Welcome to the
 Internal Audit Department

School Activity Fund Policies and Procedures Summary

Author:		Lynn Obremski
Posted:		10/22/2003; 10:48:31 AM
Topic:		School Activity Fund Policies and Procedures Summary
Msg #:		16 (top msg in thread)
Prev/Next:		15/17
Reads:		5143

Collections and Receipts

·         All cash and checks received shall be submitted to the school bookkeeper or secretary  and be deposited without deductions. 

 

·         Money collected by teachers, groups, or organizations shall be remitted timely to the school bookkeeper or secretary if the amount is over $20.00; in any event, all collections must be turned in to the school bookkeeper or secretary each Friday and the last day preceding a holiday or vacation period.  All funds collected shall be supported by proper receipts indicating purpose and shall be deposited intact.

  

Depositing

·         Deposit of cash and checks shall be made at least once a week if there is a scheduled armored car pick-up available.  If cash and checks exceed $500.00, a deposit should be made the same day. All cash and checks should be deposited before leaving on any break or intermission.

 

·         All deposit slips shall be made in duplicate and all checks shall be listed individually by maker and amount on both copies of the deposit slip.

 

Purchasing and Disbursements

 

·         Original invoices, sales tickets, bills for services rendered and cash register receipts must be submitted to the secretary or bookkeeper for payments. All statements must be supported by the original invoice. 

 

·         In secondary schools, the principal or designee and organization sponsor must approve payment prior to issuing a check.

 

·         Checks exceeding any amount between $200.00 and $500.00 as designated by the Principal, require two signatures, with one being an administrator. Checks should state on the front: “Two signatures required for an amount over ____”.  Each school may have up to four signers.

 

·         Checks may be accepted only in payment of an obligation; none may be cashed as a service to an employee, patron, or student.

 

·         As per the district’s legal counsel, School Activity purchases are not subject to tax.

 

Transfers and Adjustments

 

·        Transfers of funds between accounts should be properly documented and signed by the principal or designee.

 

·         Adjustments should be used to properly account for:  outstanding checks older than six months and short checks; posting errors; interest earned or service fees for printing of deposit slips or checks; and deposit corrections.

 

Cancellation of Outstanding Checks

 

·         Checks outstanding for more than six months should be voided and written off.

 

Short Check Procedures

 

·         A short check should be redeposited on a separate deposit slip and should not be re-receipted. If uncollectible, an adjustment should made decreasing the checking account and the activity account.  An adjustment should be made for bank charges.  Collection of a short check after deduction will need a new receipt. 

 

Financial Reports

 

·         Signed Financial reports are due by the 15^th of each month.  A copy is to be retained by the school for record purposes.

• For schools that are utilizing the excel format:
  • Send a signed copy of the Financial Report,
  • a copy of the Ledger,
  • and a Copy of the Bank Statement
• For schools that are on Manatee:
  • Send a signed copy of the Monthly report,
  • Trial Balance
  • Reconciled Bank Reconciliation (proof of cash)
  • Cash Receipts Journal
  • Cash Disbursements Journal
  • A Copy of the Bank Statement

 

·         Gifts and donations exceeding $500.00 in value need Board of Education approval.  The gift approval form should consist of the donor’s name, donor’s address, the amount donated, and the intended use of the donation. 

 

·         All federal grants and grants $1,000.00 and over need to be sent in to the Grants Office.  Checks should be sent to the Grants office directly and not deposited into the School Activity Fund Account.

 

Scholarship and Memorial Accounts

 

·         Each scholarship and memorial must be accounted for in individual ledger accounts.

 

·         Restrictions must be documented.

 

School District Accounts

 

·        Collections from fees or fines fixed and imposed by the Board of Education of any school district shall be paid over to the treasurer of such board as received, or in no event later than the 10th day of the month following that in which collected, and shall be credited and deposited in the same manner as other funds belonging to the district.

 

·         A remittance form or memo should be attached to the check and remitted to the General Accounting Department.  The remittance should include the appropriate account numbers to be credited.

 

Employment – School Activity Fund

 

·         Payments to students for employment must have prior approval of proper Area Superintendent.

 

·         Any payment made to any Denver Public School employee for services must be paid through the normal payroll system. 

 

·         Any non-DPS individual paid for services rendered must complete a W-9 and submit this form to Accounts Payable.  Necessary instructions for this procedure can be found in the Accounts Payable section of the Business and Finance Procedures Manual.

 

Written Policy

 

·         Each secondary school must have written policies regarding the Student Activity Fund provided to all administrators, staff, teachers and students responsible for school money.

 

Deficit Balances

 

·         Any deficit in an account at the end of the school year must be eliminated prior to the close of school and expenditures should be monitored at year-end to prevent ending the year with a deficit balance in any account.

 

Petty Cash Procedures

 

·         In elementary schools, a petty cash fund of not more than $100.00 may be established for small disbursements not exceeding $10.00.  In secondary schools the petty cash fund may be $250.00 with disbursements not exceeding $25.00.

 

Admission Tickets

 

·         Tickets must be used when $1.00 or more is charged for an admission and numbers for all used and unused tickets must be accounted for, both before and after the event.

 

DPS Identification Number

 

·         The DPS employer identification number is not to be used by any organization outside of the School Activity Fund.

 

·         This number is to be used for accounts established at financial institutions and with companies giving commissions, grants and donations.

 

Retention of Accounting Records

 

·         The schedule for retention of accounting records pertaining to the School Activity Fund is shown on pages 13 and 14 of the School Activity Fund Section of the Business and Finance Procedures Manual.

 

Interest

 

·         During our audits we noted a number a schools that had unusually large amounts in their checking accounts.  Each school may maintain an interest bearing checking, savings, and/or money market account with an approved banking institution.

 

Manatee Training

 

·         As of July 1, 2002, The Department of Technology (DoTS) will be taking over the support of the Manatee software system.  The training schedule for Manatee is available on the DoTS web site. The Internal Audit Department will still be responsible for the functional support of Manatee i.e. questions regarding unreconciled items, etc...