Vending machine revenue Fundraising ◦ Club sponsored sales or fundraising ◦ Campus activities such as carnivals, pictures, etc.

Donations from other groups such as PTA, Booster Clubs or private donors.

2

Separation of Duties ◦ If possible, at least two

persons should be involved in cash handling & deposits

High Risk Area ◦ Flow of money must be

supported by receipt books and bank deposits

3

The following funds must be kept separate at

all times: ◦ Activity funds ◦ Petty cash ◦ Change accounts

4

Procedures should include: ◦ An official receipt book with pre-numbered,

bound receipts in triplicate ◦ Both the sponsor and secretary/bookkeeper

should be present when the money is counted & receipted ◦ A copy of the receipt must be given to the person

paying (sponsor) ◦ A copy of the receipt must remain in the receipt

book ◦ And, a copy of the receipt should be attached to

the deposit documentation

5

Procedures should include: ◦ Receipts should not be altered ◦ Voided receipts must be re-attached to the

receipt book ◦ Receipts are not to be pre-dated or pre-signed ◦ Receipt numbers must be used consecutively ◦ Receipt numbers should be written on the deposit

slip for documentation

6

1 2 3 4 5 6

We should think of every receipt issued as a “link” in the money chain From the original receipt of money (cash or checks), a

receipt should exist to document the money received Every time that the money changes hands, a receipt

should be issued to document the movement of the money

The last link in the chain should be the bank deposit The amount of money receipted should remain the

same throughout the chain The dates of the receipts should be the same or close

Who broke the money chain? $20

9/1/11

$20 9/1/11

$20 10/1

$20 10/2

$20 10/2

Students District Office

Secretary

Teacher Bank

Procedures should include: ◦ All funds collected must be deposited Cash collected should not be disbursed by cashing

personal checks ◦ Deposits should match the amount collected and

should be supported by bank validated receipts

10

Procedures should include: ◦ Deposits to district office or bank should be timely Daily if possible Funds kept overnight should be locked in a safe Secure courier services should be used if possible

11

Excess funds should be identified and invested in district-approved investments ◦ Board Policy CDA (Legal and Local)

Investments should be coordinated with the district’s Investment Officer ◦ Investment pools yield a good rate of return and

provide for daily liquidity (access) Ensure that adequate funds exist in the

checking account before disbursing checks ◦ Checking account balance should not exceed

$100K

12

According to the FASRG, the bank statement is the official bank record of all transactions affecting the cash balance on deposit for the preceding month.

All accounts must be reconciled on a monthly basis

Banks allow for 10 - 30 days for discovery of errors

Bank statements should be routed to someone other than the person who deposits funds – SEALED!

13

All returned checks shall be deducted from account balance until the outstanding amounts have been collected from the payee

Two methods are typically used for collections: ◦ District and/or campus initiated collections ◦ A collection agency contracted by the district to

collect outstanding amounts and penalties (MISD currently uses CheckSmart)

To minimize returned checks all checks accepted must have proper identification

14

Proper identification includes: ◦ Name and address must pre-

printed on the check ◦ No temporary checks ◦ Home phone number on check ◦ Driver’s license number written

on check, not pre-printed ◦ Date of birth

If any one or more are missing from the check – a collection agency may not seek outstanding amounts

15

16

To limit irregularities, all expenditures should be paid by pre-numbered check from the activity fund checking account.

In addition checks made out to "cash" or to the paying school should never be issued.

Many school districts require two signatures on the checks to further limit the possibility of irregularities. (FASRG)

17

Original invoices should be attached to each check

Prepayments should not be issued prior to receipt of goods and/or services

The original documentation should be stamped “paid” to avoid duplicate payments

A check issuance schedule should be established

Emergency checks shall be kept to a minimum due to chance of errors 18

Checks are issued at the district level ◦ Requests for checks should be submitted

according to timelines ◦ Sufficient funds must exist in the

appropriate account(s)

19

◦ District’s depository bank should be used ◦ A check issuance schedule should be

established & communicated to campus staff ◦ Disbursement records must be maintained

for five (5) years

20

Travel advances, if authorized from Activity Funds, shall comply with IRS rules ◦ Advance checks within 30 days of travel ◦ Settlement and receipts required after travel

No payments for services should be made to district employees via an Activity Fund check ◦ All payments should be made by the Payroll

Department ◦ Overtime, if appropriate, may be charged to the

Activity Account, too

21

Payments for contracted services: ◦ A SSN or TIN is required – W-9 Form ◦ 1099 issues if > $600 per calendar year

(exception: $20 for Royalties) Other requirements may exist – consult with

your business office ◦ Fingerprinting of contractor if working directly

with students ◦ Certificate of Insurance ◦ Felony Conviction Notice ◦ Conflict of Interest Questionnaire

22

Donations ◦ Donations may require Board approval

Equipment purchases ◦ Assets over $500 may require a fixed asset tag

Insurance coverage for theft, fraud and dishonest acts is recommended

23

Transfers between Activity Accounts ◦ Campus Activity Funds – as approved by the

Principal ◦ Student Activity Funds – as approved by the student

officer(s), sponsor, and Principal ◦ When transfers as loans occur, the school district

should ensure that appropriate approvals have been received and that the loans are repaid by the end of the school year in which the loan was granted. (FASRG)

24

All receipt books, deposit slips, and checks must be maintained for audit – 5 years

Supporting documentation for Fund Raisers: ◦ Fund Raiser authorization form ◦ Fund Raiser Profit/Loss Statement (Recap) ◦ Fund Raiser Collections Record ◦ Fund Raiser Merchandise Distribution Log

25

26

A petty cash fund may be established at the discretion of the principal for the purchase of small, miscellaneous items. Disbursements from petty cash funds should not exceed the school district's preset limit for petty cash purchases, and employee and other checks should not be cashed from petty cash funds. (FASRG)

27

Petty Cash must always be in balance ◦ Example: $200 petty cash fund

28

$80 Cash

$120 Receipts $200 Petty

Cash Fund

If Petty Cash payments are authorized with Activity Funds, the following procedures should be adhered to: ◦ Use for small, miscellaneous purchases only ◦ Do not exceed spending limit set by district, if

any ◦ Obtain appropriate prior approvals ◦ Ensure that funds exist in the appropriate

account prior to the expense ◦ Collect and retain original receipts ◦ Replenish the petty cash account as needed

29

When the receipt total is insufficient to operate the petty cash fund, or at the preset limit, a Petty Cash Reimbursement form should be submitted to convert the receipts to more cash.

The appropriate account codes should be expensed for the petty cash receipts.

30

Petty Cash Voucher ◦ Records the transaction

Petty Cash Reimbursement Form ◦ Replenishes cash & posts expenses to appropriate

budget codes

31