tler n'Ll'tnJ:;er in thE: same 'r, ure. 'louch, e, r s ('ForrLl ~:>'~5f-3 ED) arlO

crleck rlLlf:,j:'ers cC":v~E~r'ing f;;:(::"C'..b pay:coll (00000 t.O GOOGO) ~;hould

be recordr=.::cl ~

There are two metho6s of posting the cafeteria payrolJ.s:.0 t.h.i=~ Fund. Led.ger (FO:C!F 53-50 ED a:lcl t.e tb.(~ Control A.ccQunt (FerT"i ::;'-:51 ED)

one l1H.~·t:.no(1 ·che t>:)t:al of t.he ~;:Ne~t Cl18Ck H col'umn shottld be posc:ed 1:0 tb?- Fund Ledqer <Hid to t:he Cont:rol Account. Before c:neck.s are IJrepared a t. tIle eYl<j of eac11 month and auar'.:er for the income ta.xes and FICA taxes withheld, ixpenditure Vouchers (Form 5-58 ED) should be prepared for the amoun~ of the taxes withheld~ From tllese vouchers! charges should be made to ~he Fund Ledger and to the Control Account in the arnou~t of the vouchers.

The second method is preferable since ~ne li.abilitv for the FICA and income taxes withheld is established at th;time the payroll is posted. Under this method two additional Fund L€:dger shee-ts should be set-up? cne for F'ICAtaxes withheld and one for income taxes wi~hheld~ After the payroll checks are dra.vJn tbe total of the IIAmount Earned" column on the payroll should be posted as a disbursement to the Cafeteria Fund Ledge:c aCCCJ\lTlt (F'o:r-;n S'-50 ED), 'The total of the "W. H. Tax H column a.nd. t.~ne t.ota:l of t11e HPICA rra){H C01U1T.1Tl Sfl011ld be pos·ted in the HRecei.pts n col UIT.r1 (7) on the respect i ve tax Fund Ledgel.<- accounts. Tr...e total of tb.e HNet Check n colurr.n on tIle payroll should be posted as disbursements to the respective tax Fund Ledger aCCDU!lts and to the Control Account~

Under either method, an Expenditure Voucher should be prepared for t.he. eTnploYE~r I s portion of th,e FICA tax arlO ct1arged t:C) t.he Cafeteria FUY'ld I.l€.d92,r aCCGun"'c a.D,d to tJ:e Contx'oJ. l:::,ccou.n...: f>

The payroll record is providE~d to accu:nulat:e information on grass salary, FICA tE.X, w thholding tax, etc., for each ernp.l..oyE::{2 tor t.he purp'·::.Js2. o-P preparing· quar·terly Social Securit.y rel:1orts (c,"~J;:, S~-3) and. \~-2 st~ate1Tl''2nt.~3 of employee earnlnqs at the end of eac:h year. A separate record should te ma,ir1tained the schca fi!lanCe officer for each employee of t.hE'~ cafet:.e:rJ.a ~paj.,::3. .frcrn ccti.v furles ~ In.fcr'l"::12c1:i.oTl should be. t r E;~ n s c~ r i 1:::, E":, d. f r c':"~.: t. h"0; I:: ':::, ..~ t. CJ t:}~~, '2 1 r" ;'" ,'-' " r ,·1 ,_ •.:. (~'"n Y" -" ., l

reciod ,;;',d U,(::: f:~,yrc =-1 :c9co.rd sh cu Ie. :C'2; t .. ot:aJ~ed c";~',.~'al~~t.:;i;; ~~~, t<:) r\rovicte i fc:cTl\at.ion fer t.l~J2~ ion of guarteL~ly'

c:~::d. a.nnu23,1 r:epor~~~.~-:; en pa."'~{rclls .. \,,7--2 s<tat2.merlt.5 can lJE

Appendix A

62626262626262

prepared f'or each empl.oyee at the end of each calendar year from the totals on the payroll record.

Obligations which arise between accounts within a school can generally be settled by paper transactions called transfers. The sou,rce document J.,S the t.ransfer vouche.r. Transfer vouchers may be locally devised but will contain, as a minimum, the information shown on t,he i:Llustration. Vouchers are to be filed numerically in a transfer voucher file and :t'e'tained for audi'c :ravia"J. Transfer vouchers ,,,ill bear evidence of approval by the principal or designee.

Appendix A

63636363636363

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') Pare C.::!..1.-bOTl

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\f!I~G!NIA PUBLIC SCHOOLS

Activity Fund~i w 219801

3-Part Form

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Appendix A

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--------------

IUiPORT OF TICK!:7 SA.LES

/) A Tt ~.__.~ __._._ ~.,_.________ __ 1::;

--- - ,====~~=="~=~=,==""=,=,=-="..--------'----======-~,"-,~"=,==- -- -=.,-====­flC!{EH fl:F.1Ul\i:t~~O

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Appendix A

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h1A~'iE: OF SCHOOl."

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eYE! 0& UND,R

Appendix A

68686868686868

CAIL'r' REFORT OF CASH COL'..ECTIONS

CAFtTEfUA

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Appendix A

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-_._--------- _.__._---------_._----_..__. r~!AME' :::,:; SCHOCL

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Appendix A

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r th(~

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ity

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li

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l.:,

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.~-"-~~"

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fU

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OD

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Appendix A

71717171717171

,..,~ , .._1 (

.­C)

ILJ

j~ , ~" ..J ! ()

I ~ I

:;r~

je..

<-t Ic..•

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Z V)

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;

!

Appendix A

72727272727272

TRl-\..NSl"ER VOUClIER

(1'1"2:lrn~'? () f S chcc..: 1. )

(Date)

TO: Schocl Bookkeeper

From p... CCOUTl'l:,

To ...__.._---_......--..-_....._...._--_.._._-,---_.....__....__.

E)::.plan,aticrl

P:.pproved By -------------~..__.

(Signature of Trans·- (Signature of Student fer~i~g Sponsor) Representative j if

applic2.ble)

, (Signat~llre - of principa-l)" (Dat,e of Principal. f s

.Approval)

Appendix A

73737373737373

..~... CCOUrH.5 payable led.g~~$ (c~cse.~ acccun.cs only)

,Appropria.tions and ~:q:;e~ditute ledge:'s Revenue kdge:'s

T\me bocks and time card$

vCLlche:"'5

G"ROLJP V The following re'.:ords shail ':le ke~: fer a p\,:r;cd. of :: years from che ~~(.\ of the (isc:ai ye:u :~1 whic:1

the last entry t$ r!lade or until audited (state and! (:[ federal). whichever comes first, afti~r which che~.'

!112,j" b(~ destroyed.:

Daily internal f'e~ortS (t.")r.he: !.harl ,;.asn)

lvl0rlthly internal reports

GROUl?' Vi

Bends

fnsura.nce policies

Appendix A

74747474747474

Virginia Administrative Code Database updated through February 13, 2013

8VAC20-240-10. Classification; responsibility for administration of regulations, exclusion of

specific funds.

All funds derived from extracurricular school activities, such as entertainment, athletic contest,

cafeteria, club dues, etc., and from any and all activities of the school involving personnel, students, or

property are by this chapter classified as school activity funds (internal accounts). The local school boards

shall be responsible for the administration of this chapter in the schools under their control and may

determine which funds in any school may be excluded from those subject to this chapter. (Funds defined

by law as public funds are not subject to this chapter and are to be handled as provided by law.)

Statutory Authority

§§ 22.1-16 and 22.1-17 of the Code of Virginia.

Historical Notes

Derived from VR270-01-0023 § 1, eff. September 1, 1980.

8VAC20-240-20. 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 this chapter 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.

Statutory Authority

§§ 22.1-16 and 22.1-17 of the Code of Virginia.

Historical Notes

Derived from VR270-01-0023 § 2, eff. September 1, 1980.

8VAC20-240-30. 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

Page 1 of 2LIS > Reports

2/15/2013http://leg1.state.va.us/000/lst/h2622885.HTM

Appendix B

75757575757575

Board of Education.

Statutory Authority

§§ 22.1-16 and 22.1-17 of the Code of Virginia.

Historical Notes

Derived from VR270-01-0023 § 3, eff. September 1, 1980.

8VAC20-240-40. 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. 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.

Statutory Authority

§§ 22.1-16 and 22.1-17 of the Code of Virginia.

Historical Notes

Derived from VR270-01-0023 § 4, eff. September 1, 1980.

8VAC20-240-50. Interpretation of regulations and forms.

Nothing in this chapter or suggested forms shall be construed as superseding or modifying the federal-

state plan for operation of cafeterias under the National School Lunch Act, 42 USC § 1751 et seq.

Statutory Authority

§§ 22.1-16 and 22.1-17 of the Code of Virginia.

Historical Notes

Derived from VR270-01-0023 § 5, eff. September 1, 1980.

Page 2 of 2LIS > Reports

2/15/2013http://leg1.state.va.us/000/lst/h2622885.HTM

Appendix B

76767676767676

List of Revenues

General Revenue

ArtAthleticsBuilding UseConsumable FeesDramaElectronic ScriptInterestMusicPicturesSchool StoreVending

Specific Revenue

Candy saleCar washClubsField tripsFundraisingPopcorn salesYearbook

Appendix C

77777777777777

Activities and Forms Chart

Activity Form

Bake Sales

Fundraising Request FormFundraising Summary FormReport of Inventory SalesAccountability Report

Popcorn Sales

Fundraising Request FormFundraising Summary FormReport of Inventory SalesAccountability Report

AthleticsReport of Ticket SalesConsolidated Box Office Report

Fees less than $1.00 per student Student Roster

Book FairFundraising Request FormFundraising Summary Form

ConcessionsReport of Inventory SalesAccountability Report

Funds Received by Staff Activity Receipt

Funds Received by BookkeeperHeritage ReceiptReport of Late Submission of Funds and Receipts

Transfers Interfund Transfer Voucher

Issuance of Check Purchase Order or Check Request Form

Bids Summary of Telephone Quotations

Tax Exemption Sales and Use Tax Certificate of Exemption (ST-12)

Unclaimed PropertyUnclaimed Property Form AP-1Unclaimed Property Form AP-2

Expenditures Purchase Order or Check Request

Sales tax Exemption Sales and Use Tax Certificate of Exemption Form (ST-12)

Change Fund Change Fund Form

Gift Cards Gift Card Tracking Summary

Charitable Fundraiser

Fundraising Request or Charitable Fundraising FormFundraising Summary FormReport of Inventory SalesAccountability Report

Appendix D

78787878787878

Items Requiring Sequential Numbers

ReceiptsTicketsPurchase OrdersChecks

Appendix E

79797979797979

Procurement Bid Chart

Less than $5,000

Greater than $5,000 but less than $25,000

Greater than $25,000 but less than $50,000

One (1) Fair and Reasonable Price

Three (3) Verbal or Documented Telephone

Quotations

Four (4) Written Quotations

Appendix F

80808080808080

NAME OF SCHOOL: Documents Received:

BANK STATEMENT ENDING DATE:

Reconciliation Report

Bank Statement

Copies of Cleared Checks

Checkbook Register

Transaction Register

Fund Summary Report

Outstanding Checks Report

Bank Statement to Checkbook Reconciliation Checkbook to Ledger Reconciliation

Bank Statement: Checkbook Reg:

Outstanding Checks: CD

Outstanding Deposits

Adjusted Bank Statement:

Checkbook Register: Transaction Register:

Difference: Difference:

Comments/recommendations:

Review Date:

Prepared By:

Authorized By:

FINANCE DEPARTMENT

SCHOOL ACTIVITY FUND

COMPLIANCE SHEET

Appendix G

81818181818181

82

Appendix H

83

Appendix H

84

Appendix H

85

Appendix H

Code of Virginia § 22.1-89.2. Financial records retention and disposition schedule.

School boards shall retain and dispose of financial records in accordance with the regulations concerning financial records retention and disposition promulgated pursuant to the Virginia Public Records Act (§ 42.1-76 et seq.) by the State Library Board. However, school boards shall not be required to retain any such records pertaining to nonappropriated school activity funds for longer than five years.

(1990, c. 451.)

Page 1 of 1LIS > Reports

7/21/2010http://leg1.state.va.us/000/lst/h3226242.HTM

86

Appendix I

Start Up Checklist for New Schools

School Activity Funds 1. Obtain and review the State Department of Education Guidelines

2. Order Heritage software CD 3. Order activity receipt books 4. Load Heritage onto the Bookkeeper’s computer upon receipt of Heritage CD 5. Create new database in Heritage –

a. Set up chart of accounts

b. Begin set up of vendor list 6. Schedule training for Heritage software

a. Purchase orders

b. Receipts

c. Deposits

d. Writing checks

e. Monthly reconciling

f. Monthly report submission

g. Close/rollover fiscal year

7. Obtain funds to open checking account- (donation from other schools, school fees?)

8. Open a checking account from a local bank 9. Assign three check signers to the account 10. Order blank check stock 11. Obtain forms

87

Appendix J

12. Set up record keeping files

a. Accounts receivable/deposit folder for each month

i. Deposit summary

ii. Receipts

b. Accounts payable folder for each month

i. Check copy

ii. Invoice

iii. Approved POs

c. Fundraising folder

d. Void check folder

e. Transfer folder

f. Reconciliation notebook, by month, containing reconciliation report, fund summary, checkbook register, transaction register, and compliance letter.

13. Sign up for and train on Transmodus – 3rd party NSF check recovery program

88

Appendix J

Reco

mm

en

dati

on

sN

ote

s o

n r

eco

mm

en

dati

on

s

Aut

horiz

ing

docu

men

tsA

ll do

cum

ents

, suc

h as

, PO

's, C

heck

Req

uest

s, F

und

Tran

sfer

s, o

r Fun

drai

sing

App

rova

l For

ms

requ

ire

an a

utho

rized

sig

natu

re a

nd d

ate.

Use

pre

-num

bere

d re

ceip

tsU

se o

f pre

-num

bere

d re

ceip

ts p

rovi

des

an a

udit

trail

and

verif

icat

ion

of w

hen

the

fund

s ar

e re

ceiv

ed a

nd

depo

site

d to

the

bank

.

Kee

p al

l rec

eipt

s in

pay

men

t file

s as

bac

kup

for p

aym

ents

Any

che

cks

writ

ten

shou

ld h

ave

orig

inal

rece

ipts

/invo

ices

as

back

up d

ocum

enta

tion

for t

he d

isbu

rsem

ent.

Mak

e de

posi

ts tw

ice

a w

eek

or w

hen

a th

resh

old

of $

300

(ele

men

tary

and

mid

dle

scho

ols)

or

$50

0 (h

igh

scho

ols)

is m

et

To e

limin

ate

the

pote

ntia

l for

loss

or t

heft,

all

fund

s re

ceiv

ed s

houl

d be

dep

osite

d at

leas

t tw

ice

a w

eek

or

whe

n a

thre

shol

d of

$30

0 (e

lem

enta

ry a

nd m

iddl

e sc

hool

s) o

r $50

0 (h

igh

scho

ols)

is m

et.

All

chec

ks

rece

ipte

d w

ith a

prim

ary

offic

e re

ceip

t are

requ

ired

to b

e st

ampe

d w

ith th

e re

ceiv

ed d

ate

on th

e ch

eck

stub

or

a c

opy

of th

e ch

eck

and

atta

ched

to th

e pr

imar

y re

ceip

t

Mon

ey s

houl

d be

turn

ed in

to th

e of

fice

daily

(fro

m te

ache

rs),

rega

rdle

ss o

f the

am

ount

All

fund

s ar

e re

quire

d to

be

turn

ed in

to th

e of

fice

daily

rega

rdle

ss o

f the

am

ount

. If

fund

s ar

e su

bmitt

ed

late

, it i

s re

com

men

ded

to c

ompl

ete

the

Rep

ort o

f Lat

e S

ubm

issi

on o

f Fun

ds a

nd R

ecei

pts.

Thi

s fro

m

prov

ides

the

abilit

y to

mon

itor a

nd tr

ack

the

num

ber o

f ins

tanc

es

Tim

e st

amp

fund

sIn

inst

ance

s w

here

fund

s ar

e de

liver

ed to

the

offic

e da

ily, b

ut re

ceip

ted

the

next

bus

ines

s da

y, th

e ac

tual

da

te a

nd ti

me

of d

eliv

ery

shou

ld b

e no

ted

on th

e te

ache

r rec

eipt

Hav

e al

l pur

chas

e or

ders

app

rove

d pr

ior t

o th

e pu

rcha

seA

ll pu

rcha

se o

rder

s m

ust b

e ap

prov

ed p

rior t

o th

e pu

rcha

se th

roug

h ve

rbal

app

rova

l, em

ail,

or a

n op

en

PO

. V

erba

l aut

horiz

atio

n m

ust b

e do

cum

ente

d on

the

purc

hase

ord

er.

Pro

cure

men

t Pol

icy

All

Stu

dent

Act

ivity

Fun

ds m

ust f

ollo

w th

e Fa

uqui

er C

ount

y Fi

nanc

e D

epar

tmen

t, P

rocu

rem

ent D

ivis

ion

polic

y to

incl

ude:

Pur

chas

es w

here

the

estim

ated

tota

l cos

t of t

he g

oods

or s

ervi

ces

are

$25,

000

or

grea

ter b

ut le

ss th

an $

50,0

00 m

ay b

e m

ade

afte

r sol

iciti

ng a

min

imum

of f

our (

4) w

ritte

n qu

otat

ions

. P

urch

ases

whe

re th

e es

timat

ed to

tal c

ost o

f the

goo

ds o

r ser

vice

s ar

e $5

,000

or g

reat

er, b

ut le

ss th

an

$25,

000

may

be

mad

e af

ter s

olic

iting

a m

inim

um o

f thr

ee (3

) ver

bal o

r doc

umen

ted

tele

phon

e qu

otat

ions

. P

urch

ases

whe

re th

e es

timat

ed to

tal c

ost o

f the

goo

ds o

r ser

vice

s ar

e le

ss th

an $

5,00

0 m

ay b

e m

ade

upon

rece

ipt o

f one

fair

and

reas

onab

le p

rice.

Pay

all

bills

with

in 4

5 da

ysTo

be

in c

ompl

ianc

e w

ith th

e V

irgin

ia P

rom

pt P

aym

ent A

ct a

ll bi

lls s

houl

d be

pai

d w

ithin

45

days

of r

ecei

pt

of th

e in

voic

e.

Sec

ond

chec

k si

gner

sho

uld

verif

y pa

ymen

ts a

gain

st in

voic

es p

rior t

o si

gnin

g ch

eck

Two

auth

oriz

ed c

heck

sig

ners

pro

vide

s in

crea

sed

inte

rnal

con

trols

ove

r the

dis

burs

emen

ts.

The

seco

nd

auth

oriz

ed c

heck

sig

ner s

houl

d v

erify

the

paym

ent a

gain

st th

e or

igin

al in

voic

e an

d ve

rify

all

docu

men

tatio

n pr

ior t

o au

thor

izin

g th

e ch

eck.

Eac

h sc

hool

sho

uld

desi

gnat

e th

ree

chec

k si

gner

s.

Do

not m

ake

chec

ks p

ayab

le to

'Cas

h' o

r to

the

bank

All

chec

ks s

houl

d be

mad

e ou

t to

a pa

yee

(ven

dor,

indi

vidu

al) a

nd n

ot p

ayab

le to

"cas

h".

If ac

tual

cas

h is

ne

eded

for s

omet

hing

(som

etim

es c

hang

e is

nee

ded

for f

undr

aisi

ng) t

he c

heck

sho

uld

be m

ade

paya

ble

to

the

indi

vidu

al re

ceiv

ing

the

cash

. W

hen

the

chan

ge d

raw

er/fu

nds

are

retu

rned

for d

epos

it a

sepa

rate

de

posi

t sho

uld

be m

ade.

Do

not s

ign

blan

k ch

ecks

A b

lank

che

ck s

houl

d ne

ver b

e is

sued

. Th

e fir

st a

utho

rized

che

ck s

igne

r wou

ld a

utho

rize

the

chec

k. T

he

seco

nd a

utho

rized

che

ck s

igna

ture

wou

ld b

e ob

tain

ed a

t tim

e of

pur

chas

e. T

he o

rigin

al re

ceip

t wou

ld b

e re

turn

ed th

e ne

xt b

usin

ess

day

to s

uppo

rt th

e ex

pens

e.

SC

HO

OL

AC

TIV

ITY

FU

ND

RE

CO

MM

EN

DA

TIO

NS

89

Appendix K

Reco

mm

en

dati

on

sN

ote

s o

n r

eco

mm

en

dati

on

s

SC

HO

OL

AC

TIV

ITY

FU

ND

RE

CO

MM

EN

DA

TIO

NS

Add

dis

clai

mer

mes

sage

to fr

ont o

f che

cks

stat

ing

chec

ks re

quire

two

auth

oriz

ed s

igna

ture

sA

dis

clai

mer

sta

ting

chec

ks re

quire

two

auth

oriz

ed s

igna

ture

s is

to b

e pr

inte

d on

the

front

of t

he c

heck

or

stam

ped

on th

e fro

nt o

f the

che

ck

Add

dis

clai

mer

mes

sage

to fr

ont o

f che

cks

stat

ing

chec

ks a

re v

oid

afte

r 180

day

sA

dis

clai

mer

sta

ting

chec

ks a

re v

oid

afte

r 180

day

s to

be

prin

ted

on th

e fro

nt o

f the

che

ck o

r sta

mpe

d on

th

e fro

nt o

f the

che

ck

Kee

p vo

id c

heck

s, p

rope

rly m

utila

ted

in p

aym

ent f

olde

rs o

r a s

epar

ate

fold

er

Voi

ded

chec

ks s

houl

d no

t be

disc

arde

d. S

omet

imes

the

chec

k is

voi

ded

due

to a

ge o

r los

s. C

opie

s of

th

ose

chec

ks w

ill no

t be

able

to b

e ke

pt, b

ut a

ny o

ther

s (fo

r ins

tanc

e ch

eck

writ

ten

in e

rror

, inc

orre

ct

info

rmat

ion,

or r

etur

ned

for d

onat

ion

or to

be

reis

sued

) sho

uld

be v

oide

d by

writ

ing

"VO

ID" a

cros

s th

e fa

ce

of th

e ch

eck

and

rem

ovin

g th

e si

gnat

ure

field

.

Use

pre

-num

bere

d tic

kets

for f

undr

aisi

ng a

nd a

thle

tic e

vent

s

Pre

-num

bere

d tic

kets

pro

vide

an

audi

t tra

il an

d in

crea

se in

tern

al c

ontro

ls o

ver t

he fu

nds

colle

cted

. Fo

r ex

ampl

e, if

200

tick

ets

are

issu

ed fo

r a c

ost o

f $5

each

, the

am

ount

col

lect

ed s

houl

d be

$1,

000.

D

iscr

epan

cies

sho

uld

be d

ocum

ente

d (d

onat

ions

, sho

rtage

s et

c).

Set

up

indi

vidu

al u

ser p

assw

ords

on

com

pute

rs

For t

he s

ecur

ity o

f inf

orm

atio

n on

com

pute

rs, e

ach

user

sho

uld

have

a s

epar

ate

pass

wor

d. P

assw

ords

sh

ould

be

kept

con

fiden

tial a

nd n

ot s

hare

d w

ith o

ther

indi

vidu

als.

Thi

s w

ill lim

it ac

cess

and

sec

ure

finan

cial

info

rmat

ion.

Bac

k up

Her

itage

dat

a re

gula

rly

All

info

rmat

ion

in H

erita

ge s

houl

d be

bac

ked

up o

n so

me

type

of e

xter

nal m

edia

(fla

sh d

rive,

CD

) on

a re

gula

r bas

is (d

aily

, wee

kly)

in

orde

r to

have

the

abilit

y to

reco

ver d

ata

in a

situ

atio

n su

ch a

s th

e ha

rd

driv

e cr

ashi

ng.

Sta

te a

nd F

eder

al g

rant

s

All

Sta

te a

nd F

eder

al g

rant

s m

ust b

e se

nt to

the

Sch

ool B

udge

t Offi

ce.

A c

opy

of th

e S

tate

or F

eder

al

gran

t doc

umen

tatio

n du

ring

the

pre-

and

pos

t-aw

ard

stag

e(s)

is to

be

sent

to th

e Fi

nanc

e D

epar

tmen

t.

Loca

l gra

nts

$2,0

00 o

r les

s ca

n be

adm

inis

tere

d th

roug

h th

e sc

hool

. Lo

cal g

rant

s ov

er $

2,00

0 m

ust b

e ad

min

iste

red

thro

ugh

the

Sch

ool B

udge

t Offi

ce.

Issu

ance

of 1

099

form

s

Cas

h pr

izes

or c

ash

equi

vale

nts

awar

ded

to s

tude

nts

in e

xces

s of

$60

0 or

mor

e ar

e re

quire

d to

be

issu

ed

a fo

rm 1

099.

Any

cas

h pr

ize

or c

ash

equi

vale

nt to

em

ploy

ees

are

requ

ired

to b

e re

porte

d on

thei

r W-2

as

inco

me.

Set

up

an a

ccou

nt fo

r Unc

laim

ed P

rope

rty fo

r out

stan

ding

che

cks

Acc

ordi

ng to

the

Sta

te g

uide

lines

, onc

e a

chec

k is

issu

ed to

a p

ayee

, the

che

ck b

elon

gs to

the

paye

e. I

f a

chec

k re

mai

ns u

n-ca

shed

for a

n ex

tend

ed p

erio

d of

tim

e (1

yea

r) a

nd c

an't

be re

issu

ed it

nee

ds to

be

sent

to

the

Sta

te a

s un

clai

med

pro

perty

. M

ore

info

rmat

ion

can

be fo

und

on th

e V

irgin

ia T

reas

ury

Dep

artm

ent

web

site

(ww

w.tr

s.vi

rgin

ia.g

ov).

An

acco

unt s

houl

d be

set

up

in H

erita

ge fo

r any

old

che

cks

(ove

r 180

da

ys o

ld).

The

acc

ount

sho

uld

be n

amed

Unc

laim

ed P

rope

rty. D

ue d

iligen

ce m

ust b

e pe

rform

ed w

ith

atte

mpt

s to

loca

te p

ayee

in o

rder

to g

et th

em to

cas

h th

eir c

heck

, to

see

if th

e ch

eck

need

s to

be

reis

sued

, or

if th

ey w

ould

like

to d

onat

e th

ose

fund

s to

the

scho

ol.

Thes

e at

tem

pts

shou

ld b

e do

cum

ente

d. I

f the

pa

yee

choo

ses

to d

onat

e th

eir f

unds

from

the

chec

k, it

mus

t be

docu

men

ted.

Any

che

cks

that

are

voi

ded

for a

ge w

ould

be

trans

ferr

ed to

this

acc

ount

pen

ding

sub

mis

sion

to th

e st

ate

in th

e ye

arly

retu

rn.

90

Appendix K

Interfund Transfer Voucher

Date_______________

Transfer No.________

Amount Transfer From Transfer To

_______ _____________ ___________

Purpose ______________________________________________

Principal Approval______________________________________

Date: _________________

Fund Sponsor Approval__________________________________

Date:_________________

91

February 2013 

Change Fund Form

ISSUANCE OF CHANGE FUND:

Please issue check, payable to:

Name ________________________________

Address ______________________________

City _________________________ State _______ Zip Code ______________

Amount $________________

Purpose __________________________________________________________

_________________________________________________________________

Duration Change Fund is needed_______________________________________

Authorized Signature: ______________________________________________

Date: _______________

_________________________________________________________________

REDEPOSIT OF CHANGE FUND:

Amount $___________________

Signature_______________________________________

Date_________________________

92

For

m S

-54

ED

EV

EN

TD

AT

E

Firs

t

N

umbe

rLa

st

Num

ber

Firs

t

N

umbe

rLa

st

Num

ber

Num

ber

Sol

dP

rice

of

T

icke

tT

otal

Am

ount

Tot

al V

alue

of T

icke

ts S

old

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

Cha

nge

Fun

d -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

Tot

al A

ccou

ntab

ility

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

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- -

- -

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- -

- -

- -

- -

- -

- -

-

Cas

h R

emitt

ed T

his

Rep

ort -

- -

- -

- -

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- -

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Cas

h O

ver

(Und

er)

- -

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-

Sal

esA

MO

UN

T R

EC

EIV

ED

Cha

nge

Fun

d

Tot

al

BO

X O

FF

ICE

MA

NA

GE

R

DA

TE

DA

TE

CE

RT

IFIE

D C

OR

RE

CT

TIC

KE

T S

ELL

ER

RE

PO

RT

OF

TIC

KE

T S

AL

ES

Nam

e of

Sch

ool

TIC

KE

TS

ISS

UE

DT

ICK

ET

S R

ET

UR

NE

D

Feb

ruar

y 20

13

93

Eve

ntD

ate

Rec

eive

d F

rom

Tot

al S

ales

Cha

nge

Fun

dT

otal

A

ccou

ntab

ility

Rem

ited

To

Sec

reta

ry/

Boo

kkee

per

Ove

r/U

nder

Tot

als

Rec

eive

d$

Cer

tifie

d C

orre

ct

Sig

natu

reD

ate

Box

Offi

ce M

anag

er

Dat

e

Nam

e of

Sch

ool

CO

NS

OL

IDA

TE

D B

OX

OF

FIC

E R

EP

OR

T

Feb

ruar

y 20

13

94

EV

EN

TD

AT

E

BE

GIN

NIN

G

INV

EN

TO

RY

EN

DIN

G

INV

EN

TO

RY

Item

Nam

e#

Item

s#

Item

sN

umbe

r

S

old

Pric

e of

Item

Tot

al

A

mou

nt

Tot

al V

alue

of I

tem

s S

old

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

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- -

- -

- -

- -

- -

Cha

nge

Fun

d -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

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- -

- -

- -

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- -

- -

- -

Tot

al A

ccou

ntab

ility

- -

- -

- -

- -

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- -

- -

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- -

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- -

- -

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- -

- -

-

Cas

h R

emitt

ed T

his

Rep

ort -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

Cas

h O

ver

(Und

er)

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

-

Sal

esA

MO

UN

T R

EC

EIV

ED

Cha

nge

Fun

d

Tot

al

INV

EN

TO

RY

MA

NA

GE

R

DA

TE

DA

TE

INV

EN

TO

RY

SE

LLE

R

RE

PO

RT

OF

INV

EN

TO

RY

SA

LE

S

Nam

e of

Sch

ool

CE

RT

IFIE

D C

OR

RE

CT

Feb

ruar

y 20

13

95

August 2010

ACCOUNTABILITY REPORT

___________________________________________________________

School Name

Source of Funds (Check one) __ School Store Sales

__ Concession Sales

__ Popcorn Sales

__ Bake Sales

__ Other________________________________

CASH AND CHECKS COUNTED

Currency Amount Pennies $ Nickels $ Dimes $

Quarters $ Half-Dollars $ Dollar Coins $

$1 Bills $ $5 Bills $

$10 Bills $ $20 Bills $

Sub- Total Currency $ Checks $

Total Collected $

Counted By: _________________________________________

(Signature)

Date:_______________________________________________

(Date)

96

 

August 2010 

FUNDRAISING REQUEST FORM

Club requesting fundraising event_________________________________________________

Name of sponsor _________________________________________________________

Purpose(s) for which profits are to be used _____________________________________

_______________________________________________________________________

_______________________________________________________________________

Profit goal $____________________________________________________________

Items requesting to sell ____________________________________________________

_________________________________________________________________

Number of participants ____________________________________________________

Dates requested for sales ___________________________________________________

Expected revenues (details & amounts) ________________________________________

________________________________________________________________________

Expected expenses (details & amounts) ________________________________________

________________________________________________________________________

Please submit at scheduled fundraising meeting in order to be placed on the calendar. All applications received after that time will be scheduled on a first-come-first-served basis.

----------------------------------------------------------------------------------------

IMPORTANT! Purchase orders are required for all fundraising events.

----------------------------------------------------------------------------------------

FOR OFFICE USE ONLY:

Approved Fundraising Dates ________________________________________________

Approved Fundraising Items _________________________________________________

_________________________________________________________________________

Approved by _____________________________________________________________

Administrative Signature

Date:___________________

97

 

August 2010 

FUNDRAISING SUMMARY FORM

Club _______________________________

Sponsor _____________________________

School Year __________________________

Activity _____________________________________________________________________

Dates of Activity:

Began ______________

Ended______________

Revenues (amount collected) $__________________________

Expenses (amount paid out) $(__________________________)

Profit (revenues minus expenses) $__________________________

Proposed uses of the profits – be specific

____________________________________________________________________________

____________________________________________________________________________

Explanation for any material discrepancy between the projected profit and the actual profit (a material discrepancy is considered to be 10% to 25%, or more, between projected and actual profit amounts depending on the total amount of the expected profit) –___________________________________________________________________________

____________________________________________________________________________

Would you recommend this fundraising event?

[ ] Yes

[ ] No, because_______________________________________________________________ ________________________________________________________________________________________________________________________________________________________

Sponsor’s Signature______________________________

Date______________________________

98

CHARITABLE FUNDRAISING REQUEST FORM

Name of Fundraiser: _____________________________________

Name of Charity that fundraiser is being held for:_______________________

Name of Charity Rep & phone number: _______________________________

Name of Sponsor: __________________________________________________

Purpose(s) for which profits are to be used: ______________________________

__________________________________________________________________

Profit goal: $______________________

Describe Fundraiser: ______________________________________________

Number of participants: ______________________________________________

Dates requested for fundraiser: _________________________________________

Please submit this form to _______________________, Secretary/Bookkeeper,

for approval by the principal.

IMPORTANT! Checks & cash made out the school must be receipted and

deposited in a timely manner. All funds must be kept in the vault until the

end of the fundraiser. A list must be kept of all checks made out directly to

the charity. Those must also be kept in the vault. At the end of fundraiser, a

receipt for total mailed or given to charity and a check request must be

completed for the cash/checks made out to the school, so that a check may be

written for the balance if any. Please attach copies of charity/fundraiser

general information.

FOR OFFICE USE ONLY:

Approved Fundraiser Dates: ___________________________________________

Approved by: _____________________________________

Date Approved: ____________________________________

Notes:

99

Revised June 2010

Report of Late Submission of Funds and Receipts

SCHOOL YEAR .

TO: _________________________________________ Name of Sponsor/Faculty Member/ Employee

FROM: Finance Office

DATE: _________________________________________

RE: Receipts and Funds

You received funds from students and you are aware that all collected money must be turned in

DAILY to the Finance/Attendance Office. Your submission was due _________________ and

we did not receive the funds until _________________________.

(Type of Funds Collected)

Reason for Late Submission ____________________________________________________

___________________________________________________________________________

___________________________________________________

Signature of Sponsor/Faculty Member/ Employee Date

Comment from Principal ______________________________________________________

__________________________________________________________________________

___________________________________________________

Signature of Principal Date

100

Check Request Form

Please issue check, payable to:

Name ________________________________ Date ____________________

Address ______________________________ Amount $________________

City _________________________ State _______ Zip Code ______________

Purpose __________________________________________________________

_________________________________________________________________

Date Check Needed ________________________________________________

IMPORTANT: Please attach any supporting documentation to this request such as club

rosters for dues, registration forms, etc. Checks will not be processed without complete

information.

Account to be Charged: __________________

Handling Instructions: Mail to Payee: ________________

(Check one)

Return to Originator: ___________

Other (please specify): _______________________

Authorized Signature: ______________________________________________

Date: _______________

_________________________________________________________________

FOR OFFICE USE ONLY: A/C#: ______________________

Date: ______________________

101

 

August 2010 

SUMMARY OF TELEPHONE QUOTATIONS

_______________________________________________

(School Name)

Date Company Party Contacted Price Terms Delivery

Completed by: ______________________________________

(Signature)

Date: ______________________________________________

102

COMMONWEALTH OF VIRGINIASALES AND USE TAX CERTIFICATE OF EXEMPTION

(For use by the Commonwealth of Virginia, a political subdivisionof the Commonwealth of Virginia, or the United States)

To: _________________________________________________________________ Date: ______________________ , _______ .(Name of Dealer)

_____________________________________________ t ______________________________________ t _____ t ___________(Number and street or rural route) (City, town, or post office) (State) (Zip Code)

The Virginia Retail Sales and Use Tax Act provides that the Virginia sales and use tax shall not apply to tangible personalproperty for use or consumption by this State, any political subdivision of this State, or the United States. (This exemptiondoes not apply to sales or leases to privately owned financial and other privately owned corporations chartered by theUnited States.)

The undersigned, for and on behalf of the governmental agency named below, hereby certifies that all tangible personalproperty purchased or leased from the above dealer on and after this date will be for use or consumption by a governmen-tal agency, that each such purchase or lease will be supported by the required official purchase order, and that suchtangible personal property will be paid for out of public funds: (Check proper box below.)

1. Tangible personal property for use or consumption by the Commonwealth of Virginia. 2. Tangible personal property for use or consumption by a political subdivision of the Commonwealth of

Virginia. 3. Tangible personal property and taxable services for use or consumption by the United States.

(Name of governmental agency)

_____________________________________________ t ______________________________________ t _____ t ___________(Number and street or rural route) (City, town, or post office) (State) (Zip Code)

I certify I am authorized to sign this Certificate of Exemption and that, to the best of my knowledge and belief, it is true andcorrect, made in good faith, pursuant to the Virginia Retail Sales and Use Tax Act.

By: _____________________________________________________________ f ___________________________________(Signature) (Title)

Information for dealer: — A dealer is required to have on file only one Certificate of Exemption properly executed bythe governmental agency buying or leasing tax exempt tangible personal property under this Certificate.

VA Dept. of TaxationForm ST-12

6201059Rev. 10/06

103

Sch

ool N

ame

Fis

cal Y

ear

Pur

chas

e D

ate

Ven

dor

Ser

ial N

umbe

rA

mou

ntD

istr

ibut

ion

Dat

eR

ecip

ient

App

rova

l Sig

natu

reA

ppro

val

Dat

e

GIF

T C

AR

D T

RA

CK

ING

SU

MM

AR

Y

Feb

ruar

y 20

13

104

COMMONWEALTH OF VIRGINIA DEPARTMENT OF THE TREASURY

Division of Unclaimed Property P.O. Box 2478

Richmond, VA 23218

(804) 225-2393 Fax (804) 786-4653

Toll Free 1-800-468-1088

For State Use Only CHECK AMOUNT __________CHECK # _________________DEPOSIT DATE ____________INITIALS __________________INTEREST PAYMENT AMOUNT $__________________________

AP1 FORM FOR REPORT OF UNCLAIMED PROPERTY

Holder Name: Holder Number:

Address:

City: State: Zip Code:

1. If the address above is incorrect, please correct here: 2. Contact Person:

Name: Title:

Address: Department:

City: State: Zip Code: Phone No.:

3. Please provide an e-mail address: Fax No.:

ABOUT THIS BUSINESS ENTITY:

4. Federal Employer Identification Number 5. Standard Industry Code

6. State of Incorporation (or locality where business license is filed if not incorporated)

7. Date of Incorporation 8. Primary Business Activity

9. Annual Gross Income $ Assets $ # of Employees

ABOUT THIS REPORT:

10. Date(s) Due Diligence was Performed

11. This report is for Report Year and the type of report is REGULAR AUDIT NEGATIVE OTHER

12. This report has the following media attached to report the property details: REPORT UPLOADED TO WEBSITE DISKETTE/CD HARD COPY-PAPER, CONSISTING OF PAGES

13. This is the first time this business entity has filed an Unclaimed Property Report YES NO

14. Property types on this report include: CASH SECURITIES MUTUAL FUNDS TANGIBLE PROPERTY

IMPORTANT NOTICE: Your remittance must accompany this report and an authorized representative of your business must complete the certification that follows. Please complete the summary information on the reverse of this page, and mail your report and remittance to the address at the top of this form. Pursuant to §55-210.26:1 of the Code of Virginia, interest and penalties may be imposed for failure to report and remit as required.

I, ___________________________, CERTIFY THAT I HAVE CAUSED TO BE PREPARED AND I HAVE EXAMINED THIS REPORT AS TO PROPERTY PRESUMED ABANDONED UNDER THE VIRGINIA UNCLAIMED PROPERTY LAW FOR THE YEAR ENDING AS STATED, THAT I AM DULY AUTHORIZED TO EXECUTE THIS VERIFICATION BY THE HOLDER AND BY LAW AND THAT I BELIEVE THAT SAID REPORT IS TRUE, CORRECT, AND COMPLETE AS OF SAID DATE, EXCEPTING FOR SUCH PROPERTY AS HAS SINCE CEASED TO BE ABANDONED. THIS REPORT TOTALS # PROPERTIES FOR $____________ AND # SHARES.

SIGNATURE: TITLE: DATE:

FOR STATE USE ONLY POSTMARK DATE BATCH # HOLDER UPDATED BALANCED BY DATE COMPLETED

# OF OWNERS # SHARES REPORTED ENTERED BY DATE BEGAN DATE COMPLETED REPORT VERIFIED DATE CLOSED

AP1-print Revised 10/12/2007 105

AP1-print Revised 10/12/2007

CASH PROPERTY

ACCOUNT BALANCES DUE AC01 CHECKING ACCOUNTS AC02 SAVINGS ACCOUNTS AC03 MATURED CD OR SAVINGS

CERTIFICATE AC04 CHRISTMAS CLUB FUNDS AC05 MONEY ON DEPOSIT TO SECURE

FUND AC06 SECURITY DEPOSIT AC07 UNIDENTIFIED DEPOSITS AC08 SUSPENSE ACCOUNTS AC09 SHARE ACCOUNTS AC21 MISCELLANEOUS DEPOSITS AC99 AGGREGATE ACCOUNT BALANCES

<$100

UNCASHED CHECKS CK01 CASHIER’S CHECKS CK02 CERTIFIED CHECKS CK03 REGISTERED CHECKS CK04 TREASURER’S CHECKS CK05 DRAFTS CK06 WARRANTS CK07 MONEY ORDERS CK08 TRAVELER’S CHECKS CK09 FOREIGN EXCHANGE CHECKS CK10 EXPENSE CHECKS CK11 PENSION CHECKS CK12 CREDIT CHECKS OR MEMOS CK13 VENDOR CHECKS CK14 CHECKS WRITTEN OFF TO INCOME CK15 OTHER OUTSTANDING OFFICIAL

CHECKS CK16 CD INTEREST CHECKS CK99 AGGREGATE UNCASHED CHECKS

<$100

MISCELLANEOUS CHECKS MS01 WAGES, PAYROLL, SALARY MS02 COMMISSIONS MS03 WORKERS’ COMPENSATION

BENEFITS MS04 PAYMENT FOR GOODS & SERVICES MS05 CUSTOMER OVERPAYMENTS MS06 UNIDENTIFIED REMITTANCES MS07 UNREFUNDED OVERCHARGES MS08 ACCOUNTS PAYABLE MS09 CREDIT BALANCES – A/R MS10 DISCOUNTS DUE MS11 REFUNDS DUE MS12 UNREDEEMED GIFT CERTIFICATES MS13 UNCLAIMED LOAN COLLATERAL MS14 PENSION & PROFIT SHARING PLANS

(IRA , KEOGH) MS15 DISSOLUTION OR LIQUIDATION MS16 MISC OUTSTANDING CHECKS MS17 MISC INTANGIBLE PROPERTY MS18 SUSPENSE LIABILITIES MS19 OTHER CASH MS20 Rental Property Income MS99 AGGREGATE MISC PROPERTY <$100

COURT & LOCALITY FUNDS CT01 ESCROW FUNDS CT02 CONDEMNATION AWARDS CT03 MISSING HEIRS’ FUNDS CT04 SUSPENSE ACCOUNTS CT05 OTHER COURT DEPOSITS CT07 EVIDENCE MONEY CT08 GENERAL RECEIVER ACCOUNTS CT09 COURT ORDERED REFUNDS CT10 PERSONAL PROPERTY TAX

OVERPAYMENT CT11 REAL ESTATE TAX OVERPAYMENT CT12 COURT HELD ACCOUNTS CT13 BONDS CT14 ESTATE ACCOUNTS

CT15 LITIGATIONS CT16 RESTITUTIONS CT99 AGGREGATE COURT DEPOSITS <$100

INSURANCE IN01 INDIVIDUAL POLICY BENEFITS OR

CLAIMS PD IN02 GROUP POLICY BENEFITS OR CLAIMS

PAID IN03 PROCEEDS DUE BENEFICIARIES IN04 PROCEEDS FROM MATURED

POLICIES, ENDOWMENTS IN05 PREMIUM REFUNDS IN06 UNIDENTIFIED REMITTANCES IN07 OTHER AMOUNTS DUE UNDER

POLICY TERMS IN08 AGENT CREDIT BALANCES IN09 ANNUITIES IN10 DEMUTUALIZATION CASH IN11 DEMUTUALIZATION SECURITIES IN99 AGGREGATE INSURANCE PROPERTY

<$100

TRUST, INVESTMENT AND ESCROW ACCOUNTS

TR01 PAYING AGENT ACCOUNTS TR02 UNDELIVERED OR UNCASHED

DIVIDENDS TR03 FUNDS HELD IN FIDUCIARY CAPACITY TR04 ESCROW ACCOUNTS TR05 TRUST VOUCHERS TR06 ENDOWMENT FUNDS TR99 AGGREGATE TRUST PROPERTY

<$100

UTILITIES UT01 UTILITY DEPOSITS UT02 MEMBERSHIP FEES UT03 REFUNDS OR REBATES UT04 CAPITAL CREDIT DISTRIBUTIONS UT99 AGGREGATE UTILITY PROPERTY

<$100

MINERAL PROCEEDS & MINERAL INTERESTS

Mi01 NET REVENUE INTEREST MI02 ROYALTIES MI03 OVERRIDING ROYALTIES MI04 PRODUCTION PAYMENTS MI05 WORKING INTEREST MI06 BONUSES MI07 DELAY RENTALS MI08 SHUT-IN ROYALTIES MI09 MINIMUM ROYALTIES MI99 AGGREGATE MINERAL INTERESTS

<$100

CASH PROPERTY SUMMARY:

TOTAL CASH REMITTED:

TOTAL # OF ITEMS:

TANGIBLE PROPERTY

SAFE DEPOSIT BOXES & SAFEKEEPING

SD01 SAFE DEPOSIT BOX CONTENTS SD02 OTHER SAFEKEEPING SD03 OTHER TANGIBLE PROPERTY

TANGIBLE PROPERTY SUMMARY:

TOTAL ITEM COUNT:

TOTAL # OF OWNERS:

SECURITY PROPERTY

SECURITIES SC01 DIVIDENDS SC02 INTEREST (BOND COUPONS) SC03 PRINCIPAL PAYMENTS SC04 EQUITY PAYMENTS SC05 PROFITS SC06 FUNDS PAID TO PURCHASE SHARES SC07 FUNDS FOR STOCKS AND BONDS SC08 SHARES OF STOCK (RETURNED BY

POST OFFICE) SC09 CASH FOR FRACTIONAL SHARES SC10 UNEXCHANGED STOCK OF

SUCCESSOR CORP SC11 OTHER CERTIFICATES OF

OWNERSHIP SC12 UNDERLYING SHARES OR OTHER STANDING CERTIFICATES SC13 FUNDS FOR

LIQUIDATION/REDEMPTION OF UNSURRENDERED STOCK OR BONDS SC14 DEBENTURES SC15 US GOVT SECURITIES SC16 MUTUAL FUND SHARES SC17 WARRANTS (RIGHTS) SC18 MATURED BOND PRINCIPAL SC19 DIVIDEND REINVESTMENT PLANS SC20 CREDIT BALANCES SC21 LIQUIDATED MUTUAL FUND SHARES SC97 MUTUAL FUND IRA/RETIREMENT

ACCTS SC99 AGGREGATE SECURITY RELATED

CASH <$100

SECURITY PROPERTY SUMMARY:

TOTAL SHARES REMITTED:

TOTAL # OF ITEMS:

MISCELLANEOUS ZZZZ PROPERTIES NOT IDENTIFIED ABOVE

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108

THE AP-2 FORM

This form can be reproduced to accommodate additional owner accounts. If the AP-2 form is not used, the adopted format (preferred font size is 12) must comply with that of the AP-2 form. Reports, which do not comply, will be returned and considered past due. The top section of this form should show the same information as on the AP-1 form. The period covered should indicate the last dates of activity for the property being reported. Please give the range of dates listed in Column 6. COLUMN 1: Number owners sequentially (1,2,3…). COLUMN 2: (Property Code) Transfer the correct code from the AP-1 form which applies to each individual account. If the property code is “OTHER,” please describe in Column 11. COLUMN 3: (Identifying Number) Insert the account number, check number, policy number, case number (example: courts, governmental agencies, etc.) or other identifying number. COLUMN 4: (Owner’s Name and Address) List the owners alphabetically with the last name first and any address information. If the account has more than one owner, please specify any legal language such as joint tenant, beneficiary, trustee, Uniform Gift to Minors, etc., beside the correct name. COLUMN 5: (Social Security Number) List the social security number for each owner including accounts with more than one owner. COLUMN 6: (Date of Last Transaction) Specify the date of the last deposit or withdrawal made by the owner, the date the property became payable or distributable, or the date a check or draft was issued. If the property is an automatically renewable savings certificate or dividend reinvestment plan, the holding period starts at the date of the second mailing that is returned undeliverable or the date mailings were discontinued. COLUMN 7: (Amount Due Owner Before Deductions and Withholdings) Specify the amount due an owner before any deductions. COLUMN 8a: (Type Code for Deductions or Withholdings) The following type codes must be used for this section: “SC” - service charge deduction “IW” - interest withheld or discontinued “DW” - dividends withheld or discontinued “FTW” - federal tax withheld due to back up withholding “OTH” - other (Describe in Column 12) COLUMN 8b: (Deductions and Withholdings) Enter the amounts you are deducting or withholding from the owner account. No service charge, fee or assessment may be deducted nor should interest or dividends cease to accrue on property presumed abandoned. If such deductions are made, you must include a copy of the contract authorizing such charges or the authorization for the discontinuance of interest or dividend payments. COLUMN 9: (Amount Remitted as Due Owner) Specify the total dollar amount or number of shares you are remitting for each owner. COLUMN 10: (Interest Rate) Complete this column only if the owner account is an interest bearing account. Please identify the interest rate. If an interest rate is not supplied, the report will be considered incomplete and held until the interest rate is provided in writing. COLUMN 11: (Tangible Property, Mutual Funds, Securities, Description or Comments) Describe the contents of safe deposit boxes, jewelry, stock certificates, etc. The full security name and CUSIP number must be provided, for all reported securities, including mutual funds. Please include any other pertinent information regarding the securities (i.e. cash-in-lieu rate, any stock splits, or other corporate activity). Enter any additional information you have on an owner (example: date of

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birth or death, owner’s employer, style of court case, FEIN number). If the fund is an IRA or retirement account, please use the proper type code and the shareholder’s date of birth must be stated in this column. When reporting tangible property, the AP-1 Form must accompany the remittance of property: do not enclose checks or report forms in the box or package. If the Receipts and Records Supervisor has not scheduled a time for you to deliver tangible property, you may call (804) 225-2463 or 1-800-468-1088. Tangible property may also be sent via registered mail to: Department of the Treasury, Division of Unclaimed Property, Post Office Box 2478, Richmond, VA 23218-2478. MUTUAL FUNDS should be transferred into the name “Commonwealth of Virginia, Department of the Treasury, Division of Unclaimed Property”, FEIN 54-6001745, to be held in book entry form. The CUSIP number and FEIN number for the issuing company must be provided. The appropriate confirmation statement must accompany the Report of Unclaimed Property. Please see “Reporting and Delivery of Securities Property” for complete instructions. SECURITIES, Certificated shares, and Dividend Reinvestment Plan (DRP) shares, should be transferred to the Virginia Treasurer’s nominee name. If owners are due fractional shares, convert the fractional shares to cash and remit as “cash in lieu” per owner. Do not combine the fractional shares for multiple owners. REGISTRATION FOR CERTIFICATED SECURITIES AND DIVIDEND REINVESTMENT PLANS SHARES: Please review the “Reporting Securities/Mutual Funds” document, which is also available on the Forms and Instructions web page, for specific requirements. COLUMNS 7, 8b, and 9 should be totaled on each page. The totals should include totals brought forward from the previous page. Confirm that the total amount reported agrees with your remittance amount. In addition, securities reported must agree with securities delivered. AGGREGATE: Items under $100 may be reported as one figure by stating the total number of items and amount being remitted (example: 20 items less than $100 each totaling – $1,600.00). Should you report in this manner, you will be required to provide verification of the report year and amount remitted when the owner makes a claim. To prevent us from having to contact you later for this information, you are encouraged to attach a detailed listing of owners that make up the aggregate amount. PLEASE PLACE AN AGGREGATE DETAIL LIST AT THE END OF THE REPORT!

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February 2013

Super Elementary School

1 Busybee Drive

Warrenton, VA 20186

540-123-4567

February 1, 2013

Mrs. I.M. Parent

123 Main Street

Warrenton, VA 20186

Dear Mrs. Parent,

Our check number 234 in the amount of $ 12.00 was issued to you on December

1, 2012 to refund the cost of a field trip. Our records indicate that this check has not been

cashed. State law requires us to report and remit the funds from un-cashed checks to the

state if the check remains un-cashed for a specified period of time. If you still have this

check in your possession, please return it to us. Any checks over 180 days old are

automatically voided by our bank and cannot be presented for payment. To prevent us

from reporting and remitting the proceeds of this payment to the state unclaimed property

office, please check the appropriate box, sign in the space provided below, and return this

form to us no later than March 1, 2013

Please reissue the above referenced check to me at the above address.

My address has changed. Please reissue the check to me at the following address:

________________________________________________________________

________________________________________________________________

I do not wish this check to be reissued. Please accept the funds as a donation to

the school. (Please specify grade level or activity to receive donation, if desired)

________________________________________________________________

__________________________________ _______________________

Signature Date

Your assistance is appreciated. If we can assist you in any way, please contact me

at 540-123-4567.

Sincerely,

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February 2013

Super Elementary School

1 Busybee Drive

Warrenton, VA 20186

540-123-4567

February 1, 2013

Vendor

123 Main Street

Warrenton, VA 20186

Dear Vendor,

Our check number 234 in the amount of $ 12.00 was issued to you on December

1, 2012 for payment of invoice number ABC4. Our records indicate that this check has

not been cashed. State law requires us to report and remit the funds from un-cashed

checks to the state if the check remains un-cashed for a specified period of time. If you

still have this check in your possession, please return it to us. Any checks over 180 days

old are automatically voided by our bank and cannot be presented for payment. To

prevent us from reporting and remitting the proceeds of this payment to the state

unclaimed property office, please check the appropriate box, sign in the space provided

below, and return this form to us no later than March 1, 2013.

The above referenced check is enclosed, please reissue it to us at the above

address.

Our address has changed. Please reissue the check to us at the following address:

________________________________________________________________

________________________________________________________________

This check does not need to be reissued due to the following reason:

________________________________________________________________

__________________________________ _______________________

Signature Date

Your assistance is appreciated. If we can assist you in any way, please contact me

at 540-123-4567.

Sincerely,

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Policy: DGC Regulation:

Date Adopted: 10/13/08

FAUQUIER COUNTY PUBLIC SCHOOLS

School Board Policy Revised: 07/13/09

SCHOOL ACTIVITY FUNDS

1. All funds derived from extracurricular activities, such as entertainment, athletic contests,

cafeteria, club dues, and from any and all activities of the school involving personnel, students, or property are considered school activity funds.

2. School Activity Funds shall be used solely in accordance with the purpose for which such

funds were collected. 3. Projects funded from school activity funds shall contribute to the educational experience of

the students and shall not conflict with the instructional program. 4. Funds derived from the student body as a whole shall be used to benefit the student body as a

whole. 5. School activity funds should be spent in a manner as to benefit the students who are in the

school and have contributed to the accumulation of these funds. To that end, annually each school principal shall prepare a budget of anticipated revenues and expenditures. This budget should be updated as needed to accurately reflect the financial plan for these funds and should be readily available to all members of the school community through display in the school office and on the school’s web site. As a general rule, elementary and middle schools should not have a remaining balance in excess of $150,000 as of June 30th of each fiscal year. All high schools should not have a June 30th remaining balance in excess of $300,000. These limits are contingent on the contents of the annual financial plan. Should a school determine that a multi-year fund raising campaign is needed to reach a stated goal, a request for an exception should be submitted to the Superintendent or his/her designee for review/approval.

6. If a June 30th Activity Fund balance exceeds the above established limits and no exceptions

have been granted, the Superintendent, or his/her official designee, will establish a committee to prepare action plans as to how these excess funds shall be expended. The committee should be comprised of members of the community who assisted in the raising of these funds (parents, teachers, PTO members, students, etc.). It should be this committee’s goal to expend these excess funds for the betterment of the students at the school prior to the next year-end date.

7. Student representation is encouraged in the management of funds raised by the student body

and spent for its benefit, subject to faculty supervision. 8. School activity funds shall be managed in accordance with the best business practices,

including sound budgetary and accounting procedures.

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Policy: DGC (Page 2) Regulation:

Date Adopted: 10/13/08

FAUQUIER COUNTY PUBLIC SCHOOLS

School Board Policy Revised: 07/13/09

SCHOOL ACTIVITY FUNDS

9. Principals, through their representatives, shall participate in the preparation, modification,

and interpretation of the policies, regulations, and procedures affecting student body affairs. 10. Each school shall keep an accurate record of all receipts and disbursements of school activity

funds so that a clear and concise statement of the condition of each fund may be determined at all times. It is the duty of each principal to see that such records are maintained in accordance with regulations of the Virginia Board of Education and the Fauquier County School Board. The principal or person designated by him shall perform the duties of the school finance officer or central treasurer. The school finance officer shall be bonded, and the School Board shall prescribe, by regulation, rules governing such bonds for employees who are responsible for school activity funds.

11. School activity funds shall be audited at least once a year by a duly qualified accountant or

accounting firm approved by the School Board. A copy of the audit report along with the Principal’s official response to each audit finding (if any) will be filed with the Superintendent. Monthly reports of school activity funds shall be filed in the office of the principal or Superintendent. The cost of the audit may be charged against the school activity fund.

Legal Ref.: Code of Virginia, 1950, as amended, section 22.1-122.1. 8 VAC 20-240-10, 20-240-20, 20-240-40. Cross Ref.: DG Custody and Disbursement of School Funds DM Cash in School Buildings

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