Principals' Information

School Activity Fund

2006-2007

 The following are key points in the Principal’s role in maintaining compliance with School Activity Fund Policies and Procedures.

BANKING

Ø      The Principal should establish a policy as to the number of signatures required on checks for amounts between $200.00 and $500.00.

Ø      Checks for amounts over $500.00 require two signatures with one being that of an administrator.

Ø      It is the Principal’s responsibility to maintain current signers on all bank accounts, including savings, Certificates of Deposit, Money Market as well as checking for the School Activity Fund and Imprest (Petty Cash) Fund.

REPORTS

Ø      The Financial Report must be submitted to the Internal Audit Department by the 15^th of the month following the month for which activity is being reported.

Ø      These reports are to be approved and signed by the Principal prior to being sent to the Internal Audit Department.  The Principal’s signature indicates the financial activity has been reviewed and is reasonable.

GIFTS, DONATIONS, AND GRANTS

Ø      Gifts and donations (both cash and non-cash) exceeding $500.00 in value must be approved by the Board of Education.

Ø      Grants of $1,000.00 and over and all federally funded grants should be sent to the District.

Ø      The Grants Management Office should be contacted for details for processing grants.

SCHOLARSHIPS

Ø      Scholarships must be maintained in separate general ledger accounts, be used annually, and written stipulations governing each scholarship are to be kept on file.

PURCHASING AND DISBURSEMENTS

Ø      In secondary schools payment should be approved by the principal or his/her designee and the organization sponsor prior to issuing a check.

Ø      Equipment purchases greater than $5,000.00 or computer purchases must be reported to Inventory Management on an Equipment Activity Report (EAR).

Ø      District procedures must be followed for the use of School Activity Funds for travel, memberships, grounds improvements, carpeting, and computer equipment.

TRANSFERS AND ADJUSTMENTS

Ø      Each transfer must be authorized by an Order on School Treasurer (or transfer authorization form) indicating the accounts receiving and providing the funds and must be signed by the principal or designee and by the sponsor of the school organization from which the funds are drawn.

Ø      Transfers of money between checking and savings accounts should be authorized by the principal or designee.

Ø      If the transfer decreases an Organization account, the transfer should also be approved by the sponsor of the school organization from which funds are drawn.

DEFICIT BALANCES

Ø      Expenditures resulting in a deficit balance in an account at the end of the school year should not be allowed.

Ø      Potential year-end deficit balances should be eliminated by an approved transfer from an appropriate account.

USE OF DENVER PUBLIC SCHOOLS INDENTIFICATION NUMBERS

Ø      The DPS employer identification number may not be used at any financial institution for accounts maintained for organizations not within the School Activity Fund.

Ø      This number is to be used only for accounts maintained by the School Activity Fund.

Ø      It may be furnished to companies giving commissions, grants or donations.

CHANGES IN PRINCIPAL OR BOOKKEEPING STAFF

Ø      The Internal Audit Department must be notified immediately upon determination of a change in staff; not when the change has been made.  This will allow the Internal Audit Department to make the necessary reviews and document the proper cut-off of financial activity.

Ø      The appropriate out-going and incoming authorized signers on bank accounts should personally attend to the changeover at all applicable financial institutions.