Section V Chapter 1 Monthly and Fiscal Year-end Closing Procedures

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1 Page 1-1 I. GENERAL DESCRIPTION All bank accounts maintained by each school must be properly monitored and reconciled on a monthly basis. The school treasurer is responsible for preparing the bank reconciliations, as well as the Fund-9 expenditures reconciliation; while the principal must review and sign these reconciliations evidencing his/her approval. The bank reconciliation, along with the Fund-9 reconciliation, for each month must be submitted to the Internal Fund Accounting Section by the 20 th day of the next month following the close of the prior one (i.e., the August bank reconciliation is due on September 20.) The fiscal year for Miami-Dade County Public Schools ends on June 30. During May of every fiscal year, the Internal Fund Accounting Section issues a memorandum to all schools with closing instructions and deadline dates. As part of the district s fiscal yearend closing process, the Internal Fund accounts for all schools are reconciled centrally by the Internal Fund Accounting Section; and this financial information is included in the district s Annual Financial Report. Consequently, it is imperative that all schools/centers submit the June 30 Bank Reconciliation and other required reports in accordance with the established deadlines as stipulated in the closing procedures memorandum. This chapter provides the overall guidelines for preparing the monthly bank reconciliation as well as information on the fiscal year end closing process. Any questions should be directed to the school s Business Manager in the Internal Fund Accounting Section. II. GENERAL POLICY A. The school principal is responsible for reviewing all bank reconciliations and financial reports prepared by the treasurer and submitted to the Internal Fund Accounting Section on a monthly basis, including the final fiscal year-end reports. 1. The principal must ensure all monthly and fiscal year end financial reports are properly completed and timely submitted to the Internal Fund Accounting Section by the prescribed deadlines.

2 Page Provisions shall be made to make sure a school site administrator is available to review and sign all reports, as required, in order to meet deadlines. 3. The school treasurer is responsible for preparing the bank reconciliation and other required fiscal year end financial reports; nevertheless, a designated back-up person should be trained and available in the event the treasurer is unable to close for the fiscal year. B. Every fiscal year, a schedule of monthly closing dates for the MSAF system is made available to all schools. The MSAF system s closing date for the fiscal year is generally the last Friday of June; therefore, it is treasurer s responsibility to post all financial transactions for the fiscal year by 4:30 pm on that day. C. A running checkbook balance, reflected on the checkbook stubs, must be maintained by the treasurer at least on a monthly basis. The principal is responsible for monitoring that this running checkbook balance is maintained to avoid overdrawing the available balance in the checking account. D. Copies of MSAF reports and screens required to reconcile the checking account must be maintained for audit purposes. Upon the close of each month, all financial records must be filed in an organized, sequential manner to be retained for audit purposes. E. It is the treasurer s responsibility to access and print out a copy of the current fiscal year s closing instructions memorandum issued by the Internal Fund Accounting Section, as the deadline dates fluctuate from year to year, and proceed accordingly. When the fiscal year-end closing procedures are completed and the financial report for June 30 is submitted, all Internal Fund records for the entire fiscal year must be organized and packed away in a secure area for audit purposes.

3 Page 1-3 III. GENERAL PROCEDURES A. As the first step on the Monday morning following the MSAF closing day for the prior month (usually the last Friday of the month), the treasurer must print out the following MSAF reports, using the Current Action Inquiry MSAF screen to access them: (Print at your respective work location). 1. Selection 05 - Available Funds Balance for Program 5009 Function Selection 06 - Available Funds by Object 3. Selection 07- Internal Funds Reports (enter) a. Print Selection: 02, Receipt/Check Log b. Print Selection: 03, Monthly Financial Report c. Print Selection: 05, Monthly Operating Statement d. Print Selection: 09, YTD Transaction Program 5009 Function 0901 B. Once printed, the treasurer shall review these reports for propriety of the balances reflected. 1. Monthly Financial Report Internal Funds 2. Receipt Log/Check Log Report 3. Open Purchase Order Log 4. Verify the Receipt figures on the Monthly Financial Report against the total amounts of the Receipt Log. If the figures do not agree, check the transactions. 5. Verify the Disbursement figures on the Monthly Financial Report against the total amounts of the Check Log. If the figures do not agree, check the transactions. C. The following procedures for the preparation of the bank reconciliation are provided as a guide and should be followed accordingly.

4 Page After reviewing the MSAF reports and receiving the bank statement, the treasurer can begin preparing the bank reconciliation using the official Bank Reconciliation (FM-5208) form. To prepare the bank reconciliation, the treasurer will need the following: a. Bank Statement (include cancelled checks and voided checks) b. Receipt/Check Log c. Prior month s bank reconciliation (the one prepared last month) d. NSF Check Log e. Balanced Check Book (daily balance is recommended) 2. Starting from the Bank Statement Balance: a. Deduct (-) the deposits not posted to the MSAF computer system as of closing date; these deposits must appear, usually first, on the next month s Receipt Log Report. b. Add (+) the checks not posted to the MSAF computer system as of closing date; these checks must appear on the next month s Check Log Report. c. Add (+) the deposits in transit (attach copy of validated deposit slips). Deposits in Transit are those that were sent to the bank, posted to the MSAF computer system, but were not credited by the bank by the statement s closing date for that month. d. Add (+) NSF checks, Bank Charges, and Shortages figures and deduct (-) bank credits, overage amounts, and bank interest earned. Make sure to update the system by posting all adjustments and charges, including the interest earned, as reflected on the bank statement. e. List out all outstanding checks on page 2 of the Bank Reconciliation (FM-5208) form and deduct (-) the total sum of outstanding checks reflected on page 2. Outstanding Checks are posted to the MSAF computer system, but are not cashed by the bank as of closing bank statement date.

5 Page Checkbook balance (Sum of 1 thru 5) total amount must agree with the cash amount reflected on the Available Funds-Object 06 screen print out. 4. Savings/Investments figures must agree with the total investments showed on Available Funds-Object Report. 5. Total Cash (Sum of 6 & 7). This figure must agree with the total ending cash balance reflected on the monthly totals of the Monthly Financial Report. D. Prepare the Fund-9 reconciliation in accordance with the procedures set forth in Section III, Chapter 9 Instructional Materials (Fund 9) Program in this manual. E. The closing procedures, including deadlines and mailing instructions, are issued via memorandum by the Internal Fund Accounting Section. This memorandum is made available to all schools during the month of May, and the instructions provided must be followed accordingly. F. The fiscal year-end June 30 bank reconciliation will be prepared by the treasurer in the same manner as every other month closing. Other required reports must be prepared in accordance with the policies and procedures and submitted along with the closing package. 1. All financial transactions for the fiscal year must be posted to the MSAF Internal Funds Accounting System by the last Friday of June, or alternate date if specified in the closing procedures annual memorandum. 2. Towards the end of every fiscal year, the Closing Procedures workshop is presented by the Internal Fund Accounting Section to assist treasurers and school site administrators in the fiscal year-end closing process. The school s Business Manager must be contacted to enroll for this workshop, as needed.

6 Page 1-6 G. If any questions arise or assistance is needed in preparing the monthly bank reconciliations and fiscal year end closing reports, schools can contact their respective Business Manager in the Internal Fund Accounting Section.

7 Page 2-1 Chapter 2 Retention and Disposal of Records I. GENERAL GUIDELINES FOR RETENTION AND DISPOSAL OF RECORDS A. All financial records associated with Internal Fund activities must be safeguarded and retained for audit purposes. 1. Until the financial records for a particular fiscal year are audited, they must be maintained in the school in a secure area. Additionally, it is generally recommended that preceding year s audited records also be retained in the event research has to be conducted into the prior year. 2. At the request of the auditors, records may be retrieved or disposed of accordingly. B. The Records Management website at can be accessed for information regarding the district s policy and procedures for record retention and transferring records to the district s Record Center. C. Storage boxes for transferring records to the district s Records Center may be obtained by completing a Storage Box Order Form (FM-1695). The storage boxes provided must only be used to transfer records to the district s Records Center and not simply for on-site storage of records.